Profit-sharing program is to set clear goals for the program

45. The advantage of informal reward programs is that they are easy to implement and cost effective.



ANS: T


46. At Blanchard Training and Development in San Diego, California, leaders have established the Eagle Award to recognize legendary service to customers—one of the organization’s goal. This is a skill based pay program.


ANS: F

This is an informal reward.


47. Profit-sharing programs are useful because individuals and teams have an important role in overall organizational performance.


ANS: F

Profit-sharing programs are limited because individuals and teams are not likely to have an impact on overall organizational performance.



48. More than one-third of the companies that use profit sharing do not track the results of such programs.



ANS: T 

 49. One of the way to reduce failure in a profit-sharing program is to set clear goals for the program.


ANS: T


50. One of the way to reduce failure in a profit-sharing program is to track performance right away, and stop the program if it does not work in the first year.



ANS: F

It is better to give the program time to succeed. It takes two or three years for a program to change overall company performance.