Individual Incentive & Recognition
Team & Org Wide Incentives
Pay 4 Time Not Worked & Insurance
Retirement
Personal & Family Friendly Benefits
100
Which of the following is the most commonly used tool for motivating employees? A) merchandise incentives B) recognition programs C) special events D) variable pay
B) Surveys find that firms most frequently use employee recognition programs to motivate employees. Merchandise, special events, travel, training, and variable pay are used less frequently to motivate employees.
100
Most gainsharing plans include all of the following features EXCEPT ________. A) a philosophy of cooperation B) a focus on individual achievement C) sharing of benefits formula D) an involvement system
B) The features of most gainsharing plans include a philosophy of cooperation, identity, competence, an involvement system, and a sharing of benefits formula. The plan does not call for focusing on individual achievement.
100
Which of the following terms refers to benefits for time not worked such as unemployment insurance, vacation and holiday pay, and sick pay? A) supplemental pay benefits B) employee assistance C) financial incentives D) merit pay
A) Pay for time not worked—also called supplemental pay benefits—is the most costly benefit. Common time-off-with-pay periods include holidays, vacations, jury duty, funeral leave, military duty, personal days, sick leave, sabbatical leave, maternity leave, and unemployment insurance payments for laid-off or terminated employees.
100
Which term refers to the money that an employer and employee have placed in the employee's pension fund that cannot be forfeited for any reason? A) thrift plans B) vested funds C) stock options D) cash balance funds
B) Vested funds are the money employer and employee have placed in the latter's pension fund that cannot be forfeited for any reason. The employees' contributions are always theirs.
100
Which of the following provides services such as financial counseling, child care referrals, and adoption assistance? A) long-term pension plan B) work-life benefit service C) benefit management system D) employee assistance program
D) Employee assistance programs (EAPs) provide advisory services, such as mental health counseling, personal legal and financial services, child and elder care referrals, and adoption assistance. One study found that personal mental health was the most common problem addressed by employee assistance programs, followed by family problems.
200
Which of the following terms refers to any salary increase the firm awards to an individual employee based on his or her individual performance? A) merit pay B) variable pay C) competency-based pay D) incentive pay
A) Merit pay is any salary increase the firm awards to an individual employee based on his or her individual performance. It is different from a bonus in that it usually becomes part of the employee's base salary, whereas a bonus is a one-time payment.
200
What type of profit-sharing plan involves the firm simply distributing a percentage of profits as profit shares to employees at regular intervals? A) current profit-sharing B) Lincoln incentive system C) Jefferson incentive system D) employee stock ownership plan
A) There are several types of profit-sharing plans. With current profit-sharing or cash plans, employees share in a portion of the employer's profits quarterly or annually. In cash plans, the firm simply distributes a percentage of profits (usually 15% to 20%) as profit shares to employees at regular intervals.
200
The indirect financial and nonfinancial payments employees receive for continuing employment with the company are called ________. A) reimbursement B) employee compensation C) salary D) benefits
D) Benefits—indirect financial and nonfinancial payments employees receive for continuing their employment with the company—are an important part of just about everyone's compensation. They include things like health and life insurance, pensions, time off with pay, and child care assistance.
200
A 401(k) plan is best described as a(n) ________. A) defined contribution pension plan B) defined benefit pension plan C) health savings account D) golden parachute
A) The most popular defined contribution plans are based on section 401(k) of the Internal Revenue Code, and called 401(k) plans. The employee authorizes the employer to deduct a sum from his or her paycheck before taxes, and to invest it in the savings in his or her 401(k).
200
The primary purpose of ________ is to enable employees to balance work and family obligations. A) automated benefits systems B) work-life benefits C) cafeteria plans D) pooled paid leave banks
B) Many employers offer family-friendly (or work–life) benefits to help employees balance work and family responsibilities. These benefits include child care, elder care, fitness facilities, and flexible work schedules.
300
How does merit pay differ from a bonus? A) Merit pay becomes part of an employee's base pay, but a bonus does not. B) A bonus becomes part of an employee's base pay, but merit pay does not. C) Merit pay is linked to individual performance, while a bonus is linked to profits. D) A bonus is linked to individual performance, while merit pay is linked to profits.
A) Merit pay is any salary increase the firm awards to an individual employee based on his or her individual performance. It is different from a bonus in that it usually becomes part of the employee's base salary, whereas a bonus is a one-time payment.
300
Which of the following involves setting a production standard for a specific work group and then paying incentives to the group members if they exceed the standard? A) team incentive plan B) group profit-sharing plan C) employee stock ownership plan D) organization-wide incentive plan
A) A team (or group) incentive plan is used by firms that rely on teams to manage work. This type of plan involves setting a production for a specific work group. Group members are paid incentives if the group exceeds the production standard.
300
________ are groups of health care providers that contract with employers, insurance companies, or third-party payers to provide medical care services at a reduced fee. A) PPOs B) HMOs C) DMOs D) Hospitals
A) Preferred provider organizations (PPOs) let employees select providers who agree to provide price discounts and submit to certain utilization controls, such as the number of diagnostic tests that can be ordered. The HMO is a medical organization consisting of numerous specialists operating out of a community-based health care center.
300
What is the main problem associated with defined benefits plans? A) lack of employer matching B) lack of portability C) highly regulated D) highly taxed
B) One problem with defined benefits plans is that to get your maximum pension, you generally must stay with your employer until you retire—the formula, recall, takes the number of years you work into consideration. With defined contribution plans, your pension is more portable—you can leave with it at any time, perhaps rolling it over into your next employer's pension plan.
300
Kim works a 4-day workweek that consists of 10-hour days. Kim's employer most likely offers ________. A) job sharing B) flextime schedules C) telecommuting options D) compressed workweeks
D) Compressed workweek schedules involve working fewer days each week, but more hours each day, such as 4-day workweeks with 10-hour days. Telecommuting involves working away from the office.
400
Which term refers to any plan that ties pay to productivity or profitability? A) piecework B) variable pay C) merit pay D) overtime pay
B) The term variable pay refers to incentive plans that tie a group's or individual's pay to the firm's profitability or productivity. Piecework is a type of incentive plan that bases pay on output.
400
What is the most likely reason that firms are implementing group incentive plans? A) stricter regulations regarding team bonus plans B) heavy reliance on teams to manage work C) expected loss of older workers D) rising cost of health benefits
B) Firms increasingly rely on teams to manage their work. They therefore need incentive plans that encourage teamwork and focus team members' attention on performance.
400
All of the following are Social Security benefits EXCEPT ________. A) death benefits B) disability payments C) retirement benefits D) defined contribution benefits
D) There are three types of Social Security benefits. First are the familiar retirement benefits, which provide an income if the employee retires at age 62 or thereafter and is insured under the Social Security Act. Second, death benefits provide monthly payments to dependents regardless of the employee's age at death, again assuming the employee was insured under the Social Security Act. Finally, disability payments provide monthly payments to an employee and his or her dependents if the employee becomes totally disabled for work and meets specified work requirements.
400
Which of the following is considered a hybrid of defined benefit and defined contribution plans? A) ESOP B) 401(k) plan C) flexible savings D) cash balance plan
D) Without delving into all the details, cash balance plans are a hybrid; they have defined benefit plans' more predictable benefits with defined contribution plans' portability advantages. The employer contributes a percentage of employees' current pay to the employees' pension plans every year, and employees earn interest on this amount.
400
True or False - Studies indicate that employee assistance programs help reduce absenteeism among employees with family problems and illnesses.
TRUE - EAPs are increasingly popular, with more than 60% of larger firms offering such programs. Sick family members and problems such as depression account for many of the sick-leave days employees take. Employers can reduce these absences with programs that provide advice on issues like elder care referrals and personal counseling.
500
According to research, most firms use ________ to motivate the short-term performance of managers. A) work-life benefits B) annual bonuses C) variable pay D) training
B) Annual bonuses are being used by more firms to motivate the short-term performance of managers. Annual bonuses are tied to company profitability.
500
All of the following are examples of organization-wide incentive plans EXCEPT ________. A) employee stock ownership plans B) gainsharing plans C) golden parachute D) profit sharing
C) Organization-wide incentive plans are plans in which all or most employees can participate, and which generally tie the reward to some measure of company-wide performance. Plans include profit sharing, Scanlon/gainsharing plans, and employee stock ownership (ESOP) plans. Golden parachutes are given to individual employees.
500
Which condition must be met for an injured employee to receive workers' compensation benefits? A) The injury occurred during an overtime or nighttime shift. B) The employee was wearing adequate protection. C) The injury was not the fault of the employee. D) The employee was injured while on the job.
D) For workers' compensation to cover an injury or work-related illness, the worker must only prove that it arose while on the job. It does not matter if the worker was at fault or if protective gear was worn.
500
Jenny's pension plan encourages her to contribute at least 5% of her annual salary in addition to the set amount that her company contributes. She is given choices regarding how the money is invested. When she retires, the amount she has available will depend on how much she invested herself, and the rate of return on the investments she chose. This pension plan would be classified as ________. A) qualified, defined benefit B) non-contributory, defined benefit C) contributory, defined contribution D) contributory, defined benefit
C) The employee contributes to the contributory pension plan, while the employer makes all contributions to non-contributory plans. With defined benefit pension plans, employees know ahead of time the pension benefits they will receive (the benefit is "defined" or specified by amount or formula). Defined contribution pension plans specify what contribution the employee and/or employer will make to the employee's retirement or savings fund. Therefore, Jenny has a contributory, defined contribution plan.
500
True or False - Providing employees with iPhones, laptops, or other tools they need to get their jobs done in any location is known as workplace flexibility.
TRUE - Workplace flexibility means arming employees with the information technology tools they need to get their jobs done wherever they are.
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