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Base Pay Administration and Pay for Performance Questions 11–15 (page: 4)

Updated On: 10-Feb-2026

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QUESTION: 11

Awarding an employee a 10% increase in base pay for all hours worked after 7:00pm is an example of what type of pay differential?

Shift
Geographic
Expatriate
Step rate

Answer(s): A

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QUESTION: 12

What is one advantage of delivering a pay action as a periodic increase?

Employee recognizes the entire increase at one time
There is a greater first year cost to the company
Easier administration compared to a lump-sum increase
Allows organization to establish a probationary period

Answer(s): D

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QUESTION: 13

Why is communicating pay actions critical to the success or failure of a base pay program?

It allows employees to understand how compensation is related to benefits.
It ensures that the information given to employees is always correct.
It reinforces the decision to join and remain with an employer.

Answer(s): C

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QUESTION: 14

What is the first step in setting new hire rates?

Ask internal recruiters
Check job postings
Review incumbent salary data
Review market pay studies

Answer(s): C

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QUESTION: 15

Which of the following is one of the performance management systems used today?

Balanced Scorecard
Dashboard Metrics
Performance Analytics

Answer(s): A

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