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Compensation Chapter 1 Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Compensation refers to all forms of non-financial returns & intangible benefits employees receive as part of employment.

a)

True

b)

False

2.

Pay for executives should be tied to:

a)

the company's financial performance

b)

the company's reputation

c)

the financial needs of the employee

d)

the cost of living index

3.

Which of the following is NOT part of an employee's total compensation?

a)

paid vacation

b)

base pay

c)

health insurance

d)

relational returns

4.

Total compensation includes psychological aspects of work such as recognition and status, and learning opportunities.

a)

True

b)

False

5.

_____ includes cash compensation, benefits, and relational returns.

a)

Total compensation

b)

Total base pay

c)

Total incentives

d)

Total rewards

6.

A merit increase is best described as:

a)

an increment to base pay that recognizes past work behaviour

b)

psychological returns employees believe they receive in the workplace

c)

a one-time reward for past performance that does not increase base pay

d)

compensation given to provide for items that are in short supply

7.

Cost-of-living adjustment refers to percentage increment to base pay provided to employees based on their performance

a)

True

b)

False

8.

Which of the following is a work/life program?

a)

stock options

b)

health insurance

c)

telecommuting

d)

cost-of-living adjustment

9.

Internal alignment may be achieved by:

a)

creation of cross-functional departments

b)

comparing pay between jobs or skill levels inside a single organization

c)

compensating employees at above-market rates

d)

matching competitors' wage rates

10.

Making contributions to Workers' Compensation is at discretion of the employer

a)

True

b)

False