Please state the letter answer for each question and also provide justification for the answer. Please either restate definitions or provide evidence of the answer for justification.

41._______ Your company has jobs that are highly interrelated and strategic in focus. You want to provide a pay for performance incentive with relatively long measures of performance. The best option would be to design a:

A) Merit pay plan

B) Commission pay plan

C) Profit Sharing plan

D) Piece rate plan

E) Behavioral modification plan

42.______ When there is relatively little differential pay associated with using merit pay systems, one of the major problems that arise is:

A) company has a problem tracking payroll costs.

B) best performers perceive it as inequitable.

C) middle performers complain.

D) poor performers become worse.

E) top management takes the opportunity to give itself raises.

43.______ When is a group pay for performance plan more effective than an individual plan?

A) When tasks are independent

B) When cooperation and teamwork are essential

C) When it is difficult to measure an employees specific contributions

D) Both A and B

E) Both B and C

44._______ Each of the following is true regarding individual PFP plans EXCEPT:

A) Individual PFP plans can be divided into merit pay systems and incentive systems tied to production rates.

B) For a merit pay plan, performance is generally measured through performance appraisal.

C) Incentive plans rely on some countable result as a basis for setting the PFP rate.

D) The greatest strength of the merit pay plan is its ability to create a clear linkage between employee performance and pay.

E) Incentive pay is based on units produced and provides the closest connection between performance and pay.