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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. How are the compensation communication needs of managers different from those of individual employees?

A) They aren't. Managers are concerned about their compensation also.
B) They are also responsible for merit increases, incentives and hiring so they have greater information needs.
C) They tend to have more influence, so it is important to resolve any concerns they have quickly and efficiently.
D) They have more duties and responsibilities and are less likely to have the time to discuss compensation issues.

2. When would an employee most likely receive a differential in addition to the regular hourly rate?

A) When working in locations other than the corporate office
B) When working less time than his or her normal schedule
C) When working in more than one department
D) When working a holiday or weekend

3. What was the Bennett Amendment intended to do?

A) Eliminate the potential conflict between Title VII and EPA
B) Prohibit gender-based discrimination
C) Make it easier to enforce the Equal Pay Act
D) Make the regulations covered under Title VII of the Civil Rights Act of 1964 more strict

4. The XYZ Company opened a new manufacturing facility with a capital investment of 10,000,000. The cost to obtain the capital was 8%. In its first year of operations, the facility's net operating profit after taxes was
10,500,000. What was the economic value added (EVA) using the EVA formula?

A) 9,700,000
B) 840,000
C) 500,000
D) 8,000,000

5. The concept of bona fide occupational qualifications has most direct relevance to which of the following components of employee compensation programs?

A) Job descriptions
B) Job specifications
C) Salary surveys
D) Performance evaluations

Solutions: