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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:
1. How do commissions typically differ from annual incentives for non-executive employees?
A) They are intended to align the interests of the employee with those of the organization.
B) They tend to make up the larger portion of an employee's total compensation.
C) They are offered to motivate employee performance.
D) They are based on a predetermined performance and reward schedule.
2. What type of pay increase is given when an organization finds that its compensation program is behind competitive market rates?
A) Automatic
B) Cost of living
C) General
D) Merit
3. What best describes what forecasting helps the organization to do?
A) Prepare quarterly and annual reports and their associated statements
B) Anticipate future capital needs by determining when the organization will enter the next phase of the business lifecycle
C) Withhold payroll taxes for all elements of compensation
D) Recognize possible issues and concerns that will drive budget planning
4. Under the Equal Pay Act, which is an acceptable defense to justify differences between the rates of pay for men and women assigned to the same job?
A) The women are all graduates of the most prestigious schools, and graduates from those schools command higher salaries.
B) The differential is due to the fact that the men have more seniority with the employer.
C) The male employees have substantially more education than the female employees.
D) All of the women have some professional certification or registration, whereas none of the men have comparable credentials.
5. What best describes an effective core technique for communicating with executives?
A) Focus on negative issues first, such as compensation costs exceeding budget, to get their attention
B) Recommend a solution that will solve the issue and explain why it is the best solution available.
C) Assume they have little knowledge of the issue and make a detailed presentation leading up to the purpose of the meeting.
D) Provide a wide range of facts and figures. With their high level of responsibility, executives must have all the data before they can make informed decisions.
Solutions:
Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: B |