1. With the introduction of an individual incentive program, Alexander feels like he is competing with the other members of his team instead of working together with them. While the individual incentive plan could mean more money for some members of the team, most members of the team feel the same way Alexander does. They wish they could go back to working together for a group incentive. Which disadvantage of individual incentives does this illustrate?

A. may not fit organizational culture

B. may motivate undesirable employee behaviors

C. many jobs have no direct output

D. record-keeping burden is high

2. A lump sum payment, typically given to an individual at the end of a period is a(n):

A. commission

B. exit pay

C. stock option

D. bonus

E. merit pay

3. Jacob sat down with his supervisor at the beginning of the quarter and set a goal to reduce defects on the assembly line from 5 percent to 2 percent. If he achieves this goal by the end of the quarter, he will receive a ________ of $4,000.

A. merit pay

B. commissions

C. piecework

D. bonus

4. What restrictions do 16- and 17-year-olds have concerning work?

A. They must have a parent’s permission to work at night.

B. They must work under direct supervision at all times

C. They must not work overtime.

D. They must not work more than 30 hours per week during school time.

E. They must work in nonhazardous occupations.

5. Colton’s salary is $40,000 per year. This part of his compensation is considered ________.

A. wage and salary add-on

B. incentive pay

C. base pay

D. benefits

6. Aryn and Mary started at the organization on the same day. Both are hard workers and perceive that they are equitably rewarded for their efforts. According to equity theory, it is likely that both will ________.

A. request a raise

B. continue to put forth effort

C. do less work

D. worker harder or longer

7. What type of compensation would be paid on an hourly basis?

A. Stock options

B. Wages

C. Salary

D. Benefits

E. Bonuses