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SPHR Questions - Part 24

Jenny Clarke

Tue, 04 Nov 2025

1. Your organization is aiming to reduce costs by stopping wastes in the production cycle. The company has created a plan that will reward employees 50 percent of the savings from the waste stoppage. What type of compensation plan is your organization offering to employees in this instance?

A) This is an example of profit sharing
B) This is an example of gainsharing
C) This is an example of a team incentive
D) This is an example of a short-term incentive



2. Bob is a nonexempt employee for his organization. He has worked a full day and has left for home. His commute is two hours one-way. When he arrives home he receives a phone call from his supervisor Dan. An emergency has happened and they need Bob to immediately return to work. How much time is Bob's employer required to pay for Bob's travel in this instance?

A) 6 hours
B) 4 hours
C) 50 percent of the total travel time
D) Travel time is not paid



3. Which of the following are narrative methods of appraisal that require managers to describe the employee's performance?Each correct answer represents a complete solution. Choose all that apply.(Select 3answers)

A) Critical incident review
B) Daily review
C) Essay review
D) Field review



4. Which of the following ensures that employees in different locations are paid at rates competitive in the labor market for specific jobs and locations?

A) Geographic pay
B) Reporting pay
C) Gross pay
D) Call-back pay



5. All organizations need prevoyance, or planning, as a part of a manager's duty. As an HR Professional what is the primary purpose of planning?

A) Directs the project team and staff to accomplish the project scope
B) Establishes groundwork for the managers to achieve the goals of the organization
C) Communicates the direction of the organization
D) Establishes groundwork for the managers to achieve their goals



1. Right Answer: B
Explanation: Answer option B is correct.Gainsharing is a compensation plan where the money saved by reducing waste is shared among the employees or project team. It can also be used as an incentive for additional revenues generated.Answer option D is incorrect. A short-term incentive usually last a year or less and the scenario doesn't indicate how long this incentive may be offered.Answer option C is incorrect. A team incentive is for a particular team to reach a common goal. This choice is tempting but gainsharing is a more accurate description of what's occurring in this scenario.Answer option A is incorrect. Profit sharing is similar to gainsharing, but the focus is one a profit goal, not a waste reduction goal.Certification Institute, ISBN: 978-1-586-44149-4, Section III, The US HR Body of Knowledge.Chapter: Compensation and BenefitsObjective: Compensation

2. Right Answer: B
Explanation: Answer option B is correct.When there's an emergency that requires an employee to travel after a full day's work, the employer is obligated to pay for the travel time of the employee.Answer option D is incorrect. Travel time is paid under the FLSA in some conditions.Answer option C is incorrect. All of the travel time is paid, not just half of the travel time.Answer option A is incorrect. Six hours isn't valid unless the time was now overtime work time.Certification Guide, HR Certification Institute, ISBN: 978-1-586-44149-4, Section III, The US Body of Knowledge.Chapter: Compensation and BenefitsObjective: Total Rewards Defined

3. Right Answer: A
Explanation: Answer options A, D, and C are correct.The narrative methods of appraisal that require managers to describe the employee's performance are as follows:1. Critical incident review2. Field review3. Essay reviewThe critical incident review requires that during the review period supervisors make notes of successful and unsuccessful performance issues for each employee.A field review appraisal may be conducted by someone other than the supervisor. This can be a person from outside the organization.In the essay review, the reviewer has to write a short description about each employee's performance during the year.Answer option B is incorrect. There is no such narrative method of appraisal as daily review.Reference:http://www.mbanotesworld.in/2009/01/methods-of-performance-appraisal.htmlChapter: Human Resource DevelopmentObjective: Performance Appraisal

4. Right Answer: A
Explanation: Answer option A is correct.Geographic pay ensures that employees in different locations are paid at rates competitive in the labor market for specific jobs and locations.Answer option D is incorrect. If employees are called to work before or after their scheduled hours, they will get paid extra for that. This is known as call-back pay.Answer option C is incorrect. Gross pay is the amount earned by an employee before taxes are not paid.Answer option B is incorrect. If an employee is called by the employer for work and there is no work available, the employer may be required by state law or employment agreements to pay for a minimum number of hours of work. This is known as reporting pay.Chapter: Compensation and BenefitsObjective: Total Rewards Defined

5. Right Answer: B
Explanation: Answer option B is correct.Planning is the foundation for a manager to establish the goals of the organization.Answer option C is incorrect. The organization's mission statement communicates the direction, intent, and purpose of the organization.Answer option D is incorrect. Planning is to provide groundwork for the managers to achieve their goals, but for the organization to achieve its goals.Answer option A is incorrect. Planning, in project management, does provide direction to the project team to reach their goals, but in this context it's planning for the organization, not a project.HR Certification Institute, ISBN: 978-1-586-44149-4, Section III, The US HR Body of Knowledge.Chapter: Business Management and StrategyObjective: Strategy

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