Answer All of the Questions whether they are True/False.

1. Quality problems are a major issue of piece-rate systems.

2. Group incentives should be distributed evenly when cohesion may be seen as more important than individual effort.

3. Even if an incentive pay system is poorly managed and implemented it is still better than having no system at all.

4. Recent evidence suggests that individual incentives work significantly better than group incentives when people in the organization have to cooperate or coordinate with one another in completing a set of tasks.

5. Equitable distribution of incentives cannot be achieved through individual incentive plans.

6. Less productive employees who see others getting valued rewards for performance may be convinced to increase their own performance levels in order to get similar rewards.

7. Dysfunctional conflict, competition, and sabotage might be fostered in employees on individual incentive plans.

8. When providing group incentives, individual efforts and results may get “lost” in the group.

9. If we pay employees “by the piece,” they may make lots of pieces with lots of quality problems.

10. Incentive plans work when they involve money, but generally don’t work if they involve non-monetary rewards.

11. If we can create the connection between how the employee acts and how they gain from it, we can create strong performance incentives.

12. Incentive programs may create the tendency of people to only do what is measured and paid for.

13. “SMART” goals are specific, measurable, attainable, relative, and targeted.

14. We must keep the time between the performance and reward short as possible in order to reinforce the employee’s efforts that led to desired results.