Strategic Compensation in Canada 4th Edition By Richard Long – Test Bank

Strategic Compensation in Canada 4th Edition By Richard Long – Test Bank

Chapter 5: Performance Pay Choices

TRUE/FALSE

1.Merit bonuses represent a permanent increase to base pay.

ANS: F PTS: 1 REF: 163 OBJ: 2

2. If an organization has a “promote from within” policy, it doesn’t need any other rewards to motivate behavior.

ANS: F PTS: 1 REF: 164 OBJ: 1

3. Attendance programs are less risky for organizations in which intrinsic motivation is low in the first place.

ANS: T PTS: 1 REF: 172 OBJ: 1

4. All things being equal, goal-sharing programs are thought to be less motivational than gain-sharing programs.

ANS: F PTS: 1 REF: 177 OBJ: 2

5. To qualify as having an employee profit-sharing plan a firm must have a formal program in which payments based on profits are made to a wide cross-section of employees.

ANS: T PTS: 1 REF: 179 OBJ: 2

6. The three types of profit-sharing plans are the current distribution plan, the deferred payout plan, and the amortization plan.

ANS: F PTS: 1 REF: 181 OBJ: 3

7. The three main types of employee stock plans are stock bonus plans, stock purchase plans, and stock option plans.

ANS: T PTS: 1 REF: 184 OBJ: 3

8. Employee stock plans are simpler to implement in privately held rather than publicly-traded corporations.

ANS: F PTS: 1 REF: 187 OBJ: 3

9. Profit-sharing plans can reduce the need for employee supervision.

ANS: T PTS: 1 REF: 189 OBJ: 3

10. The use of long-term incentive plans is of little value to most firms.

ANS: T PTS: 1 REF: 189 OBJ: 3

MULTIPLE CHOICE

1. Which of the following pay plans is geared to individual performance?

ANS: D PTS: 1 REF: 151 OBJ: 1

BLM: Remember

2. What is the most common form of performance pay used by medium to large Canadian firms?

ANS: A PTS: 1 REF: 152 OBJ: 1

BLM: Understand