ACING BUSMHR 3200 EXAMS: ESSENTIAL QUESTIONS
AND ANSWERS FOR THE A+.
standard hour plan
an incentive plan that pays workers extra for work done in less than a preset "standard time"
merit pay
a system of linking pay increases to ratings on a performance scale
-make use of a merit increase grid
-permanently increases a person's pay
performance bonuses
performance bonuses are not rolled into base pay; employee must re-earn them during each
performance period
sales commissions
incentive pay calculated as a percentage of sales
-straight commission plan: some earn only commissions
pay for group performance
-gainsharing
-bonuses
-team awards
gainsharing
group incentive program that measures improvements in productivity and effectiveness and distributes
a portion of each employees
group bonuses
reward the members of a group for attaining a specific goal, usually measured in terms of physical
output
-tend to be for smaller work groups
team awards
similar to group bonuses, but more likely to use a broad range of performance measures: cost savings,
successful completion of a project, meeting deadlines
types of pay for organizational performance
-profit sharing
-stock options
-employee stock ownership plans
profit sharing
, incentive pay in which payments are a percentage of the organization's profits and do not become part
of the employee's base salary
-may encourage employees to think like owners
stock options
rights to buy a certain number of shares of stock at a specified price
ESOP
an arrangement in which the organization distributes shares of stock to all its employees by placing it in
a trust
-most common form of employee ownership
balanced scorecard
a combination of performance measures directed toward the company's long- and short-term goals and
used as the basis for awarding incentive pay
employee benefits
compensation in forms other than cash
-benefits contribute to attracting, retaining, and motivating employees
-more complex than pay structures
-decisions about which benefits to offer should take into account the organization's goals, budget, and
objectives as well as the expectations of the organization's current employees and potential future
recruits
cafeteria-style plans
a benefits plan that offers employees a set of alternatives from which they can choose the types and
amounts of benefits they want
social security
Federal Old Age, Survivors, Disability and Health Insurance program which combines old age
(retirement) insurace, survivor's insurance, diability insurance, hospital insurance, and supplementary
medical insurance
-required by law
unemployment insurance
federally mandated program administered by states to minimize unemployment hardships
-payments to unemployed workers
-help in finding jobs
-incentives to stabilize employment
-required by law
experience rating
AND ANSWERS FOR THE A+.
standard hour plan
an incentive plan that pays workers extra for work done in less than a preset "standard time"
merit pay
a system of linking pay increases to ratings on a performance scale
-make use of a merit increase grid
-permanently increases a person's pay
performance bonuses
performance bonuses are not rolled into base pay; employee must re-earn them during each
performance period
sales commissions
incentive pay calculated as a percentage of sales
-straight commission plan: some earn only commissions
pay for group performance
-gainsharing
-bonuses
-team awards
gainsharing
group incentive program that measures improvements in productivity and effectiveness and distributes
a portion of each employees
group bonuses
reward the members of a group for attaining a specific goal, usually measured in terms of physical
output
-tend to be for smaller work groups
team awards
similar to group bonuses, but more likely to use a broad range of performance measures: cost savings,
successful completion of a project, meeting deadlines
types of pay for organizational performance
-profit sharing
-stock options
-employee stock ownership plans
profit sharing
, incentive pay in which payments are a percentage of the organization's profits and do not become part
of the employee's base salary
-may encourage employees to think like owners
stock options
rights to buy a certain number of shares of stock at a specified price
ESOP
an arrangement in which the organization distributes shares of stock to all its employees by placing it in
a trust
-most common form of employee ownership
balanced scorecard
a combination of performance measures directed toward the company's long- and short-term goals and
used as the basis for awarding incentive pay
employee benefits
compensation in forms other than cash
-benefits contribute to attracting, retaining, and motivating employees
-more complex than pay structures
-decisions about which benefits to offer should take into account the organization's goals, budget, and
objectives as well as the expectations of the organization's current employees and potential future
recruits
cafeteria-style plans
a benefits plan that offers employees a set of alternatives from which they can choose the types and
amounts of benefits they want
social security
Federal Old Age, Survivors, Disability and Health Insurance program which combines old age
(retirement) insurace, survivor's insurance, diability insurance, hospital insurance, and supplementary
medical insurance
-required by law
unemployment insurance
federally mandated program administered by states to minimize unemployment hardships
-payments to unemployed workers
-help in finding jobs
-incentives to stabilize employment
-required by law
experience rating
