Chapter 10 - Pay-for-Performance Plans

51. (p. 340) Individual spot awards are an example of an incentive plan.

FALSE

Difficulty: Medium

52. (p.340) One common feature an established standard against

which worker performance is compared to determine the magnitude of the incentive

pay.

TRUE

Difficulty: Easy

53. (p. 340) The method of rate determination for incentives for short cycle jobs is typically the

time it takes to complete one unit.

FALSE

Difficulty: Medium

54. (p. 340) Individual incentives never include financial penalties for poor performance. 

FALSE

 

Difficulty: Medium

55. (p. 341) Jobs with short cycle tasks normally have a rate based upon a time period per unit of

production. 

FALSE

 

Difficulty: Medium

 

56. (p. 341) A job involving production of many parts each hour would have a rate based upon a

time period per unit of production. 

FALSE

Difficulty: Medium

 

10-13

© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any

manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Chapter 10 - Pay-for-Performance Plans

57. (p. 341) The standard hour plan is likely to be an effective incentive plan for plumbers

employed by a plumbing company. 

TRUE

Difficulty: Medium

 

58. (p. 342) Standard hour plans are better for non-repetitive jobs requiring numerous skills for

completion. 

TRUE

Difficulty: Difficult

 

59. (p. 343) A fast and efficient worker would earn more money under a Rowan plan than under

a Halsey 50-50. 

TRUE

Difficulty: Difficult

 

60. (p. 343) The Rowan plan uses a standard that is purposefully set high requiring high

performance levels. 

FALSE

 Difficulty: Difficult

 

61. (p. 343) A common problem with incentive systems is workers focus primarily on behaviors

and results that are rewarded.

TRUE

Difficulty: Easy

62. (p. 344) Individual incentive systems are growing in popularity.

FALSE

Difficulty: Easy

10-14

© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any

manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Chapter 10 - Pay-for-Performance Plans

63. (p. 344) Employees working under individual incentive plans tend to resist the introduction

of new technology. 

TRUE

Difficulty: Medium

 

64. (p. 344) Costing and budgetary control are more difficult using individual incentives than

under time-based pay. 

FALSE

Difficulty: Medium

 

65. (p. 344) Many of the disadvantages of individual incentives are due to both a fear production

standards may be changed and workers' focus on maximizing output. 

TRUE

Difficulty: Easy

 

66. (p. 345) While interest in teams and team compensation has grown significantly, most

companies are not happy with their team compensation systems.

TRUE

Difficulty: Medium

67. (p. 345) The focus of team incentive plans is work groups or teams and does not include

divisions or an entire company. 

FALSE

 

Difficulty: Medium

 

68. (p. 346) The level problem in team compensation is an example of the line of sight problem. 

TRUE

 

Difficulty: Difficult

 

10-15

© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any

manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.