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WGU C236 Compensation and Benefits
OBJECTIVE ASSESSMENT EXAM
1.Which two approaches apply to internal reward alignment?ANS Job-based ap- proach and individual-based approach 2.Which provision applies if a job is covered by the Fair Labor Standards Act?a.Employees' pay rates may be based on an employee's personal character- istics such as gender or age.b.Employers are exempt from paying the standard minimum wage and may set the wage they are willing to pay.c.Employees and independent contractors must be paid the same if they are performing the same or similar tasks.d.Employees who work more than 40 hours in a week must be paid time and a half for each hour they work over the 40 hours. ANS d 1 / 4
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3.What is the relationship among laws regarding pay?a.Federal law overrides state law.b.State law overrides common law.c.The benefit to employees dictates which law is followed.d.The benefit to the employer dictates which law is followed. ANS c 4.What is merit pay?ANS an annual increase based on past performance 5.The CEO of a web development company gives employees a lot of freedom to develop new applications, pays employees by the hour, and allows employ- ees to work as needed to develop applications. Because of this approach, the payroll costs vary quite a bit. The CEO would like to get costs under control and make payroll costs more stable.Which approach can be used to bring payroll costs under control and make them more stable in this situation?a.Provide a work-at-home or telecommuting option for employees b.Transition employees from an hourly pay model to a salaried pay model c.Offer employees stock options as a part of their compensation packages d.Group employees in teams and pay them based on the team's productivity 2 / 4
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ANS b 6.Which compensation method is an annual pay increase based on past performance that is added to an employee's base compensation? 3 / 4
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a.merit pay b.differential rate c.individual bonus d.sales commission ANS a 7.An employee has worked for the same company in two locations over the course of 20 years in Europe and North America. The employee has been trained as an international trade specialist and has been promoted to manager of international operations. Which pay basis should be used to compensate this employee?a.Merit-based pay b.Seniority-based pay c.Experience-based pay d.Competency-based pay ANS d 8.A company implemented actions to improve its return on investment on human capital. The company wants to be the premier employer in the state.The first step was giving more rewards for jobs compared to its competitors. Which type of reward system is this company using?a.Relative b.Absolute c.Centralized d.Decentralized ANS a
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