De Brac) Compensation management Questions McC co PEE ABA Racial RI eon Start Complete Exam Preparation lees Gece es reece! Cree eo D> Download App xtc) Question 1: View this Question Online > Which of the following is a strategy of job design that increasesdepth in the job and involves qualitative change in job profile? 1. JobRotation 2. JobEnrichment 3. JobEngagement 4, JobEnlargement Wider (Detailed Solution Below) Option 2: Job Enrichmentcoaching India's Super Teachers for all ef Ay AO Tel Oln moles or Compensation management Question 1 Detailed Solution The correct answer is Job Enrichment. © Key Points The strategy of job design that increagasgepth inthe job and involves qualitative changesin the job profile is "job enrichment” Job enrighiment involves redesigning jobs to increaseemployees’ intrinsic motivation, satistactionand engagekent by adding tasksthat require more skill and responsibility. It aims to make the work more challenging and fulfilling, providing employees with a greater senseof achievement and personal growth © Additional Information Job Enrichment: + Vertical Loading: Job enrichment involves giving employees more control and responsibility over their work. Thisis often referred to as vertical loading” becauseit adds tasksand responsibilitiesthat were traditionally at a higher level + Skill Variety: Employees are encouraged to use a variety of skillsand talents, which can lead to. a more interesting and engaging work experience. Thismay include tasksthat require problem-solving, decision-making, and creativity. + Taskicentity: Job enrichment aims to make employees feel a greater senseof ownership and completion regarding their work. Thisis achieved by assigning tasksthat allow employees to seea project through from stertto finish, rather than just completing isolated pieces of a larger project ieee anu REC Start Complete Exam Preparation Rte Re ti rans esd Daca) Des cioliory Question Bank EY tiz ry \ Va D> Download App - Question 2:4. Incentives Answer (Detailed Solution Below) Option 4: Incentives Compensation management Question 2 Detailed Solution The correct answer is Incentives. © Key Points. ¢O ‘The most accurate option for the statement” Ce the given choicesis incentives. Here’s why: + Incentives: This directly aligns with the core co ents by results.” Both terms signify providing rewards or benefits basedon a g specificoutcomes or meeting predetermined targets. This can be fi ards, bonus payments, additional privileges, or other forms of recognition + Claims: This term typiceliygsesers to 's for compensation or reimbursement for incurred expensesor losses it ecessarilyinvolve achieving results or performance criteria + Allowances: Thisoften ixed or predetermined amounts allocated for specific purposes, like living expensesor travel. While allowancesmight be adjusted based on performance, it's not the sameasdirectly rewarding achieved results. + Fringe benefits: Theseare additional benefits offered to employees beyond their base salary, such as health insurance, retirement plans, and paid time off. While some fringe benefits might be tied to performance goals, they generally don't represent direct "payments by results" in the way the phrase is typically used Therefore, considering the direct link between achieving resultsand receiving rewards, incentivesis the most fitting option for "payments by results" among the given choicesCER ARR her liial Start Complete Exam Preparation BoC Lar ceo ean onic) Eines aa Cosco researc Exotic Download App Question 3: View this Question Online > givesan opportunity to an employee to showcasehis talent to the fullestand make his reach to other department also. 1 ‘“— 2. Vestibule training 3. Coaching 4. Mentoring Answer (Detailed Solution Below) Option 1 : Jobrotation Compensation management Question 3 Detailed Solution The correct answer is Job rotation © Key Points. + "Job rotation’ gives an opportunity to an employee to"showcasehis talent to the fullestand make his reach to other departments aswell: Jab rotation involves moving employees through a variety of positions within the organization, allowing them to gain exposure to different roles, functions, and resp@psiilities. + By participating in job 1 rograms, employees can showcasetheir skills,learn new aspectsof the business andibfaden their understanding of how various departments operate. Thisnot only benefits the individual employee in terms of skill development and career growth but also contributes to the overall organizational effectivenessby creating a more versatile and adaptable workforce. + Jobrotation canbe a strategic human resourcemanagement practice that helps identify and Re a De a a aT Ga A ee RO ene Oe aRee sas, organizational flexibility. It provides employees with a more comprehensive view of the organization, promotes skill diversification, and can contribute to a more engaged and motivated workforce. ee India’s #1 Learning Platform Start Complete Exam Preparation Wau are Gites Question Bank CC Da Soc Download App Question 4: View this Question Online > Which one of the following is not the objective of job evaluation ? 1. To know the worth of each job of the organisation 2. Todetermine fair and equitable wage structure in the plant, industry and place 3. _ utmost job satisfactionto all employees 4, Tomake the system complex and cannot be easily understood by non-supervisorystaff Answer (Detailed Solution Below) Option 4: To make the systemcomplex and cannot be easily understood by non- supervisory staff Compensation management Question 4 Detailed Solution The correct answers To make the systemcomplex and cannot be easily understood by non- supervisory staff. © Key Points + Tomake the systemcomplex and cannot be easily understood by non-Supervisory staffis not the objective of job evaluation. + Job evaluation isa systematicprocessof determining the'felative worth of different jobs in an organization. It is used to establish fair and equitable pay structure, and to ensure thatOR Reger tee i een ec ieee gl a + A good job evaluation systemshould be easy to understand for all employees, including non- supervisory staff. Thisis because employees need to be able to understand how their job is evaluated in order to feel that they are being paid fairly. > Important Points WI. The objectives of job evaluation are as follows: + Toestablisha fair and equitable pay structure. + Toensure that employees are paid according to the value of their jobs. + Toprovide a basis for making decisions about promotions, transfers, and layoffs. + Tohelp employers to recruit and retain qualified employees. + Toimprove employee morale and productivity. + Job evaluation can be a complex process, but it is important to make sure that the systemis easy to understand for all employees. This will help to ensure that the systemis fair and that employees feel that they are being treated justly. & SR ABR Rela) RCE eet Start Complete Exam Preparation ca} } Dally uve ieee lpeertare MasterCl Download App resend Px tiz ry Question 5: View this Question Online > The purpose of JobEvaluation is 1. Fixation of Responsibility 2. Promotion 3. Wage Determination 4, Transferto,aibetten job Mm: of the above/More than one of the above. Answer (Detailed Solution Below) Option ‘ixation of ResponsibilityCompensation management Question 5 Detailed Solution The correct answer is Fixation of responsibility. © Key Points The purpose of job evaluation isto determine the relative value or worth of different jobs within en organization. Itis a systematicprocessused by employers to establishan internal job hierarchy and to ensure fair and equitable compensation practices. Here are the main purposes of job evaluation: we Establishinginternal equity: Job evaluation helps organizations establishe fair and consistentsystem for determining the relative value of different jobs. By evaluating jobs based on their content, responsbillies.skllsrequires, and other relevant factors,job evaluation ensuresthet employees are rewarded fairly for their contributions. Setting compensation structures: Job evaluation provides fag Aaaorng compensation structures and salary scaleswithin an organization. The evaluation resultshelp determine the appropriate pay levels for different jobs, ensuring that'Gompensation is aligned with job requirements and the organization's overall,temuneration philosophy. processfor assessingjobs. It proy stematicframework for evaluating jobs based on predetermined criteria, which helps te bias and promotes consistencyin determining job values. y Ensuring consistencyend el ener helps create a transparent and standardized Facilitating job classificationand grading: Job evaluation assistsin classifyingand grouping jobs into different grades or levels within an organization. It enables the organization to organize jobs hierarchically, ensuring clarity in job roles, career progression, and appropriate job titling. Supporting HR management decisions:Job evaluation results serve asa foundation for various human resource management decisions. It helps in determining internal job posting, promotions, transfers,and successionplanning by providing an objective basisfor comparing and evaluating job roles Enhancing employee engagement and motivation: A well-designed job evaluation systemcan contribute to employee satisfactionand motivation. When employees perceive that their jobs are fairly evaluated and compensated, it can lead to increased job satisfaction,improved morale, and a greater senseof equity within the organization. Top Compensation management MCQ Objective Questions & ER ABR Uke) Start Complete Exam Preparation Reem eeeDaily Live ected Gites oo Download App Question 6 rs View this Question Online > The functions of lower management are: A. Executing plans in accordancewith the policies and directives of the top management B. Maintaining discipline among the workers C. Selecting suitable operative and supervisory personnel roviding training to the workers E:Malytaining good human relations Choose the correctanswer from the options given below: 1. Aand Bonly 2. Cand D only 3. B,D and Eonly 4. A, Band Conly Answer (Detailed Solution Below) Option 3: B, D and E only Compensation management Question 6 Detailed Solution The correct answeris B, D and E only. o Lower Management - When it comes to management levels, lower level managementis at the base of the pyramid, The supervisory or operational level of managersis another name for the lower level ek eatisnomest _Foremen and supervisorsmake up the eve Management; they watch after the operative workers and make sure that the work is completed correctly and on schedule. They are therefore primarily in charge of the organization's actual production of goods and services. » Important Points. ‘The functions of lower management are as follows - + Tolead and instruct the steffin their daily activities. + Representing workers’ grievancesbefore middle level management. + Toensurea secure end safe working environment (ii). + Toensure that the employees uphold the quality standards. + They encourage workers to work in the intended direction. + To give the staff the training they require. + Tocreate recurring reports on the workers’ performance. + To maintain discipline and good relations with the workers. + Maintaining good human relations Ee eee “REGIS cela mew cima) lela) iC Peau Practice Poco estar Download App Question 7 ‘View this Question online > Incentives scheneswhere earings differ at different levels of output are: A, Gantt TaskSystem B.Halsey Plan C. Rowan Plan D. Bedaux Plan E Emerson's Efficiency Plan Choose the correctanswer from the options given below: 1. Band Eonly 2. A, Cand only” A Cand D only4. Aand Eonly Answer (Detailed Solution Below) Option 4: A and E only Compensation management Question 7 Detailed Solution The correct answeris A and E only. @ Incentives schemes -The incentive schemesare the initiatives created to inspire and motivate employees to work more effectively and produce more. The financial incentives provided to employees in honour of their accomplishmentof specificresults within a predetermined time frame are known as incentives. » Important Points Gantt Task System - * According to the Gantt Work System, a thorough time and motion study is used to. O determine the standard time for completing a task. “< + Tocalculatethe worker's efficiency and make the payments accordingh Pere actual performanceis compared to the standard time. yw + The Gantt task system ensures the worker's time rate below the expected level ca. + Ifa worker takeslonger than the eye to accomplisha task his efficiency is J below 100%, and he is only paid time wa + If the employee finishes the job | |lotted time, his efficiency is 100%, and in addition to the time pay, he receivesa bont ®. of the wages earned. + When a worker completesa task in lesstime than is required, his efficiency is more than 100%, and he is paid at high piece rates. Emerson's Efficiency Plan- + Under the Emerson Plan, a predetermined benchmark time for completing a task is used to gauge how well the employees really execute. + By dividing the time spent by the standard time, the worker's efficiencymay be calculated. + In the Emerson Plan, the employee only receivestime pay for efficiency levels up to 67 percent. + The worker receivestime compensation and a 20% bonus on earnings when they perform at 100% of their potential. + For every additional one percent of efficiency above the required level, the employee receives a bonus of one percent.Start Complete Exam Preparation eau bed rete Download App Question 8 View this Question Online > Which of the following termsmeans the tendency of a supervisorto rate a subordinate lower than his performance? 1. Horns Effect 2. Halo Effect 3. Central Tendency 4, Pointing Tendency 2.2 ¥ 44 Answer (Detailed Solution Below) Option 1:1 Compensation management Question 8 Detailed Solution Performance Appraisal Systems: 1, Performanceappraisals areone of the mostimportant and often one of the most mishandled aspecisof management. 2. Typically, we think of performance appraisalsas involving a bosseveluating a subordinate. 3. However, performance appraisalsincreasingly involve subordinates appraising bossesthough a feedback processknown as 360 feedback, customersappraising providers, and peers evaluating coworkers, @aKev-Points—_— Problems with Performance Appraisals: 1. Horns Effect: + The horn effect occurswhen “individuals believe that negative traitsare connected to each other." + Itisa phenomenon in which an observer's judgment of a person is @dversely affected by the presence of (for the observer) an unfavorable aspectof this person. + In this effect.there is atendency of a supervisor to rate a subordinate lower than his performance . 2.Halo Effect: ~ + The halo effect isa type of cognitive bias in which our overall impression of a person influences how we feel and think about their character. + Essentially, your overall impression of a person ("He is nice!") impacts your evaluations of that person's specifictraits (‘He is also smart"). 3. Central Tendency: + Central tendency is the inclination of managersto rate all their subordinates with an “average” score during performance appraisal. + For instance, if the rating scalewes from 1-7, the managers would leave out the extremesi.e. 1,26,7, and rate all the employees with a score between 3-5. @ Confusion Points In PerformanceAppraisal, there is no error termed asPointing Tendency. ee India’s #1 Learning Platform Start Complete Exam Preparation CC Da Soc kee coe (igen MasterClass resins pron Download App Question 9 View this Question Online > Match the items of List! with the items of Listll and choose the correct answer from the code given below. List| List Il Company car, club imambherchin paid(a) Miaims | holiday: furnished house co Telephone/mobile oO Fringe ,) allowance, intemet benefits — | latiowance, go medical all 6) reve i 2. (@)- Gi). (0)- Gil). (e)- 3. (a)- (ill), (b)- Gi), (©) @ 4. (a)- (i), ()- 0, (©)- (ii) Answer (Detailed Solution Below) Option 2: (a)- (il), (b) - (ii), (€)- (i) Compensation management Question 9 Detailed Solution The following are the explanation of the correct answer: | List Il 4 demand or request for something ’. eSonsideredones due. ClalR&mple: Telephone/mobile atowand intemet allowance, medical allowance. — hey are the benefits commonly used by the Fringompany asa tool to reward an employee to lift up the working condition , for xample -Canteen, uniform, accident ibengétief. it may be defined asa benefit attached to a osition or office in addition to salary or ages. Perquisitesalso denote something nat benefits a man by going into his own .ocket. Perquisitesmay be provided in cash idite¢. e.g company car, club hip, paid holidays, furnished Therefore, the correct answer is option 2. eee Eo) Pela MM CMC L cel) Ce) te Cod econ CCC Da Sorc Exh Jownload App Question 10 View this Question Online > Which of the following is the term used for describing the payment of special compensation usually tied to performance? tote a 3. Incentive bonus 2.0 4. BenefitAnswer (Detailed Solution Below) Option 3:: Incentive bonus Compensation management Question 10 Detailed Solution The correct answeris Incentive bonus . © Key Points Incentive bonus + Itis the term used fordescribing the payment of special compensation usually tied to a + Itis usually given to employees when they have achieved a target that is beyond their expected performance, + It isusually monetary. However, non-monetary incentivesare also given now. © Additional_Information. Overtime wages are the wagesprovided to employees when they spend more time working than the allotted work time. India’s #1 Learning Platform Start Complete Exam Preparation ee ceo ie mies Doering Download App Cres iea rag Question 11 View this Question Online > In which of these incentive methods, employees earn a share of the company’s profit whic calculated as a percentage of local profit? : 1. Tax sharing 2. Annual bonus3 i 4, Non- monetary incentives Answer (Detailed Solution Below) Option 3: Profit sharing Compensation management Question 11 Detailed Solution The correct answeris Profit sharing. © Key Points. Profit sharing incentive plan- ~ Profit sharing is a sort of ineentive schemethat rewards employees. pereentage of the company's quarterly or yearly earnings. + The money is only awarded if the company generates profits within the specified time period. + The gains of the company are distributed to employees in the form of cash, stocks,or bonds. & Non-monetary incentives- + Non- monetary incentives, name implies, are non-cashperks that employers provide to their employees. + They are a means of compensating employees beyond the standard monetary remuneration and benefits. + Non- monetary compensation examples include job flexibility, experience rewards, and extra vacation time, etc. Annual Bonus- + It refers to any compensation received in addition to an employee's base annual salary for servicesrendered during a calendar year and payable under an employer's yearly bonus and cash incentive plans, excluding stockoptions. rod eee ae Ca acne) Ree ey Start Complete Exam PreparationQuestion 12 View this Question Online > Match the ‘Category of Compensation with ‘Compensation Plan (Category of Compensation) | | (Compensation Plan) (a) Pay for time not worked (i)| Saving Pian (b)| Servicesand Perquisites (i)| Stock Option (0) Protection Programme (iii Pension (| Incentive Pay (iv) Sick Leave (e)| Deferred pay (v)| Low Cost Meals Choose the correct option from those given below 1. (@)- Gili), (©)- Gv), (©)- (i), @- 0.-™ 2. (@)- (iv), (b)- (¥), (€)- Gil), - Gi), (©) @, 3. (@)- (iv), (b)- ),(0)- neh ane wip 4. (a)- (ili), (6) (), (©) @.(¢)- (Wy). @)- (i) ‘ANSWer (Detailed Solution Below) Option 2: (a)- {iv), (b)- (v), (c)- (ii), (d)- (ii), (e)- @) Compensation management Question 12 Detailed Solution The following are the explanation for the correct match:(Category Compensation) (Compensation Plan)Isick Leave 1. Sick leave (or paid sick days or sick pay) is paid Oey Pay for time off from work that workers can useto ime not stay home to address their health needs » Scary rorked without losing pay. Se 2. It differs from paid vacation time or time off . work to deal with personal matters because sic! a leave is intended for health-related purposes. jLow-Cost Meals 1. “Perquisite” may be defined as any casual Semices) " emolument or benefit attached to an office or pn Position in addition to salary or wages. ; 2. "Perquisite” is defined in section 17(2) of the Perquisites “ income-tax Act as including (i) Value of rent- free/concessionalrent accommodation, Low- cost meal provided by the employer. Pension iz 1. The Pension Protection Act of 2006 Protectiqn ” The advantages of incentive payments are (A) Easein the introduction of new machines (B) Better utilization of equipment (©) Reduced absenteeismand turnover (0) Increased serap ' Choose the most appropriate answer from the options given below: 1. A Bony, (9 A, 3. B,C,D only 4. A.B,Conly Answer (Detailed Solution Below) Option 2: B,C only Compensation management Question 13 Detailed Solution The correct answeris B, C only @ Incentive Pay: Incentive pay is financial reward for performance rather than pay for the nlimber of hours worked The idea is the prospect of financial compensation will motivate the employee to hit certain performance figures or financial targets. » Important Points. of ‘Advantages of Incentive Pay:An incentive pay plan is a great way twik&ep employees motivated and boost both morale and job satisfaction Ithas the following advantages 1. Improved Employee Performanceand Retention 2. Better Organizational Performance 3. Make better use of equipment. 4. Helps in executing businessstrategy. 5. Absence and turnover decrease. & CER ABR Rel) Start Complete Exam Pre Ree conte (8) ein oad Dac MasterCl resend Exot) Download App Question 14 View this Question Online > Statement |): Though closely related, job evaluation and performance appraisal are not the same. Statement Il): The purpose of job evaluation isto fix the remuneration and other relevant benefits. In the context of the above two statements, which one of the following codes is correct? 1. Both the Statement!) and I!) are correct 2. Both the Statement!) and Il) are incofrect 3. Statement!) is cottect, while Statement Il) is incorrect MBveieren 1) isincorrect, while Statementll) is correct Answer (Detailed Solution Below)pene PATE AS a TIED) eared. Ep eee eee oe Compensation management Question 14 Detailed Solution Job Evaluation : 1. Jobevaluation is the processof establishing the value of jobs in a job hierarchy. 2. Job values may be determined by negotiation or fixed on the basisof broad assumptions about market rates and internal relativities. 3. Jobevaluation isa comparative process based on a whole seriesof tasks,responsibilities, obligations, including the skills, knowledge, and mental agility required, qualities of initiative, reliability of the employee, and soon 4. It aimsat establishing pay structures that are fair and equitable in the senseof ensuring equal pay for jobs demanding what are considered to be broadly similar sacrificesand of y. rewarding appropriately the greater efforts and hardshipsinvolved in some jobs as compared. with others. 2 $ 5. In short, job evaluation concemsitself with pricing a Job in relation to other jobs onthe basis of consistent, fair, logical, and equitable criteria and not on the basisof arbitrary; variable judgments dictated by short-term expediency or arrived at through rule of thumb metheds Performance Appraisal : cys 1. PerformanceAppraisal is the systematic evaluation “of the performance of employees and to understand the abilities of a person for further growth and development. 2. According to Flippo, “Performanceappraisal isthe systematic periodic and an impartial rating of an employee's excellencein the matters pertaining to employee present job and potential fora better job.” . 3. Thus, Performanceappraisal ematicay of reviewing and assessing the performance of an employee di civen period of time and planning or his future. 4. Performanceappraisal is generally done in systematicways whichare as follows: > The supervisorsmeasure the pay of employees and compare it with targets and plans. = The supervisoranalyses the factors behind the work performancesof employees. + The employers are in a position to guide the employees for better performance. \ © B}important Point 1, Job Evaluation and Performance Appraisal re closelyreleted in the sensethat they both help in the determination of salary wages. 2. However, Job Evaluation undertakes characteristicsof Jobto decide the wage/salary structure and Performance Appraisal undertakes characteristicsof labor/employees to decide the wage/salary structure. Thus, they both are not the same. Thus, both statements are correct. & DCE sera peeiua) Ree ete Start Complete Exam Preparation Poa ra ieee rel reeDownload App Question 15 View this Question Online > Which of the following are the disadvantagesof a straight salary salescompensation plan? A, Salesvolume is emphasized over profits B. Salesrepresentative may overstock the customer C. Low motivational impact D. Difficult to attractor retain top salesperformers E Salesrepresentatives may focus on products that require the least effort to sell CRBBEs ine most appropriate answer from the options given below: 1. C,D and Eonly 2. A,B,and Conly 3. B,D and Eonly 4. A, Cand D only Answer (Detailed Solution Below) Option 1: C, D and E only Compensation management Question 15 Detailed Solution The correct answer is C, D, and E only The straight salary plan isa method of compensationif which the salespersonsteceivea straight- forward fixed salary with no commissions.They receive fixed sumsof money at regular intervals (usually each month). This leaves the salespersonswith no opportunity for extra money or incentives. ~a¥ Disadvantages of a straight salary sales compensation plan Low motivational impact + These plans can create aggression and high competition within the sales team. It can create low-income security for your reps with no guaranteed income, which can lead to high turnover and it becomes difficult to attract or retain top salesperformers. + Salespeople who worry about the risk of no income guarantee might burn out quickly from the stresscreating a Low motivational impact. + Sales representatives may focus on products that require the least effort to sell The salespersonsmay not feel motivated and would only complete the minimum requirements + It.canbe difficult for inexperienced salesreps to earn enough money to meet their needs. + It's not an effective compensation plan in industries with seasonalhighs and lows. Therefore we can say that the correct answeris C, D, and E only