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Florida Institute of Technology EMG3331 Chapter 12 1)In order to measure the effectiveness of a new organization-wide incentive plan, a reasonable metric would be average employee productivity change

Management

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Florida Institute of Technology

EMG3331

Chapter 12

1)In order to measure the effectiveness of a new organization-wide incentive plan, a reasonable metric would be average employee productivity change.

 

2. Despite the numerous scandals surrounding executive pay, such as Enron and Tyco, and seemingly excessive compensation to executives in the financial industry, there is no federal law that places restrictions on executive pay or mandates reporting requirements regarding executive pay.

 

3. Some form of individual performance incentive is appropriate for every organization.

 

 

4. Amanda, a CEO of a large marketing firm, is paid bonuses based on quarterly organizational performance. This pay system undermines Amanda’s inclination to take the long-term view when making important strategic decisions.

 

5. In general, a single criterion should be used for measuring sales staff performance.

 

 

6. When ethical considerations are paramount, paying sales representatives on straight commission is unwise.

 

7. When Paula visited a financial advisor, he warned her that her retirement plans were risky because both her ESOP as well as her salary and benefits depend on her employer’s continued survival and profitability. The financial advisor is correct in telling Paula she should diversify her retirement investments.

 

8. Unions typically encourage profit-sharing plans as long as the plans are based on bottom-line numbers because this allows employees’ total take-home pay to be larger in profitable years.

 

 

9. Nonmonetary incentives, such as travel awards, will motivate employee retention and will improve an individual’s morale, but it will not motivate the individual to exert discretionary effort.

 

10. Beverly is a member of a five-person work team. Beverly is conscientious and reliable, but she works the most slowly of the team members. The team is paid a monthly bonus based on its production numbers. If all team members are paid the same size bonus, Beverly will be subject to social pressure to work faster.