Question 1

What is the primary goal of a merit pay program?

Options :

A : To link pay to the competitive market rate of each job

B : To link pay to years of experience in a particular job

C : To link pay to performance in a manner that is consistent with the mission of the organization

D : To link pay to organizational performance

Answer: C

Question 2

Which of the following benefits are usually offered at the discretion of the employer?

Options :

A : Retirement plans

B : Unemployment insurance

C : Social security programs

D : Disability (occupational)

Answer: A

Question 3

Which of the following is the best definition of variable pay?

Options :

A : Compensation that is given in the form of perquisites such as a company car, fitness membership, paid training, etc.

B : Compensation that is nondiscretionary and does not vary according to performance or results

C : Compensation that is contingent on discretion, performance or results

D : Compensation that is determined by the organization-s pay structure

Answer: C

Question 4

Which of the following shows the proper sequence for development of the total rewards strategy?

Options :

A : Business strategy Total rewards strategy Business mission HR strategy

B : HR strategy Business strategy Business vision Total rewards strategy

C : Business vision Business strategy HR strategy Total rewards strategy

D : Total rewards strategy HR strategy Business strategy Business mission

Answer: C

Question 5

How should appraisers address performance deficiencies on performance appraisals?

Options :

A : Avoid discussing them

B : Focus the entire appraisal on the areas that need attention

C : Balance every deficiency with a compliment, even if the compliments are for minor accomplishments

D : Provide specific information about deficiencies that affect performance.

Answer: D

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