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 Which of the following provides the most objective assessment of an employee’s performance? A) self-appraisal B) customer appraisal C) rank-and-yank appraisal D) manager appraisal E) colleague appraisal ANSWER Answer: C Explanation: C) The rank-and-yank system assigns grades for performance and ranks employees along a curve. The other options all have a strong human […]
QUESTION Orlando is getting ready for his first performance evaluation at the accounting firm. His manager asked him to select several colleagues, subordinates, and clients to complete forms rating his performance, which they will submit anonymously. What type of evaluation process does the accounting firm use? A) rank-and-yank system B) subjective appraisals C) 360-degree assessment […]
QUESTION Prab was promoted to a managerial position six months ago and is conducting her first performance appraisals. She is committed to developing her employees and wants to do an excellent job counseling them in their appraisals. Which of the following should Prab NOT do? A) discuss facts about performance and desired improvements B) treat […]
QUESTION Which of the following is NOT considered when determining base pay for an employee? A) pay rates offered by area competitors B) union status of the job C) employee experience D) employee gender E) prevailing industry pay levels ANSWER Answer: D Explanation: D) The Equal Pay Act of 1963 prohibits pay differences based […]
