Compensation and Benefits (C236)
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Free Compensation and Benefits (C236) Questions
Human Resource Strategy is to ______ business strategy and CSFs
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Separate
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Investigate
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Analyze
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Align
Explanation
Correct Answer D. Align
Explanation
Human Resource Strategy should be aligned with business strategy and Critical Success Factors (CSFs) to ensure that HR practices and policies support the organization’s overall goals and objectives. This alignment helps HR focus on attracting, developing, and retaining the right talent to achieve business success.
Why other options are wrong
A. Separate: HR strategy should not be separate from business strategy or CSFs, as alignment is key to organizational success.
B. Investigate: HR strategy does not simply investigate; it actively supports and aligns with business needs.
C. Analyze: While analysis is part of HR’s role, the strategy should be to align, not merely analyze, business strategy and CSFs.
The world is changing, and organizations do not have to change with it
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True
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False
Explanation
Correct Answer B. False
Explanation
Organizations must adapt to the ever-changing world to remain competitive and relevant. Changes in technology, market demands, workforce expectations, and societal norms require organizations to evolve their strategies, processes, and structures to thrive in a dynamic environment.
Why other options are wrong
A. True:
This is incorrect because organizations that fail to adapt risk becoming obsolete or unable to meet the needs of their customers, employees, and stakeholders.
In the differentiation strategy, the costs of the organization will be passed on to the
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Employees
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Customer
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Organization
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Government
Explanation
Correct Answer B. Customer
Explanation
In a differentiation strategy, businesses offer unique products or services that stand out from competitors, often allowing them to charge premium prices. The costs associated with creating and maintaining these unique offerings are typically passed on to the customer through higher prices.
Why other options are wrong
A. Employees: The costs of differentiation are generally not passed on to employees directly, though it might impact compensation or rewards in some cases.
C. Organization: While the organization absorbs costs in terms of overhead and operations, the goal is to pass those costs to customers through pricing.
D. Government: The government is not typically responsible for absorbing costs in a differentiation strategy.
In the United States, the _________ conducts a National Compensation Survey to measure broad reward practices and levels
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Society of Human Resources Management
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Bureau of Animal Rights
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Bureau of Labor Statistics
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American Management Associates
Explanation
Correct Answer C. Bureau of Labor Statistics
Explanation
The Bureau of Labor Statistics (BLS) conducts the National Compensation Survey (NCS) in the United States. The NCS provides data on wages, benefits, and other compensation practices across various industries and occupations, serving as a critical resource for organizations to understand compensation trends.
Why other options are wrong
A. Society of Human Resources Management: This is incorrect because SHRM provides resources and research on HR practices, but it does not conduct the National Compensation Survey.
B. Bureau of Animal Rights: This is incorrect because this organization does not exist in relation to labor statistics or compensation practices.
D. American Management Associates: This is incorrect because AMA focuses on business training and management development, not national compensation surveys.
The bulk of job descriptions do not include which of the following
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Requirements
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Responsibilities
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Tasks
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Duties
Explanation
Correct Answer A. Requirements
Explanation
While job descriptions typically include responsibilities, tasks, and duties associated with the role, they often do not focus as much on specifying the requirements. The focus is more on what the job entails rather than on the qualifications or requirements needed to perform the job.
Why other options are wrong
B. Responsibilities: Job descriptions almost always outline the primary responsibilities of the position.
C. Tasks: Specific tasks are usually included to detail the day-to-day activities of the role.
D. Duties: Duties are a core part of job descriptions, as they describe what is expected of the employee in the position.
Generally, an organization that follows the differentiation strategy will be able to pay their employees
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Less
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Higher benefits
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More
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A higher overall total compensation package
Explanation
Correct Answer D. A higher overall total compensation package
Explanation
Organizations that follow a differentiation strategy typically offer unique products or services that command premium prices. As a result, they often generate higher revenue, which allows them to offer higher compensation packages to attract and retain talented employees who can contribute to maintaining the uniqueness and quality of their offerings. This includes base pay, benefits, and other incentives.
Why other options are wrong
A. Less: This is incorrect because businesses that differentiate usually offer higher compensation to attract skilled employees who can maintain competitive advantage.
B. Higher benefits: While benefits may be part of the overall package, a differentiation strategy typically results in a more comprehensive and higher total compensation, not just higher benefits.
C. More: While "more" could apply to total compensation, the term "a higher overall total compensation package" is more precise, as it refers to the entire reward structure, not just one element.
Job-value structure does not answer the question of
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How important are jobs
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Whom to recruit for jobs
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How jobs are related
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What jobs are
Explanation
Correct Answer B. Whom to recruit for jobs
Explanation
A job-value structure focuses on evaluating and organizing jobs based on their relative importance or value. It does not address recruitment, which falls under workforce planning and talent acquisition strategies.
Why other options are wrong
A. How important are jobs: Job-value structures determine the importance of jobs relative to one another.
C. How jobs are related: Understanding the relationship between jobs can be part of defining their value in the structure.
D. What jobs are: The job-value structure inherently involves identifying and categorizing jobs.
Central tendency is
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A group of numbers to represent one number
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A single number that best represents a group of numbers
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Both A and B
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None of the above
Explanation
Correct Answer:
B. A single number that best represents a group of numbers
Explanation
Central tendency refers to a statistical measure that identifies a single value as representative of a dataset. This value aims to provide an accurate summary of the data. Common measures of central tendency include the mean, median, and mode.
Why other options are wrong
A. A group of numbers to represent one number: This is incorrect because the central tendency focuses on identifying a single number, not a group of numbers.
C. Both A and B: While B is correct, A is not accurate, so this combined option is incorrect.
D. None of the above: Option B provides the correct definition, making this choice incorrect.
A reward survey is
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A survey published by the AMA to employers to understand rewards offered
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A survey designed to understand employees' desire for rewards
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A survey published by the government to employers to understand rewards offered
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Aggregations of reward information gathered from other market organizations
Explanation
Correct Answer D. Aggregations of reward information gathered from other market organizations
Explanation
A reward survey involves collecting data from multiple organizations in the market to understand trends and benchmarks related to employee rewards, such as salaries, bonuses, and benefits. These surveys are used by organizations to ensure their compensation strategies are competitive and aligned with market standards.
Why other options are wrong
A. A survey published by the AMA to employers to understand rewards offered: Reward surveys are not limited to any specific organization, such as the AMA (American Medical Association). They are typically conducted by consulting firms, HR organizations, or industry groups.
B. A survey designed to understand employees' desire for rewards: This describes an internal employee preference survey, not a reward survey focused on market data.
C. A survey published by the government to employers to understand rewards offered: While governments may collect labor and wage data, reward surveys are primarily conducted by private entities to analyze market trends, not as government initiatives.
Data aging refers to
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The adjustment of market reward information to take into account how inflation has likely changed the market rates since the data were collected
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The adjustment of market reward information from 10 years ago
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The adjustment of market reward information to guess the rewards for 3 years from a certain starting point
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None of the above
Explanation
Correct Answer A. The adjustment of market reward information to take into account how inflation has likely changed the market rates since the data were collected
Explanation
Data aging is the process of updating market reward information to reflect changes over time, such as inflation or market trends. It ensures that the compensation data remains relevant and accurate when applied to current decisions. This adjustment typically involves applying a standard aging factor to account for time passed since the data collection.
Why other options are wrong
B. The adjustment of market reward information from 10 years ago: While data aging can apply to older data, this option oversimplifies the concept and implies that it only refers to outdated information without considering inflation or other factors.
C. The adjustment of market reward information to guess the rewards for 3 years from a certain starting point: Data aging focuses on aligning past data with the present, not speculating about future trends.
D. None of the above: This is incorrect because option A accurately defines data aging.
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