All Free Management Sciences MCQs with Answers

• A. working capital
• B. compensation capital
• C. human capital
• D. size of working capital

Explanation: An executive’s education, skills and experience are forms of human capital because they represent productive capabilities embodied in a…

• A. job evaluation
• B. job description
• C. job specification
• D. competencies

Explanation: Competencies are observable skills, knowledge, abilities or behaviours that enable effective job performance.

• A. all of aboveMcqs Practice Tests
• B. long-term
• C. executive benefits
• D. base pay

Explanation: Top executive compensation commonly combines base pay, long-term incentives or rewards, and executive benefits.

• A. mission
• B. strategic goals
• C. vision
• D. compensation strategyCompare HR Software

Explanation: Compensation and reward systems should reinforce the organisation’s strategic goals by encouraging behaviours and results that support…

• A. job classificationCompare HR Software
• B. point method
• C. ranking method
• D. alternation ranking method

Explanation: In the alternation ranking method, the evaluator selects the highest-ranked employee or job, then the lowest-ranked one, and continues…

• A. short-term of shareholder value
• B. long-term shareholder value
• C. economic value added
• D. managerial job evaluationHire Resume Writers

Explanation: Operating profit margin reflects current operating performance and is therefore used as a short-term shareholder-value measure.

• A. time based pay
• B. performance based pay
• C. bonuses
• D. salary incentives

Explanation: A sales commission changes with the sales results achieved by an employee, so it rewards output rather than time spent at work.

• A. HR strategy
• B. performance appraisal
• C. aligned reward strategy
• D. aligned compensating strategyTry Asset Software

Explanation: An aligned reward strategy combines pay, incentives and benefits so that employee behaviour supports organisational objectives.

• A. pay plan based on performance
• B. pay plan based on title of job
• C. pay plan based on tenure
• D. pay plan based on knowledge

Explanation: Payment for learning Windows-related knowledge rewards the skills or knowledge an employee acquires, even before measuring job…

• A. employer's ability to pay
• B. employer's ability to hire
• C. employer's ability to train employees
• D. employer's ability to growGet Executive Coaching

Explanation: Total profit and rate of return indicate whether an organisation has the financial capacity to meet compensation costs.

• A. job classification
• B. pay ranges
• C. job ranking technique
• D. job evaluation method

Explanation: Pay ranges allow managers to set different pay rates within the same grade, giving the employer flexibility to recognise experience…

• A. fine tune pay rates
• B. price each pay grade
• C. group similar jobs
• D. determining the worth of each job

Explanation: Once jobs have been evaluated for internal and external equity, similar jobs are grouped into pay grades before each grade is assigned a…

• A. working capital
• B. size of working capitalCompare HR Software
• C. compensation capital
• D. human capital

Explanation: Human capital is the value of employees' knowledge, skills, education and experience, including relevant study and work background.

• A. intuitive approaches
• B. systematic approaches
• C. mathematical approaches
• D. logical approaches

Explanation: Jobs may be compared through intuitive methods, based on overall judgement, or systematic methods, which apply defined criteria and…

• A. job description
• B. ranking methodHire Resume Writers
• C. job evaluation
• D. job specification

Explanation: The ranking method orders jobs from highest to lowest according to their relative difficulty or value without assigning numerical points.

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

Explanation: Equity theory commonly considers individual, internal and external equity when comparing rewards and contributions.

• A. long-term incentives
• B. short-term incentives
• C. pay scale
• D. ranking jobsDownload Reference Apps

Explanation: The right to purchase company shares at a specified price during a stated period is a stock option, which is classified as a long-term…

• A. short-term incentives
• B. base pay
• C. executive benefits
• D. long-term incentives

Explanation: Base pay covers an executive's fixed salary and guaranteed compensation, whereas incentives depend on performance or results.

• A. select compensable factors
• B. select and group jobs
• C. obtain job information
• D. rank jobs

Explanation: A ranking evaluation cannot begin until reliable information about each job has been collected.

• A. determination of investmentDownload Reference Apps
• B. compensation of company executive
• C. determination of stocks
• D. short-term of shareholder value

Explanation: Revenue growth is a business-performance measure used among short-term indicators of shareholder value, alongside results such as earnings…