Question 1

In a large organization who is typically responsible for formulating the compensation strategy?

Accepted Answer

A)  Head of HR 
B)  The board of directors 
C)  Manager of compensation 
D)  Compensation consultants 
A)  Head of HR 
B)  The board of directors 
C)  Manager of compensation 
D)  Compensation consultants A

Question 2

What is the first step to effective compensation according to the "Road Map to Effective Compensation"?

Accepted Answer

A)  Develop new job descriptions. 
B)  Understand your organization and your employees. 
C)  Determine your compensation values. 
D)  Cost out the plan. 
A)  Develop new job descriptions. 
B)  Understand your organization and your employees. 
C)  Determine your compensation values. 
D)  Cost out the plan. B

Question 3

What philosophy is the total rewards approach to compensation based on?

Accepted Answer

A)  Proper incentives can change employee behaviour. 
B)  Intrinsic rewards are more important to people than other rewards. 
C)  There are many awards associated with the work environment that have value. 
D)  Pay is still what matters most. 
A)  Proper incentives can change employee behaviour. 
B)  Intrinsic rewards are more important to people than other rewards. 
C)  There are many awards associated with the work environment that have value. 
D)  Pay is still what matters most. C

Question 4

You have been given the responsibility to develop an effective compensation strategy for your company. Which of the following activities is not a required step in the process?.

Accepted Answer

A)  Understand your organization and your people. 
B)  Formulate your sustainability plans. 
C)  Design your performance pay and indirect pay plans. 
D)  Implement, manage, evaluate, and adapt the system. 
A)  Understand your organization and your people. 
B)  Formulate your sustainability plans. 
C)  Design your performance pay and indirect pay plans. 
D)  Implement, manage, evaluate, and adapt the system.

Question 5

Which of the following best explains intrinsic rewards?

Accepted Answer

A)  Intrinsic rewards focus on increasing an employee's financial position. 
B)  Intrinsic rewards are provided by job content. 
C)  Intrinsic rewards provide security and employee services. 
D)  Intrinsic rewards relate to bonuses based on performance. 
A)  Intrinsic rewards focus on increasing an employee's financial position. 
B)  Intrinsic rewards are provided by job content. 
C)  Intrinsic rewards provide security and employee services. 
D)  Intrinsic rewards relate to bonuses based on performance.

Question 6

Which of the following items is not considered part of a compensation system?

Accepted Answer

A)  base pay 
B)  company parking pass 
C)  union dues 
D)  work/life programs 
A)  base pay 
B)  company parking pass 
C)  union dues 
D)  work/life programs

Question 7

Explain the difference between a "reward strategy" and a "compensation strategy".

Accepted Answer

A reward strategy is the plan for the mi

Question 8

The fundamental purpose of a compensation system is to help create a willingness among qualified persons to join the organization and to perform the tasks needed by the organization.

Accepted Answer

A) True 
 B)False

Question 9

A reward strategy is the plan for the mix of rewards to be provided to organization members along with the means through which they will be provided.

Accepted Answer

A) True 
 B)False

Question 10

Identify the steps in developing an effective compensation strategy.

Accepted Answer

Now that we have some basic ideas on com

Question 11

Three of the key criteria for evaluating a compensation system are whether it promotes achievement of organizational goals,whether it is seen as equitable,and whether it has lower salary costs than competitors.

Accepted Answer

A) True 
 B)False

Question 12

Which statement best describes the difference between the terms "rewards" and "incentives"?

Accepted Answer

A)  Rewards are given to satisfy basic human needs while incentives are used to satisfy higher-order human needs. 
B)  Rewards serve to recognize valued behaviour while incentives are intended to produce valued behaviour. 
C)  Rewards are job context related while incentives are job content related. 
D)  Rewards are used to influence future performance and incentives are given to recognize past work behaviour. 
A)  Rewards are given to satisfy basic human needs while incentives are used to satisfy higher-order human needs. 
B)  Rewards serve to recognize valued behaviour while incentives are intended to produce valued behaviour. 
C)  Rewards are job context related while incentives are job content related. 
D)  Rewards are used to influence future performance and incentives are given to recognize past work behaviour.

Question 13

Which of the following is not considered a goal of a reward and compensation system?

Accepted Answer

A)  Desired task behaviour is reinforced. 
B)  The system needs to comply with government regulations and laws. 
C)  Lower salary costs are achieved. 
D)  Qualified individuals are attracted and retained. 
A)  Desired task behaviour is reinforced. 
B)  The system needs to comply with government regulations and laws. 
C)  Lower salary costs are achieved. 
D)  Qualified individuals are attracted and retained.

Question 14

An effective compensation system is important to most organizations because it can mean the difference between company success and failure.

Accepted Answer

A) True 
 B)False

Question 15

A group of unionized employees negotiating a new contract is holding out for a better indirect pay plan.What should management offer the group in order to reach an agreement?

Accepted Answer

A)  Better services and benefits 
B)  Better training and development opportunities 
C)  Pay-for-performance 
D)  A more competitive base pay 
A)  Better services and benefits 
B)  Better training and development opportunities 
C)  Pay-for-performance 
D)  A more competitive base pay

Question 16

According to the "Road Map to Effective Compensation," the first step is formulating your reward and compensation strategy.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following best explains extrinsic rewards?

Accepted Answer

A)  They provide everything employees value. 
B)  They focus on quality of life at work. 
C)  They are derived from factors in the job context. 
D)  They provide development and career opportunities. 
A)  They provide everything employees value. 
B)  They focus on quality of life at work. 
C)  They are derived from factors in the job context. 
D)  They provide development and career opportunities.

Question 18

Which of the following items is not a component of the compensation strategy?

Accepted Answer

A)  Employee benefits 
B)  Employment security 
C)  Base pay 
D)  Performance pay 
A)  Employee benefits 
B)  Employment security 
C)  Base pay 
D)  Performance pay

Question 19

Which of the following statements is false?

Accepted Answer

A)  Canadian firms spend 20 to 40% of their operating budgets on compensation. 
B)  Some compensation systems serve to promote unproductive behaviour. 
C)  Reward systems need to be continually evaluated. 
D)  Some firms spend too little on their compensation systems. 
A)  Canadian firms spend 20 to 40% of their operating budgets on compensation. 
B)  Some compensation systems serve to promote unproductive behaviour. 
C)  Reward systems need to be continually evaluated. 
D)  Some firms spend too little on their compensation systems.

Question 20

What does a firm's compensation strategy identify?

Accepted Answer

A)  All of the financial and nonfinancial rewards of work. 
B)  The total amount of cash compensation employees will receive. 
C)  The mix of intrinsic rewards. 
D)  The mix and total amount of base, performance, and indirect pay. 
A)  All of the financial and nonfinancial rewards of work. 
B)  The total amount of cash compensation employees will receive. 
C)  The mix of intrinsic rewards. 
D)  The mix and total amount of base, performance, and indirect pay.

In a large organization who is typically responsible for formulating the compensation strategy?

What is the first step to effective compensation according to the "Road Map to Effective Compensation"?

What philosophy is the total rewards approach to compensation based on?

You have been given the responsibility to develop an effective compensation strategy for your company. Which of the following activities is not a required step in the process?.

Which of the following best explains intrinsic rewards?

Which of the following items is not considered part of a compensation system?

Explain the difference between a "reward strategy" and a "compensation strategy".

The fundamental purpose of a compensation system is to help create a willingness among qualified persons to join the organization and to perform the tasks needed by the organization.

A reward strategy is the plan for the mix of rewards to be provided to organization members along with the means through which they will be provided.

Identify the steps in developing an effective compensation strategy.

Three of the key criteria for evaluating a compensation system are whether it promotes achievement of organizational goals,whether it is seen as equitable,and whether it has lower salary costs than competitors.

Which statement best describes the difference between the terms "rewards" and "incentives"?

Which of the following is not considered a goal of a reward and compensation system?

An effective compensation system is important to most organizations because it can mean the difference between company success and failure.

A group of unionized employees negotiating a new contract is holding out for a better indirect pay plan.What should management offer the group in order to reach an agreement?

According to the "Road Map to Effective Compensation," the first step is formulating your reward and compensation strategy.

Which of the following best explains extrinsic rewards?

Which of the following items is not a component of the compensation strategy?

Which of the following statements is false?

What does a firm's compensation strategy identify?

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: the Job Evaluation Process

Evaluating Jobs: the Point Method of Job Evaluation

Evaluating the Market

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

Filters

Exam 1: A Road Map to Effective Communication

In a large organization who is typically responsible for formulating the compensation strategy?

What is the first step to effective compensation according to the "Road Map to Effective Compensation"?

What philosophy is the total rewards approach to compensation based on?

You have been given the responsibility to develop an effective compensation strategy for your company. Which of the following activities is not a required step in the process?.

Which of the following best explains intrinsic rewards?

Which of the following items is not considered part of a compensation system?

Explain the difference between a "reward strategy" and a "compensation strategy".

The fundamental purpose of a compensation system is to help create a willingness among qualified persons to join the organization and to perform the tasks needed by the organization.

A reward strategy is the plan for the mix of rewards to be provided to organization members along with the means through which they will be provided.

Identify the steps in developing an effective compensation strategy.

Three of the key criteria for evaluating a compensation system are whether it promotes achievement of organizational goals,whether it is seen as equitable,and whether it has lower salary costs than competitors.

Which statement best describes the difference between the terms "rewards" and "incentives"?

Which of the following is not considered a goal of a reward and compensation system?

An effective compensation system is important to most organizations because it can mean the difference between company success and failure.

A group of unionized employees negotiating a new contract is holding out for a better indirect pay plan.What should management offer the group in order to reach an agreement?

According to the "Road Map to Effective Compensation," the first step is formulating your reward and compensation strategy.

Which of the following best explains extrinsic rewards?

Which of the following items is not a component of the compensation strategy?

Which of the following statements is false?

What does a firm's compensation strategy identify?

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: the Job Evaluation Process

Evaluating Jobs: the Point Method of Job Evaluation

Evaluating the Market

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

Filters