QUESTION: 57

Your organization is aiming to reduce costs by stopping wastes in the production cycle. The company has created a plan that will reward employees 50 percent of the savings from the waste stoppage. What type of compensation plan is your organization offering to employees in this instance?

This is an example of a team incentive
This is an example of profit sharing
This is an example of gainsharing
This is an example of a short-term incentive

Answer(s): C

Explanation:

Gainsharing is a compensation plan where the money saved by reducing waste is shared among the employees or project team. It can also be used as an incentive for additional revenues generated. Answer option D is incorrect. A short-term incentive usually last a year or less and the scenario doesn't indicate how long this incentive may be offered. Answer option A is incorrect. A team incentive is for a particular team to reach a common goal. This choice is tempting but gainsharing is a more accurate description of what's occurring in this scenario. Answer option B is incorrect. Profit sharing is similar to gainsharing, but the focus is one a profit goal, not a waste reduction goal.

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QUESTION: 58

What is the compa-ratio for an employee that earns $75, 000 per year, but the midpoint for the role is $85, 000 per year?

$10, 000 difference
1:88
113 percent
88 percent

Answer(s): D

Explanation:

The compa-ratio helps organizations determine how closely an employee's pay is in synch with market. You must also consider the length of employment, service, skills, and other factors in the decision for compensation. The ratio is found by dividing the employees' salary ($75, 000) by the midpoint for the role ($80, 000) for the ratio of 88 percent. Answer option C is incorrect. 113 percent is the inverted formula by dividing $80, 000 by $75, 000. Answer option A is incorrect. $10, 000 is the difference of the two values, but this isn't the compa- ratio.
Answer option B is incorrect. This isn't a valid figure for the question.

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QUESTION: 59

As a HR Professional you must understand the laws and regulations, which affect employee compensation. If a non-exempt employee works more than 40 hours per week, what is their overtime pay rate?

150 percent of their base pay
It depends on the state where the employee is employed
Non-exempt employees do not receive overtime pay
50 percent of their base pay

Answer(s): A

Explanation:

Overtime pay is 150 percent of the employee's base hourly pay. It is commonly called time and a half.
Answer option B is incorrect. Overtime pay is a federally-mandated law, not a state law. Answer option C is incorrect. Non-exempt employees do receive overtime pay. Exempt employees do not.
Answer option D is incorrect. Overtime pay is 150 percent, not just 50 percent of the base pay.

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QUESTION: 60

If a union wants to organize, it typically moves through five steps to the organizing process. Which step of union organization would require the union to collect at least 30 percent of signed authorization cards from employees?

Confirm interest
The campaign
Make a connection
Obtain recognition

Answer(s): A

Explanation:

The confirm interest stage, the second of five phases to unionization, typically requires 30 percent of the employees to sign an authorization card. Some unions may seek 50 percent of authorization cards, in some instances.
Answer option C is incorrect. Make a connection is the first stage of the unionization process. This stage is to establish a connection, to determine if there is any interest in the forming or joining of a union.
Answer option D is incorrect. The obtain recognition stage, the third stage of the unionization process, is to gain recognition from the employer. This stage causes the employer to give the NLRB a list of names and addresses of employees who are eligible to vote in the union certification election. Answer option B is incorrect. The campaign stage of the unionization process if the fourth step in preparation for the final stage, the election to determine unionization of the employees.

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