CHAPTER 14
1. In addition to pay received by employees on first shift, employees working second and third shifts
normally receive
(a) larger merit increases
(b) shift differential pay
(c) incentive bonuses periodically
(d) the prevailing union scale for such work
2. A good example of a work premium is
(a) a piecework payment
(b) overtime pay
(c) cost-reduction payment
(d) profit sharing
3. Work premiums or differentials consist of all but which one of the following?
(a) shift differential
(b) weekend pay
(c) pay for extra quantity and quality of output
(d) overtime pay
4. Which one of the following is not a recent addition to recognized workplace related hazards?
(a) other employees who smoke
(b) working with a VDT
(c) cleaning corroded pipes in a nuclear power plant
(d) working at extreme heights
5. To what level employees can incentive plans apply?
(a) any level
(b) management only
(c) salespersons only
(d) those on piece rates only
6. Probably the oldest of all incentive programs are
(a) those that use the group outputs
(b) those that tie workers’ earnings directly to the number of units produced
(c) those that base their incentive plans on seniority
(d) those that use the differential day rate plan
7. Which of the following is not true about a well-designed incentive scheme?
(a) it should reflect the desire of the business to recognize performance
(b) it should be limited to individual efforts
(c) it should assist in coordinating the efforts of all employees
(d) it should demonstrate the ability of the business to reward performance at all levels
8.
In the late 19th and early 20th century, work-improvement researchers recognized the advantages
to be gained through the three Ss of work design. Which one of the following is not one of the
three Ss?
(a) standardization
(b) specialization
(c) simplification
(d) selection
9. What is the basic requirement for an incentive wage plan?
(a) union approval
(b) employee approval
(c) government approval
(d) a quantifiable volume of work
10. The size of a bonus received by an operating manager will quite often be determined by all but
which one of the following criteria?
(a) work unit reduction in cost
(b) performance rating of manager’s subordinates
(c) employee’s own performance rating
(d) area of functional responsibility
11. In giving a reward, which one of the following times, in general, would have the lowest
motivational impact on an employee?
(a) before Christmas
(b) closely following the demonstration of a desired behavior or result
(c) prior to vacation
(d) on the employee’s birthday
12. In contrast to compensation systems in the private sector, those for government employees are
less likely to include use of
(a) wage surveys
(b) job descriptions
(c) job evaluation
(d) financial incentives
13. The discussion of workers doing “ten minutes’ work for 12 hours’ pay” within a nuclear power
facility relates to which of the following?
(a) high emotional stress
(b) severe physical discomfort
(c) critical long-term health-related problems
(d) danger in high places
14. The National Association of Suggestion Systems claims that a dollar spent in rewarding
suggestions will return ______ dollars in improved operations to the organization.
(a) $1
(b) $250
(c) $5
(d) $15
15.
Which of the following statements is least descriptive of why many suggestion plans have failed?
(a) employee apathy
(b) failure to recognize contributions
(c) management lacks interest
(d) union members block suggestions through committee action
16. A standard is _______ when management contends that workers’ earnings are excessive, taking
into account the extra effort involved in producing the output.
(a) tight
(b) rich
(c) loose
(d) inaccurate
17. Bonuses related to the work/results of an individual include all but which one of the following?
(a) attendance
(b) referral
(c) contest
(d) signing of union contract
18. Employees of the federal government are eligible for
(a) patent awards
(b) outstanding contributor award
(c) special achievement award
(d) perfect attendance award
19. A gainsharing plan
(a) shares productivity gained benefits with employees
(b) pays different rates of pay for different shifts
(c) pays a premium to employees who individually produce greater output
(d) is a standard piecework/bonus plan
20. Which one of the following is not an example of a gainsharing plan?
(a) Gantt Plan
(b) Scanlon Plan
(c) IMPROSHARE
(d) Rucker Plan
21. Group incentive plans are more desirable than individual incentive plans in situations where
(a) teamwork is required
(b) costs cannot be forecast
(c) individual contributions can be determined
(d) production standards cannot be established
22. The Lincoln Incentive System includes all but which one of the following factors?
(a) the rating of each employee‘s performance
(b) most operative employees in a piecework incentive plan
(c) work unit granted group bonuses
(d) annual profits split three ways
23. A screening committee within a typical cost-reduction plan consists of 12 members representing
plan management and the workers. Its purpose is to
(a) screen interviews
(b) review bonuses and production problems, consider suggestions for improvement,
discuss business trends
(c) review loan requests
(d) make investment suggestions
24. The ratio that determines the standard that serves as a measure for judging business performance,
Total Labor Cost/Sales Value of Production, is a part of the
(a) Rucker Plan
(b) Scanlon Plan
(c) Work Measurement Plan
(d) AT&T Profit-Sharing Plan
25. What measure is used in a Scanlon Plan pay system?
(a) sales
(b) profitability
(c) sales-labor cost reduction
(d) cost-effectiveness
Chapter 14