Which statement best explains why a variable compensation plan would help increase performance
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Name : Clas s: Dat e: Chapter 4 - Components of Compensation Strategy True / False 1. The two key questions that must be addressed in designing any compensation system are: a) What role should each of the three compensation components play in the compensation mix? and b) What total level of compensation should be provided? a. True b. Fals e ANSWER: True 2. An advantage of base pay is that it directly links pay with output or performance. a. True b. Fals e ANSWER: Fals e 3. Generally, research supports the notion that employees prefer compensation strategies that have performance pay as the key compensation mechanism. a. True b. Fals e ANSWER: Fals e 4. The main types of individual performance pay are piece rates, commissions, merit pay, and goal-sharing plans. a. True b. Fals e ANSWER: Fals e 5. Research cited in the textbook suggests that performance pay plans have relatively high discontinuation rates. a. True b. Fals e ANSWER: True 6. An advantage of indirect pay is that benefits receive more favourable income tax treatment than direct pay. a. True b. Fals e ANSWER: True 7. Competitive pressure may force some firms to provide indirect pay. a. True Copyright Cengage Learning. Powered by Cognero.Page 1 Name : Clas s: Dat e: Chapter 11 - Designing Performance Pay Plans True / False 1. In order for the Scanlon plan to work, organizations must be able to predict future cost of inputs, particularly labour. a. True b. Fals e ANSWER: Fals e 2. The Scanlon Plan helps in the development of a cooperative relationship among workers, unions, and management. a. True b. Fals e ANSWER: True 3. The Scanlon plan has changed over the years. A central reason for these changes is the notion that employees can reduce labour input as a function of output by increasing other costs. a. True b. Fals e ANSWER: True 4. Gain sharing is not a viable plan to use if no valid historical benchmark can be set. a. True b. Fals e ANSWER: True 5. Goal-sharing plans have increased in popularity over the last decade. a. True b. Fals e ANSWER: Fals e 6. Employee participation is not necessarily a component of goal-sharing plans. a. True b. Fals e ANSWER: True 7. Financially funded plans combine at least two criteria in establishing goal-sharing bonuses. Often, one of those variables is organizational profitability, making such plans highly motivational to employees. a. True b. Fals Copyright Cengage Learning. Powered by Cognero.Page 1 Which statement best explains why the company has been successful in improving human resource management?Which statement best explains why the company has been successful in improving human resource management? -Technology has allowed human resources to better analyze trends in employment and respond more quickly and efficiently to the needs of the company.
Which statement is the best reason why the company should involve employees from all levels in the task force?Which statement is the best reason why the company should involve employees from all levels in the task force? The company wants its employees to learn collaboratively and creatively and ultimately increase the transfer of knowledge and buy-in to all other employees.
Why is it most important for the HR plan to address redundancy for times of economic downturn?Why is it most important for the HR plan to address redundancy for times of economic downturn? Companies need to be sensitive to how layoffs affect employees and plan alternatives as much as possible.
Which of the following is a type of direct compensation quizlet?Direct compensation includes basic wage (or salary) and performance-based pay.
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