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Exam 10: Pay-For-Performance: Incentive Rewards

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Question 51

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Identify the principal methods for compensating salespersons and the advantages of each method.

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Compensation plans for sales personnel m...

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Question 52

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The success of the Lincoln Electric Company profit-sharing plan rests largely on:

A) contributions by employees.
B) objective standards.
C) comparison data between departments.
D) economics of the review period.

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Question 53

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Group incentive plans do all of the following except:

Discuss the advantages of incentive pay programs.

Enterprise incentive plans allow all organizational members to participate in the plan's payout.

According to one budget survey,what percentage of reporting organizations use variable pay?

Gainsharing plans are designed to increase employee job satisfaction and improve customer awareness.

Straight commission plans may induce salespeople to grant price concessions.

A study on bonus vs.actual pay raises showed that improving one's pay through merit increases by 1 percent would increase future performance by ___ percent.

Compensation committees justify large executive salaries and bonuses in part because good executive talent is in high demand.

Discuss the problems identified with merit raises.As a manager what would you do to insure that merit raises fulfilled their intended value?

The idea behind the Scanlon Plan is that employees should not only offer ideas to improve productivity,but should also be rewarded for those ideas.

Compensation specialists recognize all the following generations of employees except:

Fixed pay is more flexible than variable pay.

The performance "threshold" in incentive plans is the name given to the amount of the award.

Stock options have become popular in service organizations,but have lost favor in manufacturing firms.

Stock options are rights attached to the achievement of specific organizational objectives.

For incentive plans to be successful,one of the most critical requirements is that managers be willing to grant incentives based on differences in individuals,teams,or organizational criteria.

One word,_____,describes the design of individual incentive plans

Sales incentives can be affected by external factors beyond the salespersons control.