Question 1

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 2

What best defines base pay?

Options :

A : The minimum wage mandated by the government

B : The average pay in a specific industry

C : The starting salary for a new employee

D : The fixed portion of compensation for a job

Answer: D

Question 3

What is a reason for establishing a job worth hierarchy?

Options :

A : To determine appropriate placement of anchor points during the job evaluation

B : To prove that job grades are not needed in an organization.

C : To establish midpoint differentials for managers and subordinates

D : To determine equity among both positions and groups of positions.

Answer: D

Question 4

What are the managerial factors that impact merit pay?

Options :

A : Leadership style and decision-making abilities

B : Communication skills and team management

C : Strategic thinking and problem-solving

D : Performance evaluations and goal setting

Answer: D

Question 5

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

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