HRM 307 - Compensation Administration Quiz

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Which of the following is the minimum amount that an employee receives from their employer?

Base pay (correct)
Salary
Wage
Merit pay

Employee compensation that is based on the number of hours worked is known as what?

Merit pay
Wage (correct)
Salary
Cost of living adjustment

Which type of employee compensation is quoted on an annual basis?

Salary (correct)
Wage
Merit pay
Cost of living adjustment

Which of the following are increases to base pay that are based on performance?

Merit pay (D) Signup and view all the answers

Which type of employee compensation is the money paid directly by the company to the employee in exchange for their labor and services?

Direct financial compensation (B) Signup and view all the answers

What are increases to everyone's pay, regardless of performance?

Cost of living adjustments (A) Signup and view all the answers

What is the purpose of a skill-based pay structure?

To link pay to the depth or breadth of an employee's relevant skills and knowledge. (B) Signup and view all the answers

What does the term 'external competitiveness' refer to in the context of compensation?

The pay relationships among organizations and the organization's pay relative to its competitors. (C) Signup and view all the answers

What is the difference between 'pay level' and 'pay forms'?

Pay level refers to the average of the rates paid by an employer, while pay forms refer to the types of payments that make up total compensation. (B) Signup and view all the answers

What is a 'lead pay level policy'?

A policy where an organization pays above the market rates to attract and retain top talent. (B) Signup and view all the answers

What is the purpose of conducting a compensation survey?

To collect and analyze data about the compensation paid by other employers. (C) Signup and view all the answers

What is an 'employer of choice'?

An organization that is able to attract, optimize, and retain the best employee talent over the long term. (A) Signup and view all the answers

What is the main purpose of merit pay?

To reward employees for exceptional performance (B) Signup and view all the answers

How is the amount of a merit pay increase typically determined?

The increase is based on a 1-5 performance rating scale (B) Signup and view all the answers

How do lump sum bonuses differ from merit pay increases?

Lump sum bonuses do not increase the employee's base pay (B) Signup and view all the answers

What is the key difference between individual incentive plans and other types of pay plans discussed?

Individual incentive plans reward employees for meeting specific performance objectives (D) Signup and view all the answers

What is a key advantage of using lump sum bonuses instead of merit pay increases?

Lump sum bonuses are more cost-effective for the organization (D) Signup and view all the answers

What is the purpose of individual spot awards?

To recognize and reward exceptional individual performance (D) Signup and view all the answers