E-P M4 P1 Pre-exam

Which pay strategy offers wage rates and benefits packages similar to that of the competition and is the most common approach?

• Lead competition

• Lag competition

• Match competition

• External equity

Which of the following job classes would typically have the greatest range spread?

• Customer service

• Executive

• Supervisor

• Production

Which of the following would be considered indirect compensation?

• Granting a spot bonus to a salaried employee for extra hours worked at a convention

• Paying the difference between jury duty pay and the employee's regular wages

• Paying individual bonuses to team members for meeting critical project deadlines

• Awarding organization-paid cruises to top performers in a sales contest

Which of the following statements about market-based job evaluation is true?

• It emphasizes internal equity.

• It is more legally defensible than job-content approaches.

• It requires reliable survey data.

• It is difficult to explain to employees.

Which of the following job evaluation methods would be MOST appropriate for an organization that has a large number of people with similar, defined jobs?

• Job ranking

• Factor comparison

• Paired comparison

• Job classification

Which of the following is a nonquantitative method of job evaluation?

• Factor comparison

• Job qualification

• Point-factor method

• Job ranking

Which of the following is a form of indirect compensation?

• Flexible benefits

• Bonus

• Base pay

• Differential pay

Which of the following factors is not related to pay compression?

• Merit increases that reward existing employees for higher productivity.

• Unionized hourly pay increases that overtake supervisory and nonunion hourly rates.

• Higher starting salaries dictated by increased market pressures.

• Recruitment of new college graduates at pay levels above those of current job holders.

What is one of the advantages of taking a total rewards approach?

• Ensures that the HR strategy will align with the business strategy.

• Ensures compliance with legal and regulatory requirements.

• Offers flexibility for customizing total rewards programs in unique proportions.

• Offers more career opportunities for HR professionals.

What is a major advantage of an organization having internal equity?

• It is a sure way to eliminate gender bias.

• It allows organizations to fairly recognize unique jobs.

• It guarantees that all employees have the same benefits.

• It lowers the amount the organization spends on salaries.