#1
What is the primary purpose of a compensation and benefits system in an organization?
To attract and retain talented employees
ExplanationAttracts and retains talent.
#2
Which of the following factors is NOT typically considered in designing a benefits package?
Employee performance
ExplanationNot relevant for benefits design.
#3
What is the purpose of a salary survey in compensation management?
To gather data on compensation levels in the industry
ExplanationCollects industry pay data.
#4
What is the purpose of a job analysis in compensation management?
To evaluate the relative value and complexity of different jobs
ExplanationAssesses job worth and complexity.
#5
What is the primary objective of a total rewards strategy in organizational management?
To create a competitive advantage in the job market
ExplanationEnhancing job market competitiveness.
#6
Which of the following is an example of indirect financial compensation?
Health insurance
ExplanationNon-monetary benefits.
#7
What is the concept of pay equity in compensation management?
Ensuring employees are paid fairly for similar work
ExplanationEnsures fair pay for similar work.
#8
What is the purpose of a 401(k) plan in employee benefits?
Offering retirement savings with tax advantages
ExplanationTax-advantaged retirement savings.
#9
In the context of benefits administration, what does the term 'cafeteria plan' refer to?
A flexible benefits plan allowing employees to choose from a menu of options
ExplanationCustomizable benefits selection.
#10
In the context of employee benefits, what does the term 'vesting' mean?
The right of employees to receive certain benefits over time
ExplanationAccrual of benefit entitlement.
#11
Which of the following is a characteristic of a defined contribution retirement plan?
Employee contributions are fixed, and benefits vary
ExplanationEmployee-funded retirement with variable benefits.
#12
Which compensation philosophy focuses on paying employees at levels similar to competitors in the industry?
Market-based compensation
ExplanationAligns pay with industry standards.
#13
What is the term for a compensation strategy that links employee pay to the accomplishment of specific goals or achievements?
Incentive pay
ExplanationRewards based on achievements.
#14
What is the purpose of job evaluation in compensation management?
Assessing the relative worth of jobs within an organization
ExplanationDetermining job value.
#15
What is the term for a compensation system where employees receive a share of the company's profits?
Profit sharing
ExplanationSharing company profits with employees.
#16
What is the purpose of a salary range in compensation management?
To provide a flexible pay structure within which salaries can vary
ExplanationEstablishes salary flexibility.
#17
Which compensation component is designed to address the cost of living increases and inflation?
Cost-of-living allowance
ExplanationAdjustment for living costs.