Worldatwork t4 practice test

Which of the following is an objective of variable pay?

• A. to help retain long-service employees
• B. to help link individual performance to individual pay
• C. to help promote cost savings initiatives by employees
• D. to help keep labour costs down

As the new owner of a car dealership, you have become concerned with some behaviour being
displayed by most of your sales force. You have decided to change the compensation systems. Yet,
you are very concerned with your ability to meet payroll if sales decrease. Which of the following pay
plans should you consider using?

• A. employee stock plans
• B. targeted incentives
• C. extensive benefits
• D. competency-based plan

A particular organization wants to include in their compensation system some element of
organizational performance linkage, while at the same time it wants to encourage employee
commitment. In addition to base pay, which of the following would most likely be included in this
compensation mix?

• A. merit pay
• B. piece rates
• C. profit sharing
• D. targeted incentives

As an employer, you believe it is always a good idea to pay people for their contributions to
organizational results. Which of the following plans would likely be the key component of the
compensation plan?

• A. indirect pay
• B. base pay
• C. pay for knowledge
• D. performance pay

Which of the following conditions make it impractical to use output-related pay?

• A. Output is easy to measure.
• B. Output is very stable.
• C. Output cannot be controlled by the individual employee.
• D. Output is easy to price in terms of its value to the employer.

As a human resource consultant, you have been asked to provide some rationale why an organization
may decide to use base pay as a cornerstone for a compensation scheme. Which of the following
notions would you advance in supporting your argument?

• A. It provides an organization with more labour flexibility in the allocation of tasks.
• B. It guarantees employee performance and aligns salaries to performance.
• C. It is the most popular; hence, the organization should use it.
• D. Unions are most likely to agree with management's approach, given this scheme encourages individual performance.

Which of the following is a reason why employees may prefer base pay over performance pay?

• A. Performance pay is more predictable.
• B. Base pay is directly related to their performance level.
• C. They dislike uncertainty about their compensation.
• D. Market conditions are always changing.

Johnny is compensated based on a rate of $25.00 per hour workeD. Which of the following terms
best describes the manner in which Johnny is compensated?

• A. commission
• B. wage
• C. piece rate
• D. salary

A particular company wants to make sure employees feel they are appreciated, while at the same
time ensuring key employees have a sense of loyalty towards the company. Which of the following
systems does this company most likely use?

• A. benefits
• B. performance pay
• C. indirect pay
• D. base pay

Which of the following steps is NOT considered part of formulating the compensation strategy?

• A. determining actual dollar values for jobs and individual employees
• B. determining the total level of compensation to provide
• C. determining how each of the mix choices should be structured
• D. determining the mix of compensation components

What is the first steps of the strategic communication process?

• A. Define the objectives
• B. Conduct audience research
• C. Determine what will be communicated
• D. Analyze the situation

What best describes a potential barrier to effective communication?

• A. Selective listening
• B. Feedback
• C. Multiple channels
• D. Job titles

The circular models for communication reinforce which concept for HR professional?

• A. Clients meeting and work pressure may distract the receiver rom interpreting the message.
• B. Communication is a top-down process initiated by external vendors.
• C. Creating key messages is vital to the overall success of communication.
• D. Soliciting and receiving feedback from the receiver is a critical aspect of communication

Which statement best defines the concept of "Sphere of Experience?

• A. Anything that distorts the original message.
• B. The education level of the receiver that distorts the message C the perceptions of each sender and receiver that influence communication D The consistently revolving cycle of communication between a sender and a receiver

Which best describes the fundamental purpose of communication?

• A. Shared understanding between a sender and receiver of communication..
• B. Decreased costs associated with total rewards programs
• C. Distribution of information
• D. Elimination of noise