Which term refers to any plan that ties pay to productivity or profitability?

2 . All employees are provided a share of the company's profits in a specified period with a(n): [Hint]

3 . Group incentive plans that tie pay to a measure of overall profitability is a(n): [Hint]

4 . Paying workers for units of production is: [Hint]

5 . Disadvantages of piecework plans include all the following except: [Hint]

6 . Workers are less likely to link production standards to pay with the standard hour plan if the incentive: [Hint]

7 . Issues to consider when awarding short-term incentives may not include: [Hint]

8 . Team-based incentive plans may demotivate hard workers because their pay may not: [Hint]

9 . Using a straight percentage of a company's net income to decide how much bonus money to make available is a(n): [Hint]

10 . Long-term incentives are designed to encourage executives to: [Hint]

11 . A(n) _________________ gives an executive the right to purchase a company stock at a specific price at a specific time. [Hint]

12 . Restricted stock plans provide stock to an executive: [Hint]

13 . Executives receive units representing stock shares under _________ plans. [Hint]

14 . Top managers' incentives are increasingly being tied to: [Hint]

15 . Paying a straight salary to salespeople may not be desirable because: [Hint]

16 . Commissions tend to shift a salesperson's emphasis to: [Hint]

17 . Turnover among salespersons is highest when paying by: [Hint]

18 . A disadvantage of combination plans is that they: [Hint]

19 . A salary increase that is based on a person's individual performance is termed: [Hint]

20 . Merit pay may be a demotivator because of supervisors' tendencies to: [Hint]

21 . Lump sum merit payments may be attractive because they are: [Hint]

22 . Not giving lump sum merit payments to poorly performing employees forces employees to focus on: [Hint]

23 . Employees receive a share of the company's annual profits by means of: [Hint]

24 . Firms contribute shares of stock or cash to a trust that purchases stock for employees as part of: [Hint]

25 . ESOPs encourage employees to develop a sense of ownership in the firm due to all the following except: [Hint]

26 . Cost-saving gains are shared among employees and the company as a result of: [Hint]

27 . An employee's weekly pay is subject to the firm's meeting its financial goals under the: [Hint]

28 . Under the Fair Labor Standards Act, employers must include incentive payments in: [Hint]

29 . Work standards are set for each team member and each member's output is counted when using: [Hint]

30 . Providing appropriate incentives for professional employees is challenging because they are: [Hint]

• Helps companies achieve sustained improvement in key performance measures
• Rewards only performance improvement
• Payouts are self-funded from savings generated by the plan
• Aligns employees to organization goals
• Fosters a culture of continuous improvement
• Enhances employee focus and awareness
• Increases the feeling of ownership and accountability
• Enhances the level of involvement, teamwork and cooperation
• Supports other performance improvement efforts and helps promote positive change
• Promotes morale, pride, and more positive attitudes toward the organization

• Measures are narrower than organization-wide profit and therefore gains may be paid even though profits may be down.
• Requires a participative management style
• Requires that management openly shares information related to performance measures
• Employees may question or challenge management decisions that may adversely impact a gain.
• Increases the level of organizational stress since everyone has more of a financial stake in the organization's success
• Applies best to and a work environment that requires teamwork and collaboration rather that individual entrepreneurship
• Paid on the basis of group performance rather than individual merit

Variable pay is any plan that ties pay to productivity or profitability, usually as one-time lump payments. It is usually an incentive plan that ties a group or teams pay to some measure of the firm’s (or the facility’s) overall profitability: profit-sharing plans are one example. However, confusing as it may be, some experts do use the term “variable pay” to include incentive plans for individual employees.

Variable Pay means any plan that ties pay to productivity or profitability, usually as one-time lump payments.

Which one of the following terms refers to an incentive plan that ties a group's pay to the firm's profitability?

Which term refers to an incentive plan in which a person is paid a sum for each item sold with a strict proportionality between results and rewards regardless of output?

Which refers to the monetary payment used to reward organizational members for performance?

What is a gain sharing plan?