COMPENSATION AND BENEFITS MCQ QUESTIONS

1. What is not a key element of total rewards strategy

A. Work-like effectiveness
B. Recognition
C. Diversity
D. Talent Development

2. An employee who does not meet expectations for performance, does not work well
with others and does not reflect institutional competencies is a
A. Keeper
B. Solid Citizen
C. Incompetent Employee
D. Misfit

3. The five elements that compose a pay strategy are as follows except
A. Pay/talent market
B. Philosophy
C. Mix
D. Globalization

4. The ________ spans three years and has very specific annual outputs and action items.
These outputs are incorporated as targets in the long-term incentive plan. The strategic plan
starts with the establishment of goals with the board, followed by a SWOT (strengths,
weakness, opportunity, and threats) analysis of Modern’s markets, products, company, and
economy.
A. Strategic Plan
B. Recognition program
C. Modern’s Goals
D. Middle Management Strategy

5. ______ refers to a human resources strategy that collapses salary grade into a few wide
“bands” for the purpose of managing career growth and administer pay. By eliminating much of
the hierarchy associated with a traditional pay structure, broadband support today’s flatter,
leaner, more customer-focused organization.
A. Strategic planning
B. Pay scale strategy
C. Benchmarking
D. Broad banding

6. The following are characteristics of a broadbanding approach except:

A. Each band includes a broad grouping of jobs
B. Managers and their direct report may be in the same band
C. Individuals may perform several different jobs that fall within the same band
D. Career growth is defined in terms of decreased responsibilities

7. Non-monetary award is
A. Payment in the form of benefit
B. Taxable
C. Unlawful
D. Part of the compensation package

8. The benefits from using non-monetary awards in the total rewards framework includes
the following except:
A. To supplement a fair compensation plan
B. To tell non performing workers that they have to do better
C. Recognition, incentives, perquisites, team-building
D. To ease the transition to an organizational unit incentive plan

9. This is a strategy in collecting information about employee compensation, including

salary and benefits. It is conducted with numerous employers to determine pay levels for
specific job categories and are generally conducted either by region, sector or job classification
for the purposes of comparability
A. Benchmarking
B. Broadbaning
C. Salary Survey
D. Scaling

10. _______ is a mechanism for measuring processes, practices and results for comparison
to improve performance. It can transform an organization’s HR and people management
strategies by showing how human resource practices influence the organization’s success
A. Benchmarking
B. Broadbanding
C. Salary Survey
D. Scaling

11. The following are types of compensation surveys except:

A. Global Trend
B. Job title Matching
C. Market Pricing
D. Job Evaluation

12. This generally refers to all form of ongoing cash compensation other than base pay that
employees receive during their employment
A. Monetary Award
B. Non-monetary award
C. Gain sharing
D. Variable pay

13. ______ is a financial incentive whereby an employee is offered a bonus, increase, or

promotion based on work performance as determined by criteria set by the employer. It is also
defined as a payment or a reward that is given to the highest performing worker and to
recognize the employees who perform best in their roles for exceeding expectations
A. Recognition Pay
B. Mandatory Bonus
C. Merit Pay
D. Skill based pay

14. The following are Scanlon principles. Identify which one is not a Scanlon principle
A. Frequent monitoring
B. Identity and education
C. Participation and responsibility
D. Equity and Accountability

15. This employee demonstrates superior accomplishments; inspires others to superior

accomplishments and serves as the embodiment of organizational competencies
A. Super keeper
B. Keeper
C. Solid Citizen
D. Misfit

16. A Pay strategy is composed of five (5) elements. Identify which of the following is not an
element of a pay strategy
A. Compensation Philosophy
B. Pay/Talent Market
C. Strategic payment
D. Contribution

17. Total rewards strategy means

A. Taking both a holistic (recognizing all the tools in a rewards toolkit) and customized
using the right tool for the right job) approach
B. Making every salary of the employees standard to fit the market
C. Giving compensation and benefits that would equal the skills and competency of each
employee making their salaries different
D. Policies, programs, and practices that provides employees of a company with something
at par of the value which they give to the company

18. The key elements of the total reward strategy enumerated below. Identify which one is
not a key element of the total reward strategy
A. Provide a meaningful and extravagant offer to the applicant which has the highest
educational attainment
B. Establish the context for the total reward philosophy
C. Provide a unifying statement of philosophy or principles
D. Identify the primary drivers of these programs

19. Non-monetary awards work because of

A. Social Reinforcement
B. It is separable
C. It is justifiable
D. It is not dependable

20. ________ is a variable compensation that rewards achievement of specified results,

typically measured over a period of 12 months or less. As one component of a company’s Total
rewards program (including base salary, cash incentives, equity, benefits, and learning and
development), incentives can be the most effective form of compensation in building and
maintaining a strong pay-for-performance culture
A. Long-term incentive pay
B. Short-term incentive pay
C. Bonus
D. Cash advance

21. ________ are defined as figures and data representative of an organization's actions,
abilities, and overall quality
A. Strategic planning
B. Workforce strategy
C. Pay scale
D. Performance Metrics

22. _________ is the amount paid to employees working in sales based on their
performance against predetermined targets
A. 13th month pay
B. Midyear bonus
C. Sales compensation
D. Salary deduction
23. The four (4) selling opportunities are as follows except
A. Retention Selling
B. Penetration Selling
C. Rush Selling
D. New Market Selling

24. __________ refers to various incentive plans introduced by businesses that provide
direct or indirect payments to employees that depend on company’s profitability in addition to
employees’ regular salary
A. Benefit Sharing
B. Incentive Sharing
C. Profit Sharing
D. Salary Sharing

25. ________ means that a company hires a wide range of diverse individuals. Diversity is
often misconceived as solely multicultural matters; however it also applies to diversity of
gender, race, ethnicity, age, sexuality, language, educational, background, and so on.
A. Sole environment
B. Work from home
C. Diversity
D. Economic strategy

26. The following are the barriers to effective goal setting and appraisal except
A. Discomfort
B. Ambiguity
C. New source of criticism for the executive
D. Rank-and-file

27. It is also known as a vitality curve, is a controversial management tool which measures,
ranks and grades employees’ work performance based on their comparison with each other
instead of against fixed standards
A. Top ranking
B. Gain sharing
C. Three-trends shaping
D. Forced ranking

28. Businesses require a strategic solution to managing the workforce, on that encompasses
the realities of generations and geographies, emerging non-traditional staffing models and
pressure to produce return on human capital investments. That strategy beings with the
identification of unique workforce segments
A. Workforce segmentation
B. Geography
C. Organizational design
D. Scanlon gain sharing

29. ______ provides a capability to job evaluators of quantifying their judgments about the
relative worth of various aspects of jobs by assigning “points” to those judgments. It produces a
final statement about job worth expressed as a single total of those points
A. Factor Comparison method
B. Point method
C. Pay method
D. Greek method
30. It is the common standardized job analysis technique. It is a survey that measures a
number of different employee work-related behaviours necessary to perform a variety of tasks
in different jobs
A. Greek method
B. Factor Comparison method
C. Position analysis questionnaire
D. System factor method

31. Which of the following statements are correct?

a. Compensation and benefits refer to the benefits a firm provides to its employees in
exchange for their labor.
b. Compensation and benefits are thus a key part of Human Resource Management.
c. Both A and B are correct.
d. Both A and B are false.

32. What is the difference between compensation and benefits?

a. Compensation covers people’s indirect pay. Benefits cover employees’ direct pay.
b. Compensation covers employees’ health insurance, stock options, as well as parental
leaves while benefits cover the employees’ daily wage.
c. Compensation covers people’s direct pay. Benefits cover employees’ indirect pay.
d. Compensation covers employees’ health insurance while benefits cover social benefits
such as parental leave.

33. How do HR Departments calculate compensations and benefits?

a. A compensation specialist will use salary surveys to help her determine a market rate.
b. A salary survey asks a single business to share their compensation data for positions.
c. Salary rates are the same in all types of companies (whether a small or large business).
d. Position tenure is not a variable in determining the salary rate.

34. Which of the following are not included in the variables in determining an emoloyees’
salary:
a. Employee location
b. Years of experience
c. Highest degree earned
d. Number of dependents

35. Occupational Safety and Health law

a. Republic Act No. 11056
b. Republic Act No. 11057
c. Republic Act No. 11058
d. Republic Act No. 11059

36. Which of the following are included in the Occupational Safety and Health law?
a. All workers shall be appropriately informed by the employer about all types of hazards
in the workplace, and provided access to training and education on chemical safety, electrical
safety mechanical safety, and ergonomical safety.
b. The worker has the right of refusal to work without threat or reprisal from the employer
if, as determined by the DOLE, an imminent danger situation exists in the workplace that may
result in illness, injury, or death, and corrective actions to eliminate the danger have not been
undertaken by the employer.
c. Both statements are correct.
d. Neither of the statements are correct.

37. What is the intention of the Workmen’s Compensation Act?

a. To ensure that injuries to workmen and employees may be considered as results of fault
or negligence.
b. To secure workmen and their dependents against becoming objects of charity, by
making a reasonable compensation for such accidental calamities as are incidental to
employment
c. Both statements are true.
d. Neither of the statements are correct.

38. This means anything done for the comfort and (intellectual or social) improvement of
the employees, over and above the wages paid.
a. Employee development
b. Employee compensation
c. Employee welfare
d. Employee benefits

39. This means any enclosed area or room equipped with the necessary medical facilities
and supplies, and located within the premises of the establishment where workers maybe
brought for examination and treatment of their injuries or illnesses in cases of emergency.
a. Emergency Clinic
b. Occupational Health Services
c. Emergency Treatment Room
d. Occupational Health Practitioner

40. “First Aid Treatment” means adequate, immediate and necessary medical and/or dental
attendance or remedy given in case of injury or sudden illness suffered by the workers,
irrespective of whether or not such illness/injury is occupational in nature, before more
extensive medical and/or dental treatment can be secured. It does not include following
treatment for an injury or illness.
a. Emergency Clinic
b. Occupational Health Services
c. Emergency Treatment Room
d. Occupational Health Practitioner
41. This means an enclosed area, room or building, located within the premises of the
establishment, and equipped with the necessary medical facilities and supplies, where workers
maybe brought for examination and treatment of their injuries or illnesses in cases of
emergency, where more elaborate instruments and equipments (such as examining bed,
oxygen tank) are made available for the workers, and where the services of a more competent
medical staff are provided, who may handle or treat a few simple cases of injuries or illnesses
needing short-term confinement, or may refer such cases to hospitals.
a. Emergency Clinic
b. Occupational Health Services
c. Emergency Treatment Room
d. Occupational Health Practitioner

42. This refers to a physician, nurse, engineer, dentist or chemist duly licensed to practice
his/her profession in the Philippines and possessing all of the additional qualifications required
under Rule 1964.01.
a. Emergency Clinic
b. Occupational Health Services
c. Emergency Treatment Room
d. Occupational Health Practitioner

43. What is First Aid in the Workplace?

a. First aid in the workplace is defined as the necessary temporary assistance an injured
person needs until professional medical care can be provided.
b. First aid is not medical care, and it’s important to remember that as you go through any
kind of first aid training, as well as if you provide first aid in the event of an emergency.
c. Both statements are true.
d. Neither of the statements are correct.

44. Which of the following is not a primary goal of first aid?

a. Preserve life
b. Prevent further injury
c. Promote recovery
d. Prioritize the welfare of the company

45. What is the first step in providing first aid:

a. Do immediate CPR
b. Assess the injured employee immediately
c. Wait for help to arrive
d. Assess the scene

46. Which of the following statements about Article 157 is true:

a. Employers in non-hazardous establishments are required to hire the services of a dentist
or physician as a regular employee.
b. This allows employers in non-hazardous establishments to engage “on retained basis”
the services of a dentist or physician.
c. Both statements are true.
d. Neither of the statements are correct.

47. If the number of employees and laborers, is___________, the owner, lessee, or
operator shall keep a stock of emergency medicines under the charge of a nurse
a. not less than ten nor more than one hundred
b. not less than thirty nor more than two hundred
c. not less than thirty nor more than one hundred
d. not less than twenty nor more than two hundred

48. When the number of employees and laborers____________, the owner, lessee, or
operator, in addition to keeping a stock of emergency medicines under the charge of a nurse
shall employ the services of a permanent or retained physician and a permanent or retained
dentist for the benefit of employees and laborers and provide a room of strong materials,
properly ventilated, and adequate enough to meet cases of emergency.
a. exceeds two hundred but is not greater than three hundred
b. exceeds three hundred but is not greater than five hundred
c. exceeds one hundred but is not greater than three hundred
d. exceeds two hundred but is not greater than four hundred

49. The following are ways to establish and design a wellness program except:
a. Lowering health care costs.
b. Reducing absenteeism.
c. Achieving higher employee productivity.
d. Increasing workers' compensation and disability-related costs.

50. The physicians, dentists and nurses employed by employers pursuant to this Chapter
shall have the necessary training in what field/s:
a. Industrial medicine
b. Occupational safety and health
c. Both
d. None