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Worksheetscompensation management
Total questions: 52
Worksheet time: 38mins
Pay-for-performance programs ________.
tie rewards to firms' profitability
are easy to implement and measure
tie rewards to employee effort
result in negligible increases in output
Which of the following is NOT a common goal of a strategic compensation policy?
To reward employees' past performance
To mesh employees' past performance with organizational goals
To remain competitive in the labor market
To attract new employees
Wage differentials depend on the following factor / factors
Difference in labour efficiency
Social esteem
Occupation
All
None
Base/Bases for traditional pay system is/are -------------------------------------------
Cost of living and labour market
Base wage or salary
Both of these
None
Basic compensation system/systems is /are --------------------------------------------
Time rate system
Piece rate system
Both of these
None
Components of wage & salary are
Basic wage
Overtime wage
Dearness allowance
All of these
None
Base/Bases for Modern Pay System is/are ----------------------------------------
Base wage or salary
Variable pay
Both of these
None
Employees are paid incentives on 'Output' basis if ------------------------
Units of output can be measured
Direct relationship exists between employee efforts and quantity of output
Jobs are standardised
All of these
None
Job Analysis is used in compensation to identify or determine -------------------------
Skill levels
Responsibilities
Required level of education
All of these
None
Differential piece rate system is suitable where ------------------------------------
Fixed costs are higher in proportion to variable cost
It is possible to determine production accurately
There are standardised methods of production
All
None
Group incentive plans may not become successful due to ----------------------------
Unevenness in performance of different members of groups
feeling among group members
No recognition for individual performance
All of these
None
Compensation management is the establishment and implementation of sound policies and practices through
Job evaluation
Surveys of wages & salaries
Both of these
None
Pay for knowledge is/are
Job based
Skill & Competency based
Both of these
None
Perquisite/Perk is
Any reward/benefit given to employee over and above the wage or salary
Provident fund, gratuity & pension
Company car
All of these
None
Skill based pay is tied to
Skills
Abilities
Knowledge
All of these
None
Competency/Competencies is/are -----------------------------
Expertise
Knowledge
Self concept
Traits
All of these
Total compensation/reward consists of ---------------------
Direct financial compensation
Indirect financial compensation
Non-financial compensation
All of these
Factor/ Factors influencing pay is/are -----------------------------
Market forces
Organisation policy
Work value
Individual performance
All of these
Fringe Benefit/Benefits is /are ----------------------------------------
Wage/Salary
Company car
Stock options
All of these
None
Method/ Methods of Wage Surveys is/are ------------------------------------
Personal Interviews
Mailed Questionnaires
Telephone Inquiries
All
(a) is the systematic formal study of the duties and responsibilities of the jobs and seeks to obtain important and relevant information about the nature and level of the work performed.
_______________ is a systematic approach to providing monetary value to employees
a. Salary
b. Allowances
c. Compensation
d. Rewards
Pay-for-performance programs ________.
tie rewards to firms' profitability
are easy to implement and measure
tie rewards to employee effort
result in negligible increases in output
Which of the following is NOT a common goal of a strategic compensation policy?
To reward employees' past performance
To mesh employees' past performance with organizational goals
To remain competitive in the labor market
To attract new employees
Factors determining the employee incentives:
Experience and education level
industry
cost of living
in-demand skill sets
supply and demand of workforce and market.
A particular company wants to make sure employees feel they are appreciated, while at the same time ensuring key employees have a sense of loyalty towards the company. Which of the following systems does this company most likely use?
Benefits
Performance Pay
Indirect Pay
Wage pay
Base pay
A particular organization wants to include in their compensation system some element of organizational performance linkage, while at the same time it wants to encourage employee commitment. In addition to base pay, which of the following would most likely be included in this compensation mix?
Merit Pay
Piece rates
Profit Sharing
Targeted Incentives
As a human resource consultant, you have been asked to provide some rationale why an organization may decide to use base pay as a cornerstone for a compensation scheme. Which of the following notions would you advance in supporting your argument?
It provides an organization with more labour flexibility in the allocation of tasks.
It guarantees employee performance and aligns salaries to performance.
It is the most popular; hence, the organization should use it.
Unions are most likely to agree with management's approach, given this scheme
Which of the following is a reason why employees may prefer base pay over performance pay?
Performance pay is more predictable.
Base pay is directly related to their performance level.
They dislike uncertainty about their compensation.
Market conditions are always changing.
In expatriate compensation, what does the term 'home leave' refer to?
Paid time off in the host country
Travel allowance for vacations
Periodic trips back to the home country
Emergency leave for personal reasons
What is the primary purpose of a relocation premium in expatriate compensation
To cover daily living expenses
To compensate for the inconvenience of relocating
To pay for housing in the host country
To provide a bonus for performance
Cost-of-living adjustment refers to percentage increment to base pay provided to employees based on their performance
True
False
Internal alignment may be achieved by:
creation of cross-functional departments
comparing pay between jobs or skill levels inside a single organization
compensating employees at above-market rates
matching competitors' wage rates
Q.5. The component of compensation for compensation includes
A..annual bonuses
B.supplemental benefits
C.. executive salaries
D..all of the above
Q.7 .Any compensation plan must be
A.. understandable ,workable,acceptable
B.reasonable, workable, acceptable
C..understandable, feasible ,acceptable
D.. understandable, workable,compensable
To become effective, the rewards scheme must be attractive to the employee because _________.
it can increase employee's motivation
it can create a harmonious relationship between employer and employee
it can helps to reduce employment cost
it can give good reputation for the company
Listed below are the statutory benefits for staff EXCEPT:
maternity leave
national day
health care
annual leave
An employee's paycheck displays the gross pay amount.
True
False
(a) financial payments include wages, salaries, incentives, commissions and bonuses.
Employer-paid insurance and vacations are examples of ______ financial payments.
direct
indirect
self
regulated
_______________ is a systematic approach to providing monetary value to employees
a. Salary
b. Allowances
c. Compensation
d. Rewards
(a) is designing and implementing total compensation package with a systematic approach to providing value to employees in exchange for work performance.
Pay-for-performance programs ________.
tie rewards to firms' profitability
are easy to implement and measure
tie rewards to employee effort
result in negligible increases in output
Which of the following is NOT a common goal of a strategic compensation policy?
To reward employees' past performance
To mesh employees' past performance with organizational goals
To remain competitive in the labor market
To attract new employees
What is the primary purpose of a relocation premium in expatriate compensation
To cover daily living expenses
To compensate for the inconvenience of relocating
To pay for housing in the host country
To provide a bonus for performance
It takes place when two persons in their own right are creditors and debtors of each other.
Compensation
Extinguishment
Object of Compensation
Simplified Payment
Below are the objectives of remuneration systems EXCEPT:
Identify training needs for specific employees
Attract employees to work in the organization
Retain efficient employees
Establish a simple system that is easy to administer
Q.5. The component of compensation for compensation includes
A..annual bonuses
B.supplemental benefits
C.. executive salaries
D..all of the above
Q.7 .Any compensation plan must be
A.. understandable ,workable,acceptable
B.reasonable, workable, acceptable
C..understandable, feasible ,acceptable
D.. understandable, workable,compensable
