Business Management Essay

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Final Exam Exercise Name: MULTIPLE CHOICE 1. In a true pay-for-performance system, which of the following employees would qualify for incentive reward? a. Jack has met his sales quota even though he was hospitalized for appendicitis during the year. b. Otto manages to meet the minimum required sales on his store location despite the fact that the business building next door, where he receives most of his customer traffic, has closed. c. Charlene performs up to expectations as a science teacher at a magnet high school. d. Chris brings in 20 percent more new clients for the branch bank than is required. 2. All of the following are potential outcomes of a successful pay-for-performance plan EXCEPT a. greater predictability of employee pay. b. retention of high performers. c. improved safety records. d. aligning employee behavior with organizational business goals. 3. What are variable pay plans? a. methods of tying compensation to the Consumer Price Index (CPI) in order to keep up with inflation b. additional tangible rewards given to employees for performance beyond normal expectations c. compensation that increases as employees gain new job-related knowledge, skills, and abilities d. incentives to meet required performance standards 4. Behemoth Industries has experienced huge losses for the last three years due to collapsing sales of their outdated product line. Behemoth’s stock has plummeted on Wall Street because it has not met projected profits for the 24th straight quarter. Behemoth has moved to a pure pay-for-performance system that is tied to achievement of organizational profit goals. Which of the statements below are most likely to be TRUE? a. Only high performers at Behemoth can be certain that they will receive a pay increase. b. No Behemoth employee can expect he/she will receive a pay increase, regardless of his/her performance. c. All employees except

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