Incentive Pay and Variable Pay Quiz
5 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which category of incentive pay plans rewards employees whose work is performed independently?

  • Gain sharing programs
  • Piecework plans
  • Group incentive plans
  • Individual incentive plans (correct)
  • What is the definition of incentive pay or variable pay?

  • Compensation that is based on employees' base wages or salaries
  • Compensation that is determined by company earnings
  • Compensation that is fixed and does not change
  • Compensation that fluctuates based on employees' attainment of some standard (correct)
  • In which type of work environment do group incentive plans work well?

  • Interdependent teams
  • Collaborative work environments
  • Independent work environments
  • Manufacturing and service delivery environments (correct)
  • What are gain sharing programs?

    <p>Group improvements in productivity are rewarded</p> Signup and view all the answers

    What are piecework plans?

    <p>Plans where an employee's compensation depends on the number of units produced</p> Signup and view all the answers

    Study Notes

    Incentive Pay Plans for Independent Work

    • Individual Incentive Pay Plans reward employees whose work is performed independently.

    Incentive Pay Definition

    • Incentive pay, also known as variable pay, is compensation that is tied to an employee's performance or the performance of the organization.

    Group Incentive Plans

    • Group incentive plans work well in team-based work environments where employees collaborate to achieve common goals.
    • Examples of group incentive plans include gainsharing programs and team bonuses.

    Gainsharing Programs

    • Gainsharing programs reward employees for improvements in organizational performance, such as productivity, efficiency, or cost savings.
    • These programs typically allow employees to share in a percentage of the gains achieved.

    Piecework Plans

    • Piecework plans are individual incentive pay plans that reward employees based on the number of units they produce.
    • This type of plan is often used in manufacturing and assembly jobs.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    Test your knowledge on incentive pay and variable pay with this quiz! Learn about the different types of incentive pay plans and how they can motivate employees to achieve work objectives.

    More Like This

    Pay for Performance Quiz
    0 questions
    Establishing Strategic Pay Plans Quiz
    5 questions
    Employee Contributions and Incentive Pay
    48 questions
    Use Quizgecko on...
    Browser
    Browser