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for Chris M.-412891 2. The following is one of the possible
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2. The following is one of the possible ratings that employees can get on their performance
evaluation, “Willing to participate in all functions of the department. Works well
with both internal and external customers. Consistently performs at a level expected
from all ranks of management.” This would most likely be part of which type of
B. Standard rating scale
C. Behaviorally anchored rating scale
D. Management by objective
3. Jeremy is completing a performance appraisal for his employee Ron. Jeremy gave Ron
all low-level ratings despite the fact that Ron is a very high performer at work. The
reason that Jeremy gave Ron these low marks is because Jeremy noticed that Ron
came in late to work a few days over the course of the year. This is an example of
which type of error in the appraisal process?
A. Clone error C. Central-tendency error
B. Horn error D. Halo error
4. The Omega Corporation uses a Scanlon plan to determine bonuses for the year. Based
on the following information, how much money will be available for distribution as a
2008 Annual Data
Sales value of production: $100,000
Total wage bill: $30,000
Operating Month, June 2009
Sales value of production: $10,000
Actual wage bill: $2,000
A. $3,000 C. $1,000
B. $2,000 D. $0
5. Karen didn’t receive a bonus this year despite the fact that her store was able to earn
a profit of 2% more than last year. The reason that she didn’t receive a bonus was
because she exceeded her payroll expenses by 3% for the year. What type of variable pay
plan does Karen’s employer use?
A. Cash profit sharing C. Gain sharing
B. Balanced scorecard D. Team incentives
6. Paul works in a manufacturing plant where he is paid an hourly wage. In addition to
his hourly wage, he is also paid a bonus amount based on the amount of minutes that
he can reduce his per unit manufacturing time. Which of the following best describes
Paul’s incentive plan?
A. The pay is a constant function of production level, and the focus is on units of
production per time period.
B. The pay is a constant function of production level, and the focus is on time period
per units of production.
C. The pay varies as a function of production level, and the focus is on units of
production per time period.
D. The pay varies as a function of production level, and the focus is on time period per
units of production.
8. The Jeffreys Company has a dynamic workforce that deals with constantly changing
objectives that aren’t always easy to understand. It’s also a seasonal business, and
organizational success can change on an annual basis. For example, last year was its
best year ever, but the year before was the worst year ever due to one season. What
would be the best strategy for the Jeffreys Company to pursue regarding rewards?
A. Focus on a wide range of nonmonetary rewards and include a large bonus potential.
B. Focus on a wide range of nonmonetary rewards but focus on higher base pay and
C. Focus on large monetary rewards with a large bonus potential.
D. Focus on large monetary rewards but focus on higher base pay and lower
9. Ken is a used-car salesman who gets paid only when he sells a car. If he sells a lot of
cars, he can earn a lot of money, but if he doesn’t sell any cars then he won’t make
any money. Recently he hasn’t been able to sell any cars due to the poor economy.
He has become unmotivated at work because he had been putting in over 80 hours a
week and not earning any money despite all of the time worked. Which motivational
theory is this an example of?
A. Maslow’s need hierarchy C. Equity
B. Expectancy D. Goal setting
10. Which of the following is an example of reinforcement theory as a way to motivate
A. Giving employees a check for $100 as soon as they make their first sale
B. Paying employees a standard wage regardless of the amount of work they do
C. Paying employees more money at the end of the year because they spent more
hours at work throughout the year
D. Providing medical insurance for employees so they don’t have to worry about large
medical bills in the event of sickness or injury
11. Tina just received a 4% increase in pay because her performance evaluation was in the top
10% of the entire organization. What type of wage component is this an example of?
A. Merit pay C. Individual incentive
B. Lump-sum bonus D. Success-sharing plan
12. Chuck is an appliance salesman who is considered a risk taker. Which type of compensation
plan would best motivate Chuck?
A. A flat hourly wage so that Chuck is paid based on the amount of time he works
B. An annual salary so that Chuck is paid the same amount regardless of the amount
of time he works
C. A pure commission schedule so that Chuck is paid based on the amount of
merchandise that he sells
D. An hourly wage plus a small quarterly bonus based on store sales
13. Which of the following types of plans saw an increase in use between 1996 and 2002?
A. Special recognition plans C. Gain-sharing plans
B. Cash profit-sharing plans D. Stock option plans.
14. The hourly wages in the manufacturing department are as follows:
According to central tendency theory, which wage is the mode?
A. $5, B $ 10, C $ 15, D $ 20
15. Pat works in a manufacturing plant where he is paid an hourly wage. The hourly rate
can change based on the number of units that Paul produces. His straight hourly rate
is $10 per hour, if he produces more than his goal he receives $12 per hour, and if he
produces less than his goal he earns $8 per hour. What type of incentive plan is this
an example of?
A. Taylor differential piece rate system
B. Merrick multiple piece rate system
C. Rowan plan
D. Gantt plan
16. How much higher is the pay in Las Vegas, Nevada, than in Milwaukee, Wisconsin?
A. 1.2% C. 3.2%
B. 2% D. 4.4%
17. The Baer Corporation has made the decision to pay its manufacturing employees at a
rate below its competitors’ average wages. Baer will use its generous benefits package
rather than its wages to attract talented employees. Which type of policy is this an
A. Match C. Lag
B. Lead D. Flexible
18. The Hansen Corporation pays its employees a relatively modest salary, but they have
the potential to earn a large bonus and they can earn quite a bit through their stock
options. Which type of pay mix does The Hansen Corporation use?
A. Performance driven C. Work/life balance
B. Market match D. Security
19. The McKinney Company can produce 200 printed shirts per day. It sells those shirts for
$10 each to retailers, who then sell them for $15 each. It costs the McKinney Company
$5 to produce one shirt. The McKinney Company just hired Sam as a machine operator,
and it can now produce 230 shirts per day. What is the marginal revenue of Sam’s
A. $150 C. $450
B. $300 D. $2,300
20. The McKinney Company can produce 200 printed shirts per day. It then sells those
shirts for $10 each to retailers, who then sell them for $15 each. It costs the McKinney
Company $5 to produce one shirt. The McKinney Company just hired Sam as a machine
operator, and it can now produce 230 shirts per day. What is the marginal product of
A. 30 shirts B. 170 shirts C. 200 shirts D. 230 shirts
1. Which of the following is an example of an error in the actual
A. Rhonda gives George a lower evaluation due to gender
B. Tony gives Chet a poor evaluation because all he can
remember is the fact that Chet showed up late to his
job interview a year ago.
C. Sarah gives Christa a good evaluation because Christa
just started showing up for work on time after receiving
three warnings for being late.
D. Lonnie gives Rick a good evaluation because they both
drive the same cars and Lonnie thinks that makes Rick a smarter and better employee.
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