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Regulatory Environments for Compensation Programs Questions and Answers

Questions 1

Which type of base pay is typically based on an individual employee's rate of production?



Hourly rate




Piece rate


Production rate   

Questions 2

When connecting with other business units, what best describes a reason why is it important to keep up to date on organizational challenges?



Because you will be more informed when differences of opinion occur, lending more credibility to your position


Because you can demonstrate your understanding of issues from multiple perspectives


Because you will be able to explain the negative consequences of opposing your position


Because stakeholders with diverse opinions tend to compromise when they are aware that others know their weaknesses

Questions 3

How do commissions typically differ from annual incentives for non-executive employees?



They are based on a predetermined performance and reward schedule.


They are offered to motivate employee performance.


They are intended to align the interests of the employee with those of the organization.


They tend to make up the larger portion of an employee's total compensation.