Question 1

What is a disadvantage of the divisional departmentalization ?

Options :

A : Focus is too narrow

B : Inefficient use of human resources

C : Disregards broader organizational considerations

D : Unity of command is lost

Answer: B

Question 2

Which of the following are the key components of gainsharing? Each correct answer represents a complete solution. Choose three.

Options :

A : The organization and the employees share the financial gains.

B : If goals for improvements are met, employees and managers share the success.

C : Managers and employees provide their part of salary for charity.

D : Employees and management work together for reviewing organizational performance.

Answer: A,B,D

Question 3

Prior to beginning the localization process for an employee, HR should first:

Options :

A : Determine the suitability of both the employee and the location.

B : Establish a local remuneration package that ensures a mix of home- and host-country benefits.

C : Change the employee's status to employment under local contract.

D : Inform the employee that localization is not intended to be a permanent arrangement.

Answer: A

Question 4

Which of the following encourages individual employee self esteem, such as satisfaction from challenging and exciting assignments?

Options :

A : Total reward

B : Intrinsic reward

C : Monetary compensation

D : Entitlement philosophy

Answer: B

Question 5

When designing a global compensation strategy, the most important consideration is:

Options :

A : Legal compliance in each country

B : Supporting the organization’s business strategy

C : Local cost of living

D : Use of internal equity

Answer: B

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