Karen Moore is a new employee with Cars R Us. One of her first responsibilities as the new HR Director is to create an incentive program for the organization. Cars R Us specializes in selling and leasing mid-priced vehicles across the United States. The organization has locations in each state in the four main regions of the United States. Recently, however, employee performance has been declining along with the unfortunate decline of car sales.

Before Ms. Moore creates an incentive program, she knows she will need to identify what is best practice for the industry, what the organization has done to reward the employees in the past as well as know what the financial constraints are to the new incentive program. Once completed, she will be able to implement a well-constructed incentive program established with the goals of increasing employee job satisfaction and performance as well as improve the company's financial position.

One of the first items on Ms. Moore's agenda is to identify the preferred method of earning rewards. In reviewing the results of a recent survey completed by more than 60 percent of the employees, she learns that the employees are competitive and are interested in group incentives programs as well as individual rewards.

1. Ms. Moore recommends Cars R Us include a _______ system that will provide all employees to receive a portion of the increase in productivity and effectiveness.

A. gainsharing

B. cost

C. equity

D. reduction

E. timesharing

2. When implementing a gainsharing plan, the right conditions should exist within the organization for it to be successful. The conditions include which of the following?

A. management support for the program

B. goal setting

C. high level of cooperation

D. high level of interaction

E. All of these answers are correct.

3. One of the concerns that Ms. Moore has with regard to establishing group incentives plans is the unhealthy competition that can occur. In order to reduce the likelihood of the unhealthy competition to occur, she should

A. carefully discuss how to beat the competition.

B. share how she became the #1 car salesperson in the company.

C. carefully set the performance goals for these incentives.

D. carefully monitor individual's sales records.

E. reward all of the groups regardless of company performance.

4. In her experience, Ms. Moore knows that employees must support the new incentive system for it to achieve the goals that have been set. In order for this system to work, the process used to create and ______ the incentive pay can help it to achieve the goal of motivating employees.

A. administer

B. save

C. donate

D. collect

E. deposit

5. In addition to the individual incentives included in the new plan, the employees are able to attend monthly meetings to provide input about the group plan. Other than the pay itself being important, the employees state their ability to _______ and _______ the way their work is done is very motivating.

A. talk; diagram

B. journal; share

C. describe; control

D. influence; control

E. influence; share