WorldatWork GR4 Exam
Base Pay Administration and Pay for Performance (Page 9 )

Updated On: 12-Jan-2026

What is variable pay?

  1. Compensation that varies based on performance
  2. Compensation that remains constant regardless of performance
  3. Compensation that includes both fixed and variable components
  4. Compensation that is determined by market data

Answer(s): A



What are the two elements of compensation?

  1. Fixed pay and variable pay
  2. Base pay and performance pay
  3. Salary and benefits
  4. Bonuses and incentives

Answer(s): A



What are the stages of the business life cycle?

  1. Introduction, growth, maturity, decline
  2. Planning, execution, evaluation, adjustment
  3. Hiring, training, development, retention
  4. Marketing, sales, production, distribution

Answer(s): A



What are the common objectives of a compensation program?

  1. Attract, retain, and motivate employees
  2. Increase market share and profitability
  3. Improve customer satisfaction and loyalty
  4. Enhance organizational culture and values

Answer(s): A



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