#1
Which of the following is a characteristic of an incentive pay system?
It guarantees a fixed salary for employees.
It is not related to individual or organizational performance.
It motivates employees to perform better.
It is solely based on seniority.
#2
What is a common form of incentive pay system?
Hourly wage
Base salary
Piece-rate pay
Sick leave
#3
Which of the following is a characteristic of a merit pay system?
It is based solely on employee seniority.
It rewards employees based on their individual performance.
It guarantees a fixed salary increase for all employees.
It does not differentiate between high and low performers.
#4
Which of the following is a non-financial incentive?
Profit-sharing
Merit pay
Employee recognition program
Stock options
#5
Which of the following is an advantage of incentive pay systems?
It can demotivate employees.
It can lead to unfair competition among employees.
It helps in aligning employee goals with organizational objectives.
It encourages employees to focus solely on short-term goals.
#6
What is the term for a performance management system that combines financial and non-financial incentives?
Hybrid system
Balanced scorecard
Compensation package
Salary structure
#7
Which of the following is a disadvantage of incentive pay systems?
They can lead to increased employee turnover.
They are not effective in improving employee performance.
They are costly to implement.
They do not differentiate between high and low performers.
#8
What is the term for a performance measure used in incentive pay systems that quantifies an employee's output?
Key performance indicator (KPI)
Performance appraisal
Productivity metric
Output measure
#9
What is the term for a performance management system that emphasizes employee development and continuous feedback?
360-degree feedback
Performance improvement plan
Developmental performance management
Performance coaching
#10
Which of the following is a key factor influencing the effectiveness of incentive pay systems?
Employee tenure
Organizational culture
Geographic location
Employee age
#11
In an incentive pay system, what is the purpose of a bonus?
To provide a guaranteed additional income to employees.
To reward employees for achieving predetermined targets or exceptional performance.
To substitute regular salary payments.
To penalize employees for underperformance.
#12
In an incentive pay system, what is the purpose of profit-sharing?
To reduce employee motivation.
To encourage employees to focus solely on short-term goals.
To align employees' interests with the financial success of the company.
To penalize employees for underperformance.
#13
Which of the following is a potential drawback of using team-based incentives?
They promote collaboration and teamwork.
They can lead to social loafing.
They are more difficult to administer than individual incentives.
They have no impact on team performance.
#14
What is the term for a performance measure used in incentive pay systems that evaluates an employee's contribution to the achievement of broader organizational goals?
Individual goal
Key result area (KRA)
Organizational objective
Strategic performance measure
#15
What is the term for a performance measure used in incentive pay systems that evaluates an employee's efficiency in using resources?
Cost-effectiveness ratio
Resource utilization index
Efficiency metric
Return on investment (ROI)
#16
Which of the following is a characteristic of a gainsharing program?
It rewards employees based on their individual performance.
It focuses solely on short-term goals.
It does not involve employees in decision-making processes.
It encourages employees to share in the benefits of cost savings or productivity improvements.