OBM PART #8 Exam Questions And
Answers
Which of the following statements is true regarding gainsharing?
A) Gainsharing focuses on productivity gains rather than profits.
B) Gainsharing involves paying employees based on the number of new skills acquired by them in a
specific time period.
C) Gainsharing does not distribute profits, only gains in profits.
D) Employees working under gainsharing plans have a greater feeling of psychological ownership.
E) Gain sharing encourages social loafing. - ✅✅A) Gainsharing focuses on productivity gains rather
than profits.
At Dortix, a manufacturing company, at the end of every quarter, the total production of each
department is calculated and compared with the predetermined targets; the rewards for each set of
divisional employees are determined this way. Dortix uses a ________ plan to incentivize its employees.
A) profit sharing
B) gainsharing
C) core-plus
D) modular
E) bonus - ✅✅B) gainsharing
Which of the following variable pay programs is free from dependence on company profits?
A) profit sharing
B) job sharing
C) bonuses
D) employee stock ownership plans
E) gainsharing - ✅✅E) gainsharing
An advantage of the ________ plan is that because benefits accrue to groups of workers, high-
performing workers pressure weaker performers to work harder, improving performance for the group
as a whole.
, A) modular
B) gainsharing
C) skill-based pay
D) flexible benefits
E) profit sharing - ✅✅B) gainsharing
Exsell is a popular consumer goods company known for hiring the best resources and using the best
technology to produce an extensive range of goods. The manufacturing units consider productivity to be
the only criterion; targets are upgraded, supervised, and rewarded amply. The groups with the highest
productivity in each manufacturing unit owned by Exsell are incentivized using a substantial monthly
monetary reward program. Of late, there have been some rumors about the company not doing very
well in the market. Many claims of defective quality, declining market share, and employee unrest have
been doing the rounds. However, the CEO of Exsell recently held a conference with the organization and
the media to share its expansion plans for the coming year. He ended the conference with a discussion
of how the profit margin of the company had grown substantially but many employees were left in
doubt. Which of the followi - ✅✅C) Executives who receive and evaluate client feedback have found a
lot of quality concerns with the products dispatched in recent times
At Esco Retail, all employees are constantly driven to work hard. The company places maximum
emphasis on stocking high quality goods and providing high quality service to retain the edge they have
in the retail industry. To promote organizational commitment further, the company incentivizes
employees by enabling them to purchase company shares at below-market prices as a part of their
benefits. This mode of providing incentives represents the use of ________.
A) flexible benefits plans
B) merit-based plans
C) modular plans
D) employee stock ownership plans - ✅✅D) employee stock ownership plans
Which of the following statements is true regarding an employee stock ownership plan (ESOP)?
A) Under this plan, employees acquire company shares, often at below-market prices.
B) There exists a strong correlation between ESOPs and employee performance.
C) The financial stake in the company is adequate to use ESOPs as an effective means to motivate
employees.
D) ESOPs are effective because, like bonuses, they reward recent performance.
Answers
Which of the following statements is true regarding gainsharing?
A) Gainsharing focuses on productivity gains rather than profits.
B) Gainsharing involves paying employees based on the number of new skills acquired by them in a
specific time period.
C) Gainsharing does not distribute profits, only gains in profits.
D) Employees working under gainsharing plans have a greater feeling of psychological ownership.
E) Gain sharing encourages social loafing. - ✅✅A) Gainsharing focuses on productivity gains rather
than profits.
At Dortix, a manufacturing company, at the end of every quarter, the total production of each
department is calculated and compared with the predetermined targets; the rewards for each set of
divisional employees are determined this way. Dortix uses a ________ plan to incentivize its employees.
A) profit sharing
B) gainsharing
C) core-plus
D) modular
E) bonus - ✅✅B) gainsharing
Which of the following variable pay programs is free from dependence on company profits?
A) profit sharing
B) job sharing
C) bonuses
D) employee stock ownership plans
E) gainsharing - ✅✅E) gainsharing
An advantage of the ________ plan is that because benefits accrue to groups of workers, high-
performing workers pressure weaker performers to work harder, improving performance for the group
as a whole.
, A) modular
B) gainsharing
C) skill-based pay
D) flexible benefits
E) profit sharing - ✅✅B) gainsharing
Exsell is a popular consumer goods company known for hiring the best resources and using the best
technology to produce an extensive range of goods. The manufacturing units consider productivity to be
the only criterion; targets are upgraded, supervised, and rewarded amply. The groups with the highest
productivity in each manufacturing unit owned by Exsell are incentivized using a substantial monthly
monetary reward program. Of late, there have been some rumors about the company not doing very
well in the market. Many claims of defective quality, declining market share, and employee unrest have
been doing the rounds. However, the CEO of Exsell recently held a conference with the organization and
the media to share its expansion plans for the coming year. He ended the conference with a discussion
of how the profit margin of the company had grown substantially but many employees were left in
doubt. Which of the followi - ✅✅C) Executives who receive and evaluate client feedback have found a
lot of quality concerns with the products dispatched in recent times
At Esco Retail, all employees are constantly driven to work hard. The company places maximum
emphasis on stocking high quality goods and providing high quality service to retain the edge they have
in the retail industry. To promote organizational commitment further, the company incentivizes
employees by enabling them to purchase company shares at below-market prices as a part of their
benefits. This mode of providing incentives represents the use of ________.
A) flexible benefits plans
B) merit-based plans
C) modular plans
D) employee stock ownership plans - ✅✅D) employee stock ownership plans
Which of the following statements is true regarding an employee stock ownership plan (ESOP)?
A) Under this plan, employees acquire company shares, often at below-market prices.
B) There exists a strong correlation between ESOPs and employee performance.
C) The financial stake in the company is adequate to use ESOPs as an effective means to motivate
employees.
D) ESOPs are effective because, like bonuses, they reward recent performance.
