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TUTORIAL CHAP 1 & 2 (COMPENSATION MANAGEMENT)

Total questions: 7

Worksheet time: 4mins

Name
Class
Date
1.

How compensation can be best described?

a)

hourly/ monthly salary

b)

non-monetary reward

c)

incentive reward

d)

intrinsic & extrinsic rewards

2.

What are the two essential parts that constitute core compensation?

a)

base pay + employee benefits

b)

base pay + COLA

c)

seniority & merit pay

d)

person focused pay

3.

What category of decision involves aligning compensation with business strategy (long-term goals)?

a)

tactical decision

b)

strategic decision

4.

What group receives incentive payments under profit-sharing arrangements?

a)

top management only

b)

shareholders only

c)

All (most) employees

5.

What is one downside of using only seniority as the basis for employee pay increases?

a)

can demotivate high-performing employees

b)

difficult to administer

c)

decrease employees retention

6.

What is the term for a pay system that rewards based on the position’s role in the organization?

a)

person-focused pay

b)

job-based pay

c)

incentive pay

d)

merit pay

7.

Give two company-wide incentive plans

a)

profit sharing plans & employee stock option plans

b)

team-based or small- group incentive plans & gain sharing plans