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1. Company ABC rewards its employees using an additive plan based on company (50% weight) and individual (50% weight) performance. An employee's target bonus is 4,000 (100% payout). The company performance is based on two objectives, each weighted at 50% - revenue and operating Income. The revenue objective achievement is 80% and the operating income objective achievement is 90%. If the Individual achievement is
150%, which expression best represents how the bonus is calculated?
A) 4000 x 150% x (80% x 50% + 90% x 50%)
B) 4000 x 150% + 4000 x (80% x 50% + 90% x 50%)
C) 4000 x 50% x (80% x 50% + 90% x 50%) + 4000 x 50% x 150%
D) 150% x (4000 x 50% x (80% + 4000 x 50% x 90%
2. What is included in the Bonus Payout Details report? Note: There are 3 correct answers to this question.
A) Payout guidelines for each employee
B) Total pay items for each employee
C) Multiple rows of payout for each employee
D) Eligibility criteria for each employee
E) Bonus calculation for each employee
3. What report requires that worksheets have been launched before it will show results?
A) Employee history overlaps
B) Employee history gaps
C) Business goal performance
D) Bonus payout
4. The bonuses of all employees at your client are determined by the following results: 30% Corporate Performance. 30% Country Performance. 40% Individual Achievement. All employees have the same result for Corporate Performance, but the result for Country Performance varies based on the employee's country.
The Individual Achievement comes from a linked performance form's overall result. How would this be configured? Note: There are 2 correct answers to this question.
A) Additive plan with two Business Goal sections. Corporate Performance in one Business Goal section, weighted at 30%. Country Performance in other section, weighted at 30%. Individual section weighted at 40%
B) Additive plan with one Business Goal section. The Business Goal section is weighted 60% and the Individual section is weighted 40%. Within the Business Goal section, Corporate Performance is weighted 50% and Country Performance is weighted 50%
C) Additive plan with one Business Goal section. The Business Goal section is weighted 30% and the Individual section is weighted 40%. Within the Business Goal section, Corporate Performance is weighted 30% and Country Performance is weighted 30%
D) Additive plan with one Business Goal section. The Business Goal section is weighted 60% and the Individual section is weighted 40%. Within the Business Goal section, Corporate Performance is weighted 30% and Country Performance is weighted 30%
5. Company XYZ rewards its sales employees based on company and individual performance. Each employee's target bonus is a percentage of their salary. Both company and individual performance are combined, then multiplied by the basis. Employees are assigned weighted goals under company performance (revenue, profit, etc.). Which of the following bonus calculation equations is best to use for this organization?
A) base x business performance x individual performance
B) base x (business performance x individual performance)
C) base + (business performance + individual performance)
D) base x (business performance + individual performance)
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C,D,E | Question # 3 Answer: D | Question # 4 Answer: A,B | Question # 5 Answer: D |
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