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55. Which of the following types of incentive plans are specifically designed to promote group
performance?
56. Which of the following incentive programs measures improvements in productivity and
effectiveness and distributes a portion of each profit to employees?
57. Organizations that want employees to focus on efficiency and on group incentives are
most likely to implement a _____ program.
58. An organization uses a gainsharing program in which employees receive a bonus if the
ratio of labor costs to the sales value of production is below a set standard. This incentive plan is
referred to as:
59. The Scanlon plan is a variation of:
60. What should employees do to earn bonuses under the Scanlon plan?
61. An organization uses Scanlon plan to provide incentives to employees. The workers
produce parts worth $5 million. The target ratio set by the organization is 30%. The employees will
be given a bonus if the actual labor costs are less than:
62. What is the difference between bonuses and team awards?
63. Team awards differ from group bonuses in that they:
64. Which of the following is an advantage of group incentives?
65. Which of the following is a disadvantage of using group bonuses?
66. Which of the following is an incentive plan that is intended to improve the overall
performance of an organization?
67. What is profit sharing?
68. Why do organizations use profit sharing?
69. Which of the following incentive plans would enable its employees to think like owners,
taking a broad view of what they need to do in order to make the organization more effective?
70. Identify the disadvantage of using profit sharing plans.
71. What is the drawback of stock ownership as a form of incentive pay?
72. The link between employees' performance and pay is harder to establish in:
73. Stock options have their greatest motivational potential during periods of:
74. In 2003, a company employee received an option to purchase the company's stock at $45
per share. If the stock is trading at $40 a share in 2005, the employee will most likely:
