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WorldatWork GR4 Exam
Base Pay Administration and Pay for Performance (Page 6 )

Updated On: 12-Jan-2026
Page 6 of 64
PDF with 251 Questions

What best describes an objective of a merit pay program?

  1. To link pay to performance in a manner consistent with the mission
  2. To ensure that everyone in the organization receives a pay increase
  3. To guarantee that unacceptable performers advance to the midpoint of the range
  4. To annualize compensation costs for the organization

Answer(s): A



Which statement is most accurate regarding the range penetration and progression for an employee who consistently "meets standards"?

  1. The employee will reach 100% range penetration in two years.
  2. The employee will never rise above 25% range penetration.
  3. The employee's range penetration will typically be about 50%
  4. The employee is demonstrating desired competencies, but may not be awarded a merit increase.

Answer(s): C



What data is needed to create a market-based salary budget?

  1. Job descriptions
  2. Organization chart
  3. Turnover rate
  4. Company pay policy

Answer(s): D



Which of the following is a typical approach used to correct green circle rates?

  1. Giving increases less frequently than the normal schedule
  2. Lowering the pay and giving the amount outside the range as a lump sum
  3. Granting 3% increases every four months until pay equals or exceeds the range minimum
  4. Giving the amount below minimum in a lump sum

Answer(s): A



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