Worldatwork c8 Exam Questions Instant Access

Question 1

What best describes the most effective approach for facilitating fact-based decisions?

AEnsuring support from all internal and external stakeholders

BEstimating results based on historical data

CUsing statistical methods to predict outcomes

DDetermining, sourcing and collecting appropriate data

Answer : D

Question 2

Regarding market position, a business with a high market share but low growth potential is typically referred to as what?

AA Star

BA Question Mark

CA Market Leader

DA Cash Cow

Answer : D

Question 3

If a company has a higher percentage of employees with fixed compensation than variable compensation, what happens as revenues increase?

ACompensation costs eventually stabilize and become a consistent percent of revenue.

BCompensation costs and revenue increase at approximately the same rate.

CCompensation costs eventually decrease as a percent of revenue, increasing profit growth.

DCompensation costs remain the same as a percent of revenue until variable compensation costs exceed fixed compensation costs.

Answer : C

Question 4

''Cost-benefit thinking'' is most useful in the context of financial management for purposes of what?

AProcurement

BRecruiting

CSetting priorities

DPlan administration

Answer : C

Question 5

What is the primary reason why a compensation professional working for a multinational company should understand regulatory requirements and application of rewards globally?

ABecause legal compliance with compensation-related regulations is the responsibility of the compensation department

BBecause the compensation professional has a fiduciary responsibility to ensure that the financial resources of their organization are spent in a prudent manner

CBecause it is possible to pay significantly less for talent in different countries and compensation should advise management on when and where to locate various jobs within the company

DThey shouldn't. Due to the complexities of global regulations and practices, compensation administration outside of the home country should be outsourced.

Answer : B

Question 6

What is the most accurate definition of organizational vision?

AA description of who the organization is, where it is headed and what it wants for the future

BA written explanation of the intention or purpose of the organization and why it is in business

CA statement of what kind of organization it wants to be and the guiding principles and/or beliefs shared by stakeholders

DA detailed account of the organization's goals, directions to achieve them and how it will compete

Answer : A

Question 7

You have been asked to develop a short-term incentive plan that motivates employees in business units to increase productivity. Your team has designed a plan that rewards managers and employees quarterly based on achievement against target on measures that should generate productivity increases that will self-fund the plan. When presenting the plan to senior management, what would be the best strategy to receive approval?

ADemonstrate how it is aligned to the rewards philosophy, principles and organizational business strategy

BProvide details on the plan design and measures and how they will be administered to employees at different levels

CMake the case that a self-funded plan poses no risk to the organization while creating the potential for significant gains

DIdentify in advance the priorities of the various stakeholders and design your presentation to address any objections or perceptions they may have

Answer : A

Worldatwork Business Acumen for Compensation Professional c8 Exam Questions