#1
Which of the following is a characteristic of an incentive pay system?
It motivates employees to perform better.
ExplanationIncentive pay systems drive improved performance by providing rewards.
#2
What is a common form of incentive pay system?
Piece-rate pay
ExplanationPiece-rate pay offers compensation based on output, common in manufacturing.
#3
Which of the following is a characteristic of a merit pay system?
It rewards employees based on their individual performance.
ExplanationMerit pay systems recognize and reward individual performance.
#4
Which of the following is a non-financial incentive?
Employee recognition program
ExplanationEmployee recognition programs offer non-monetary rewards for performance.
#5
Which of the following is an advantage of incentive pay systems?
It helps in aligning employee goals with organizational objectives.
ExplanationIncentive pay systems ensure employees' objectives are in sync with the organization's goals.
#6
What is the term for a performance management system that combines financial and non-financial incentives?
Balanced scorecard
ExplanationBalanced scorecard integrates both monetary and non-monetary incentives for performance evaluation.
#7
Which of the following is a disadvantage of incentive pay systems?
They can lead to increased employee turnover.
ExplanationIncentive pay systems might cause higher turnover due to competitiveness.
#8
What is the term for a performance measure used in incentive pay systems that quantifies an employee's output?
Productivity metric
ExplanationProductivity metric measures output as part of incentive pay systems.
#9
What is the term for a performance management system that emphasizes employee development and continuous feedback?
360-degree feedback
Explanation360-degree feedback focuses on employee development and ongoing feedback.
#10
Which of the following is a key factor influencing the effectiveness of incentive pay systems?
Organizational culture
ExplanationOrganizational culture significantly impacts the effectiveness of incentive pay systems.
#11
In an incentive pay system, what is the purpose of a bonus?
To reward employees for achieving predetermined targets or exceptional performance.
ExplanationBonuses in incentive pay systems recognize meeting targets or exceptional performance.
#12
In an incentive pay system, what is the purpose of profit-sharing?
To align employees' interests with the financial success of the company.
ExplanationProfit-sharing ensures employees benefit from the company's financial performance.
#13
Which of the following is a potential drawback of using team-based incentives?
They can lead to social loafing.
ExplanationTeam-based incentives may result in reduced individual effort due to social loafing.
#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?
Strategic performance measure
ExplanationStrategic performance measures assess employees' contribution to organizational objectives.
#15
What is the term for a performance measure used in incentive pay systems that evaluates an employee's efficiency in using resources?
Efficiency metric
ExplanationEfficiency metrics assess how effectively resources are utilized in performance.
#16
Which of the following is a characteristic of a gainsharing program?
It encourages employees to share in the benefits of cost savings or productivity improvements.
ExplanationGainsharing programs motivate employees to participate in cost-saving or productivity enhancement.