1. Which of the following statements is true about a standard hour plan of incen
ID: 374770 • Letter: 1
Question
1. Which of the following statements is true about a standard hour plan of incentive pay?
A.It is an incentive plan that pays workers extra for work done in a standard hour.
B.The standard time taken to complete a task is determined by the employees.
C.If a mechanic completes work in less than the standard time, he receives payment for the full standard time.
D.It encourages workers to work at a pace that they feel comfortable and also encourages them to focus on quality and customer satisfaction.
E.This plan will only succeed if employees want to work at a pace that feels comfortable more than the extra money they could earn.
2. Which of the following statements is true about the concept of profit sharing?
Explanation / Answer
1. Standard hour plan of incentive pay: Standard hour plan means a pre agreed or pre decided out put per hour. If a worker achieves the same in standard hour plan, he gets incentive pay for that. A is the correct answer.
2. Profit Sharing is a plan where profits are shared based upon a pre agreed standards.Following is the closest answer:
"It is incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary.:
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