CM Quiz

The characteristics of of an effective compensation management system are: it should be

• realistic

• flexible

• timely administered

• All of the answers are correct.

Who is responsible for compensation decision making?

• HR Unit & Manager

• Worker

• Laymen

• Remuneration specialists

Internal alignment may be achieved by:

• ^{making cost of living adjustments.}

• matching competitors' wage rates.

• paying below-market base wages but offering training and rapid promotion.

• matching outside job offers employees receive from other organizations.

• paying on the basis of similarities among jobs within a firm.

Which pay form would best be described as a return, rather than a reward?

• Base wage

• Merit pay

• Short term incentive

• Sales commission

• Promotion

The non required benefits that reward employees- example: paid time off is an example of:

• Discretionary benefits

• Legally required benefits

• Exempt benefits

• None of the above

A pay structure that uses a small number of large salary pay ranges, instead of many different pay grades within an organization is called:

• Grade and Step systems

• Broadbanding

• Job family

• Salary bands

What's the best description of job evaluation?

• The assessment of how well jobs are being performed

• The assessment of important jobs in an organization

• Assessing whether a job is needed in an organization

• Assessing the relative value of jobs in an organization

• Assessing how well each employee is doing their job

Getting free premium gym membership is an example of:

• Incentive

• Benefit

• Perquisite

• None of the above

An arrangement where an executive gets a bonus equivalent to the value of the company's shares or increase in that value over time is called:

• Restricted stock options

• Stock Appreciations Rights

• Phantom stock

• Stock options

A plan to accommodate employees' preferences of planning for benefits is classified under:

• Fixed benefit plans

• Flexible benefit plans

• Cafeteria plans

• Both 'a' and 'b'