The XYZ Company opened a new manufacturing facility with a capital investment of 10,000,000. The cost to obtain the capital was 8%. In its first year of operations, the facility's net operating profit after taxes was 10,500,000. What was the economic value added (EVA) using the EVA formula?

• A.8,000,000
• B.840,000
• C.9,700,000
• D.500,000

Comment: *

Name: *

Email: *

Verification: *

What best defines the organization's purpose or reason for existence?

• A.The corporate mission
• B.The compensation strategy
• C.The business strategy
• D.The corporate vision

Comment: *

Name: *

Email: *

Verification: *

Which type of variable pay is best described by this statement: Criteria are discretionary and often defined in broad terms such as "exceptional customer service"?

• A.Profit-sharing
• B.Bonus
• C.Commission
• D.Recognition

Comment: *

Name: *

Email: *

Verification: *

You have been asked to develop a short-term incentive plan that motivates employees in business units to increase productivity. Your team has designed a plan that rewards managers and employees quarterly based on achievement against target on measures that should generate productivity increases that will self-fund the plan. When presenting the plan to senior management, what would be the best strategy to receive approval?

• A.Demonstrate how it is aligned to the rewards philosophy, principles and organizational business strategy
• B.Provide details on the plan design and measures and how they will be administered to employees at different levels
• C.Make the case that a self-funded plan poses no risk to the organization while creating the potential for significant gains
• D.Identify in advance the priorities of the various stakeholders and design your presentation to address any objections or perceptions they may have

Comment: *

Name: *

Email: *

Verification: *

Assessment of current and future staffing needs should be based primarily on what?

• A.A combination of organizational goals and budget realities
• B.The consensus of HR management and line management estimates
• C.Compensation budgets only because staffing cannot exceed the funds available
• D.The opinions of senior leaders in the organization

Comment: *

Name: *

Email: *

Verification: *