Question 1

Which of the following describes a characteristic of single-rate pay?

Options :

A : Different pay rates for different job levels

B : Pay based on individual performance

C : Pay based on market benchmarks

D : Same pay rate for all employees in a job category

Answer: D

Question 2

What are employee-generated reasons for pay actions?

Options :

A : Job performance improvements, acquiring new skills, and completing education

B : Market competitiveness, cost of living adjustments, and industry standards

C : Changes in job responsibilities, promotions, and lateral transfers

D : Organizational restructuring, budget constraints, and financial sustainability

Answer: A

Question 3

What are disadvantages to a periodic pay increase?

Options :

A : Limited immediate recognition of performance and potential for cost inefficiency

B : Inconsistency with market practices and potential for pay compression

C : Increased administrative complexity and difficulty in budgeting

D : Increased administrative complexity and difficulty in budgeting

Answer: C

Question 4

Which of the following best defines base pay?

Options :

A : Variable compensation paid on a weekly basis to an employee

B : Fixed compensation paid to an employee for performing specific job responsibilities

C : The cash compensation paid for goal attainment

D : Payment based on an individual-s rate of production.

Answer: B

Question 5

What are advantages of a periodic pay increase?

Options :

A : Long-term impact on base salary and employee retention

B : Immediate recognition of performance and cost savings for the company

C : Alignment with market practices and fairness in pay administration

D : Increased motivation and recognition of employee contributions

Answer: A