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Exploring Incentive Pay
Individual Incentives
Group Incentives
Companywide Incentives
100
Compensation, other than base wages or salaries, which fluctuates according to employees' attainment of some standard such as a preestablished formula, individual or group goals, or company earnings is defined as what?
What is Incentive Pay
100
This type of plan rewards employees whose work is performed independently
What is Individual Incentive Plan
100
This type of incentive program rewards employees for their collective performance, rather than for each employee's individual performance
What is Group incentive programs
100
This type of incentive plan rewards employees when the company exceeds minimum acceptable performance standards
What is Companywide Incentives
200
Why do companies generally institute incentive pay programs?
To control payroll costs or to motivate employee productivity
200
What are the four common types of individual incentive plans?
What is Piecework plan Management incentive plan Behavioral encouragement plans Referral Plans
200
Name the two major types of group incentive plans companies use
What is team-based/small-group incentive plan and gain sharing plans
200
Name two major types of companywide incentives plans
What is Profit Sharing plans and Employee Stock Option Plans
300
Traditional Core Compensation
This type of compensation generally includes an annual salary or hourly wage that is increased periodically on a seniority or merit basis.
300
The best known management incentive plan is known as
What is Management by Objectives (MBO)
300
This type of plan describes group incentive systems that provide participating employees with an incentive payment based on improved company performance for increased productivity , increased customer satisfaction, lower costs, or better safety records
What is the Gain Sharing Plan
300
What type of compensation is supposed to create a sense of ownership, aligning the interests of the executive with those of the owners or shareholders of the company over the long term
What is Deferred Compensation
400
Annual Raises are linked to such factors as
What is seniority and past performance
400
Economists argue that there are two advantages to companies of using piecework plans in manufacturing settings known as
What is Incentive Effect and Sorting Effect
400
This plan places its emphasis on employee involvement
What is the Scanlon Plan
400
This type of plan awards cash to employees, typically on a quarterly or annual basis
What is the current profit sharing plan
500
Employees under traditional pay structures earn raises according to their length of service in the organization as well as
What is supervisors' subjective appraisals of employee's job performance
500
Name 3 Key Advantages of Individual Incentive Pay Programs
What is promoting the relationship between pay and performance, promoting equitable distribution of compensation within companies, and the compatibility with such individualistic cultures such as the US
500
What is the ratio used to determine whether bonuses will be awarded under a Rucker Plan
What is Value added/Total Employment Costs
500
What fixed formula uses a specific percentage of either pre-tax or post-tax annual profits contingent upon the successful attainment of the company goal
What is the first-dollar-of-profits formula