1.
Bill Purcells proposed alternative to the pay plan is
| A) | A gradual implementation of variable pay. |
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| C) | Going back to the original plan. |
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| D) | Increased input from employees into creation of the plan. |
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2.
Why does Porterfield believe Top Chemical needs a new compensation system?
Question 2 options:
| A) | Financial factors were driving a need to find ways to cut costs without laying off employees. |
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| B) | The old approach is inconsistent with the companys new Quality for all Program. |
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| C) | Management felt that incentives set up to motivate employees besides pay had been ineffective. |
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| D) | An employee satisfaction survey indicated most employees were dissatisfied with the old system. |
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3.
What is the difference between labor rate and labor cost?
| A) | Labor rate is the amount employees get paid; labor cost focuses on executive pay. |
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| B) | Labor rate is the salary per hour; labor cost includes taxes, benefits, and additional expenses. |
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| C) | Labor rate is the salary per hour; labor cost is based on productivity. |
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| D) | Labor cost is the salary per hour; labor rate is based on productivity. |
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4.
Michael Beers recommendations for TopChem include (mark all that apply)
| A) | Go back to the old pay plan. |
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| B) | Don't try to use pay to motivate employees. |
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| C) | Benchmark intrinsic motivators in other companies. |
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| D) | Help teams succeed by addressing performance objectives. |
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5.
What do the authors of Six Dangerous Myths About Pay claim is the danger of embracing the myth that labor costs are a potent competitive strategy?
| A) | Using compensation purely as an incentive or punishment to motivate employees. |
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| B) | Paying less attention to competing effectively through quality, service, innovation, and delivery. |
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| C) | Paying employees lower salaries resulting in less skilled workers and lower productivity. |
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| D) | Relying too closely on economic models like agency theory. |
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6.
The variable pay portion of the new Top Chemical pay plan is based on (mark all that apply)
| A) | Annual team improvement. |
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| B) | Divisional financial performance. |
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| C) | Top Chems overall growth. |
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7.
What is one reason the authors of Six Dangerous Myths About Pay think organizations that pay on a more collective basis outperform those that pay on an individual basis?
| A) | They believe collective pay schemes tap into the social influence that keeps people from free loading. |
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| B) | They assert that collective pay schemes have the unintended result of encouraging unethical behavior, which results in higher returns. |
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| C) | Because the organizations that pay collectively tend to have more talented leaders. |
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