Solved by verified expert :91. Refer to Case 11.1. How
might you solve the problem with your managers and the pay-for-performance
plan?
a) Make better links between pay and performance.
b) Use pay-for-performance as part of a broader HRM system, including
training.
c) Build employee trust.
d) Use motivation and nonfinancial incentives.
e)
Increase employee involvement.

92. Refer to Case 11.1. The
problems that the older, more experienced employees are having are typical of
the problem of:
a) people only doing what they get paid for.
b) a decrease in cooperation.
c) employees having a lack of control.
d) a credibility gap.
e) reducing employees’ intrinsic drives.

93. Refer to Case 11.1. How
might you solve the problem the older, more experienced employees are having?
a) Make better links between pay and performance.
b) Use pay-for-performance as part of a broader HRM system, including
training.
c) Build employee trust.
d) Use motivation and nonfinancial incentives.
e) Increase employee involvement.

Case 11.2
Sasha’s company has implemented a team-based incentive plan. Most workers
do not need to cooperate with each other, since their jobs are largely
independent of each other. He notes that individual employees have stopped
doing a lot of little things they used to do. For example, employees used to
clean up their work areas, but now they leave it for the custodial crew,
because of team pressure for maximum productivity. People took more pride in
how they looked when they came to work but now they don’t, etc.

94. Refer to Case 11.2.
Employees not cleaning up their work areas is an example of the problem of:
a) people only doing what they get paid for.
b) a decrease in cooperation.
c) free-riding effect.
d) the social pressure to limit performance.
e) reducing employees’ intrinsic drives.

95. Refer to Case 11.2. What
would be Sasha’s most effective course of action to help employees begin to do
the little things again and to take pride in their attire?
a) Make better links between pay and performance.
b) Use pay-for-performance as part of a broader HRM system, including
training.
c) Build employee trust.
d) Use motivation and nonfinancial incentives.
e) Increase employee involvement.

96. Refer to Case 11.2.
Regardless of what’s been implemented, Sasha’s company’s current state most
favors a(n) ____ incentive program.
a) team-based
b) individual-based
c) corporate-wide
d) plantwide
e)
gainsharing

97. Refer to Case 11.2. If the
company wanted to gain the maximum tax advantage, increase employee commitment,
and maximize financial flexibility, the company should consider a(n)____
incentive program.
a) individual-based
b) corporate-wide
c) plantwide
d) team-based
e)
McGregor

Case 11.3
Rich’s compensation manager guided his company into a multiple reward
incentive system. Fundamentally, managers wanted an incentive system where
their input, in the form of performance evaluations, determined what individual
employees received. They wanted a system that did not permanently add to the
fixed costs, i.e., salary costs, of the compensation system. We’ll call this
part A of the total incentive package.

Since implementing this part of the plan, managers have noticed that
employees tend to play it safe by setting modest goals for themselves rather
than the “sky is the limit” goals they used to set.

Rich’s compensation manager wants to offset some of the problems inherent
in your first level of incentive pay. He wants a system that will reward all
employees based on the entire company’s performance because he wants to
increase employee commitment. Grant, the VP of operations, says that is all
fine and good, but he wants to reward specific productivity and quality
improvements. He thinks labor and management should work together to allocate
the rewards, and he also wants a simple plan that considers more than just
labor costs in the savings. We’ll call this part B of the total compensation
package.

98. Refer to Case 11.3. Based on
your managers’ input, the best incentive compensation plan for part A would be
a(n) ____ plan.
a) individual-based pay
b) team-based pay
c) plantwide pay
d) Scalon
e)
corporate-wide

99. Refer to Case 11.3. Given
managers’ concerns about the fixed portion of the compensation plan, the best
kind of pay within the plan Rich has chosen would be:
a) merit pay.
b) a bonus program.
c) giving awards.
d) a Rucker plan.
e)
gainsharing.

100. Refer to Case 11.3. The
problem that managers have noticed is typical of:
a) employees not believing that pay and performance are linked.
b) the general inflexibility of this kind of plan.
c) the deterioration of quality that comes with such a plan.
d) the single-mindedness and focus that comes with this kind of plan.
e) the increase in cooperation this kind of plan brings with it.

101. Refer to Case 11.3. To meet
your compensation manager’s goals, the best secondary incentive plan to set up
part B would be a(n):
a) individual-based plan.
b) gainsharing plan.
c) corporate-wide profit-sharing plan.
d) plantwide plan.
e)
Rucker plan.

102. Refer to Case 11.3. Grant’s
desires for part B would best be met by a(n):
a) individual-based plan.
b) team-based plan.
c) corporate-wide profit-sharing plan.
d) gainsharing plan.
e)
Rucker plan.

Case 11.4
At a compensation meeting, upper-level
managers of Universal Equipment Corporation (UEC) are discussing new
pay-for-performance strategies. Travis
gives a report that explains that typical jobs in the company demand autonomy
and that cooperation is not necessarily needed among employees and that
competition among the employees is very profitable for UEC.

Steven suggests that employees be given
lump-sum payments for above-average performance and at special milestones in
their career. Fran says it would be
better to reward employees with an annual increase in base pay based on their
overall performance for the year.

Yung Sun points out the fact that if the UEC makes another change in its
pay-for-performance plan, it is sure to exacerbate the frustration of employees
who have been subject to several other pay-for-performance plans in the last
few years.

103. Refer to Case 11.4. According to Travis’s report, which of the
following would be the best pay-for-performance plan?
a) An individual-based plan.
b) A team-based plan.
c) A plantwide plan.
d) A corporate-wide plan.
e) A long-term executive perks plan.

104. Refer to Case 11.4. Steven seems to be encouraging:
a) a gainsharing plan.
b) a bonus program.
c) merit pay.
d) intergroup competition.
e) awards.

105. Refer
to Case 11.4. Fran is encouraging:
a) a gainsharing plan.
b) a bonus program.
c) merit pay.
d) intergroup competition.
e) awards.

106. Refer to Case 11.4. Yung Sun’s concerns relate primarily to:
a) the potential reduction of employees’ intrinsic drives.
b) the credibility gap.
c) psychological contracts.
d) the “do only what you get paid for” syndrome.
e) lack of employee involvement.