Free Access WorldatWork.CECP.v2022-06-21.q36 Practice Test (Page 5)

Question 16

A fine jewelry chain distinguishes itself from the competition by focusing on carefully selected customers and building bonds to meet or exceed their needs and expectations. What strategy is this company using?

A.Product/service leadership

B.Operational excellence

C.Brand loyalty

D.Customer intimacy

Question 17

Understanding basic organization design principles is an example of what key competency for compensation professionals?

A.Policy Management

B.HR Management

C.Financial Management

D.Resource Management

Question 18

What is the most likely explanation for why compensation and rewards require a strong grasp of business executive for compensation professionals?

A.Because the best interests of the organization take priority, which can lead to difficult decisions and implementation issues

B.Because they are emotional issues and stakeholders have many vested interests

C.Because strong business executive is required for all compensation decisions

D.Because the internal and external environments are constantly changing

Question 19

If employees have a significant impact on the bottom line, what type of pay mix is most appropriate?

A.100% variable pay to motivate all employees to maximize productivity and sales

B.High base pay and low variable pay to ensure predictability of total compensation expense

C.A varying mix depending on employee influence on goals to provide the necessary incentive to maximize profits

D.90/10 for the majority of employees (base/variable) to share in the company's success with increased variable pay for management/executives to motivate employees to seek higher positions

Question 20

What statement is most accurate regarding communication of compensation information?

A.Compensation terms and practices are unclear to most individuals who do not work in this area and communication should be tailored to the least informed member of the target audience.

B.The ready availability of information online has made it unnecessary for compensation professionals to tailor messages since individuals can research terms and concepts after the fact if they don't understand a communication.

C.Compensation terms are well-known and easily understood by most stakeholders.

D.Compensation professionals should anticipate the level of the audience and tailor messages to their needs.

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