HAT2

What is the foundation of compensation in a financial rewards plan?

• Variable Pay

• Base Pay

• Stock Options

• Benefits

Which type of plan involves current or deferred profit sharing?

• Stock Option Plans

• Phantom Stock Plans

• Profit Sharing Plans

• Restricted Stock Plans

Which method is used to ensure competitive pay rates by comparing internal jobs to the external market?

• Job Evaluation

• Market Pricing

• Pay Progression

• Spot Rates

Which approach to job evaluation uses a systematic process to determine job worth?

• Informal Methods

• Leader Assessments

• Analytical Job Evaluation

• Spot Rates

What is the purpose of job evaluation?

• To assess the personal performance of employees

• To determine the relative worth of jobs within an organization

• To set fixed salary rates for employees

• To define career progression paths

Which pay structure provides clear career pathways and compensatory rewards?

• Unstructured Pay Systems

• Incremental Scales

• Spot Rates

• Graded Structures

What is the main challenge in balancing internal equity and market competitiveness in pay structures?

• Setting variable pay rates

• Ensuring performance-based rewards

• Managing fairness and clarity in compensation practices

• Defining non-monetary rewards

Which scheme provides cash rewards for past performance or achievements?

• Restricted Stock Plans

• Individual Bonus Schemes

• Stock Appreciation Rights

• Deferred Profit Sharing Plans

What is a key factor in determining base pay?

• Employee's Age

• Internal Equity

• Employee's Personal Preferences

• Market Saturation

What is the primary purpose of market pricing in determining pay rates?

• Ensuring internal equity

• Comparing internal jobs to the external market

• Setting variable pay rates

• Defining non-monetary rewards