C236 HRM 3600
Compensation & Benefits
Final Assessment (Qns & Ans)
2025
1. Which of the following is NOT a component of total
compensation?
- A. Base salary
- B. Benefits
- C. Performance bonuses
- D. Employee engagement programs
©2024/2025
, - ANS: D. Employee engagement programs
- Rationale: Total compensation includes base salary,
benefits, and performance bonuses, but employee engagement
programs are not typically considered part of total compensation.
2. What is the primary purpose of a job evaluation?
- A. To determine the market rate for a job
- B. To assess employee performance
- C. To establish internal job hierarchy
- D. To create job descriptions
- ANS: C. To establish internal job hierarchy
- Rationale: Job evaluation is used to establish the relative
worth of jobs within an organization, creating an internal job
hierarchy.
3. Which of the following is a legally required benefit in most
countries?
- A. Health insurance
- B. Paid vacation
- C. Social security
- D. Retirement plans
- ANS: C. Social security
©2024/2025
, - Rationale: Social security is a legally required benefit in
most countries, while health insurance, paid vacation, and
retirement plans are often provided but not always mandated by
law.
4. What is the main advantage of a defined benefit pension plan?
- A. Predictable retirement income
- B. Flexibility in investment choices
- C. Lower administrative costs
- D. Employee control over contributions
- ANS: A. Predictable retirement income
- Rationale: Defined benefit pension plans provide
predictable retirement income based on a formula, whereas
defined contribution plans offer flexibility in investment choices.
5. Which of the following is an example of indirect
compensation?
- A. Overtime pay
- B. Stock options
- C. Health insurance
- D. Performance bonuses
- ANS: C. Health insurance
©2024/2025
, - Rationale: Indirect compensation includes benefits such as
health insurance, while direct compensation includes wages,
salaries, and bonuses.
Fill-in-the-Blank Questions
6. The process of determining the relative worth of jobs within
an organization is called ________.
- ANS: job evaluation
- Rationale: Job evaluation is the process used to establish the
relative worth of jobs within an organization.
7. A ________ plan allows employees to choose from a variety
of benefits to create a package that best suits their needs.
- ANS: cafeteria
- Rationale: A cafeteria plan, also known as a flexible
benefits plan, allows employees to choose from a variety of
benefits.
8. The ________ Act requires employers to provide unpaid, job-
protected leave for certain family and medical reasons.
- ANS: Family and Medical Leave
©2024/2025
Compensation & Benefits
Final Assessment (Qns & Ans)
2025
1. Which of the following is NOT a component of total
compensation?
- A. Base salary
- B. Benefits
- C. Performance bonuses
- D. Employee engagement programs
©2024/2025
, - ANS: D. Employee engagement programs
- Rationale: Total compensation includes base salary,
benefits, and performance bonuses, but employee engagement
programs are not typically considered part of total compensation.
2. What is the primary purpose of a job evaluation?
- A. To determine the market rate for a job
- B. To assess employee performance
- C. To establish internal job hierarchy
- D. To create job descriptions
- ANS: C. To establish internal job hierarchy
- Rationale: Job evaluation is used to establish the relative
worth of jobs within an organization, creating an internal job
hierarchy.
3. Which of the following is a legally required benefit in most
countries?
- A. Health insurance
- B. Paid vacation
- C. Social security
- D. Retirement plans
- ANS: C. Social security
©2024/2025
, - Rationale: Social security is a legally required benefit in
most countries, while health insurance, paid vacation, and
retirement plans are often provided but not always mandated by
law.
4. What is the main advantage of a defined benefit pension plan?
- A. Predictable retirement income
- B. Flexibility in investment choices
- C. Lower administrative costs
- D. Employee control over contributions
- ANS: A. Predictable retirement income
- Rationale: Defined benefit pension plans provide
predictable retirement income based on a formula, whereas
defined contribution plans offer flexibility in investment choices.
5. Which of the following is an example of indirect
compensation?
- A. Overtime pay
- B. Stock options
- C. Health insurance
- D. Performance bonuses
- ANS: C. Health insurance
©2024/2025
, - Rationale: Indirect compensation includes benefits such as
health insurance, while direct compensation includes wages,
salaries, and bonuses.
Fill-in-the-Blank Questions
6. The process of determining the relative worth of jobs within
an organization is called ________.
- ANS: job evaluation
- Rationale: Job evaluation is the process used to establish the
relative worth of jobs within an organization.
7. A ________ plan allows employees to choose from a variety
of benefits to create a package that best suits their needs.
- ANS: cafeteria
- Rationale: A cafeteria plan, also known as a flexible
benefits plan, allows employees to choose from a variety of
benefits.
8. The ________ Act requires employers to provide unpaid, job-
protected leave for certain family and medical reasons.
- ANS: Family and Medical Leave
©2024/2025
