Which of the following is true of individual incentives?
A.They contribute to a more disintegrated workforce.
B.They are helpful in the pursuit of total quality management objectives.
C.They encourage employees to go beyond the call of duty.
D.They reduce the motivation of acquiring multiple skills and proactive problem solving.
E.They must be continuously earned and re-earned.
72.In a(n) _____ plan, performance is usually measured as physical output and the payment is not rolled into the base pay.
73.Which of the following is a drawback of using profit sharing?
A.It promotes individual goals rather than organizational goals.
B.It promotes competition between work groups.
C.It increases the probability of individual competition.
D.It fails to make labor costs more variable.
E.It runs the risk of contributing to employee dissatisfaction.
74.From a(n) _____ standpoint, the effect on performance motivation may be limited in ownership program because of the less obvious link between pay and performance.
C.efficiency wage theory
75.Which of the following is a difference between profit-sharing plans and employee ownership plans?
A.Unlike ownership plans, base pay is not reduced when profit-sharing plans are introduced.
B.Ownership plans focus on the success of the organization as a whole unlike profit-sharing plans.
C.Profit sharing plans promote individual competition whereas ownership plans promote group competition.
D.The link between pay and performance is less obvious under ownership than under profit sharing.
E.Ownership plans promote individual competition whereas profit-sharing plans promote group competition.
76.A(n) _____ plan gives employees the opportunity to buy the company's shares at a previously fixed price.
77.Which of the following is an example of an ownership plan used in compensation systems?
B.Profit sharing programs
E.Individual incentive plans
78.By law, what percent of assets must an employee stock ownership plan (ESOP) invest in its company's stock?
79.Which of the following makes employee stock ownership plans (ESOPs) less attractive?
A.Less diversification of investment risk
B.Lack of tax and financial advantages
C.High levels of liquidity
D.Inability to serve as a takeover defense
E.Giving employees the right to vote their securities
80.A(n) _____ program is based on group or plant performance that does not become part of the employee's base salary.
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