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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Who enforces Title VII of the Civil Rights Act of 1964?

A) The Equal Employment Opportunity Commission
B) The National Civil Rights Commission
C) The Office of Federal Contract Compliance
D) The Wage and Hour Division of the Department of Labor

2. The Delta Company has experienced increased turnover in the past two years. Data from exit interviews indicate that most of those leaving did so for better opportunities and higher compensation. If Delta pays at the highest percentile of the market for their peer group, what data analysis should they do?

A) Qualitative data collection in the form of an employee survey with questions about employee satisfaction with pay levels
B) Additional quantitative analysis to determine whether pay rates are truly competitive or existing data are unreliable
C) Qualitative data collection to talk to key stakeholders and employees and determine whether the exit interviews accurately reflect their concerns
D) No additional data analysis is needed. Delta should increase pay rates based on the existing data to decrease turnover.

3. Which of the following is a type of variable pay?

A) Commissions
B) Piece rate
C) Hourly rate
D) Salary

4. Which of the following statements best describes defined benefit (DB) plans?

A) There is no promise of a specific benefit at retirement.
B) Employees are at risk for financial resources.
C) Individual accounts must be maintained for each participant.
D) They are often integrated with government-sponsored programs.

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

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

Solutions: