61. In order for merit pay to be motivating:
a) the organization must have clear and accurate methods for assessing performance
b) all employees should receive a raise that covers the cost of living increase
c) it should exceed what an employee would receive under a commission or piece-rate incentive system
d) an organization should pursue a Bargain Laborer HR strategy
62. All of the following are concerns about merit pay EXCEPT:
a) merit pay increases can be a very small proportion of total pay
b) the amount of pay at-risk is minimal
c) the amount of pay at-risk is significant
d) there can be little incentive for employees who have a comfortable salary to maximize contributions to the organization
63. All of the following enhance group or team incentives EXCEPT:
a) when the size of the group being measured is small
b) when rewards are given to team members as they meet their individual goals
c) when collective performance can be accurately measured
d) when management support for a group incentive rewards system is high
64. Which of the following is NOT true about team rewards?
a) giving team members equal shares of a team reward builds a sense of unity
b) dividing the team reward based on performance may undermine cooperative efforts of the team
c) equal allocation of rewards among team members is highly motivating for the team members
d) a system that bases team rewards on the value of contributions employees make to a team can encourage both teamwork and individual effort
65. Which of the following is NOT true about gainsharing?
a) gainsharing focuses on individual and group rewards
b) gainsharing is dependent on reducing costs and improving productivity
c) gainsharing involves establishing a benchmark for productivity
d) under gainsharing, cost savings and productivity increases are shared by employees and the organization
66. Gainsharing programs are likely to be successful:
a) when the organization pays more than 50% of savings to employees
b) when employees are involved in developing and carrying out the plan
c) where employees are hired for a limited term to work on specific projects
d) with organizations pursuing the Committed Expert HR strategy
67. Weaknesses of profit sharing include:
a) profit sharing does not align the interests of employees with the interests of owners
b) profit sharing does not have effective line of sight
c) profit sharing is a strong motivator only when the company is making a profit
d) profit sharing puts too much of employee compensation at risk
68. Which of the following is NOT true about stock plans and stock options?
a) stock plans help align the interests of employees and owners
b) stock options help align the interests of employees and owners
c) stock options are only offered to high-level executives in large companies
d) stock options provide a long-term incentive that links the financial interests of all stock owners
69. All of the following are factors for developing a compensation package EXCEPT:
a) the organization’s overall competitive strategy must be determined
b) the organization’s HR strategy must be determined
c) a pay level must be established
d) merit pay and/or cost of living increases must be added to base pay
70. Organizations with which HR strategy are most likely to have the lowest level of pay at risk?
a) Loyal Soldier HR strategy
b) Bargain Laborer HR strategy
c) Free Agent HR strategy
d) Committed Expert HR strategy