Worldatwork T4 Exam Practice Test Instant Access

Question 1

Which of the following is an example of mandatory indirect pay?

Amajor health benefits such as medical coverage

Bregistered retirement savings plans (RRSPs) benefits

Cemployee services

Dworkers' compensation benefits

Answer : D

Question 2

Your company offers you pay for time not worked, disability benefits, supplemental medical coverage, and a full range of free employee services. These items refer to which component of the compensation mix?

Adirect pay

Bbase pay

Cindirect pay

Dperformance pay

Answer : C

Question 3

Which of the following statements relating to the notion of pay for knowledge is true?

AThere is little empirical evidence supporting the validity of competency-based pay models.

BCompetency-based pay models are usually associated with operational level roles.

CPay for knowledge requires very detailed job descriptions for every role in an organization.

DPay for knowledge fits well with classical management styles, requiring employee flexibility in skill sets.

Answer : A

Question 4

As the owner of a large hotel, you expect your employees to be flexible, learn a variety of skills, and shift around from one job to another as needed. Which of the following plans will best fit your needs?

Acompetency-based pay

Bskill-based pay

Cteam-based pay

Dpiece rates

Answer : B

Question 5

Which statement best describes the difference between pay for knowledge systems (PKS) and job-based pay systems?

APay for knowledge systems involve basing pay on the capabilities of individuals, and job-based pay is based on the characteristics of the job.

BPay for knowledge systems are applied to managerial employees, and job-based pay is applied to operational-level employees.

CPay for knowledge systems are more widely used by Canadian firms than job-based pay systems,

DPay for knowledge systems involve low training costs and are easier to administer than job-based pay systems,

Answer : A

Question 6

As a general rule, organizations using a high-involvement managerial strategy use indirect pay as a way to encourage which of the following relationships?

Aemployer-community relationship

Bemployee-task relationship

Cemployer-employee relationship

Demployer-union relationship

Answer : C

Question 7

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

Adetermining actual dollar values for jobs and individual employees

Bdetermining the total level of compensation to provide

Cdetermining how each of the mix choices should be structured

Ddetermining the mix of compensation components

Answer : A

Worldatwork T4 Strategic Communication in Total Rewards Exam Practice Test