C_THR70_2404 - SAP Certified Associate - SAP SuccessFactors Incentive Management
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Course
Computers
Institution
Computers
This certification focuses on the management of employee incentive programs using SAP SuccessFactors. Candidates will learn how to design, implement, and administer compensation plans that align with business objectives. The certification covers key topics such as performance metrics, incentive cal...
C_THR70_2404 - SAP Certified Associate - SAP SuccessFactors Incentive Management
1. What is the primary purpose of the classification hierarchy in SAP
SuccessFactors?
A) To define user roles
B) To organize compensation elements
C) To manage employee benefits
D) To streamline payroll processing
Answer: B) To organize compensation elements
Explanation: The classification hierarchy is used to categorize and organize
compensation elements, making it easier to manage and retrieve data related to
different types of compensation.
2. How do territories relate to classification data in SAP SuccessFactors?
A) Territories determine user access levels
B) Territories define employee roles
C) Territories influence compensation elements based on geographic location
D) Territories are unrelated to classification data
Answer: C) Territories influence compensation elements based on geographic
location
Explanation: Territories are used to define geographic boundaries that can affect
the assignment of compensation elements to employees based on their location,
which can influence the overall compensation strategy.
3. Which of the following is NOT a type of compensation element in SAP
SuccessFactors?
A) Bonus
B) Commission
C) Stock options
D) Work schedule
Answer: D) Work schedule
Explanation: Work schedules are related to employee time management but do
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,C_THR70_2404 - SAP Certified Associate - SAP SuccessFactors Incentive Management
not fall under compensation elements, which specifically refer to monetary
rewards and benefits.
4. What defines a fixed compensation element in SAP SuccessFactors?
A) It varies based on performance metrics
B) It remains constant regardless of performance
C) It is only available for specific roles
D) It is not tied to any territory
Answer: B) It remains constant regardless of performance
Explanation: Fixed compensation elements are set amounts that do not change
based on performance evaluations, ensuring stability in employee salaries.
5. Which of the following best describes a variable compensation element?
A) Consistent across all employees
B) Based on individual or company performance metrics
C) Paid only once a year
D) Excluded from tax calculations
Answer: B) Based on individual or company performance metrics
Explanation: Variable compensation elements, such as bonuses or commissions,
are tied to performance outcomes, rewarding employees based on their
contributions or achievements.
6. What is a common best practice when configuring compensation elements?
A) Use the same compensation structure for all employee levels
B) Regularly review and adjust compensation elements based on market trends
C) Limit the number of compensation elements to reduce complexity
D) Only implement fixed compensation elements
Answer: B) Regularly review and adjust compensation elements based on
market trends
Explanation: To remain competitive and fair, organizations should regularly assess
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,C_THR70_2404 - SAP Certified Associate - SAP SuccessFactors Incentive Management
and adjust compensation elements in alignment with current market trends and
employee expectations.
7. In the context of compensation elements, what is the significance of having a
clear naming convention?
A) It simplifies data entry
B) It aids in tracking changes over time
C) It ensures consistency and clarity across the organization
D) It prevents duplication of data
Answer: C) It ensures consistency and clarity across the organization
Explanation: A clear naming convention for compensation elements enhances
understanding and communication about compensation structures, making it
easier for HR and management to manage and report.
8. Which type of compensation element would be most appropriate for
rewarding exceptional sales performance?
A) Fixed salary
B) Base pay
C) Commission
D) Annual bonus
Answer: C) Commission
Explanation: Commission is designed to reward employees for sales performance
and is directly tied to the revenue they generate, making it a suitable
compensation element for sales roles.
9. What is the role of the compensation planning module in relation to
compensation elements?
A) To set fixed salaries for all employees
B) To automate the payroll process
C) To support strategic decision-making regarding compensation adjustments
D) To define employee job roles
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, C_THR70_2404 - SAP Certified Associate - SAP SuccessFactors Incentive Management
Answer: C) To support strategic decision-making regarding compensation
adjustments
Explanation: The compensation planning module helps HR professionals and
managers analyze and plan compensation adjustments based on various factors,
including performance, market trends, and budget considerations.
10. When creating a new compensation element, which factor is crucial to
consider?
A) The color of the UI
B) The element’s relationship to other compensation elements
C) The location of the employee
D) The employee's personal preferences
Answer: B) The element’s relationship to other compensation elements
Explanation: Understanding how a new compensation element relates to existing
elements is vital for maintaining a coherent compensation structure and ensuring
that employees receive a balanced and fair reward package.
11. How can organizations ensure that compensation elements are aligned with
business objectives?
A) By following a generic template for all compensation elements
B) By soliciting feedback from employees only
C) By regularly aligning compensation strategies with overall business goals and
performance indicators
D) By reducing the number of compensation elements
Answer: C) By regularly aligning compensation strategies with overall business
goals and performance indicators
Explanation: Regular alignment of compensation strategies with business
objectives ensures that the rewards system motivates employees towards
achieving the organization’s goals.
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