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15 Cards in this Set
- Front
- Back
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They are known as perquisites.
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It was revealed in the press that the former CEO of a Fortune 100 firm enjoyed special use of the company plane and a country club membership as a part of his reward package. Which of the following best describes these benefits?
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the growing gap between leaders and the company’s lowest-paid employees
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Which of the following is a major concern about executive compensation?
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through screening and shop committees
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In the Scanlon Plan, how is employee participation primarily achieved?
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Scanlon Plan
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Employees should offer ideas and suggestions to improve productivity and, in turn, be rewarded for their constructive efforts.
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the pay gap between CEOs and employees
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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?
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It is based on productivity gains resulting from a reduction in production time
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How does the bonus given to employees under Impro share differ from that given under the Scanlon Plan?
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Team Incentive Plans |
Which of the following pay plans can be plagued by the “free-rider” effect?
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differential piece rates
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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?
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profit sharing
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The employer pays employees a special current or deferred sum based on the profits of the enterprise.
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purpose of a profit-sharing plan?
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to motivate a total commitment to the organization as a whole
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They cause intense competition at the individual employee level.
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Which of the following is NOT a weakness of profit-sharing plans?
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the firm level
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Profit-sharing plans represent one way that wealth can be redistributed at which of the following levels?
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the amount of the options granted and exercised
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Recently, stock options have been strongly criticized in the press following controversies at several companies. What has this criticism focused on?
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major problem of ESOPs
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Employees may become demotivated and frustrated if the share price falls, even though they have worked productively.
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the gains by the stock option
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In stock option plans, what does the difference in the grant price and the exercised price represent?
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