UPDATED Exam Questions and
CORRECT Answers
What are the Total Rewards Model external influences? - Correct Answer- Economic, Labor
Market, Cultural Norms, and Regulatory
External Influence-Economic - Correct Answer- Rising or falling conditions in the global
economic landscape
External Influence-Labor Market - Correct Answer- Must understand labor market trends and
movements to attract talent at a cost that is affordable and sustainable
External Influence-Cultural Norms - Correct Answer- Must have a grasp of the customs,
social mores and drivers of the diverse makeup and expectations of the workforce
External Influence-Regulatory - Correct Answer- Regulatory and legal environment can vary
widely by country and region, affecting the design and implementation of total rewards
Programs should be assessed to ensure they can legally applied at the local level
What are the drivers of the Total Rewards Strategy? - Correct Answer- Business Strategy,
Human Resources Strategy, Organizational Culture
The Business Strategy includes: - Correct Answer- The corporate vision, corporate mission,
and business strategy
Corporate Vision: - Correct Answer- a statement about what the organization wants to
become. It drives the direction of an organization.
Corporate Mission: - Correct Answer- A precise description of what the organization does, its
reason for existence or its purpose for being.
, Business Strategy: - Correct Answer- A company's broad plan for competitively positioning
its products or services with the intent to accomplish or support the company's mission.
What are the steps of the Business Life Cycle? - Correct Answer- Start-up, Growth, Mature,
Decline
Organizational Culture is - Correct Answer- Subject to internal and external influences and
greatly influenced by organization's leadership
HR strategy: - Correct Answer- The organization's overall plan for attraction, motivation,
engagement and retention of employees.
Total rewards strategy: - Correct Answer- Considers the drivers (organizational culture,
business strategy and HR strategy) and uses them to design the programs for each of the six
elements of total rewards.
Elements of Total Rewards Strategy - Correct Answer- Compensation, Benefits, Work-Life
Effectiveness, Recognition, Performance Management, Talent Development
The Total Rewards Strategy identifies: - Correct Answer- The appropriate labor market
segments, desired competitive position, the optimal mix of total rewards elements for each
employee group, and the way each element will be earned and allocated.
Key Players involved in Total Rewards Strategy development: - Correct Answer- Senior
management/board of directors, Human resources leadership, Employees, Outside
consultants
The Total Rewards Approach - Correct Answer- Attract, Motivate, Retain, and Engage
Intrinsic motivation: - Correct Answer- Linked to factors that include an employee's sense of
achievement, respect for the person, trust and appropriate advancement opportunties. Non-
tangible rewards