QUESTION What is the rationale for companies to provide employees with bonuses, profit sharing, commissions, and stock options? A) to save money on base salaries B) to encourage better performance C) to avoid paying golden parachutes D) as an alternative to promotions E) to ensure fairness of compensation ANSWER Answer: B Explanation: B) Bonuses […]
QUESTION Years ago, recruiting, hiring, and similar functions in a company were performed by the personnel department. Why is the more common name for this department now human resources? What will be an ideal response? ANSWER Answer: The name human resources reflects the understanding of employees as a valuable resource for a business. Explanation: […]
QUESTION Benefits and supplemental pay, such as bonuses, account for how much of the cost of an average worker’s salary? A) less than one-quarter B) about one-quarter C) about one-third D) just over one-half E) less than two-thirds ANSWER Answer: C Explanation: C) Estimates of the costs of employee benefits range from 30 percent […]
QUESTION Thuy works in a factory sewing children’s clothes. In addition to an hourly salary of $6.75, she earns 14 cents for every clothing item she finishes that passes quality inspection. What is Thuy’s additional incentive structure called? A) bonus B) gainshare C) commission D) piece rate E) profit share ANSWER Answer: D Explanation: […]
QUESTION During the late 2000s, when large U.S. financial institutions were failing and required support from taxpayers, their top executives received bonuses equal to many times the annual salary of the average U.S. worker. Many Americans felt this was wrong because it broke which basic concept of incentives? A) They must satisfy individual employee needs. […]
QUESTION Which type of incentive can often have a lengthy delay before an employee realizes tangible financial benefits? A) gainsharing B) piece rate pay C) commissions D) stock options E) bonuses ANSWER Answer: D Explanation: D) Stock options give employees the right to buy discounted company stock at a future date. Employees often have […]
QUESTION Jesse is director of the transportation department for a metropolitan area choked by commuter traffic. He is developing a policy that encourages companies to support alternate employee scheduling to decrease rush hour gridlock. Which strategy will be most effective in reducing traffic? A) flextime B) telecommuting C) compressed workweek D) job sharing E) part-time […]
QUESTION After implementing some new initiatives, Jake’s workgroup managed to save the company over $42,000 last quarter. To mark the achievement, every member of the team received a check for $1,800. What is the term for these payments? A) profit sharing B) stock options C) commissions D) bonuses E) gainsharing ANSWER Answer: E Explanation: […]
QUESTION Which of the following is NOT considered a soft skill for the workplace? A) conflict resolution B) programming C) communication D) problem solving E) collaborating ANSWER Answer: B Explanation: B) Computer programming is a specific technical skill necessary to perform a particular job. Soft skills help employees navigate successfully through the work environment […]
QUESTION How has the growth of computer technology affected work hours? A) more telecommuting B) more flextime C) more job sharing D) more compressed workweeks E) more part-time work ANSWER Answer: A Explanation: A) Working at home with telecommunications—such as e-mail and the Internet—is called telecommuting.
