Question 1

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 2

What are some types of pay differentials?

Options :

A : Shift differentials, geographic differentials, and hazard pay differentials

B : Merit differentials, bonus differentials, and commission differentials

C : Salary differentials, allowance differentials, and incentive differentials

D : Job differentials, grade differentials, and market differentials

Answer: A

Question 3

What is a shareholder value added approach to pay for performance?

Options :

A :

A system that rewards employees based on their contributions to corporate social responsibility initiatives

B : A method that evaluates performance based on market share growth

C : An approach that links rewards to the organization-s stock performance

D : A process that assigns performance ratings based on cost savings

Answer: C

Question 4

What are two ways to measure performance?

Options :

A : Qualitative and quantitative

B : Internal and external

C : Objective and subjective

D : Short-term and long-term

Answer: C

Question 5

What is a key component for determining the number of pay grades for a given organization?

Options :

A : The number of responsibility distinctions evident in the organization

B : The number of hourly employees in the organization

C : The education level of the supervisors/managers in the organization.

Answer: A