Question 1

What are the three basic approaches to pay structure design?

Options :

A : Job-based, market-based, and broadbanding

B : Point factor, ranking, and classification

C : Pay grades, pay ranges, and pay compression

D : Salary surveys, market pricing, and pay differentials

Answer: A

Question 2

What is a competitive benchmarking approach to pay for performance?

Options :

A : A system that rewards employees based on their ability to outperform industry competitors

B : A method that evaluates performance based on employee tenure and loyalty

C : An approach that links rewards to the organization-s market share growth

D : A process that assigns performance ratings based on individual innovation and creativity

Answer: A

Question 3

What are two timing options for merit pay programs?

Options :

A : Annual and quarterly

B : Biennial and ad hoc

C : Semi-annual and monthly

D : Seasonal and weekly

Answer: A

Question 4

What is the basis for expatriate differential determination?

Options :

A : The cost of living in the host country compared to the home country

B : The employee-s geographic location or cost of living

C : The specific shifts or time periods worked by the employee

D : The employee-s length of service with the company

Answer: A

Question 5

What does it mean to lead-lag the market?

Options :

A : Adjusting pay based on employee performance

B : Paying employees below the market rate initially, then catching up over time

C : Paying employees above the market rate initially, then adjusting down over time

D : Adjusting pay based on market benchmarks and internal considerations

Answer: D

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