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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. What is a primary objective of profit-sharing and performance-sharing variable pay plans?

A) To achieve organizational cost savings through base pay reductions
B) To increase employee identification with the organization's success
C) To reward individual employees for some significant contribution
D) To defer compensation expenses to future reporting periods

2. How are the compensation communication needs of managers different from those of individual employees?

A) They tend to have more influence, so it is important to resolve any concerns they have quickly and efficiently.
B) They aren't. Managers are concerned about their compensation also.
C) They are also responsible for merit increases, incentives and hiring so they have greater information needs.
D) They have more duties and responsibilities and are less likely to have the time to discuss compensation issues.

3. Which of the following is typically considered a health care benefit?

A) Vision plan
B) Defined contribution plan
C) Death benefits
D) Defined benefit plan

4. Which of the following best describes a form of base pay that is a fixed weekly, biweekly or monthly payment?

A) Piece rate
B) Bonuses
C) Salary
D) Hourly rate

5. 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) All of the women have some professional certification or registration, whereas none of the men have comparable credentials.
D) The male employees have substantially more education than the female employees.

Solutions: