Question 1

What best describes the compensation philosophy?

Options :

A : The compensation committee’s interpretation of how employees can best meet business objectives

B : Guidelines that determine the administration of compensation programs

C : Statement of what the organization believes about how people should be paid

D : Principles that guide the design of compensation programs

Answer: C

Question 2

Which of the following may be a limitation of a government-sponsored health care program?

Options :

A : Increased reimbursement to physicians

B : Limits on services/facilities

C : Increased coverage for participants

D : Additional cost-sharing for participants

Answer: B

Question 3

Why is it important for organizations to measure the effectiveness of their learning, coaching/mentoring and advancement/career programs?

Options :

A : To increase turnover to get new people with new ideas to join the organization

B : To establish a baseline for employee engagement

C : To improve the rate at which internal job roles are filled

D : To design a better performance management system

Answer: D

Question 4

How should appraisers address performance deficiencies on performance appraisals?

Options :

A : Avoid discussing them

B : Focus the entire appraisal on the areas that need attention

C : Balance every deficiency with a compliment, even if the compliments are for minor accomplishments

D : Provide specific information about deficiencies that affect performance.

Answer: D

Question 5

Well-executed recognition programs create a more positive work environment through which of the following means?

Options :

A : Employees’ sense of belonging and identifying with the organization and its culture are enhanced.

B : Employees are rewarded only for exhibiting outgoing behaviors.

C : Rewarded employees receive higher ratings on performance reviews and therefore, larger increases.

D : Employees are rewarded for perfect attendance.

Answer: A