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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Why are lump-sum increases generally used?

A) To control annual fixed costs from base pay adjustments
B) To reward employees under short-term incentive plans
C) To elevate employees who are below the midpoint in the range
D) To make up for benefits not provided by the organization

2. What type of equity incentive gives employees the right to purchase company shares at a specified price?

A) Performance units
B) Stock/share grants
C) Stock/share options
D) Restricted stock/shares

3. 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) Performance evaluations
C) Salary surveys
D) Job specifications

4. Which of the following is an example of a reasonable accommodation?

A) Creating a new position in the company
B) Creating a separate area for the disabled employee to work
C) Providing a pre-employment medical exam
D) Job restructuring

5. Which of the following is the best example of applying business acumen to data analysis?

A) Reviewing historical trends to complete annual budgets
B) Compiling data needed to calculate salary budgets and merit increases
C) Identifying trends and key messages emerging over time
D) Providing quarterly incentive estimates for accruals

Solutions: