Compensation System Design Multiple Choice Questions with Answers – PDF Download

MCQ 1: The 'compensation quartile strategy' in which 75% of employers pay below than market and remaining 25% pay compensations higher than market is called:

1. forth quartile strategy
2. third quartile strategy
3. second quartile strategy
4. first quartile strategy

MCQ 2: According to total rewards approach, the variable pay of the employee is:

1. added into base pay
2. subtracted from base pay
3. multiplied to base pay
4. divided to base pay

MCQ 3: The outcomes of competency based system such as improved and higher employee satisfaction and commitment are classified as:

1. quartile strategy based outcome
2. organization-related outcomes
3. employee-related outcomes
4. percentiles strategy outcomes

MCQ 4: According to traditional compensation approach, the perks and bonuses are:

1. for CEO only
2. for all employees
3. for executive only
4. not for executives

MCQ 5: The compensation philosophy according to which the organization increase the salary of employees every year is called:

1. primacy orientation philosophy
2. entitlement orientation philosophy
3. performance orientation philosophy
4. recency orientation philosophy