HAT.2.2

How can a bonus plan align with organizational objectives and effectively motivate employees?

Discuss the potential moral hazards associated with team pay plans and how they can be mitigated.

Evaluate the effectiveness of individual bonus schemes in ensuring ongoing employee motivation.

What are the key factors to consider when designing a bonus plan to ensure it is effective?

Why is it important to clearly communicate the link between effort and reward in a bonus plan?

Analyze the potential challenges of implementing a performance-based piecework plan in a team-oriented work environment.

Which type of bonus plan rewards managers for achieving specific targets?

• A. Management by Objectives (MBO)

• B. Standard Piecework Plan

• C. Behavioral Encouragement Plan

• D. Referral Plan

What is the main purpose of a team pay system?

• A. To provide non-cash benefits

• B. To incentivize and reward collective achievements

• C. To reduce the overall compensation costs

• D. To reward individual performance

Which type of bonus is given for exceptional individual performance on the spot?

• A. Referral Plan

• B. Performance-Based Piecework Plan

• C. Behavioral Encouragement Plan

• D. Spot Bonus

Which type of incentive plan rewards employees based on their hourly production?

• A. Management by Objectives (MBO)

• B. Behavioral Encouragement Plan

• C. Standard Piecework Plan

• D. Performance-Based Piecework Plan