HRIR 3051 Quiz 2 Questions and
Answers
Inside selling - ✔✔Selling through the organization (leads, call center, customer coming
to them)
Outside selling - ✔✔selling outside of company
Base salary - ✔✔Reflects value of employee role, guaranteed
Role of sales representative - ✔✔Relationship building, conveyors of product
information, makes the sale
Compensation plan design - ✔✔Assess, align, design, implement
Assess - ✔✔Phase one of sales compensation, gather and assess current sales
compensation practices
Align - ✔✔Phase two of sales compensation, Meet with management to ensure sales
effort alignment with strategic objectives
Design - ✔✔Phase three of sales compensation, work with taskforce of sales
compensation stakeholders to design and cost new plan for every job
Implement - ✔✔Phase four of sales compensation, guide sales compensation staff to
create an implementation strategy
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
, Key performance indicators - ✔✔Differentiate top and bottom performance, pay for
results, pay correlates to results
Pay mix - ✔✔Reflects the degree of individual influence within the deal
All base pay - ✔✔Best for sales roles made up of activities of sales support
All variable pay - ✔✔Best for sales people who have control over the amount of sales
generated (direct selling)
Commission - ✔✔Pay based off of sales volume
Breakeven Threshold - ✔✔Sales rep has not earned enough from sales to support
having a representative in that territory
Incentives/bonuses - ✔✔Based on predetermined criteria
Compensation committees - ✔✔Set the pay/compensation plan for executives
Pay Ratio Disclosure Requirement - ✔✔Ratio of median annual compensation of all
employees & total compensation of its CEO
Identifying Median Employee Salary - ✔✔Select a methodology based on their own
facts and circumstances
CEO Total Compensation Components - ✔✔Base salary, stock options, bonuses, awards
of stock, non-equity incentive pay
Pay-for-performance - ✔✔Attempt to tie executive pay closer to company performance
Competitive Philosophy - ✔✔Define "market" and competitive posture, determines mix
of elements, communicates pay strategy
Total Direct Compensation - ✔✔Base pay + Short term incentives (STIs), what am I
putting in your bank account
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
Answers
Inside selling - ✔✔Selling through the organization (leads, call center, customer coming
to them)
Outside selling - ✔✔selling outside of company
Base salary - ✔✔Reflects value of employee role, guaranteed
Role of sales representative - ✔✔Relationship building, conveyors of product
information, makes the sale
Compensation plan design - ✔✔Assess, align, design, implement
Assess - ✔✔Phase one of sales compensation, gather and assess current sales
compensation practices
Align - ✔✔Phase two of sales compensation, Meet with management to ensure sales
effort alignment with strategic objectives
Design - ✔✔Phase three of sales compensation, work with taskforce of sales
compensation stakeholders to design and cost new plan for every job
Implement - ✔✔Phase four of sales compensation, guide sales compensation staff to
create an implementation strategy
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
, Key performance indicators - ✔✔Differentiate top and bottom performance, pay for
results, pay correlates to results
Pay mix - ✔✔Reflects the degree of individual influence within the deal
All base pay - ✔✔Best for sales roles made up of activities of sales support
All variable pay - ✔✔Best for sales people who have control over the amount of sales
generated (direct selling)
Commission - ✔✔Pay based off of sales volume
Breakeven Threshold - ✔✔Sales rep has not earned enough from sales to support
having a representative in that territory
Incentives/bonuses - ✔✔Based on predetermined criteria
Compensation committees - ✔✔Set the pay/compensation plan for executives
Pay Ratio Disclosure Requirement - ✔✔Ratio of median annual compensation of all
employees & total compensation of its CEO
Identifying Median Employee Salary - ✔✔Select a methodology based on their own
facts and circumstances
CEO Total Compensation Components - ✔✔Base salary, stock options, bonuses, awards
of stock, non-equity incentive pay
Pay-for-performance - ✔✔Attempt to tie executive pay closer to company performance
Competitive Philosophy - ✔✔Define "market" and competitive posture, determines mix
of elements, communicates pay strategy
Total Direct Compensation - ✔✔Base pay + Short term incentives (STIs), what am I
putting in your bank account
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
