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compensation management

Total questions: 52

Worksheet time: 38mins

Name
Class
Date
1.

Pay-for-performance programs ________.

a)

tie rewards to firms' profitability

b)

are easy to implement and measure

c)

tie rewards to employee effort

d)

result in negligible increases in output

2.

Which of the following is NOT a common goal of a strategic compensation policy?

a)

To reward employees' past performance

b)

To mesh employees' past performance with organizational goals

c)

To remain competitive in the labor market

d)

To attract new employees

3.

Wage differentials depend on the following factor / factors 

a)

Difference in labour efficiency

b)

Social esteem

c)

Occupation

d)

All

e)

None

4.

Base/Bases for traditional pay system is/are    -------------------------------------------

a)

Cost of living and labour market

b)

Base wage or salary

c)

Both of these

d)

None

5.

Basic compensation system/systems is /are --------------------------------------------

a)

Time rate system

b)

Piece rate system

c)

Both of these

d)

None

6.

Components of wage & salary are      

a)

Basic wage

b)

Overtime wage

c)

Dearness allowance

d)

All of these

e)

None

7.

Base/Bases for Modern Pay System is/are ----------------------------------------

a)

Base wage or salary

b)

Variable pay

c)

Both of these

d)

None

8.

Employees are paid incentives on 'Output' basis if ------------------------

a)

Units of output can be measured

b)

Direct relationship exists between employee efforts and quantity of output

c)

Jobs are standardised

d)

All of these

e)

None

9.

Job Analysis is used in compensation to identify or determine -------------------------

a)

Skill levels

b)

Responsibilities

c)

Required level of education

d)

All of these

e)

None

10.

Differential piece rate system is suitable where ------------------------------------

a)

Fixed costs are higher in proportion to variable cost

b)

It is possible to determine production accurately

c)

There are standardised methods of production

d)

All

e)

None

11.

Group incentive plans may not become successful due to ----------------------------

a)

Unevenness in performance of different members of groups

b)

feeling among group members

c)

No recognition for individual performance

d)

All of these

e)

None

12.

Compensation management is the establishment and implementation of sound policies and practices through      

a)

Job evaluation

b)

Surveys of wages & salaries

c)

Both of these

d)

None

13.

Pay for knowledge is/are                                                                                        

a)

Job based

b)

Skill & Competency based

c)

Both of these

d)

None

14.

Perquisite/Perk is        

a)

Any reward/benefit given to employee over and above the wage or salary

b)

Provident fund, gratuity & pension

c)

Company car

d)

All of these

e)

None

15.

Skill based pay is tied to        

a)

Skills

b)

Abilities

c)

Knowledge

d)

All of these

e)

None

16.

Competency/Competencies is/are -----------------------------

a)

Expertise

b)

Knowledge

c)

Self concept

d)

Traits

e)

All of these

17.

Total compensation/reward consists of ---------------------

a)

Direct financial compensation

b)

Indirect financial compensation

c)

Non-financial compensation

d)

All of these

18.

Factor/ Factors influencing pay is/are -----------------------------

a)

Market forces

b)

Organisation policy

c)

Work value

d)

Individual performance

e)

All of these

19.

Fringe Benefit/Benefits is /are ----------------------------------------

a)

Wage/Salary

b)

Company car

c)

Stock options

d)

All of these

e)

None

20.

Method/ Methods of Wage Surveys is/are ------------------------------------

a)

Personal Interviews

b)

Mailed Questionnaires

c)

Telephone Inquiries

d)

All

21.

(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.

22.

_______________ is a systematic approach to providing monetary value to employees

a)

a. Salary

b)

b. Allowances

c)

c. Compensation

d)

d. Rewards

23.

Pay-for-performance programs ________.

a)

tie rewards to firms' profitability

b)

are easy to implement and measure

c)

tie rewards to employee effort

d)

result in negligible increases in output

24.

Which of the following is NOT a common goal of a strategic compensation policy?

a)

To reward employees' past performance

b)

To mesh employees' past performance with organizational goals

c)

To remain competitive in the labor market

d)

To attract new employees

25.

Factors determining the employee incentives:

a)

Experience and education level

b)

industry

c)

cost of living

d)

in-demand skill sets

e)

supply and demand of workforce and market.

26.

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?

a)

Benefits

b)

Performance Pay

c)

Indirect Pay

d)

Wage pay

e)

Base pay

27.

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?

a)

Merit Pay

b)

Piece rates

c)

Profit Sharing

d)

Targeted Incentives

28.

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?

a)

It provides an organization with more labour flexibility in the allocation of tasks.

b)

It guarantees employee performance and aligns salaries to performance.

c)

It is the most popular; hence, the organization should use it.

d)

Unions are most likely to agree with management's approach, given this scheme

29.

Which of the following is a reason why employees may prefer base pay over performance pay?

a)

Performance pay is more predictable.

b)

Base pay is directly related to their performance level.

c)

They dislike uncertainty about their compensation.

d)

Market conditions are always changing.

30.

In expatriate compensation, what does the term 'home leave' refer to?

a)

Paid time off in the host country

b)

Travel allowance for vacations

c)

Periodic trips back to the home country

d)

Emergency leave for personal reasons

31.

What is the primary purpose of a relocation premium in expatriate compensation

a)

To cover daily living expenses

b)

To compensate for the inconvenience of relocating

c)

To pay for housing in the host country

d)

To provide a bonus for performance

32.

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

a)

True

b)

False

33.

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

34.

Q.5. The component of compensation for compensation includes

a)

A..annual bonuses

b)

B.supplemental benefits

c)

C.. executive salaries

d)

D..all of the above

35.

Q.7 .Any compensation plan must be

a)

A.. understandable ,workable,acceptable

b)

B.reasonable, workable, acceptable

c)

C..understandable, feasible ,acceptable

d)

D.. understandable, workable,compensable

36.

To become effective, the rewards scheme must be attractive to the employee because _________.

a)

it can increase employee's motivation

b)

it can create a harmonious relationship between employer and employee

c)

it can helps to reduce employment cost

d)

it can give good reputation for the company

37.

Listed below are the statutory benefits for staff EXCEPT:

a)

maternity leave

b)

national day

c)

health care

d)

annual leave

38.

An employee's paycheck displays the gross pay amount.

a)

True

b)

False

39.

(a)   financial payments include wages, salaries, incentives, commissions and bonuses.

40.

Employer-paid insurance and vacations are examples of ______ financial payments.

a)

direct

b)

indirect

c)

self

d)

regulated

41.

_______________ is a systematic approach to providing monetary value to employees

a)

a. Salary

b)

b. Allowances

c)

c. Compensation

d)

d. Rewards

42.

(a)   is designing and implementing total compensation package with a systematic approach to providing value to employees in exchange for work performance.

43.

Pay-for-performance programs ________.

a)

tie rewards to firms' profitability

b)

are easy to implement and measure

c)

tie rewards to employee effort

d)

result in negligible increases in output

44.

Which of the following is NOT a common goal of a strategic compensation policy?

a)

To reward employees' past performance

b)

To mesh employees' past performance with organizational goals

c)

To remain competitive in the labor market

d)

To attract new employees

45.
Seniority and Effort are two variables affecting compensation.
a)
True
b)
False
46.

What is the primary purpose of a relocation premium in expatriate compensation

a)

To cover daily living expenses

b)

To compensate for the inconvenience of relocating

c)

To pay for housing in the host country

d)

To provide a bonus for performance

47.

It takes place when two persons in their own right are creditors and debtors of each other.

a)

Compensation

b)

Extinguishment

c)

Object of Compensation

d)

Simplified Payment

48.
This compensation model uses incentives to promote performance.
a)
Membership-Based
b)
Performance-Based
c)
Effort-Based
d)
Seniority-Based
49.
Seniority and Effort are two variables affecting compensation.
a)
True
b)
False
50.

Below are the objectives of remuneration systems EXCEPT:

a)

Identify training needs for specific employees

b)

Attract employees to work in the organization

c)

Retain efficient employees

d)

Establish a simple system that is easy to administer

51.

Q.5. The component of compensation for compensation includes

a)

A..annual bonuses

b)

B.supplemental benefits

c)

C.. executive salaries

d)

D..all of the above

52.

Q.7 .Any compensation plan must be

a)

A.. understandable ,workable,acceptable

b)

B.reasonable, workable, acceptable

c)

C..understandable, feasible ,acceptable

d)

D.. understandable, workable,compensable