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Total Rewards: Questions With Complete A+ Solutions
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Total Rewards: Questions With Complete A+ Solutions
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Total Rewards: Questions With Complete A+ SolutionsWhat are the two main types of compensation?
A. Base pay and incentives
B. Static and variable
C. Monetary and nonmonetary
D. Mandatory and voluntary Right Ans - C. Elements of total rewards
packages fall within two categories: monetary and nonmonetary. Examples of
monetary compensation include base pay and retirement contributions.
Examples of nonmonetary compensation include nontangible rewards, such
as job
satisfaction.
Direct compensation is to wages as indirect compensation is to what?
A. Intrinsic
B. Fringe benefits
C. Variable pay
D. Pay for performance Right Ans - B. Direct compensation includes
payments made to employees that are associated with wages and salaries.
They include variable pay and pay for performance. Indirect compensation
includes fringe benefits, such as vacation and sick pay.
An employee in your company has complained that the compensation data
used to establish his pay rate is out of date. This is an example of which of the
following?
A. Distributive justice
B. Pay openness
C. External market conditions
D. Procedural justice Right Ans - D. Procedural justice is a pay equity
concept in which employees perceive the procedures
used to determine pay rates as either fair or unfair. It may also include how
bonuses are
distributed and the method used to determine pay increases..
Discouraging employees from talking about their pay rate or annual bonuses
is an example of a low degree of .____________.
A. Tolerance
B. Pay openness
C. Privacy
,D. Procedural justice Right Ans - B. Pay openness refers to the degree of
secrecy around the ability of employees to discuss their wages. It directly
affects the perceived fairness of employer compensation plans. Under some
conditions, such as state laws and in union environments, it may be unlawful
to forbid employees to disclose their pay rates.
Organizations that believe employee inputs should be closely tied to their
compensation have which type of compensation philosophy?
A. Rewards
B. Performance-based
C. Entitlement
D. Equitable Right Ans - B. There are two basic orientations of
compensation philosophies: performance-based and entitlement. Companies
that are oriented toward performance-based pay systems believe that
compensation should be tied to effort, inputs, and results. Entitlement-
oriented companies are more likely to provide cost-of-living or seniority
increases, preferring to reward based on factors less related to performance.
Which of the following is used to determine how the organizational financial
resources may be best used to attract, retain, and motivate the organization's
human resources?
A. Change-management strategies
B. Compensation strategies
C. Compensation philosophy
D. Performance-based philosophy Right Ans - B. A compensation strategy
involves the organizational choices that must be made in the application of
resources to attract, retain, and motivate employees.
The SEC requires public companies to disclose compensation fully for the top
executives.
A. Two
B. Three
C. Five
D. Seven Right Ans - C. The Securities and Exchange Commission requires
clear and concise information related to executive compensation. This
includes the disclosure of the amount and type of compensation paid to the
top five executives and the criteria used in reaching executive
compensation decisions.
, Confidence or trust and the highest standard of care are the definition of
which of the following terms?
A. Fiduciary responsibility
B. Ethics
C. Integrity
D. Conflict of interest Right Ans - A. Fiduciary responsibility is a term that
applies to those in a position of responsibility. In an HR context, it applies to
professionals who are tasked with advising, managing, and/or administering
total rewards programs.
External factors affecting compensation decisions include all but which of the
following?
A. Economic factors
B. Labor market
C. The importance of jobs relative to each other
D. Supply and demand Right Ans - C. External factors, such as the economy
and the availability of talent in the labor market, affect compensation
decisions such as base pay, perks, and benefits.
Which of the following acts established the federal minimum wage?
A. Portal to Portal Act
B. Rehabilitation Act
C. Equal Pay Act
D. Fair Labor Standards Act Right Ans - D. The Fair Labor Standards Act
(FLSA) affected three distinct areas related to compensation: establishing a
federal minimum wage, restricting child labor, and limiting working hours
through overtime pay and exemption status.
Enterprise coverage under the FLSA applies to businesses employing at least
two employees with at least how much in annual sales?
A. $150,000
B. $300,000
C. $500,000
D. $1,000,000 Right Ans - C. The FLSA has two categories of coverage:
enterprise and individual. Enterprise cover- age applies to organizations with
at least two employees and at least $500,000 in annual sales. Individual
coverage applies to employers engaged in interstate commerce.
To which of the following business types does the FLSA not apply?
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