This set of Industrial Engineering Multiple Choice Questions & Answers (MCQs) focuses on “Wage Incentive Plans”.
1. Which of the following is defined as a benefit given to an individual worker for his/her contribution?
a) Direct incentives
b) Indirect incentives
c) Financial Incentives
d) Non-Financial Incentives
View Answer
Explanation: Incentives are broadly classified as follows:
i. Direct incentives and Indirect Incentives,
ii. Financial incentives, Non-Financial incentives and Semi-Financial incentives.
Benefits given to a worker for his/her contribution are defined as direct incentives.
2. Which of the following incentives is paid to a group of workers?
a) Direct incentives
b) Indirect incentives
c) Financial Incentives
d) Non-Financial Incentives
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Explanation: Indirect incentives are paid to a group of workers. But, direct incentives are paid to an individual worker. Indirect incentives are benefits provided to a group of workers like provision medical assistance etc.
3. Which of the following gives direct monetary benefits to a worker?
a) Direct incentives
b) Indirect incentives
c) Financial Incentives
d) Non-Financial Incentives
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Explanation: Financial incentives provide a direct monetary benefit to the workers. In addition to the incentives for immediate work contribution, they may also be provided with additional financial benefits like bonus, profit sharing etc.
4. Which of the following has relation with ‘provision of a good working environment and social benefits to a worker’?
a) Direct incentives
b) Indirect incentives
c) Financial Incentives
d) Non-Financial Incentives
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Explanation: Examples of non-financial incentives are the provision of a good working environment, social benefits like recognition and respect in the organization, job security etc. It doesn’t give direct monetary benefit to a worker but satisfies his/her needs.
5. Which of the following is not a non-financial incentive?
a) Job satisfaction
b) Chances of demotion
c) Job security
d) Healthy working environment
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Explanation: Job satisfaction, job security, healthy work environment and chances of promotion in rank or cadre or designation are non-financial incentives. Demotion is not an incentive for a worker. Instead, it is a punishment.
6. Which of the following is a non-financial incentive?
a) Bonus
b) Profit-sharing
c) Demotion
d) Provision of training and upskilling
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Explanation: Demotion is not an incentive. Bonus and profit-sharing are additional financial incentives. Hence, the provision of training and upskilling is a non-financial incentive.
7. Which of the following is not a non-financial incentive?
a) Bonus
b) Promotion
c) Co-operative management
d) Respect and recognition in the organization
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Explanation: Promotion, co-operative management and respect and recognition in the organization are some of the non-financial incentives. Bonus is an additional financial incentive provided to a worker besides his immediate work contribution.
8. Which of the following is a financial incentive?
a) Bonus
b) Provision of basic amenities like housing, medical etc.
c) Job security
d) Healthy working environment
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Explanation: Bonus is a financial incentive as it is given in the form of monetary benefit to a worker. Provision of basic amenities like housing, medical etc, job security, a healthy working environment comes under non-financial incentives.
9. Which of the following is not a semi-financial incentive?
a) Provision of subsidised lunch
b) Pension and other benefits
c) Recreational facilities
d) Job security
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Explanation: Besides financial and non-financial incentives, there another type of incentive i.e., semi-financial incentive. Provision of subsidised lunch, pension and other benefits, recreational facilities are semi-financial incentives. Job security is a non-financial incentive.
10. Which of the following is a semi-financial incentive?
a) Bonus
b) Pension and other benefits
c) Co-operative management
d) Job security
View Answer
Explanation: Pension is a semi-financial incentive given to a worker. Bonus, co-operative management and jib security are non-financial incentives.
Sanfoundry Global Education & Learning Series – Industrial Engineering.
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