Variable Pay UPDATED ACTUAL Questions and CORRECT Answers
Which of the following describes a purpose of variable A. To reward individuals for acquisition of new skills and competencies
pay? B. To ensure the individuals value realative to the labor market
C. To differentiate the pay of individuals who achieve results from those who do
not
D. To reward individuals for their sustained performance over tine
What Business strategy often includes a combination of A. Operational excellence
price, quality, dependability and ease of purchase that B. Product/service leadership
competitors cannot match? C. Customer intimacy
Which of the following business objectives would relate A. improve operational efficiency
most to a product/service leadership strategy? B. time from innovation to market
C. Customer attraction and retention
D. Reduce costs
In which of the following stages of the business life cycle A. Start-up
would an organization generlly be focused on B. Growth
maintaining/increasing market share, improving C. Mature
productivity, and reducing cost of sales D. Decline
Which of the following business objectives would relate A. maximize profits
most to the start-up stage of a business life cycle? B. product quality
C. maintain/increase market share
D. Obtaining capital
What influences can varialbe A. Customer satisfaction, brand awareness and product quality
B. Focus, alignment, motivation and reinforcement
C. Attraction, penetration, innovation and collaboration
D. Growth, efficiency and capability
Two primary Elements of compensation Fixed Pay
Variable Pay
Fixed Pay rewards are based on an employees value Market based
performance based
skill based
Variable pay rewards for accomplishments and results organizational, group or individual results
performance based compensation
flexible and adaptable
The goal of variable pay The ultimate goal of variable pay is to improve organizational performance
Business strategies Operational excellence
product/service leadership
customer intimacy
, operational excellence primarily a price/cost-based strategy
Often includes a combination of price, quality, dependabiity and ease of purchas
that competitors cannot match
product/service leadership primarily an innovation-based strategy
the corporate culture encourages imagination and mind-set driven by the
prospect of creating the future. They expand performance boundaries,
leapfrog/replace technoligies create better ideas
customer intimacy primarily a solutions-based strategy
this strategy builds bonds with targeted customers, they meet and exceed
customer needs
Business strategies - business objectives the strategy determines the objectives it will focus on
Operational excellence - bus strategy product quality
operational efficiency improvement
process improvement
cost reduction
product/service leadership - bus strategy market share/market penetration
product development
time from innovation to market
customer intimacy - bus strategy customer opinion of products
product quality
customer retention
customer satisfaction
start-up (operational excellence) obtain capital
cash conservation
develop brand awareness
Variable pay helps achieve business objectives focus
alignment
motivation
reinforcement
what are the three categories of variable pay incentives, bonuses, and recognition
which of the following plans is a type of long-term equity-based plan
incentive plan
which individual performance-based plan would be most commission plan
appropriate for an account representative with a high
degree of influence over company sales?
which of the following is an example of an appreciation- stock options
only equity-based plan?
Which of the following describes a purpose of variable A. To reward individuals for acquisition of new skills and competencies
pay? B. To ensure the individuals value realative to the labor market
C. To differentiate the pay of individuals who achieve results from those who do
not
D. To reward individuals for their sustained performance over tine
What Business strategy often includes a combination of A. Operational excellence
price, quality, dependability and ease of purchase that B. Product/service leadership
competitors cannot match? C. Customer intimacy
Which of the following business objectives would relate A. improve operational efficiency
most to a product/service leadership strategy? B. time from innovation to market
C. Customer attraction and retention
D. Reduce costs
In which of the following stages of the business life cycle A. Start-up
would an organization generlly be focused on B. Growth
maintaining/increasing market share, improving C. Mature
productivity, and reducing cost of sales D. Decline
Which of the following business objectives would relate A. maximize profits
most to the start-up stage of a business life cycle? B. product quality
C. maintain/increase market share
D. Obtaining capital
What influences can varialbe A. Customer satisfaction, brand awareness and product quality
B. Focus, alignment, motivation and reinforcement
C. Attraction, penetration, innovation and collaboration
D. Growth, efficiency and capability
Two primary Elements of compensation Fixed Pay
Variable Pay
Fixed Pay rewards are based on an employees value Market based
performance based
skill based
Variable pay rewards for accomplishments and results organizational, group or individual results
performance based compensation
flexible and adaptable
The goal of variable pay The ultimate goal of variable pay is to improve organizational performance
Business strategies Operational excellence
product/service leadership
customer intimacy
, operational excellence primarily a price/cost-based strategy
Often includes a combination of price, quality, dependabiity and ease of purchas
that competitors cannot match
product/service leadership primarily an innovation-based strategy
the corporate culture encourages imagination and mind-set driven by the
prospect of creating the future. They expand performance boundaries,
leapfrog/replace technoligies create better ideas
customer intimacy primarily a solutions-based strategy
this strategy builds bonds with targeted customers, they meet and exceed
customer needs
Business strategies - business objectives the strategy determines the objectives it will focus on
Operational excellence - bus strategy product quality
operational efficiency improvement
process improvement
cost reduction
product/service leadership - bus strategy market share/market penetration
product development
time from innovation to market
customer intimacy - bus strategy customer opinion of products
product quality
customer retention
customer satisfaction
start-up (operational excellence) obtain capital
cash conservation
develop brand awareness
Variable pay helps achieve business objectives focus
alignment
motivation
reinforcement
what are the three categories of variable pay incentives, bonuses, and recognition
which of the following plans is a type of long-term equity-based plan
incentive plan
which individual performance-based plan would be most commission plan
appropriate for an account representative with a high
degree of influence over company sales?
which of the following is an example of an appreciation- stock options
only equity-based plan?
