Typical performance measures for group incentives include customer satisfaction, labor cost savings,

materials cost savings, reduction in accidents, and services cost savings.

True

False

Which of the following merit pay systems are used mainly for managerial and professional employees
and typically evaluate employees' progress toward strategic planning objectives?

Trait systems

Comparison systems

Behavioral systems

Goal-oriented systems

Individual incentive plans promote supportive. collaborative behavior among employees.

True

False

Disability insurance protects employees' families by paying a specified amount to an employee's

beneficiaries upon the employee's death.

True

False

Employee assistance programs help employees cope with personal problems such as alcohol or drug
abuse, domestic violence, clinical depression, and eating disorders.

True

False
Collective bargaining is designed to:

negotiate labor contracts with employees

provide grievance procedures.

both of above options

none of above

The halo effect and similar-to-me effects are considered examples of which type of rating error?

Bias

Illegal discrimination

Trait system

Contrast

Critical incident technique (CIT), behaviorally-anchored rating scales (BARS), and behavioral
observation scales (BOS) are techniques of

Comparison systems

Trait systems

Goal-oriented systems

Behavioral systems

Ahmed is faced with the task of allocating the incentive payments for his international compensation
programs. He is aware that they are different from the national compensation programs. Discuss
briefly the three types of incentive payments that are commonly used in international compensation
programs.

The main incentives are foreign service premiums, hardship allowances, and mobility premiums.

1. Foreign service premiums are monetary payments above and beyond regular base pay and
they are designed to encourage employees to accept expatriate assignments.
2. Hardship allowances are designed to recognize exceptionally hard living and working
conditions at foreign locations.
3. Mobility premiums are designed to encourage employees to move from one assignment to
another.
Which of the following is/are source(s) of performance appraisal information?

Employee

Supervisor

Coworkers

All of the above

Outplacement assistance provides services such as personal counseling, career assessments and
evaluations, training in job search techniques, resume and cover letter preparation, interviewing
techniques, and training in the use of basic workplace technology.

True

False

Ali was one of the valuable employees of a reputed newspaper firm. Changes in management,
company reorganization. closure of one of the plants and the economic hardship that the company
was facing led to Ali's loss of job. Ali's HR Manager who has always adhered to good work practices,
offers outplacement assistance services to help Ali. Identify any six services that apply to
outplacement assistance that can benefit Ali in this case.

Outplacement assistance provides services such as

1. Personal counseling
2. Career assessments and evaluations
3. Training in job search techniques
4. Resume and cover letter preparation
5. Interviewing techniques
6. Training in the use of basic workplace technology
___________ pay is defined as added pay for employees that have reached pay range maximums and
are unlikely to move into higher grades.

Merit

Incentive

Seniority-based

Longevity

_________ provide individuals the freedom to schedule time off without justifying the reasons.

Base pay

Protection Programs

Integrated Paid Time off Policies

Paid time off

Piecework plans award bonuses to managers when they meet or exceed objectives based on sales,
profit, production, or other measures for their division.

True

False

Integrated paid time off policies combine holiday, vacation, sick leave, and personal leave policies into
a single paid time off policy.

True

False

Effective incentive pay systems are based on the assumptions that 'individual employees and work
teams differ in how much they contribute to the company, both in what they do as well as in how well
they do it'.

True

False
Discretionary benefits are offered at the will of each company and employees view them as
entitlements.

True

False

Types of companywide incentive plans include team-based or small group and gain sharing.

True

False

In trait systems(merit pay systems), raters evaluate each employee's traits or characteristics such as

quantity of work

quality of work

all of the above

dependability

In referral incentive plans, employees receive bonuses for recruitment of highly qualified employees.

True

False

Who determines the particular objectives in a management by objectives (MBO) appraisal system?

Both employees and supervisors

Employees

Board of directors

Supervisors
Base pay is influenced by compensable factors like

employee's level of responsibility

employee's effort

employee's skill level

all of the given options

Retirement programs provide individuals the freedom to schedule time off without justifying the
reasons.

True

False

Which of the following is based on the human capital theory?

BOS

seniority pay system

merit pay system

BARS

Merit pay is one of the most commonly used compensation methods in the United States. Which of
the following is not true for merit pay?

Pay increases based on performance

Does not help retain valued employees

Reward excellent effort or results

Motivate future performance

Whole life insurance provides protection to employees' beneficiaries based on the insurance feature
of term life insurance.

True

False
There are 15 animal keepers working for the XYZ Zoo. Their supervisor is required to rate the
performance of these workers based on the following criteria: 30% of the animal keepers will be rated
as below-average, 40% of the animal keepers will be rated as average, and 30% of the animal keepers
will be rated as above average. What type of performance appraisal is used?

behavioral observation scale

paired comparison

critical incident technique

forced distribution

The three components of gain sharing programs are leadership philosophy, employee involvement
systems, and bonuses

True

False

________reward managerial, service, or professional workers for successfully learning specific

curricula.

Skill-based pay

Seniority pay

Merit Pay

Pay for knowledge plans