Market Pricing - Module 1

Reviewed by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By Patosan
P
Patosan
Community Contributor
Quizzes Created: 6 | Total Attempts: 2,060
| Attempts: 210
SettingsSettings
Please wait...
  • 1/21 Questions

    What are the two elements of compensation?

    • Fixed, Variable
    • Discretionary, fixed
    • Fixed, Changeable
    • Discretionary, Non-Discretionary
Please wait...
Market Pricing - Module 1 - Quiz
About This Quiz

This test is for module 1 f the Market Pricing exam for the Certified Compensation Professional Exam (CCP).

Quiz Preview

  • 2. 

    What is fixed pay?

    • Non-discretionary compensation that does not vary according to performance or results.

    • Non-discretionary compensation that varies according to performance or results.

    • Compensation that never changes

    • Compensation that is targeted only to certain groups.

    Correct Answer
    A. Non-discretionary compensation that does not vary according to performance or results.
    Explanation
    Fixed pay refers to non-discretionary compensation that remains constant and does not fluctuate based on an individual's performance or the outcomes achieved. This type of compensation is not influenced by factors such as productivity, sales targets, or company performance. It is a predetermined amount that is paid regularly, regardless of the individual's performance or the organization's results.

    Rate this question:

  • 3. 

    The strategies for Market Position are:

    • Lead, Lag, Lead-lag

    • Lead, Lag, Lag-lead

    • Leader and Trailing

    • CCP are sekret communist test comrade.

    Correct Answer
    A. Lead, Lag, Lead-lag
    Explanation
    The correct answer is Lead, Lag, Lead-lag. These strategies refer to different approaches that a company can take in terms of its market position. "Lead" means being the first in the market with a new product or innovation, gaining a competitive advantage. "Lag" refers to following the market leaders and imitating their successful strategies. "Lead-lag" combines both approaches, where a company leads in some areas and lags in others to maintain a balanced market position. These strategies help companies adapt to market dynamics and gain a competitive edge.

    Rate this question:

  • 4. 

    The design process for a Total Rewards Program begins with:

    • The corporate mission or vision

    • Analyzing the program

    • Program design

    • The corporate strategy

    Correct Answer
    A. The corporate mission or vision
    Explanation
    The design process for a Total Rewards Program begins with the corporate mission or vision. This is because the mission or vision statement defines the overall purpose and goals of the organization. By aligning the Total Rewards Program with the mission or vision, the organization ensures that the program supports its strategic objectives and values. It also helps in creating a cohesive and consistent program design that reflects the organization's identity and culture. Analyzing the program and considering the corporate strategy come after establishing the mission or vision, as they involve assessing the current program and determining how it can be aligned with the organization's strategic direction.

    Rate this question:

  • 5. 

    To complete the job evaluation process you need to complete the following:

    • Job analysis and job documentation

    • Job Evaluation and Base pay structure

    • Analyze the job

    • None of the above

    Correct Answer
    A. Job analysis and job documentation
    Explanation
    The correct answer is Job analysis and job documentation. This is because in order to complete the job evaluation process, it is important to first conduct a thorough job analysis to gather information about the tasks, responsibilities, and requirements of the job. This information is then documented in a job description and job specification. Without this initial step of job analysis and documentation, it would be difficult to accurately evaluate the job and establish a fair base pay structure.

    Rate this question:

  • 6. 

    What are the compenents to the Total Rewards Model?

    • Compensation, Benefits, Work-life, Performance & recognition, Development and career opportunities

    • Compensation, Engagement, Work-life, Performance & Recognition, Development and career opportunities

    • Pay, Engagement, Work-life, Performance & Recognition, Development and career opportunities

    • Fulfillment, Engagement, Work-life, Performance & Recognition, Development and career opportunities

    Correct Answer
    A. Compensation, Benefits, Work-life, Performance & recognition, Development and career opportunities
    Explanation
    The correct answer is "Compensation, Benefits, Work-life, Performance & recognition, Development and career opportunities." This answer accurately identifies the components of the Total Rewards Model, which includes compensation, benefits, work-life balance, performance and recognition, and development and career opportunities. These components are essential in creating a comprehensive rewards system that attracts, motivates, and retains employees.

    Rate this question:

  • 7. 

    Compensation strategy can best be described as:

    • The principles that guide the design, implementation and administration of a compensation program

    • Pay strategery

    • What the organization believes about how people should be payed

    • Test maker... prepare to meet your maker.

    Correct Answer
    A. The principles that guide the design, implementation and administration of a compensation program
    Explanation
    The compensation strategy refers to the principles that guide the entire process of designing, implementing, and administering a compensation program within an organization. It involves determining how employees should be paid, including factors such as salary structures, performance-based incentives, benefits, and allowances. This strategy is crucial in ensuring fairness, competitiveness, and alignment with the organization's goals and values. It helps establish a consistent and transparent approach to compensation, which ultimately impacts employee motivation, satisfaction, and retention.

    Rate this question:

  • 8. 

    The most common objectives for a Compensation Program are __________ and _________.

    • Internally equitable, Externally competitive

    • Externally equitable, Internally competitive

    • Understandable, Legally defensible

    • Understandable, Affordable

    Correct Answer
    A. Internally equitable, Externally competitive
    Explanation
    The most common objectives for a Compensation Program are to ensure that employees are paid fairly within the organization (internally equitable) and to ensure that the organization's compensation is competitive with other similar organizations in the market (externally competitive). This helps to attract and retain talented employees and maintain a motivated workforce.

    Rate this question:

  • 9. 

    What is variable pay?

    • Compensation contingent on discretion.

    • Compensation contingent on performance.

    • Compensation that changes regularly

    • All of these answers.

    Correct Answer
    A. All of these answers.
    Explanation
    Variable pay refers to compensation that is not fixed and can vary based on different factors. It can be contingent on discretion, meaning that the amount is determined by the employer's judgment or decision. It can also be contingent on performance, where the pay is based on the employee's achievement of certain goals or targets. Additionally, variable pay can change regularly, meaning that the amount can fluctuate over time. Therefore, all of the given answers correctly describe variable pay.

    Rate this question:

  • 10. 

    Base pay structure is best described as something that _________?

    • The final step in the base pay structure design.

    • Is built after the job worth hierarchy is created.

    • Can be used as framework for pay decisions.

    • None of these

    • All of these

    Correct Answer
    A. All of these
    Explanation
    The base pay structure is best described as something that encompasses all of the given options. It is the final step in the design of the base pay structure, which is built after the job worth hierarchy is created. It serves as a framework for making pay decisions, ensuring that employees are compensated appropriately based on their job worth and position within the organization. Therefore, the correct answer is "All of these."

    Rate this question:

  • 11. 

    Compensation philosophy can best be described as:

    • What the organization believes about how people should be payed

    • Socrates' ideas about compensation

    • The principles that guide the design, implementation and administration of a compensation program

    • Test maker is stupid and tricky comrade. Brak this.

    Correct Answer
    A. What the organization believes about how people should be payed
    Explanation
    The correct answer is "what the organization believes about how people should be paid." Compensation philosophy refers to the beliefs and principles that guide an organization's approach to employee compensation. It encompasses the organization's values, goals, and strategies related to employee pay. This philosophy influences decisions regarding pay structure, salary levels, performance-based incentives, and other aspects of compensation.

    Rate this question:

  • 12. 

    Job analysis is best described as something that _________?

    • Provides key information abut the nature of and level of work performed.

    • Includes written information about job content or the functions of the job and required knowledge

    • Creates a job worth hierarchy using market data or job content

    • Illustrates where each job fits, relative to other jobs.

    • None of these

    Correct Answer
    A. Provides key information abut the nature of and level of work performed.
    Explanation
    Job analysis is the process of gathering and analyzing information about the tasks, responsibilities, and requirements of a job. It involves identifying the nature of the work performed and the level of skills and knowledge needed to perform the job effectively. This information is crucial for various HR functions such as recruitment, selection, training, and performance management. Therefore, the correct answer is "Provides key information about the nature of and level of work performed."

    Rate this question:

  • 13. 

    What best describes an organization that as adopted the Lead-Lag philosopy of market position? 

    • Sets it's pay at the mid-year anticipated market level

    • Pay is equal to current market levels at the end of the year.

    • Pay is equal to current market levels at the beginning of the year.

    • All of these answers are correct comrade.

    Correct Answer
    A. Sets it's pay at the mid-year anticipated market level
    Explanation
    An organization that has adopted the Lead-Lag philosophy of market position sets its pay at the mid-year anticipated market level. This means that the organization adjusts its pay levels based on the projected market rates halfway through the year. By doing so, the organization aims to stay ahead of its competitors and attract and retain top talent by offering competitive compensation packages. This approach allows the organization to be proactive in aligning its pay practices with the market trends and ensures that its employees are fairly compensated.

    Rate this question:

  • 14. 

    What best describes an organization that as adopted the Lag The Market philosopy of market position?

    • Pay is equal to current market levels at the beginning of the year.

    • Pay is equal to current market levels at the end of the year.

    • Sets it's pay at the mid-year anticipated market level

    • All of these answers are correct comrade.

    Correct Answer
    A. Pay is equal to current market levels at the beginning of the year.
    Explanation
    An organization that has adopted the Lag The Market philosophy of market position sets its pay at the beginning of the year equal to the current market levels. This means that the organization does not immediately adjust its pay to match the changing market conditions throughout the year. Instead, it waits until the beginning of the next year to make any adjustments based on the new market levels. This approach allows the organization to lag behind the market and potentially save costs if the market levels decrease over time.

    Rate this question:

  • 15. 

    Which best describes a Job worth hierarchy?

    • Indicates the perceived value of jobs in relation to each other

    • Forms the basis for grouping jobs of similar value together.

    • Helps establish a salary structure.

    • None of these

    • All of these

    Correct Answer
    A. All of these
    Explanation
    A job worth hierarchy encompasses all the given statements. It indicates the perceived value of jobs in relation to each other, forms the basis for grouping jobs of similar value together, and helps establish a salary structure. This hierarchy is essential in determining the importance and worth of different jobs within an organization, allowing for fair compensation and effective job classification.

    Rate this question:

  • 16. 

    What are the steps for desiging a Base Pay Structure?

    • Job Analysis, Job documentation, Job Evaluation, Job worth heirarchy, Base pay structure

    • Analyze the job, Document the job, Evaluate the job, Job worth heirarchy, Base pay structure

    • Analyze the job, Evaluate the job, Job worth heirarchy, Base pay structure

    • Analyze the job, Document the job, Job worth heirarchy, Base pay structure

    • None of these

    Correct Answer
    A. Job Analysis, Job documentation, Job Evaluation, Job worth heirarchy, Base pay structure
    Explanation
    The steps for designing a Base Pay Structure include conducting a Job Analysis to gather information about the job requirements and responsibilities, documenting the job to create a clear job description, evaluating the job to determine its relative worth within the organization, establishing a job worth hierarchy to rank jobs based on their importance and value, and finally developing the Base Pay Structure which determines the pay levels for different jobs based on their worth hierarchy.

    Rate this question:

  • 17. 

    What best describes an organization that as adopted the Lead The Market philosopy of market position?

    • Sets pay to the anticipated year-end market level at the beginning of the year

    • Tries to lead the market in pay

    • A company that looks for experienced talent.

    • Wants to be viewed as a pay leader.

    • All of these answers are correct, comrade test maker.

    Correct Answer
    A. All of these answers are correct, comrade test maker.
    Explanation
    An organization that has adopted the Lead The Market philosophy of market position would implement all of these strategies. By setting pay to the anticipated year-end market level at the beginning of the year, the organization ensures that it stays competitive in terms of compensation. By trying to lead the market in pay, the organization aims to attract top talent and position itself as a leader in the industry. Additionally, by looking for experienced talent and wanting to be viewed as a pay leader, the organization further emphasizes its commitment to being at the forefront of the market.

    Rate this question:

  • 18. 

    Which best describes the reason(s) to utilize a Job worth hierarchy?

    • To determine internal and external equity among positions or groups of positions

    • To determine internal equity among positions or groups of positions

    • To determine external equity among positions or groups of positions

    • Brain is now goo. Please stop with the market pay mind control waves comrade.

    Correct Answer
    A. To determine internal and external equity among positions or groups of positions
    Explanation
    A job worth hierarchy is used to determine both internal and external equity among positions or groups of positions. Internal equity refers to ensuring fair and consistent pay within an organization, ensuring that employees in similar roles are compensated fairly. External equity, on the other hand, refers to comparing the organization's pay structure with the market rates to ensure competitiveness and attract and retain talented employees. By utilizing a job worth hierarchy, organizations can evaluate and establish a fair and balanced compensation structure that takes into account both internal and external factors.

    Rate this question:

  • 19. 

    Job worth hierarchy is best described as something that _________?

    • Illustrates where each job fits, relative to other jobs

    • Provides key information abut the nature of and level of work performed.

    • Creates a job worth hierarchy using market data or job content

    • A framework for pay decisions.

    • None of these

    • All of these

    Correct Answer
    A. Illustrates where each job fits, relative to other jobs
    Explanation
    The correct answer is "Illustrates where each job fits, relative to other jobs". This is because a job worth hierarchy is a system that shows the position of each job within an organization in relation to other jobs. It helps to establish the relative importance and value of different roles and provides a framework for understanding the organization's structure.

    Rate this question:

  • 20. 

    Job evaluation is best described as something that _________?

    • Creates a job worth hierarchy using market data or job content

    • Provides key information abut the nature of and level of work performed.

    • Illustrates where each job fits, relative to other jobs.

    • A framework for pay decisions.

    • None of these

    • All of these

    Correct Answer
    A. Creates a job worth hierarchy using market data or job content
    Explanation
    Job evaluation is a process that involves creating a job worth hierarchy by considering market data or job content. It helps in determining the relative value of different jobs within an organization. By providing key information about the nature and level of work performed, it illustrates where each job fits in relation to other jobs. This information serves as a framework for making pay decisions. Therefore, the correct answer is that job evaluation creates a job worth hierarchy using market data or job content.

    Rate this question:

  • 21. 

    Job documenation is best described as something that _________?

    • Provides key information abut the nature of and level of work performed.

    • Creates a job worth hierarchy using market data or job content

    • Illustrates where each job fits, relative to other jobs.

    • A framework for pay decisions.

    • None of these

    • All of these

    Correct Answer
    A. None of these
    Explanation
    The given answer states that job documentation is not described as any of the options provided. However, without further information, it is difficult to determine the correct description of job documentation.

    Rate this question:

Quiz Review Timeline (Updated): Mar 21, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Mar 03, 2012
    Quiz Created by
    Patosan
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.