Test Your Knowledge

Global Compensation — Strategy in Practice (Course C15)

Instructions: Choose an answer for each question and then click on the "Get Results" button at the end of the quiz.

1. Which of the following statements is true about organizations in today?s global business environment?
A. Global organizations consider employees who are willing to take on international assignments as critical talent, more so than employees who prefer to stay in one jurisdiction.
B. An organization?s top talent is recruited primarily from the organizations? country of origin.
C. Organizations value employees who have deep, practical knowledge of multiple markets and various cultures and languages.

2. What rule should a compensation professional bear in mind when determining the need for internal equity in a global compensation program?
A. Internal equity is a principle for which all compensation programs must strive.
B. Internal equity may or may not make sense; this must be determined on a case-by-case basis.
C. Internal equity is a principle that only applies to domestic companies; it does not work in a global market.

3. Which of the following business strategies is likely in place when the role of compensation is to support the setting up of new businesses, integration of acquisitions and development of cross-cultural skills?
A. Growth strategy
B. Equity strategy
C. Customer focus strategy
D. Operational efficiency strategy

4. Identify the following description of a staffing strategy: Decisions are made at headquarters. Key positions are held by headquarters personnel. Subsidiaries are managed by staff from the home country.
A. Geocentric
B. Ethnocentric
C. Polycentric
D. Regiocentric

5. Which of the following is a goal of global compensation strategy?
A. Address continuity in the application of compensation practices
B. Ensure that employees in all regions / countries are paid equally
C. Export the total rewards practices of headquarters to the entire world

6. Which of the following statements is true when conducting due diligence in a global environment?
A. Legislative influences and competitive practices will play a significant role
B. All European countries have the same requirements for holidays and vacation days
C. Collective bargaining units will be in-house associations

7. Which of the following statements is true?
A. Global organizations typically recruit globally.
B. Organizations typically look to recruit primarily locally.
C. Global organizations typically recruit in countries where people are bilingual.

8. When determining competitive practices in global variable compensation, the compensation professional is likely to find which of the following statements true?
A. Long-term variable compensation is common at all levels.
B. Gainsharing programs are universal in application.
C. Profit-sharing programs have a long history in some regions.

9. Which international relocation employee group does the following definition represent: employees who are expected to spend much of their careers working on sequential international assignments and who have no employment ties to their home country or the headquarters country?
A. Internationalists
B. International assignees
C. Localized/permanent

10. Which of the following best represents HR's role in the implementation of global strategy?
A. Build a corporate strategy that complements local practices
B. Build an HR strategy that complements global business objectives
C. Build a global business strategy that complements compensation objectives
D. Build resources from within the organization and discourage use of outsourcing

The Test Your Knowledge questions are intended to provide a small sample of the information covered in a particular course. Passing this test should not be considered an indicator that you also will pass the related certification exam. No portion of this document may be reproduced in any form without express written permission from WorldatWork. Copyright 2005 WorldatWork.

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