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1. UOP HRM 324 Final Exam Guide
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1. Base pay defined is?
a. Pay by the drink
b. Hourly or annual salary
c. Service fees
d. A fee that is paid per project
2. How is base pay adjusted over time?
a. Cost of living adjustments
b. Seniority pay, merit pay
c. Incentive pay, person focused pay
d. All of the above
3. Extrinsic compensation includes?
a. Base salaries and bonuses

2. b. Jobs that provide autonomy
c. Both monetary and nonmonetary
rewards
d. Traditional pay
4) Competency based can be defined as?
a. Two basic types of focused pay
programs, pay for knowledge and skill
base pay
b. Compensation for longevity
c. Phased wage approach
d. Retirement compensation
5) Pay for knowledge can be defined as?
a) Rewards for managerial, service, or
professional workers for successfully
learning specific curricula
b) Consultant fees
c) Measures labor productivity
6) Skill-based pay defined is?
a) Employees who work on computers

3. b) A term used mostly for employees who do physical work
c) Trade that deals mainly with the restaurants industry
d) Skills considered supervisory
7) Incentive pay defined is?
a. Augments employees base pay
b. Appears as a one-time payment
c. Employees usually receive a
combination of recurring base pay and
incentive pay
d. All of the above
8) Incentive pay plans can be broadly classified into what 3
categories.
a) Store sales, profit levels, customer
quality
b) Cost savings, reduction, services
c) Individual incentive plans, group
incentive plans, company wide plans
d) Number of units produced, amount of
sales, error rate

4. 9) Individual incentive pay plans are most appropriate under
what 3 conditions?
a) Where employee’s performance can be
measured objectively, employees have
sufficient control over work outcomes;
incentive plans do not create a level of
unhealthy competition
b) Piecework plans, management
incentive plans, referral plans
c) Pay and performance relationships,
strive for excellence, incentive awards
with job performance
10) Pension plans that entitle employers and employees to
substantial tax benefits are known as:
a. Qualified plans
b. Nonqualified plans
c. Plan termination and procedures
d. PBGC
11) Qualified pension plans posses’ 13 fundamental
characteristics.
a) True
b) False

5. 12) Qualified pension plans are subject to minimum accrual
rules based on the Internal Revenue Code and ERISA.
a) True
b) False
13) Under an international setting, Home Country-Based
Method is?
a. A method that compensates
expatriates’ the amount they would
receive if they were performing similar
work in the United States
b. Court compensation
c. A standard benefit program
d. Hardship allowance
14) How many methods are there for calculating base pay for
U.S. expatriates.
a) 1
b) 3
c) 2
d) 4

6. 15) Hardship allowances compensate expatriates for their
sacrifices while on assignment’s.
a. True
b. False

7. 15) Hardship allowances compensate expatriates for their
sacrifices while on assignment’s.
a. True
b. False