Test Your Knowledge

Instructions: Choose an answer for each question and then click on the "Get Results" button at the end of the quiz.

1. Which of the following is one of the most common compensation program objectives?
A. Ensuring external competitiveness
B. Paying at the median or 50th percentile
C. Deferring compensation expenses
D. Competitive base and highly leveraged incentives

2. Which of the following best defines base pay?
A. Variable compensation paid on a weekly basis to an employee
B. Fixed compensation paid to an employee for performing specific job responsibilities
C. Total cash compensation paid for goal attainment
D. Payment based on an individual’s rate of production

3. What best describes an objective of a base pay structure?
A. To assist in developing a job worth hierarchy
B. To help to achieve organizational objectives
C. To determine job location in a broadband structure
D. To aid in the preparation of job descriptions

4. Which of the following is an accurate statement regarding the job content approach to pay structure development?
A. After the point system is established, the continuum approach or pay structure approach can be used to develop the pay structure.
B. External market pricing or competitiveness takes priority over job equity.
C. The market pricing and slotting is highly responsive to market changes.
D. With this particular method, no job evaluation points are assigned.

5. Which of the following describes a characteristic of single-rate pay?
A. Increases are based on a prescribed time schedule.
B. Pay rate is based on the acquisition of skills by the individual employee.
C. Each job has a fixed pay rate (one rate for all employees).
D. Employees are paid for skill set, not necessarily for job performed.

6. 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?
A. Shift
B. Geographic
C. Expatriate
D. Step rate

7. Which of the following is one of the performance management systems used today?
A. Balanced Scorecard
B. Dashboard Metrics
C. Performance Analytics

8. Which of the following is not one of the three types of compensation philosophy?
A. Lead-lag
B. Pay behind the market
C. Lead the market

9. Which of the following is a typical approach used to correct green circle rates?
A. Giving increases less frequently than the normal schedule
B. Lowering the pay and giving the amount outside the range as a lump sum
C. Granting 3% increases every four months until pay equals or exceeds the range minimum
D. Giving the amount below minimum in a lump sum

10. What best describes an effective approach to reducing supervisor and subordinate pay compression?
A. Ensure that supervisor and subordinate midpoints are 5% apart
B. Include supervisors in an incentive plan
C. Eliminate overtime for hourly employees
D. Offer spot bonuses to top performing hourly employees