Compensation for Human Resource Management MCQs

Compensation for Human Resource Management MCQs

Welcome to MCQss.com, your comprehensive resource for multiple-choice questions on Compensation for Human Resource Management (HRM). This page is dedicated to deepening your understanding of salary structures, benefits administration, incentive programs, and compensation strategies.

Compensation plays a vital role in attracting, motivating, and retaining talented employees. It encompasses various elements, including base salary, bonuses, incentives, benefits, and non-monetary rewards. Effective compensation management is essential for organizations to maintain a competitive edge in the labor market.

Our interactive MCQs provide you with an opportunity to test your knowledge and comprehension of Compensation for HRM. Each question presents different scenarios and options, allowing you to choose the most appropriate answer and receive immediate feedback, helping you assess your understanding and identify areas for improvement.

1: Broadbanding is Combining multiple pay levels into one.

A.   True

B.   False

2: value and desire and that the employer is willing and able to offer in exchange.this statement correct for

A.   Compensation system

B.   Delayering

C.   Equity theory

D.   Both a & b

3: The process of changing the company structure to get rid of some of the vertical hierarchy (reporting levels) in an organization is known as

A.   Delayering

B.   Equity theory

C.   Expectancy theory

D.   None of these

4: An equity theory of motivation applies to employees who are often

A.   Underpaid

B.   Over paid

C.   Regularly paid

D.   Non paid internees

5: A theory proposing that employees are motivated when they believe they can accomplish a task and that the rewards for doing so are worth the effort is known as

A.   Job evaluation

B.   Expectancy theory

C.   Equity theory

D.   NONE OF THESE

6: Process of determining the worth of each position relative to the other positions within the organization

A.   Job evaluation

B.   Expectancy theory

C.   Equity theory

D.   NONE OF THESE

7: The lowest hourly rate of pay generally permissible by federal law is known as

A.   Minimum wage

B.   Amount wage

C.   Lowest wage

D.   Both a & c

8: Overtime is a higher than minimum, federally mandated wage, required for nonexempt employees if they work more than a certain number of hours in a week

A.   True

B.   False

9: _____is a hierarchy of jobs and their rates of pay within the organization.

A.   Pay structure

B.   Overtime

C.   Wage compression

D.   Both b & c

10: Define Wage compression

A.   A hierarchy of jobs and their rates of pay within the organization.

B.   The maximum, minimum, and midpoint of pay for a certain group of jobs.

C.   When new employees require higher starting pay than the historical norm, causing narrowing of the pay gap between experienced and new employees.

D.   All of these

11: The ______ and midpoint of pay for a certain group of jobs.

A.   Maximum & minimum,

B.   Maximum

C.   Minimum

D.   Average

12: ______ is the total of an employee’s pay and benefits.

A.   Broadbanding

B.   Delayering

C.   Pay structure

D.   Wage compression

E.   Compensation

13: ______ suggests that employees are motivated to perform a task when they believe they can accomplish it and when the rewards for doing so are worth the effort.

A.   Wage compression

B.   Pay structure

C.   Expectancy theory

D.   Broadbanding

E.   Equity theory

14: Peyton and Annabelle are planning to hire some new workers for the coffee shop. Before placing a job ad, they are trying to figure out what they can afford to pay. Peyton and Annabelle are working on the ______ portion of their organizational philosophy on compensation.

A.   Ability to pay

B.   Types of compensation

C.   Pay for performance or longevity

D.   Skill or competency-based pay

15: ______ is(are) not one of the four basic components of compensation.

A.   Base pay

B.   Wage add-ons

C.   Incentives

D.   Expectancy pay

E.   Benefits

16: To attract better workers and enhance an organization’s employment brand, adopting a(n) ______ organizational philosophy on compensation could be helpful.

A.   At-the-market

B.   Above-the-market

C.   Pay for longevity

D.   Pay secrecy

17: ______ is the lowest hourly rate of pay generally permissible by federal law.

A.   Rate range

B.   Wage compression

C.   Pay structure

D.   Compensation

E.   Minimum wage

18: ______ is a higher-than-minimum, federally mandated wage, required for nonexempt employees if they work more than a certain number of hours in a week.

A.   Broadbanding

B.   Compensation

C.   Pay structure

D.   Delayering

E.   Overtime

19: When jobs are distinctly different but entail similar levels of ability, responsibility, skills, and working conditions, they are of equal value and should have the same pay scale. This is the concept of ______.

A.   Equal worth

B.   Comparable worth

C.   Equitable value

D.   Differential value

E.   Comparable value

20: The process of determining the worth of each position relative to the other positions within the organization is referred to as ______.

A.   Delayering

B.   Job evaluation

C.   Expectancy theory

D.   Equity theory

E.   Compensation

21: ______ of job evaluation break a job down into components then apply points to each of the factors based on that factor’s difficulty.

A.   FLSA requirements

B.   Performance evaluations

C.   Point-factor methods

D.   Undercompensated employees

22: ______ is the process of changing the company structure to get rid of some of the vertical hierarchy (reporting levels) in an organization.

A.   Delayering

B.   Equity theory

C.   Broadbanding

D.   Pay structure

E.   Compensation

23: ______ is a function of the value of the product or service that the organization sells to the customer.

A.   Expectancy theory

B.   Compensation

C.   Pay structure

D.   Product market competition

E.   Equity theory