Question 1

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 2

How does size impact merit pay programs?

Options :

A : Larger organizations tend to offer higher merit increases

B : Smaller organizations have more flexibility in merit budgets

C : Merit pay programs are not impacted by organizational size

D : Merit pay programs are standardized regardless of organization size

Answer: B

Question 3

Awarding an employee a 10% increase in base pay for all hours worked after 7:00 p.m. is an example of what type of pay differential?

Options :

A : Shift differential

B : Overtime pay

C : Bonus pay

D : Merit pay

Answer: A

Question 4

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

Question 5

What are methods of delivery for pay increases?

Options :

A : Base salary adjustments, lump sum payments, and bonuses

B : Collective bargaining agreements and union negotiations

C : Point factor evaluations and job analysis

D : Skill development, training completion, and promotions

Answer: A

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