Answers | COMPENSATION AND BENEFITS (PHHC)
1. An employee has worked for the same company in two locations over the course of 20 years in Europe and
North America. The employee has been trained as an international trade specialist and has been promoted to
manager of international operations.
Which pay basis should be used to compensate this employee?
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ANSWER ANSWER
Merit-based pay
Seniority-based pay
Experience-based pay
Competency-based pay
2. Which two approaches apply to internal reward alignment?
Choose 2 answers
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ANSWER ANSWER
Job-based approach
Group-based approach
Morale-based approach
Individual-based approach
3. What is merit pay?
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ANSWER ANSWER
Pay received as a one-time increase
Bonuses given to everyone in a company
Compensation based on team performance
Annual increase based on past performance
4. A company implemented actions to improve its return on investment on human capital. The company wants
to be the premier employer in the state. The rst step was giving more rewards for jobs compared to its
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, Relative
Absolute
Centralized
Decentralized
5. The CEO of a web development company gives employees a lot of freedom to develop new applications, pays
employees by the hour, and allows employees to work as needed to develop applications. Because of this
approach, the payroll costs vary quite a bit. The CEO would like to get costs under control and make payroll
costs more stable.
Which approach can be used to bring payroll costs under control and make them more stable in this situation?
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ANSWER ANSWER
Provide a work at home or telecommuting option for employees
Transition employees from an hourly pay model to a salaried pay model
Offer employees stock options as a part of their compensation packages
Group employees in teams and pay them based on the team’s productivity
6. Which compensation method is an annual pay increase based on past performance that is added to an
employee’s base compensation?
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ANSWER ANSWER
Merit pay
Differential rate
Individual bonus
Sales commission
7. Which provision applies if a job is covered by the Fair Labor Standards Act?
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ANSWER ANSWER
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