Worldatwork T4 Exam Practice Test Instant Access

Question 1

As a human resource specialist, you have been asked by your organization to provide recommendations on which base pay method to use, given that the human resources department has very limited human capital and financial resources. Which of the following methods would be on top of your list of recommendations?

Ajob evaluation

Bperson-based pay

Ccompetency-based pay

Dmarket pricing

Answer : D

Question 2

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 3

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

AOutput is easy to measure.

BOutput is very stable.

COutput cannot be controlled by the individual employee.

DOutput is easy to price in terms of its value to the employer.

Answer : C

Question 4

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 5

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 6

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

Question 7

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?

AIt provides an organization with more labour flexibility in the allocation of tasks.

BIt guarantees employee performance and aligns salaries to performance.

CIt is the most popular; hence, the organization should use it.

DUnions are most likely to agree with management's approach, given this scheme encourages individual performance.

Answer : A

Worldatwork Strategic Communication in Total Rewards T4 Exam Practice Test