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HRCI PHR (PHR ) Practice Tests & Test Prep by Exam Edge - Review



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HRCI Professional in Human Resources - Reviews


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Based on 185 reviews


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See why our users from 154 countries love us for their exam prep! Including 185 reviews for the HRCI PHR exam.

Exam Edge is an industry leader in online test prep. We work with institutional partners to offer a wide array of practice tests that will help you prepare for your big exam. No matter how niche your field of interest might be, we're here to help you prepare for test day.

   Excellent -- Based on 185 reviews

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HRCI Professional in Human Resources - Test Reviews Sample Questions

An entitlement philosophy of compensation is one in which employees are given pay increases to reward loyalty. Each of the following is an example of an entitlement philosophy EXCEPT?

Correct Answer:
bonuses for goal achievement
an entitlement philosophy of compensation is a strategy where pay increases are typically granted based on non-performance factors such as duration of service, loyalty, or merely the cost of living adjustments. this philosophy operates on the assumption that employees are entitled to certain benefits simply by virtue of their continued employment or due to external economic factors like inflation, irrespective of their individual performance levels.

options that reflect an entitlement philosophy of compensation include: - **cost-of-living adjustment**: these adjustments are made to ensure that employee salaries keep pace with inflation, thereby maintaining employees’ purchasing power irrespective of their performance. - **automatic annual increases**: these are pre-determined increases given to employees on an annual basis without specific consideration to individual performance, often linked to tenure or simply the passage of time. - **seniority-based pay**: this type of pay increase rewards employees for their longevity with the company, rather than their productivity or achievement. it is based on the assumption that employees who have spent more time at the company are more valuable, regardless of their current performance output.

on the other hand, the option that does not reflect an entitlement philosophy is: - **bonuses for goal achievement**: this type of compensation is fundamentally different from the entitlement philosophy as it is inherently tied to performance. bonuses for goal achievement are merit-based rewards designed to incentivize and recognize employees who meet or exceed specific performance targets. the underlying principle here is that compensation is something to be earned through measurable performance, rather than something that is granted based on tenure or economic changes.

in summary, while the entitlement philosophy focuses on loyalty and tenure, rewarding employees regardless of their individual contributions, the performance-based philosophy (exemplified by bonuses for goal achievement) emphasizes measurable achievements and aims to motivate employees to perform at higher levels. thus, when asked to identify which of the given options does not align with an entitlement philosophy, "bonuses for goal achievement" is the correct answer.