University of Houston, Downtown BA 3000 1)In the Scanlon Plan how is employee participation primarily achieved?   2)            What is the philosophy behind the Scanlon Plan?     3)            Peter Drucker, the management expert, has argued that CEO pay should not be more than 20 times that of the rank-and-file employee

University of Houston, Downtown

BA 3000

1)In the Scanlon Plan how is employee participation primarily achieved?

2)            What is the philosophy behind the Scanlon Plan?

3)            Peter Drucker, the management expert, has argued that CEO pay should not be more than 20 times that of the rank-and-file employee. What did his concern focus on?

4.            Which of the following is suggested by research?

5.            How does the bonus given to employees under Improshare differ from that given under the Scanlon Plan?

6. Which of the following pay plans can be plagued by the "free-rider" effect?

7.            A new start-up firm wants to encourage team behaviours and a "culture of ownership" among all employees in the organization. Which of the following pay plans would you advise against?

8.            Which of the following best describes profit sharing?

                9. What is the purpose of a profit-sharing plan?

10. Which of the following is NOT a weakness of profit-sharing plans?

11. Profit-sharing plans represent one way that wealth can be redistributed at which of the following levels?

12. Recently, stock options have been strongly criticized in the press following controversies at several companies. What has this criticism focused on?

13.          Which of the following is NOT an advantage of ESOPs?

14.          Which of the following is a major problem of ESOPs?

15. In stock option plans, what does the difference in the grant price and the exercised price represent?