All Free Management Sciences MCQs with Answers

• A. company size
• B. both A and B
• C. company internal equity
• D. company performance

Explanation: Top-management compensation traditionally reflects both the scale of the organization and its results, since larger firms require broader…

• A. skills
• B. efforts and responsibility
• C. all of above
• D. working conditions

Explanation: Equal-pay comparisons consider the job’s skill, effort, responsibility, and working conditions.

• A. local reviewsTry Asset Software
• B. unvocal reviews
• C. vocal reviews
• D. focal reviews

Explanation: A focal review evaluates employees at a common, predetermined time by comparing their performance with established standards.

• A. pay plan based on skills
• B. pay plan based on knowledge
• C. pay plan based on tenure
• D. pay plan based on performance

Explanation: Manual and blue-collar work commonly uses skill-based pay because earnings reflect the practical skills and abilities required to perform…

• A. time based pay
• B. competency based pay
• C. internship based salary
• D. training based payGet Executive Coaching

Explanation: Competency-based pay rewards the skills, knowledge, abilities, and behaviors an employee possesses or demonstrates, rather than simply…

• A. internal equity
• B. external equity
• C. procedural equity
• D. all of above

Explanation: A sound pay-rate process seeks internal equity between jobs in the same organization, external equity with the labor market, and…

• A. inflation
• B. interest rate
• C. monetary funds
• D. deflation

Explanation: Salary compression occurs when inflation or strong market wage increases raise new employees’ starting pay close to that of experienced…

• A. rank jobs
• B. grades
• C. classes
• D. columnsHire Urban Planners

Explanation: A job grade groups different kinds of jobs that are judged to have approximately equal value or difficulty, such as secretaries…

• A. primary data
• B. secondary data
• C. both A and B
• D. collective equity

Explanation: A salary survey can use primary data collected directly from employers and secondary data taken from existing reports or databases.

• A. grouping jobs
• B. ranking jobs
• C. selection of compensable factors
• D. combining ratings

Explanation: When several evaluators rank jobs individually, their separate rankings are combined to produce an overall ranking.

• A. external equity
• B. internal equity
• C. compensating equity
• D. collective equity

Explanation: Salary surveys compare an organisation's pay with rates offered by other employers, helping maintain external equity.

• A. collective equity
• B. internal equity
• C. secondary equity
• D. primary equity

Explanation: Comparing the pay fairness of a sales manager with that of a production manager concerns relationships between jobs inside the same…

• A. rank jobs
• B. grades
• C. classes
• D. columns

Explanation: In the classification method, jobs with similar duties, skills, effort, and responsibility are placed into common classes.

• A. job specification
• B. job description
• C. employee training
• D. job evaluation

Explanation: Placing executive and management positions into a structured series of grades is part of job evaluation, which determines the relative…

• A. indirect financial payments
• B. payroll
• C. counseling
• D. direct financial payments

Explanation: Bonuses are paid in cash in addition to regular wages or salary, so they are direct financial payments.

• A. performance based pay
• B. time based pay
• C. bonuses
• D. promotion

Explanation: Piecework links earnings to the quantity of output produced, making it performance-based pay.

• A. job oriented
• B. person oriented
• C. tenure oriented
• D. evaluation oriented

Explanation: Competency-based pay rewards the knowledge, skills, abilities, or competencies possessed by an employee, so it is person-oriented.

• A. equity survey
• B. market survey
• C. salary survey
• D. HR survey

Explanation: A salary survey collects information on the salary and wage rates paid for specific jobs, usually by comparing employers in the same…

• A. job evaluation
• B. job grading
• C. pay grading
• D. job ranking

Explanation: Job evaluation systematically compares jobs by classifying, ranking or assigning points to determine their relative worth and pay…

• A. direct financial payments
• B. non direct financial paymentTry Asset Software
• C. paid counseling
• D. salary increments

Explanation: Employer-paid insurance is an indirect or non-direct financial payment because it provides an employee benefit rather than being paid as…