E-P M4 P2 Pre-exam

A compensation method related to an employee's individual performance is known as __________.

• a step plan.

• an incentive pay plan.

• a Scanlon plan.

• a merit pay plan.

Gainsharing is a type of.

• group incentive.

• profit sharing.

• individual incentive plan.

• commission.

One problem with team-based incentives is that they:

• Can create competition among team members.

• Are more costly than individual incentives.

• Can result in Equal Pay Act claims.

• Can be perceived as unfair by high performers.

Which common practice in a pay-for-performance system is most likely to hinder performance?

• Open sharing with all employees of performance expectations.

• Small merit increase range amounts.

• A common date for merit increases.

• Multiple measures of employee performance.

Which of the following would be a recommended compensation practice for a startup business that wishes to create an innovative, entrepreneurial culture?

• Offer incentive bonuses and stock ownership plans.

• Establish high starting pay rates to attract the most talented employees.

• Offer a benefits program that exceeds competitors.

• Establish step- or longevity-based pay increases.

After giving two weeks' notice, an employee falls while on the premises, breaks an ankle, and is unable to work for the remaining two weeks. In this situation, which of the following is the primary benefit?

• Unemployment compensation

• Workers' compensation

• Sick pay

• Social Security disability

As part of conducting a benefit plan needs assessment, the HR professional has looked at the organization's business strategy and compensation philosophy. What is the NEXT step that should be taken?

• Determine employee needs with regard to benefits.

• Conduct a utilization review to determine how benefits are used.

• Look at market conditions to see what benefits competitors offer.

• Determine which benefits should be included in the plan.

What is the preferred method of communicating the benefit plans to employees?

• Direct communication

• Benefit surveys

• Annual enrollment period meeting

• Written communication

What is the primary purpose of a flexible benefits plan?

• Decrease cost because there was a significant differential between the cheapest and most expensive quote.

• Enable employers to allow staff to select the benefits that suit them.

• Pass along benefit premium increases to employees.

• Require less maintenance by employers.

Which of the following is NOT a part of a payroll audit?

• Calculation of compa-ratio

• Check for fictitious employees

• Administration of wage garnishments

• Calculation of overtime