Question 1

What are the three basic approaches to pay structure design?

Options :

A : Job-based, market-based, and broadbanding

B : Point factor, ranking, and classification

C : Pay grades, pay ranges, and pay compression

D : Salary surveys, market pricing, and pay differentials

Answer: A

Question 2

What are some considerations when conducting market model analysis?

Options :

A : Use reliable and up-to-date market data

B : Consider industry-specific benchmarks

C : Account for regional cost of living differences

D : Analyze market trends and competitive practices

Answer: D

Question 3

What are the five steps for determining merit payouts using performance and position?

Options :

A :

Set performance targets, evaluate employees, assign performance ratings, determine position in range, calculate merit payouts

B :

Determine position in range, assign performance ratings, evaluate employees, calculate merit payouts, set performance targets

C :

Evaluate employees, assign performance ratings, determine position in range, set performance targets, calculate merit payouts

D :

Assign performance ratings, set performance targets, evaluate employees, determine position in range, calculate merit payouts

Answer: C

Question 4

What is variable pay?

Options :

A : Compensation that varies based on performance

B : Compensation that remains constant regardless of performance

C : Compensation that includes both fixed and variable components

D : Compensation that is determined by market data

Answer: A

Question 5

What are methods of delivery for pay increases?

Options :

A : Base salary adjustments, lump sum payments, and bonuses

B : Collective bargaining agreements and union negotiations

C : Point factor evaluations and job analysis

D : Skill development, training completion, and promotions

Answer: A

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