Test 1.4

Question 1

What are the benefits of on-the-job training?

Answer 1

customized training, immediate application

Question 2

An employer of a big multinational company hires five employees. He decides to pay their salary every month. Which method of payment is the employer opting for?

Answer 2

increments in time

Question 3

What are the advantages of performance pay?

Answer 3

it can encourage employees to perform at their highest level.

It can aid in attracting and retaining top talent.

It can help align employee and organizational objectives.

Question 4

A manager at a bank hit his quarterly target. He was given an incentive by the top management. What are some typical manager incentives?

Answer 4

bonuses, stock options, and other equity-related rewards for reaching company-wide targets

Question 5

A team of HR executives held a meeting where they decided to hire new employees and set their pay rate considering the market-based approach. What is the market-based approach?

Answer 5

researching the pay levels of a similar job in the external market

Question 6

A company hasn’t been paying employees the minimum wage. Previous employees often report less-than-average pay and negative workplace conditions. Which act is the company not adhering to?

Answer 6

Title VII of the Civil Rights Act

Question 7

An organization’s _____________ should not be taken into account when formulating a strategic compensation strategy.

Answer 7

number of employees

Question 8

A major bank has implemented a profit-shared program for its customer care staff. The plan offers staff a bonus when customer satisfaction ratings are met or exceeded. What is a benefit of this plan?

Answer 8

promotion of teamwork and cooperation

Question 9

Monetary rewards fall under _________.

Answer 9

direct compensation

Question 10

A gain-sharing plan is a type of pay-for-performance plan in which _________ receive _________.

Answer 10

employees, a share of the company’s profits