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Question 1

What is the primary goal of a merit pay program?

Options :

A : To link pay to the competitive market rate of each job

B : To link pay to years of experience in a particular job

C : To link pay to performance in a manner that is consistent with the mission of the organization

D : To link pay to organizational performance

Answer: C

Question 2

What guides the design of all human resources programs?

Options :

A : The corporate mission

B : The human resources strategy

C : Program design and administration

D : The business strategy.

Answer: B

Question 3

Which of the following may be a limitation of a government-sponsored health care program?

Options :

A : Increased reimbursement to physicians

B : Limits on services/facilities

C : Increased coverage for participants

D : Additional cost-sharing for participants

Answer: B

Question 4

Which of the following shows the proper sequence for development of the total rewards strategy?

Options :

A : Business strategy Total rewards strategy Business mission HR strategy

B : HR strategy Business strategy Business vision Total rewards strategy

C : Business vision Business strategy HR strategy Total rewards strategy

D : Total rewards strategy HR strategy Business strategy Business mission

Answer: C

Question 5

Which of the following is the best source for identifying the relative importance of various rewards elements to different work groups?

Options :

A : Board of directors

B : Employees

C : Senior management

D : Candidates for employment.

Answer: B