1. True or False: Employee compensation will decline if performance declines in variable-pay programs.

2. Which of the following is one advantage of variable pay plans to management?

1. They turn slow employees into fast employees.
2. They turn the lower performance into fewer employees
3. They turn high fixed costs into low fixed costs.
4. They turn low producers into high producers.
5. They turn fixed labor costs into variable labor costs.

3 Which of the following is not an element of an employee compensation package?

1. incentive systems
2. perquisites
3. awards
4. flextime
5. base pay

4. Johann wants to evaluate his training. He creates some effective outcomes. What is he trying to measure?

1. The acquisition knowledge
2. Behavior skills
3. Company payoffs
4. Motivation
5. The economic value of training