MCQ in Compensation Management with Answers

Below given is the MCQ in Compensation Management with Answers. Compensation management is one of the major concern in HRM. If the compensation policy of the organisation proves to be best then the organisation can get well motivated, loyal, efficient workforce. Here you can find MCQ in compensation management with answers which in the syllabus of Human resource management. this Objective type questions will be useful for both graduate and post graduate students.

1. ___________________________ is designing and implementing total compensation package with a systematic approach to providing value to employees in exchange for work performance.

a. Compensation Management                        b. Performance Management

c. Human Resource Management                   d. Personnel Management

(Ans: a)

2. _______________ is a systematic approach to providing monetary value to employees

a. Salary                b. Allowances            c. Compensation                d. Rewards

(Ans: c)

3. Compensation is a systematic approach to providing monetary value to employees in exchange for ___________________________

a. Skills              b. Knowledge                   c. work performed                                d. damages held

(Ans: c)

4. Among the given below points which is not an objective of Compensation

a. To increase or maintain morale                       b. To determine basic wage & salary

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c. To improve the performance                             d. To reward for job performance

(Ans: c)

5. ______________ refers to monetary benefits offered and provided to employees in return of the services they provide to the organization.

a. Direct Compensation                                                 b. Indirect Compensation

c. Performance compensation                                     d. None of the above

(Ans: a)

6. ________________ refers to non-monetary benefits offered and provided to employees in lieu of the services provided by them to the organization

a. Direct Compensation                                     b. Indirect Compensation

c. Performance compensation                          d. None of the above

(Ans: b)

7. Which of the below is not a part of direct compensation

a. HRA                b. Medical reimbursement                         c. Medical Assistance                            d. Bonus

(Ans: c)

8. Special allowance is a part of

a. Direct Compensation                                                                 b. Indirect Compensation

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c. Performance compensation                                                      d. None of the above

(Ans: a)

9. Which of the below is not a part of indirect compensation

a. Insurance                          b. paid leave                          c. Medical Assistance                           d. Conveyance

(Ans: d)

10. PF/Gratuity is a part of _____________________ compensation

a. Indirect                    b. Direct                          c. Paid                                       d. Lateral

(Ans: b)

11. The two considerations in traditional approach to compensation management are

a. Monetary and non monetary             b. Internal and external

c. Allowances and rewards                     d. None of the above

(Ans: b)

12. Compensation is a ______________________approach to providing monetary value to employees in exchange for work performed

a. Traditional                b. Modern                          c. Classic                             d. systematic

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(Ans: d)

13. Compensation Management is __________ and ________total compensation package with a systematic approach to providing value to employees in exchange for work performance

a. designing and implementing                                    b. Planning & Implementing

c. Designing & Paying                                                    d. None of the above

(Ans: a)

14. The purpose of compensation includes

a. assisting in recruitment                                            b. job performance

c. job satisfaction                                                           d. None of the above

(Ans: d)

15. _______________ Compensation are given at a regular interval at a definite time.

a. Monetary                     b. Internal                     c. External                              d. Traditional

(Ans: b)

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