Question 1

The second step in implementing a gainsharing plan is to .

Accepted Answer

The second step in implementing a gainsharing plan is to choose specific performance measures. This is because the performance measures will be used to determine how much the employees will be paid in bonuses.

Question 2

The Scanlon plan is an incentive plan that .

Accepted Answer

The answer of The Scanlon plan is an incentive plan...

Question 3

How often do most firms computer labor productivity measures used in gainsharing plans?

Accepted Answer

Most firms compute labor productivity measures used in gainsharing plans on a monthly or quarterly basis to ensure timely and relevant data for performance evaluation and incentive distribution.

Question 4

The Lincoln incentive system is an incentive plan that .

Accepted Answer

The answer of The Lincoln incentive system is an incentive...

Question 5

Which of the following is not a type of involvement system commonly used in gainsharing plans?

Accepted Answer

Pep rallies are not typically used as a formal involvement system in gainsharing plans, which focus more on structured communication and coordination methods.

Question 6

Plans that put some portion of the employee's weekly pay at risk to encourage goal attainment are called pay plans.

Accepted Answer

At-risk variable pay plans involve putting a portion of an employee's pay at risk, which is contingent upon achieving specific goals or performance targets.

Question 7

Identity in the Scanlon plan refers to a focus on .

Accepted Answer

The Scanlon plan is a performance improvement plan that focuses on the clear articulation of the company mission and vision.

Question 8

A(n)plan is an incentive plan that engages many or all employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared among employees and the company.

Accepted Answer

Gainsharing is an incentive plan where employees are encouraged to improve productivity and share in the financial gains resulting from their efforts.

Question 9

The first step in implementing a gainsharing plan is to .

Accepted Answer

The first step in implementing a gainsharing plan is to establish general plan objectives, as this sets the foundation and direction for the entire plan.

Question 10

Deferred profit-sharing is an incentive plan that .

Accepted Answer

Deferred profit-sharing plans provide tax advantages by allowing employees to defer income taxes on the profit-sharing contributions until they retire.

Question 11

Which incentive plan is based on a philosophy that managers and employees must cooperate together?

Accepted Answer

The Scanlon plan is based on the philosophy of cooperation between managers and employees to improve productivity and share the financial gains from improved performance.

Question 12

Gainsharing is an incentive plan that .

Accepted Answer

Gainsharing engages many or all employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared among employees and the company.

Question 13

What type of gainsharing plan uses the formula sales value minus materials and supplies all divided into payroll expenses to determine employee bonuses?

Accepted Answer

The Rucker plan uses a formula that involves sales value minus materials and supplies, divided by payroll expenses, to determine employee bonuses.

Question 14

Sharing of benefits in the Scanlon plan refers to a focus on .

Accepted Answer

The Scanlon plan emphasizes sharing financial benefits that result from employees' improvement suggestions, promoting a sense of ownership and motivation among employees.

Question 15

An employee stock ownership plan is an incentive plan that .

Accepted Answer

An employee stock ownership plan (ESOP) involves a company contributing its own stock or cash to a trust, which is then used to purchase company stock for employees, effectively giving them ownership interest in the company.

Question 16

What is the most common form of payment in gainsharing plans?

Accepted Answer

Cash is the most common form of payment in gainsharing plans, as it provides immediate and tangible rewards to employees for their contributions to productivity improvements.

Question 17

Cash profit-sharing is an incentive plan that .

Accepted Answer

Cash profit-sharing involves distributing a percentage of profits as profit shares to employees at regular intervals.

Question 18

How often do most firms tend to compute financial performance measures used in gainsharing plans?

Accepted Answer

The answer of How often do most firms tend to...

Question 19

Competence in the Scanlon plan refers to a focus on .

Accepted Answer

The answer of Competence in the Scanlon plan refers to...

Question 20

What type of gainsharing plan uses the formula payroll expenses divided by total sales to determine employee bonuses?

Accepted Answer

The Scanlon plan uses the formula of payroll expenses divided by total sales to determine employee bonuses, focusing on cost savings and efficiency improvements.

Quiz 12: Pay-For-Performance and Financial Incentives