Question

1. With regard to skill-based pay, the greatest impact on results occurs:

A.

when more senior employees get trained first

B.

when an organization focuses on competencies rather than skills

C.

after employees have learned all the skills available

D.

after just a small amount of increased flexibility

E.

when skill certification is relatively easy

2. If a product is in relatively low demand:

A.

the employer will typically pay its employees more

B.

the employer can’t pay its employees more without raising prices

C.

the employer will cut employees’ wages

D.

there will be no effect on wages

3. In a skill- or competency-based structure:

A.

pay is based on skills used in the work done by the employee

B.

pay is based on the competencies or skills employees possess

C.

certification methods are not required

D.

employee advancement comes from performing jobs that add greater value to the organization

E.

none of these

4.

The pay mix:

A.	is the average of the pay rates in an organization
B.	includes the various types of payments that make up total compensation
C.	does not need to be considered when examining external competitiveness
D	should be based exclusively on market factors

Answer 1

1. after just a small amount of increased flexibility.
2. C. the employer will cut employees’ wages. Because, if the products will not be sold as per the prediction and demand will be low, the employer will have to cut employee’s wages to keep the business running.
3. A. pay is based on skills used in the work done by them.
4. includes the various types of payments that make up total compensation. It's a ratio between base salary and incentive pay at target performance.