MANA 3320 Chapter 13 Recognizing
Employee Contributions with Pay
Exam Q&A
piecework rate - ANSWER-wage based on the amount workers produce
straight piecework plan - ANSWER-incentive pay that pays same rate per piece
regardless of quantity
differential piece rate - ANSWER-incentive pay in which the piece rate is higher
when a greater amount is produced and vise versa when lower
benefits of piece rate - ANSWER-easy to understand and usually seen as fair; good
for repetitive standards jobs with physical output
cons of piece rate - ANSWER-needs other measures to round off, poor for
teamwork, empowerment and complex jobs
standard hour plan - ANSWER-incentive plan that pays workers extra for work done
in less than preset standard time; say get a 2 hour job done in 1.5. paid for 2 while
already starting the next job. not good for quality, service. need to want it
merit pay - ANSWER-a system linking pay increases to ratings on performance
appraisals; merit increase grids base increases on individual performance rating and
compa-ratio
theory of merit pay - ANSWER-theoretically it could reward all the performance
measures. very expensive for employer. embed in the performance. not totally
controllable. doesn't help teams.
performance bonus - ANSWER-re-earned for each performance period. similar to
merit otherwise. often effective and flexible for motivation.
retention bonus - ANSWER-a common one time bonus when top executives stay
with the company after a merger; it is to keep valuable employees
commission - ANSWER-incentive pay calculated as a percentage of sales; vary by
industry
straight commissions plan - ANSWER-no salary. good for risk takers. a type people.
focus on closing not satisfaction.
gainsharing - ANSWER-group incentive program that measures improvements in
productivity and effectiveness and distributes a portion of each gain to employees
Employee Contributions with Pay
Exam Q&A
piecework rate - ANSWER-wage based on the amount workers produce
straight piecework plan - ANSWER-incentive pay that pays same rate per piece
regardless of quantity
differential piece rate - ANSWER-incentive pay in which the piece rate is higher
when a greater amount is produced and vise versa when lower
benefits of piece rate - ANSWER-easy to understand and usually seen as fair; good
for repetitive standards jobs with physical output
cons of piece rate - ANSWER-needs other measures to round off, poor for
teamwork, empowerment and complex jobs
standard hour plan - ANSWER-incentive plan that pays workers extra for work done
in less than preset standard time; say get a 2 hour job done in 1.5. paid for 2 while
already starting the next job. not good for quality, service. need to want it
merit pay - ANSWER-a system linking pay increases to ratings on performance
appraisals; merit increase grids base increases on individual performance rating and
compa-ratio
theory of merit pay - ANSWER-theoretically it could reward all the performance
measures. very expensive for employer. embed in the performance. not totally
controllable. doesn't help teams.
performance bonus - ANSWER-re-earned for each performance period. similar to
merit otherwise. often effective and flexible for motivation.
retention bonus - ANSWER-a common one time bonus when top executives stay
with the company after a merger; it is to keep valuable employees
commission - ANSWER-incentive pay calculated as a percentage of sales; vary by
industry
straight commissions plan - ANSWER-no salary. good for risk takers. a type people.
focus on closing not satisfaction.
gainsharing - ANSWER-group incentive program that measures improvements in
productivity and effectiveness and distributes a portion of each gain to employees
