PHR Total Rewards and Compensation 3

Question 1

What is the main purpose of a job evaluation in compensation?

Accepted Answer

To establish the internal relative worth of jobs

Answer

Job evaluation ranks jobs by their value to the organization to support internal equity.

Question 2

The point-factor method of job evaluation works by:

Accepted Answer

Assigning points to compensable factors and summing them

Answer

Point-factor evaluation scores jobs on compensable factors like skill, effort, and responsibility.

Question 3

Under the Equal Pay Act, pay differences between men and women in the same job are permitted when based on:

Accepted Answer

A seniority system, merit system, or factor other than sex

Answer

The EPA allows differentials based on seniority, merit, quantity/quality of production, or any factor other than sex.

Question 4

A 401(k) plan is an example of what type of retirement plan?

Accepted Answer

Defined contribution plan

Answer

In a defined contribution plan, contributions are defined but the final benefit depends on investment performance.

Question 5

Which law governs the administration and fiduciary standards of most private-sector retirement plans?

Accepted Answer

ERISA

Answer

ERISA sets minimum standards for participation, vesting, funding, and fiduciary conduct in private plans.

PHR Practice Test