Worldatwork GR4 Exam Practice Test Instant Access

Question 1

What are disadvantages of a performance-only merit increase?

AMay overlook external market conditions

BIgnores employees' tenure and experience

CCan lead to potential salary compression issues

DMay create a competitive work environment

Answer : C

Question 2

What are the potential disadvantages of an automatic step rate plan?

ALimited flexibility in rewarding high performers

BDifficulty in attracting and retaining top talent

CComplexity in administering and managing pay scales

DLack of transparency in pay progression

Answer : A

Question 3

What are the best applications of a variable step rate plan?

AOrganizations with a strong focus on pay for performance

BGovernment agencies with structured pay scales

COrganizations with a highly unionized workforce

DStart-up companies with limited salary budgets

Answer : A

Question 4

Why is it important for HR to be involved early in the M&A process?

ACompensation programs must be combined early in the process.

BHR must participate in the tactical work of integrating total rewards very early in the process

CHR professionals need to align process and activities to the new organization's business strategy

DHidden liabilities and other issues must be resolved in the pre-deal phase before the transaction phase can begin.

Answer : B

Question 5

What data is needed to create a market-based salary budget?

AHistorical salary data, industry benchmarks, and market survey data

BInternal job evaluations, performance ratings, and employee feedback

CEmployee demographics, turnover rates, and benefits information

DPayroll records, tax information, and compensation policies

Answer : A

Question 6

What is job-based pay?

APay based on individual performance ratings

BPay based on job evaluation and job content

CPay based on market pricing and external competitiveness

DPay based on seniority and length of service

Answer : B

Question 7

What are the major components of a base pay structure?

APay ranges, pay grades, and job classifications

BMarket data, internal equity, and employee performance

CSalary surveys, benchmark jobs, and pay policies

DJob evaluation, job worth hierarchy, and market pricing

Answer : A

Worldatwork Base Pay Administration and Pay for Performance GR4 Exam Practice Test