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MBA HR Compensation and Incentives — practice questions

Explore 28 free Compensation and Incentives questions in MBA HR Human Resource Management. Open each question or exercise to read its content, reference answers and available explanation.

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Compensation and Incentives questions and exercises with answers

Showing questions 1–28 of 28.

Incentive systems in organisations are usually divided into how many broad categories?Read the answer and worked solution →A drawback noted for individual incentive systems is that employees may end up:Read the answer and worked solution →Plans that base part of an employee's reward on group or organisational results are:Read the answer and worked solution →The pay practice that ties pay to performance and encourages group cooperation is:Read the answer and worked solution →A disadvantage noted for plans focused only on productivity is that employees may ignore:Read the answer and worked solution →The oldest of the gain-sharing programmes described is the:Read the answer and worked solution →Pay that rises as workers master more abilities is called:Read the answer and worked solution →A disadvantage of that skills-based approach is higher training and:Read the answer and worked solution →Letting employees decide how they receive their pay raise for the year describes:Read the answer and worked solution →Its main disadvantage is the cost of:Read the answer and worked solution →Letting employees take part in decisions about pay is called:Read the answer and worked solution →Programmes letting employees choose among benefits are called:Read the answer and worked solution →Among the incentives surveyed, which was reported successful by the highest share of companies?Read the answer and worked solution →What share of companies reported success with gain-sharing plans?Read the answer and worked solution →What share reported success with individual incentives?Read the answer and worked solution →Any reward system should be tied as closely as possible to actual:Read the answer and worked solution →Incentive programmes should allow for individual differences because different people want different:Read the answer and worked solution →An incentive programme should also reflect the type of work done and the:Read the answer and worked solution →Where trust levels are low, getting an incentive programme accepted will take:Read the answer and worked solution →Incentive programmes should be carefully monitored over time to ensure they are:Read the answer and worked solution →Catch the pay practicesRead the answer and worked solution →Pop the group rewardsRead the answer and worked solution →Run the reward gatesRead the answer and worked solution →Slice the reward wordsRead the answer and worked solution →Individual or groupRead the answer and worked solution →Sort the advantagesRead the answer and worked solution →Type the numberRead the answer and worked solution →Compensation bingoRead the answer and worked solution →

Worked practice questions

Incentive systems in organisations are usually divided into how many broad categories?

  1. Two kinds
  2. Six kinds
  3. Ten kinds
  4. Ten or more
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Correct answer: A. Two kinds

1. One rewards the individual. 2. The other rewards the group. 3. There are two. _Source: OpenStax Organizational Behavior, Chapter 8, incentive plan sections._

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A drawback noted for individual incentive systems is that employees may end up:

  1. Contracting with one another
  2. Competing with one another
  3. Commuting with one another
  4. Consulting with one another
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Correct answer: B. Competing with one another

1. Performance often does improve. 2. But rivalry can appear inside the team. 3. They may compete with one another. _Source: OpenStax Organizational Behavior, Chapter 8, incentive plan sections._

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Plans that base part of an employee's reward on group or organisational results are:

  1. Group incentive plans
  2. Group insurance plans
  3. Group interest plans
  4. Group inventory plans
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Correct answer: A. Group incentive plans

1. They answer the drawbacks of individual plans. 2. Rewards follow shared results. 3. They are group incentive plans. _Source: OpenStax Organizational Behavior, Chapter 8, incentive plan sections._

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