Flexible benefit programs is they allow employees to make important decisions about their finances

63. Most organizations spend more on merit pay than they do on employee benefits.


ANS: F

A typical corporation's benefit plan is between 25 and 30 percent of its total employee compensation package, while only 3% or less is typically set aside for merit pay increases.


64. One of the drawbacks of flexible benefit plans is they are very expensive, especially for health care.


ANS: F

One reason flexible benefit plans are so popular is that they help organizations control costs, especially for health care.


65. One of the positive aspects of flexible benefit programs is they allow employees to make important decisions about their finances and to match their needs with their benefit programs.


ANS: T

66. One of the disadvantages of flexible benefit plans is the difficultly to accurately predict the number of employees that might choose each benefit. Such uncertainty may affect the firm’s group rates for life and medical insurance, because the costs of such programs are based on the number of employees covered.


ANS: T


67. For performance based-reward systems to work, leaders need to link rewards to performance and set a measurement system in place that measures the behaviors that lead to effectiveness.


ANS: T

68. For performance based-reward systems to work, leaders need to make sure that rewards are monetary based.


ANS: F

For performance based-reward systems to work, leaders need to make sure that rewards are relevant and valued by employees.