HRMN 3420 TEST 2 EXAM 2025/2026
QUESTIONS AND ANSWERS 100% PASS
Which is the first step in constructing a pay structure? - ANS deciding on the number of pay
structures
which of the following describes midpoint pay value - ANS halfway mark on the pay range of
minimum and maximum rates
compensation budgets - ANS blueprints that describe the allocation of monetary resources
what is the key advantage associated with nonrecurring merit pay increases - ANS non-
recurring merit pay increases strengthen the pay-for-performance link and contain costs for the
company
Juan works as a salesperson for a major farming equipment manufacturer. Usually, there is
considerable lead time between when he approaches a prospective client and when the sale is
finalized. Juan typically generates demand for the product and another member of the sales
team closes the sale. What type of commission would be most appropriate for Juan? -
ANS salary-only plan
which type of plan spreads the risk of selling between the company and its sales professionals -
ANS salary-plus-commission
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Skill blocks are sets of skills (knowledge) necessary to perform a job. Before grouping skills into
blocks, a company needs to - ANS develop job descriptions; organize jobs into job families
Skills assessment is a consideration when going from job-based pay to person-focused pay.
Which of the following questions is NOT relevant to skills assessment? - ANS which input
should customers provide in the skills assessment process?
What major trend are companies following by using the broadbanding concept to consolidate
existing pay grades and ranges into fewer pay grades and wider ranges? - ANS making the
organizations flatter
a major limitation of the two-tiered pay system is that - ANS the company has difficulty
recruiting and retaining new hires who are brought in at a lower pay scale
when a company thoroughly examines its external market context and its internal factors, it is,
in essence, - ANS conducting a strategic analysis
in recent years, ________ have become part of compensation surveys because they are key
elements of market-competitive pay systems - ANS employee benefits
key piece of information that compensation specialists hope to gain from compensation surveys
is about - ANS the pay practices of their competitors and employee preferences for different
forms of compensation
which statement about compensation surveys is false - ANS published compensation surveys
are mostly inaccurate
what is the correct equation that models the prediction of the market pay line -
ANS predicted salary equals the Y intercept plus the slope multiplied by job evaluation points
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
QUESTIONS AND ANSWERS 100% PASS
Which is the first step in constructing a pay structure? - ANS deciding on the number of pay
structures
which of the following describes midpoint pay value - ANS halfway mark on the pay range of
minimum and maximum rates
compensation budgets - ANS blueprints that describe the allocation of monetary resources
what is the key advantage associated with nonrecurring merit pay increases - ANS non-
recurring merit pay increases strengthen the pay-for-performance link and contain costs for the
company
Juan works as a salesperson for a major farming equipment manufacturer. Usually, there is
considerable lead time between when he approaches a prospective client and when the sale is
finalized. Juan typically generates demand for the product and another member of the sales
team closes the sale. What type of commission would be most appropriate for Juan? -
ANS salary-only plan
which type of plan spreads the risk of selling between the company and its sales professionals -
ANS salary-plus-commission
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Skill blocks are sets of skills (knowledge) necessary to perform a job. Before grouping skills into
blocks, a company needs to - ANS develop job descriptions; organize jobs into job families
Skills assessment is a consideration when going from job-based pay to person-focused pay.
Which of the following questions is NOT relevant to skills assessment? - ANS which input
should customers provide in the skills assessment process?
What major trend are companies following by using the broadbanding concept to consolidate
existing pay grades and ranges into fewer pay grades and wider ranges? - ANS making the
organizations flatter
a major limitation of the two-tiered pay system is that - ANS the company has difficulty
recruiting and retaining new hires who are brought in at a lower pay scale
when a company thoroughly examines its external market context and its internal factors, it is,
in essence, - ANS conducting a strategic analysis
in recent years, ________ have become part of compensation surveys because they are key
elements of market-competitive pay systems - ANS employee benefits
key piece of information that compensation specialists hope to gain from compensation surveys
is about - ANS the pay practices of their competitors and employee preferences for different
forms of compensation
which statement about compensation surveys is false - ANS published compensation surveys
are mostly inaccurate
what is the correct equation that models the prediction of the market pay line -
ANS predicted salary equals the Y intercept plus the slope multiplied by job evaluation points
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
