Compensation Management Chapter 9
Exam Prep 2026/2027 | Comprehensive
Study Guide & Review Notes
Compensation systems are intended to do all the following except
A. satisfy employees
B. tie rewards to the achievement of company objectives
C. reimburse employees for their work
D. motivate employees
E. replace performance appraisals - correct answer-E
With compensation programs, dissatisfaction can arise because employee needs
are affected by
,A. absolute rates of pay only
B. corporate culture
C. relative rates of pay only
D. job analysis
E. both absolute and relative rates of pay - correct answer-E
Absolute pay levels primarily serve such employee needs as
A. esteem needs
B. physiological needs only
C. security needs only
D. both physiological and security needs
E. belonging needs - correct answer-D
Relative pay levels serve such employee needs as
,A. physiological and security needs
B. social and esteem needs
C. basic survival needs
D. health needs
E. love and affection needs - correct answer-B
Among the objectives of effective compensation management are all the
following except
A. ensure equity
B. control costs
C. reward desired behaviour
D. set performance appraisal systems
E. retain present employees - correct answer-D
, Two major objectives of compensation management are to reward desired
behaviour and control costs. Human resource specialists often find that
A. these two goals are always mutually exclusive
B. these two objectives can often be in conflict
C. these two objectives are seldom in conflict
D. the two objectives are one and the same
E. it is usually impossible to reward desired behaviour - correct answer-B
Effective compensation management has the all following objectives except
A. to reward desired behaviour
B. to encourage unproductive employees to leave
C. to ensure internal equity
D. to attract qualified applicants
Exam Prep 2026/2027 | Comprehensive
Study Guide & Review Notes
Compensation systems are intended to do all the following except
A. satisfy employees
B. tie rewards to the achievement of company objectives
C. reimburse employees for their work
D. motivate employees
E. replace performance appraisals - correct answer-E
With compensation programs, dissatisfaction can arise because employee needs
are affected by
,A. absolute rates of pay only
B. corporate culture
C. relative rates of pay only
D. job analysis
E. both absolute and relative rates of pay - correct answer-E
Absolute pay levels primarily serve such employee needs as
A. esteem needs
B. physiological needs only
C. security needs only
D. both physiological and security needs
E. belonging needs - correct answer-D
Relative pay levels serve such employee needs as
,A. physiological and security needs
B. social and esteem needs
C. basic survival needs
D. health needs
E. love and affection needs - correct answer-B
Among the objectives of effective compensation management are all the
following except
A. ensure equity
B. control costs
C. reward desired behaviour
D. set performance appraisal systems
E. retain present employees - correct answer-D
, Two major objectives of compensation management are to reward desired
behaviour and control costs. Human resource specialists often find that
A. these two goals are always mutually exclusive
B. these two objectives can often be in conflict
C. these two objectives are seldom in conflict
D. the two objectives are one and the same
E. it is usually impossible to reward desired behaviour - correct answer-B
Effective compensation management has the all following objectives except
A. to reward desired behaviour
B. to encourage unproductive employees to leave
C. to ensure internal equity
D. to attract qualified applicants
