Quiz Ch 14-15

Which type of the collective incentives using historical profit as its performance measure?

• Goal-sharing

• Profit-sharing

• Team incentives

• Gainsharing

What type of firms is profit-sharing applicable to?

• profit-making organizations

• public sector organizations

• non-profit enitities

• social community

why do the majority of countries in the world start choosing to use deferred payment plans?

• the amount of dollar bonuses given is less

• can be directly distributed to employees in a timely manner in a period

• every company over the world use it nowadays

• to minimize its tax

say AFirm.co having a $1m benchamrk payroll cost. If the sales value in subsequent period is $20m and company maintain its cost for their raw material set as $10m. how much their payroll costs is (given benchmark ratio of labor costs is 40%)?

• $1m

• $3m

• $4m

• $10m

There are 3 main options of bonus distribution in gainsharing plans, which are?

• equal dollar amount to each unit, equal percentage to each member, unequally based on contribution

• equal dollar amount to each member, equal percentage of each base pay, unequally based on contribution

• equal dollar based on base pay, equal percentage to each unit, unequally based on performance

• equal dollar amount to each member, equal percentage to each unit, equal percentage based on contribution

Which is one of the 8 considerations before designing gainsharing plans?

• cooperative behaviour

• management involvement

• employee attitude

• union attitude

What's the difference between gainsharing and goal sharing?

• gainsharing can be targeted to particular division or department while goalsharing are organization-wide.

• gainsharing does not include employee participation while in goal sharing employee participation is featured

• gainsharing is based on historical benchmark while goalsharing is future oriented

• the bonus pool on gainsharing is not self funded while goalsharing is self funded

Goal sharing has several disadvantages, which one of them is?

• the design is too complex

• it could be easily changed

• they can be costly to establish

• cause significant reward dissatisfaction

What is potential of equity-based rewards for employee?

• Closer integration of individual and company goals

• Long-term financial gains through dividend earnings and share price appreciation

• Long-term commitment and membership behavior

• An insecure means of retirement saving

Which is not the five dimensions to team structures?

• the team is fully self-managing

• the degree of functional diversity within the team

• the nature of the work flow between member teams

• the degree of time commitment is either full time or part time