Chapter 11

Question 1

What is merit pay?

Answer 1

increase in base pay related to past performance

Question 2

What is a gain sharing plan?

Answer 2

group incentive in which employees share in cost savings

Question 3

key elements of gain sharing plan?

Answer 3

Strength of reinforcement, productivity standards, sharing the gains-spilt between management and workers, scope of formula, fairness of formula, ease of admin, production variability

Question 4

What is SVOP ?

Answer 4

Function of the ratio between labour costs and sales value of production

Question 5

Earnings at risk plan

Answer 5

Incentive plan that includes reductions in base pay in unsuccessful years

Question 6

What is a BBOP

Answer 6

Broad based option plans (provided to all employees)

Question 7

What is ESOP?

Answer 7

Employee stock ownership plan (matched by employer)

Question 8

How to calculate Scanlon

Answer 8

Take the SVOP / total wage bill. Then take operating month SVOP and * by allowable wage bill then you get actual wage bill

Question 9

Dual career track

Answer 9

Career progression on either a managerial path or a professional path