1) Day 1: Rewards and Recognitions

1. Which of the following is a primary outcome of a well-structured

employee recognition system?
a) Higher training costs
b) Decreased employee engagement
c) Increased absenteeism
d) Improved morale and productivity
Answer: d) Improved morale and productivity
2. Recognizing employees for their efforts in front of their peers most
closely relates to:
a) Informal reward
b) Peer review
c) Public acknowledgment
d) Silent appraisal
Answer: c) Public acknowledgment
3. A reward system focusing on intrinsic motivation is likely to promote:
a) Short-term performance only
b) Continuous disengagement
c) Long-term satisfaction and loyalty
d) Bureaucratic behavior
Answer: c) Long-term satisfaction and loyalty
4. Which of the following best illustrates a symbolic reward?
a) Gift voucher
b) Recognition certificate
c) Bonus cheque
d) ESOP
Answer: b) Recognition certificate
5. In HR terms, the term "recognition" most often refers to:
a) Monetary gain
b) Acknowledgment of contribution
c) Annual salary increase
d) Legal compliance
Answer: b) Acknowledgment of contribution
6. Which method of recognition is most effective in motivating Gen Z
employees?
a) Gold coins
b) Personalized digital badges and social media shout-outs
c) Pensions
d) Anonymous feedback
Answer: b) Personalized digital badges and social media shout-outs
7. An organization's reward system can be viewed as successful when it
leads to:
a) Greater dependency
b) Employee turnover
c) Increased retention
d) Higher cost of living
Answer: c) Increased retention
 8. Which of the following is not a purpose of employee recognition?
a) Reinforcing positive behavior
b) Promoting absenteeism
c) Encouraging performance
d) Building workplace culture
Answer: b) Promoting absenteeism
9. A company that promotes a culture of reward and recognition is
likely to benefit from:
a) Rigid hierarchy
b) Low trust levels
c) Increased collaboration
d) Poor communication
Answer: c) Increased collaboration
10. Which statement about rewards and recognition is most accurate?
a) Rewards must always be financial
b) Recognition has no impact on engagement
c) Rewards are effective only when personalized
d) Standardized rewards work for all employees
Answer: c) Rewards are effective only when personalized
2)
3) Day 2: Aims of Reward Management
4) 11. One of the core objectives of reward management is to:
a) Increase company taxes
b) Reduce job satisfaction
c) Attract, retain, and motivate employees
d) Minimize HR costs at all levels
Answer: c) Attract, retain, and motivate employees
5) 12. The link between pay and performance is most closely aligned with the aim of:
a) Financial reporting
b) Reward differentiation
c) Statutory bonus
d) Role analysis
Answer: b) Reward differentiation
6) 13. A reward system based on strategic objectives supports:
a) Random promotions
b) Goal alignment
c) Job termination
d) Decentralized HR
Answer: b) Goal alignment
7) 14. The HR aim of increasing employee engagement through rewards reflects which
principle?
a) External competitiveness
b) Internal compliance
c) Motivation and retention
d) Role dilution
Answer: c) Motivation and retention
8) 15. A reward system that encourages performance while being cost-effective serves the
goal of:
 a) Reducing performance
b) Enhancing discipline
c) Value for money
d) Procedural justice
Answer: c) Value for money
9) 16. A good reward management system ensures:
a) Standard pay across all levels
b) Equitable and fair compensation
c) Higher attrition
d) Removal of benefits
Answer: b) Equitable and fair compensation
10) 17. Which of these is not typically an aim of reward management?
a) Promote competition and turnover
b) Reinforce organizational values
c) Enhance employee satisfaction
d) Support organizational change
Answer: a) Promote competition and turnover
11) 18. The long-term goal of strategic reward management is to ensure:
a) Arbitrary pay decisions
b) Employee demotivation
c) Organizational sustainability and talent loyalty
d) Job rotation
Answer: c) Organizational sustainability and talent loyalty
12) 19. Ensuring fairness in reward distribution reflects the principle of:
a) Wage minimization
b) Pay secrecy
c) Pay equity
d) Positioning strategy
Answer: c) Pay equity
13) 20. Reward systems aligned with business outcomes help to:
a) Reduce workforce
b) Foster business strategy execution
c) Increase internal competition
d) Focus only on short-term KPIs
Answer: b) Foster business strategy execution
14)
15) More questions continuing from Q.21 to Q.50 (based on Day 1 and Day 2 mix)
16) 21. A reward system that fails to differentiate performance may result in:
a) Increased competitiveness
b) Increased efficiency
c) Mediocrity and demotivation
d) Fair performance culture
Answer: c) Mediocrity and demotivation
17) 22. HR’s role in reward strategy is primarily to ensure:
a) Employee punishment
b) Legal action
c) Fairness, alignment with company goals
 d) Marketing growth
Answer: c) Fairness, alignment with company goals
18) 23. Recognition systems that are not consistently implemented can cause:
a) Disengagement and perceptions of bias
b) Higher employee motivation
c) Stronger leadership
d) Increased accountability
Answer: a) Disengagement and perceptions of bias
19) 24. Which is an example of a non-financial recognition tool?
a) Travel allowance
b) Stock option
c) Employee of the month title
d) Joining bonus
Answer: c) Employee of the month title
20) 25. A reward management system that contributes to employer branding helps in:
a) Avoiding compliance
b) Attracting and retaining top talent
c) Cost reduction only
d) Promoting vendor contracts
Answer: b) Attracting and retaining top talent
21) 26. Which of the following is true of a “recognition culture”?
a) High hierarchy
b) Regular acknowledgment of efforts
c) Performance punishment
d) Compulsory bonuses
Answer: b) Regular acknowledgment of efforts
22) 27. Recognition that is meaningful to the employee usually requires:
a) Delay in response
b) Standardized emails
c) Personalization and sincerity
d) Departmental approval
Answer: c) Personalization and sincerity
23) 28. Which of the following is not a strategic outcome of reward management?
a) Performance management alignment
b) Legal conflict resolution
c) Talent attraction
d) Retention improvement
Answer: b) Legal conflict resolution
24) 29. The goal of ensuring transparency in reward distribution is aimed at:
a) Reducing visibility
b) Avoiding unionization
c) Building trust and fairness
d) Creating salary conflicts
Answer: c) Building trust and fairness
25) 30. Effective reward management supports the idea of:
a) Firing poor performers
b) One-size-fits-all approach
c) Differential treatment based on performance and contribution
 d) Outsourcing compensation
Answer: c) Differential treatment based on performance and contribution
26) Reward and Recognition – MCQ Bank (Part 2: Q.51–100)
27) Covers: Day 3 – Incentives: Monetary & Non-Monetary and Day 4 – Guidelines for
Effective Incentive Plans
28)
29) Day 3: Incentives – Monetary & Non-Monetary
30) 51. Which of the following is an example of a monetary incentive?
a) Flexible work hours
b) Praise from manager
c) Spot bonus for performance
d) Certificate of appreciation
Answer: c) Spot bonus for performance
31) 52. Which incentive type is more aligned with emotional satisfaction rather than financial
gain?
a) Stock options
b) Salary hikes
c) Non-monetary incentives
d) Overtime pay
Answer: c) Non-monetary incentives
32) 53. Which among the following would be least effective as a non-monetary incentive for a
sales executive?
a) Gift hamper
b) Verbal appreciation
c) Commission on sales
d) “Star Performer” trophy
Answer: c) Commission on sales
33) 54. Giving high performers extra vacation days is considered:
a) Structural incentive
b) Monetary reward
c) Non-monetary incentive
d) Statutory allowance
Answer: c) Non-monetary incentive
34) 55. The incentive that improves emotional loyalty in employees is typically:
a) Monetary-based
b) Statutory bonus
c) Manager feedback
d) Performance appraisal rating
Answer: c) Manager feedback
35) 56. A commission-based incentive system is best suited for:
a) Back-office employees
b) Support staff
c) Sales staff
d) HR staff
Answer: c) Sales staff
36) 57. Which of the following is a key difference between monetary and non-monetary
incentives?
a) One increases taxes
 b) One is linked to appraisal
c) One directly affects income, the other affects experience and recognition
d) One is legally mandated
Answer: c) One directly affects income, the other affects experience and recognition
37) 58. A monthly award ceremony is an example of:
a) Compensation restructuring
b) Non-monetary recognition
c) Executive benefit
d) Compulsory incentive
Answer: b) Non-monetary recognition
38) 59. An example of combining both monetary and non-monetary incentives is:
a) Retirement fund
b) Provident Fund contribution
c) Performance bonus with a lunch with CEO
d) Income tax benefit
Answer: c) Performance bonus with a lunch with CEO
39) 60. Which of the following would be least preferred by employees seeking intrinsic
rewards?
a) Peer recognition
b) Autonomy at work
c) Higher base pay
d) Creative freedom
Answer: c) Higher base pay
40)
41) Day 4: Guidelines for Effective Incentive Plans
42) 61. A key factor in designing an effective incentive plan is:
a) Confidentiality of results
b) Link to team and organizational goals
c) Flat incentive for all performers
d) Maximum complexity
Answer: b) Link to team and organizational goals
43) 62. A successful incentive plan should be:
a) Exclusive to managers only
b) Non-transparent
c) Objective and clearly communicated
d) Updated once every 10 years
Answer: c) Objective and clearly communicated
44) 63. Incentive plans that encourage unhealthy competition often fail due to lack of:
a) Budget allocation
b) Compliance team
c) Collaboration metrics
d) Financial resources
Answer: c) Collaboration metrics
45) 64. Overuse of short-term incentives can lead to:
a) Strategic alignment
b) Long-term commitment
c) Myopic behavior
 d) Succession planning
Answer: c) Myopic behavior
46) 65. Incentive plans should be customized because:
a) Employees demand secrecy
b) Performance metrics vary by roles
c) Taxation policies differ
d) HR laws mandate uniformity
Answer: b) Performance metrics vary by roles
47) 66. Involving employees in designing incentive plans can result in:
a) Increased resistance
b) Delayed decisions
c) Higher ownership and acceptance
d) Budget failure
Answer: c) Higher ownership and acceptance
48) 67. Incentive plans that lack clarity often lead to:
a) Improved reporting
b) Misinterpretation and demotivation
c) Higher retention
d) Alignment with company vision
Answer: b) Misinterpretation and demotivation
49) 68. The phrase "what gets rewarded, gets repeated" stresses the importance of:
a) Recruitment planning
b) Consistency in performance metrics
c) Motivation through reward linkage
d) Budget limitations
Answer: c) Motivation through reward linkage
50) 69. An effective incentive plan is best when it:
a) Is the same across all departments
b) Focuses on short-term goals only
c) Promotes fairness, clarity, and alignment with goals
d) Is handled by finance only
Answer: c) Promotes fairness, clarity, and alignment with goals
51) 70. One of the biggest risks of poorly planned incentives is:
a) Absenteeism improvement
b) Decline in workplace ethics
c) Improved collaboration
d) Low budget usage
Answer: b) Decline in workplace ethics
52)
53) Continue with mix from Day 3 & 4 (Q.71–100)
54) 71. Giving stock options to retain a high-potential manager is an example of:
a) Executive punishment
b) Non-statutory perk
c) Long-term monetary incentive
d) Labor law requirement
Answer: c) Long-term monetary incentive
55) 72. A key danger of individual-only incentives in team projects is:
a) Tax issues
 b) Confusion in KRAs
c) Undermining team cohesion
d) Union objections
Answer: c) Undermining team cohesion
56) 73. If incentive targets are set too high, employees may:
a) Get motivated
b) Give up due to unrealistic goals
c) Increase innovation
d) Improve retention
Answer: b) Give up due to unrealistic goals
57) 74. When incentive plans align with performance appraisals, the result is:
a) Confusion
b) Objective performance-driven culture
c) Short-term attrition
d) Role conflict
Answer: b) Objective performance-driven culture
58) 75. Providing team-based incentives in a customer care department will likely lead to:
a) Increased individualism
b) Lower service standards
c) Better cooperation and service quality
d) No change in behavior
Answer: c) Better cooperation and service quality
59) 76. High reliance on cash-based incentives can create:
a) Long-term employee loyalty
b) Dependency and reduced intrinsic motivation
c) Cross-functional synergy
d) Ethical behavior
Answer: b) Dependency and reduced intrinsic motivation
60) 77. The best time to evaluate the success of an incentive plan is:
a) Before rollout
b) After annual audit
c) Post-implementation review
d) Before payroll closes
Answer: c) Post-implementation review
61) 78. An incentive scheme that fails to consider cultural diversity may result in:
a) Global adaptability
b) Equal performance
c) Misalignment and dissatisfaction
d) Smooth integration
Answer: c) Misalignment and dissatisfaction
62) 79. Linking incentives to customer satisfaction metrics is an example of:
a) HR bias
b) External dependency
c) Outcome-based rewarding
d) Internal rate fixing
Answer: c) Outcome-based rewarding
63) 80. Incentive plans that are overly complex can:
a) Motivate clarity
 b) Boost creativity
c) Confuse employees and reduce participation
d) Promote innovation
Answer: c) Confuse employees and reduce participation
64)
65) eward and Recognition – MCQ Bank (Part 2: Q.51–100)
66) Day 3: Incentives – Monetary & Non-Monetary

67) Spot bonus for performance is an example of:

a) Flexible work hours
b) Praise from manager
c) Spot bonus for performance
d) Certificate of appreciation
Answer: c

68) Which incentive type is aligned with emotional satisfaction?

a) Stock options
b) Salary hikes
c) Non-monetary incentives
d) Overtime pay
Answer: c

69) Least effective non-monetary incentive for a sales executive?

a) Gift hamper
b) Verbal appreciation
c) Commission on sales
d) "Star Performer" trophy
Answer: c

70) Extra vacation days for high performers are:

a) Structural incentive
b) Monetary reward
c) Non-monetary incentive
d) Statutory allowance
Answer: c

71) Incentive improving emotional loyalty:

a) Monetary-based
b) Statutory bonus
c) Manager feedback
d) Performance appraisal rating
Answer: c

72) Best suited for commission-based system:

a) Back-office employees
b) Support staff
c) Sales staff
d) HR staff
Answer: c
73) Key difference between monetary and non-monetary incentives:
a) One increases taxes
b) One is linked to appraisal
c) Income vs. experience and recognition
d) One is legally mandated
Answer: c

74) Monthly award ceremony is an example of:

a) Compensation restructuring
b) Non-monetary recognition
c) Executive benefit
d) Compulsory incentive
Answer: b

75) Combining monetary and non-monetary incentive:

a) Retirement fund
b) PF contribution
c) Bonus with lunch with CEO
d) Income tax benefit
Answer: c

76) Least preferred by employees seeking intrinsic rewards:

a) Peer recognition
b) Autonomy
c) Higher base pay
d) Creative freedom
Answer: c

77) Day 4: Guidelines for Effective Incentive Plans

78) Key factor in incentive plan design:

a) Confidentiality
b) Link to org. goals
c) Flat incentive
d) Complexity
Answer: b

79) Successful incentive plan must be:

a) For managers only
b) Non-transparent
c) Clearly communicated
d) Updated every 10 years
Answer: c

80) Unhealthy competition occurs due to lack of:

a) Budget
b) Compliance team
c) Collaboration metrics
d) Financial resources
Answer: c
81) Short-term incentives lead to:
a) Strategic alignment
b) Long-term commitment
c) Myopic behavior
d) Succession planning
Answer: c

82) Plans should be customized because:

a) Demand secrecy
b) Performance varies
c) Tax policies differ
d) HR law mandates
Answer: b

83) Employee involvement in incentive plan:

a) Resistance
b) Delays
c) Higher ownership
d) Budget failure
Answer: c

84) Lack of clarity leads to:

a) Better reporting
b) Misinterpretation
c) Higher retention
d) Role alignment
Answer: b

85) "What gets rewarded, gets repeated" shows:

a) Recruitment link
b) Performance consistency
c) Reward-based motivation
d) Budget limits
Answer: c

86) Effective incentive plan includes:

a) Uniformity
b) Short-term focus
c) Fairness & clarity
d) Finance team
Answer: c

87) Risk of poor incentive plans:

a) Absenteeism drops
b) Ethics decline
c) Better collaboration
d) Low budgets
Answer: b

88) Mixed Day 3 & 4: Q.71–100

89) Stock options to retain high-potential manager:
a) Executive punishment
b) Non-statutory perk
c) Long-term incentive
d) Legal requirement
Answer: c

90) Individual-only incentives in team project cause:

a) Tax issues
b) KRA confusion
c) Weakened cohesion
d) Union issues
Answer: c

91) High incentive targets lead to:

a) Motivation
b) Innovation
c) Giving up
d) Retention
Answer: c

92) Linking incentives to appraisals results in:

a) Confusion
b) Performance culture
c) Attrition
d) Role conflict
Answer: b

93) Team-based incentives in customer care:

a) Individualism
b) Lower quality
c) Better cooperation
d) No change
Answer: c

94) Cash-based incentives may create:

a) Loyalty
b) Dependency
c) Synergy
d) Ethics
Answer: b

95) Best time to evaluate incentive plan:

a) Before rollout
b) Post-implementation
c) During payroll
d) After audit
Answer: b

96) Ignoring cultural diversity in plans leads to:

a) Adaptability
 b) Equal performance
c) Misalignment
d) Smoothness
Answer: c

97) Linking to customer satisfaction metrics is:

a) HR bias
b) External dependency
c) Outcome-based reward
d) Internal fixing
Answer: c

98) Overly complex incentive plans result in:

a) Motivation
b) Creativity
c) Confusion
d) Innovation
Answer: c

99) Incentive plan based on achieving monthly sales targets is best suited for:
a) Back-office support
b) Front desk staff
c) Sales executives
d) HR assistants
Answer: c

100) Incentives for white-collar workers must consider:

a) Attendance
b) Work-from-home days
c) Job enrichment aspects
d) Travel allowance
Answer: c

101) Best example of non-cash reward for sales personnel:

a) Gift voucher
b) Salary bonus
c) Extra shift payment
d) DA allowance
Answer: a

102) A sales incentive plan must align with:

a) Seniority
b) Individual performance
c) Number of complaints
d) Working hours
Answer: b

103) A key challenge in designing incentives for salespeople is:

a) Performance measurement
b) Legal obligations
c) Cost of product
 d) Employee turnover
Answer: a

104) A well-designed incentive plan improves:

a) Attrition
b) Unions
c) Productivity
d) Fixed cost
Answer: c

105) Typical incentive for white-collar employees:

a) Profit-sharing plan
b) Shift allowance
c) Compensatory leave
d) Hardship allowance
Answer: a

106) Monthly bonuses for clerical staff increase:

a) Resistance to change
b) Grievances
c) Engagement
d) Compliance cost
Answer: c

107) Sales contest is an example of:

a) Executive bonus
b) Long-term incentive
c) Short-term motivator
d) Statutory benefit
Answer: c

108) Most effective for white-collar productivity:

a) Flexible incentives
b) Shift rotation
c) Penalty-based deductions
d) Lunch breaks
Answer: a

109) Day 6: Incentives for Management Employees

110) Incentive plan for management should emphasize:

a) Supervision
b) Ownership behavior
c) Manual labor
d) Reimbursement
Answer: b

111) Key element in executive incentive:

a) Peer rating
b) Strategic contribution
c) Work timing
 d) Location benefit
Answer: b

112) Best suited incentive for middle management:

a) Uniform allowance
b) ESOPs
c) Hostel facility
d) Transport
Answer: b

113) Incentive driving long-term commitment from executives:

a) Weekly cash bonus
b) Spot awards
c) Profit-sharing
d) Overtime payment
Answer: c

114) A poorly structured executive incentive may cause:

a) Overperformance
b) Long-term loyalty
c) Misreporting
d) Legal audits
Answer: c

115) Transparency in management incentive plans leads to:

a) Conflicts
b) Fairness perception
c) Political issues
d) Strikes
Answer: b

116) Executive incentive must reflect:

a) Market price trends
b) Internal complaints
c) Organizational KPIs
d) Attrition data
Answer: c

117) Board-level incentives are often tied to:

a) Direct supervision
b) Net profit
c) Store attendance
d) PF contributions
Answer: b

118) Non-alignment of executive incentives with org. goals results in:

a) High productivity
b) Cost reduction
c) Strategic drift
d) System improvement
Answer: c
119) Most important trait evaluated in senior executive incentive:
a) Speed
b) Discipline
c) Leadership impact
d) Punctuality
Answer: c

120) Incentive plan based on achieving monthly sales targets is best suited for:
a) Back-office support
b) Front desk staff
c) Sales executives
d) HR assistants
Answer: c

121) Incentives for white-collar workers must consider:

a) Attendance
b) Work-from-home days
c) Job enrichment aspects
d) Travel allowance
Answer: c

122) Best example of non-cash reward for sales personnel:

a) Gift voucher
b) Salary bonus
c) Extra shift payment
d) DA allowance
Answer: a

123) A sales incentive plan must align with:

a) Seniority
b) Individual performance
c) Number of complaints
d) Working hours
Answer: b

124) A key challenge in designing incentives for salespeople is:

a) Performance measurement
b) Legal obligations
c) Cost of product
d) Employee turnover
Answer: a

125) A well-designed incentive plan improves:

a) Attrition
b) Unions
c) Productivity
d) Fixed cost
Answer: c

126) Typical incentive for white-collar employees:

a) Profit-sharing plan
 b) Shift allowance
c) Compensatory leave
d) Hardship allowance
Answer: a

127) Monthly bonuses for clerical staff increase:

a) Resistance to change
b) Grievances
c) Engagement
d) Compliance cost
Answer: c

128) Sales contest is an example of:

a) Executive bonus
b) Long-term incentive
c) Short-term motivator
d) Statutory benefit
Answer: c

129) Most effective for white-collar productivity:

a) Flexible incentives
b) Shift rotation
c) Penalty-based deductions
d) Lunch breaks
Answer: a

130) Day 6: Incentives for Management Employees

131) Incentive plan for management should emphasize:

a) Supervision
b) Ownership behavior
c) Manual labor
d) Reimbursement
Answer: b

132) Key element in executive incentive:

a) Peer rating
b) Strategic contribution
c) Work timing
d) Location benefit
Answer: b

133) Best suited incentive for middle management:

a) Uniform allowance
b) ESOPs
c) Hostel facility
d) Transport
Answer: b

134) Incentive driving long-term commitment from executives:

a) Weekly cash bonus
 b) Spot awards
c) Profit-sharing
d) Overtime payment
Answer: c

135) A poorly structured executive incentive may cause:

a) Overperformance
b) Long-term loyalty
c) Misreporting
d) Legal audits
Answer: c

136) Transparency in management incentive plans leads to:

a) Conflicts
b) Fairness perception
c) Political issues
d) Strikes
Answer: b

137) Executive incentive must reflect:

a) Market price trends
b) Internal complaints
c) Organizational KPIs
d) Attrition data
Answer: c

138) Board-level incentives are often tied to:

a) Direct supervision
b) Net profit
c) Store attendance
d) PF contributions
Answer: b

139) Non-alignment of executive incentives with org. goals results in:

a) High productivity
b) Cost reduction
c) Strategic drift
d) System improvement
Answer: c

140) Most important trait evaluated in senior executive incentive:

a) Speed
b) Discipline
c) Leadership impact
d) Punctuality
Answer: c

141) Day 7–8: Time-based and Output-based Incentive Plan; Types of Incentives

142) Output-based incentives are most suitable for:

a) Security staff
 b) Administrative executives
c) Manufacturing workers
d) Legal advisors
Answer: c

143) Time-based incentive plans reward:

a) Innovation
b) Extra hours worked
c) Client wins
d) Product design
Answer: b

144) The best plan for software developers working on creative tasks:
a) Output-based
b) Time-clocked
c) Milestone incentives
d) Manual incentive
Answer: c

145) A key problem with output-based incentives:

a) Overmotivation
b) Quantity over quality
c) Job enrichment
d) Feedback delay
Answer: b

146) Time-based incentives are not suitable when:

a) Attendance is irregular
b) Results are measurable
c) Night shift is mandatory
d) Projects are long-term
Answer: b

147) Output-based plan helps identify:

a) Overtime workers
b) Top producers
c) Regular absentees
d) Policy violators
Answer: b

148) A hybrid plan includes:

a) No metrics
b) Both time and output measures
c) Peer-based rating
d) General rating
Answer: b

149) Time-based plan can be manipulated by:

a) Goal setting
b) Attendance
c) Delaying output
 d) High performance
Answer: c

150) A company using multiple incentive schemes is focusing on:

a) Budget control
b) Employee diversity
c) Role-specific motivation
d) Monotony
Answer: c

151) Cafeteria-style incentive scheme gives:

a) Uniform bonus
b) Choice of benefits
c) Performance metrics
d) Meal allowance only
Answer: b

152) What is the primary aim of recognition programs in organizations?

a) Reduce turnover b) Increase hierarchy
c) Penalize low performers d) Avoid promotions
Answer: a
153) Which of the following would be considered a non-monetary reward?
a) Bonus b) Stock option
c) Appreciation certificate d) Sales commission
Answer: c
154) What is a key indicator of a successful reward management system?
a) Employee complaints b) Increased absenteeism
c) High retention and motivation d) Low turnover only
Answer: c
155) Which of the following is NOT a type of non-financial reward?
a) Flexibility b) Recognition
c) Promotion d) Bonus
Answer: d
156) Which plan is specifically designed to reward managerial staff?
a) Blue-collar bonus plan b) Time-based allowance
c) Management incentive scheme d) Attendance bonus
Answer: c
157) What is a long-term reward strategy used to retain talent?
a) Travel reimbursement b) Employee stock option plan
c) Commuter allowance d) Daily bonus program
Answer: b
158) Incentives based on measurable results are part of:
a) Uniform compensation system b) Variable pay system
c) Mandatory bonus schemes d) Attendance allowances
Answer: b
159) Which of the following describes a monetary reward?
a) Letter of appreciation b) Public recognition
c) Commission d) Flexible work hours
Answer: c
160) Cafeteria benefit plans are effective because they:
a) Promote salary equality b) Limit choices
 c) Encourage customization d) Are mandatory
Answer: c
161) What does ESOP stand for?
a) Employee Service Option Plan b) Employee Stock Option Plan
c) Executive Salary Option Package d) Employee Seniority Optimization Plan
Answer: b
162) A key challenge in performance-based rewards is:
a) Overbudgeting b) Measurement of performance
c) Limited funding d) External audits
Answer: b
163) What is the most suitable reward for creative job roles?
a) Strict performance bonus b) Peer evaluation
c) Flexible incentives d) Fixed pay increments
Answer: c
164) What is a key indicator of a successful reward management system?
a) Employee complaints b) Increased absenteeism
c) High retention and motivation d) Low turnover only
Answer: c
165) Which of the following is NOT a type of non-financial reward?
a) Flexibility b) Recognition
c) Promotion d) Bonus
Answer: d
166) Which plan is specifically designed to reward managerial staff?
a) Blue-collar bonus plan b) Time-based allowance
c) Management incentive scheme d) Attendance bonus
Answer: c
167) What is a long-term reward strategy used to retain talent?
a) Travel reimbursement b) Employee stock option plan
c) Commuter allowance d) Daily bonus program
Answer: b
168) Incentives based on measurable results are part of:
a) Uniform compensation system b) Variable pay system
c) Mandatory bonus schemes d) Attendance allowances
Answer: b
169) Which of the following describes a monetary reward?
a) Letter of appreciation b) Public recognition
c) Commission d) Flexible work hours
Answer: c
170) Cafeteria benefit plans are effective because they:
a) Promote salary equality b) Limit choices
c) Encourage customization d) Are mandatory
Answer: c
171) What does ESOP stand for?
a) Employee Service Option Plan b) Employee Stock Option Plan
c) Executive Salary Option Package d) Employee Seniority Optimization Plan
Answer: b
172) A key challenge in performance-based rewards is:
a) Overbudgeting b) Measurement of performance
c) Limited funding d) External audits
Answer: b
173) What is the most suitable reward for creative job roles?
a) Strict performance bonus b) Peer evaluation
c) Flexible incentives d) Fixed pay increments
Answer: c
174) Fringe benefits such as medical insurance are designed to:
a) Increase tax b) Enhance financial reporting
c) Support employee well-being d) Reduce compensation
Answer: c
175) Which of these is not typically part of a retention strategy?
a) Competitive rewards b) Growth opportunities
c) Increased penalties d) Work-life balance
Answer: c
176) A reward plan that varies based on output is called:
a) Standard salary b) Output-based incentive
c) Team reward d) Attendance bonus
Answer: b
177) What makes a reward system strategic?
a) Low cost b) Government backing
c) Alignment with organizational goals d) Fixed allowance
Answer: c
178) Which element is essential in designing an equitable reward system?
a) Ambiguity b) Transparency
c) Subjectivity d) Random allocation
Answer: b
179) Performance-linked incentives are primarily based on:
a) Working hours b) Market trends
c) Employee results d) Department hierarchy
Answer: c
180) Which incentive is most appropriate for sales teams?
a) Fixed salary b) Time-based pay
c) Commission d) House rent allowance
Answer: c
181) What is the key objective of using recognition programs?
a) To delay promotions b) To monitor attendance
c) To appreciate and motivate d) To control spending
Answer: c
182) Which of the following plans allows flexibility in choosing benefits?
a) Profit-sharing scheme b) Cafeteria plan
c) Standard bonus plan d) Wage scale plan
Answer: b
183) An effective reward program must be:
a) Delayed b) Biased
c) Equitable d) Top-down only
Answer: c
184) ESOP plans are particularly used to:
a) Enforce discipline b) Maintain attendance
c) Retain critical employees d) Attract vendors
Answer: c
185) Recognition without monetary benefit is still impactful because it:
a) Saves budget b) Builds morale
 c) Reduces vacation d) Avoids compliance issues
Answer: b
186) The biggest advantage of a well-defined reward policy is:
a) Complex processing b) Reduced transparency
c) Predictability and fairness d) Higher taxation
Answer: c
187) Which factor is crucial in evaluating the success of an incentive plan?
a) Cost cutting b) Number of complaints
c) Impact on productivity d) Use of paper forms
Answer: c
188) Perquisites usually include:
a) Commission b) Retirement benefits
c) Company car d) Sales-based bonus
Answer: c
189) A modern trend in reward management includes:
a) Ignoring flexibility b) Personalized benefits
c) Static pay d) One-size-fits-all plan
Answer: b
190) Performance appraisal outcomes often lead to:
a) Exit interview b) Legal warning
c) Reward decisions d) Shift changes
Answer: c
191) What is a perk typically meant to do?
a) Demote employees b) Maintain hierarchy
c) Offer additional motivation d) Replace salary
Answer: c
192) What does a profit-sharing plan aim to achieve?
a) Tax deduction b) Shorter working hours
c) Shared organizational success d) Elimination of allowances
Answer: c
193) A sound reward strategy should be:
a) Aligned to business goals b) Constantly revised
c) Vague and generalized d) Aligned only to senior roles
Answer: a
194) What is the primary benefit of using reward systems aligned with KPIs? a) Cost
savings b) Employee confusion
c) Enhanced performance focus d) Time management
Answer: c
195) In a cafeteria plan, employees: a) Are given free lunch b) Choose from a menu of
benefits
c) Receive uniform compensation d) Must opt out of rewards
Answer: b
196) Fringe benefits are generally: a) Taxed higher than salaries b) Mandated by
government
c) Non-monetary perks d) Equal to variable pay
Answer: c
197) The best time to revise reward strategies is: a) Every month b) When employees
request
c) Based on business review cycles d) Before new hires
Answer: c
198) Which of the following is a monetary incentive? a) Flexible timing b) Public
praise
c) Gift vouchers d) Training opportunity
Answer: c
199) The purpose of profit-sharing is to: a) Transfer losses b) Control employees
c) Reward based on company performance d) Avoid taxation
Answer: c
200) Employee retention is strongly supported by: a) Punitive actions b) Higher
workloads
c) Reward recognition system d) Outsourcing policies
Answer: c
201) A good reward system increases: a) Attrition b) Miscommunication
c) Employee satisfaction d) Conflict
Answer: c
202) PLI schemes stand for: a) Paid Leave Incentive b) Profit Linked Index
c) Performance Linked Incentive d) Permanent Labor Incentive
Answer: c
203) Recognition programs usually aim at: a) Cost savings b) Employee discipline
c) Enhancing morale d) Data compliance
Answer: c
204) A long-term benefit plan that builds ownership is: a) Commission b) ESOP
c) Bonus d) Attendance reward
Answer: b
205) Incentives for white-collar employees differ in: a) Volume b) Customization
c) Cost d) Lawfulness
Answer: b
206) The biggest disadvantage of vague reward systems is: a) Too many choices b)
Lack of direction
c) Employee enthusiasm d) Increased productivity
Answer: b
207) A perk differs from salary because it: a) Is taxed the same b) Is part of regular
CTC
c) Offers extra benefits d) Reduces net pay
Answer: c
208) Time-based incentive plans focus on: a) Output quantity b) Work duration
c) Sales value d) Appraisal ratings
Answer: b
209) What defines output-based incentive? a) Number of hours b) Performance quality
c) Production volume d) Attendance
Answer: c
210) Cafeteria plans are preferred because: a) All benefits are fixed b) One-size-fits-all
c) Employees get benefit choice d) No approval needed
Answer: c
211) Incentives for management employees should be: a) Same as workers b) Based
on team size
c) Tailored to performance d) Compulsory
Answer: c
212) Which element is missing in poor reward systems? a) Cost control b) Salary
break-up
 c) Motivation d) Recruitment details
Answer: c
213) Incentive plans should be: a) Delayed b) Equitable and motivating
c) One-time only d) Based only on seniority
Answer: b
214) Recognition is more effective when: a) Given silently b) Linked to money
c) Public and timely d) Once a year
Answer: c
215) Fringe benefits today include: a) Free snacks only b) Life insurance, wellness
programs
c) Work stress d) Basic salary
Answer: b
216) Performance-based incentives may lead to: a) Disengagement b) Decreased
competition
c) Focused effort d) Wage freeze
Answer: c
217) Reward strategies must evolve due to: a) New tax laws b) Changing employee
expectations
c) Office politics d) Vendor prices
Answer: b
218) Transparent reward criteria build: a) Confusion b) Trust and clarity
c) Division d) HR burden
Answer: b
219) Incentives fail if: a) Evaluations are unclear b) Training is regular
c) Benefits are many d) Employees are aware
Answer: a
220) The modern workforce values: a) Rigid structures b) Personalized recognition
c) Fixed timings d) Uniform bonus
Answer: b
221) Output-based rewards help to: a) Increase errors b) Reduce productivity
c) Encourage performance d) Delay targets
Answer: c
222) Which of the following is part of a perk system? a) Retirement age b) Travel
allowance
c) Minimum wage d) Payslip format
Answer: b
223) Cafeteria benefit plans are designed for: a) Employee choice b) CEO only
c) HR preference d) Temporary staff
Answer: a
224) A reward program fails when: a) It motivates b) Criteria is subjective
c) Communication is strong d) Feedback is open
Answer: b
225) An example of recognition is: a) Salary deduction b) Bonus freeze
c) Employee of the month d) Contract renewal
Answer: c
226) The role of HR in rewards includes: a) Avoiding evaluation b) Implementing fair
systems
c) Delaying benefits d) Promoting layoffs
Answer: b
227) PLI schemes are best implemented when: a) Employees lack training b) Goals are
measurable
c) Roles are unclear d) Incentives are delayed
Answer: b
228) White-collar incentives often include: a) Hourly bonus b) Commission-based
structures
c) Tailored bonuses d) Minimum wage only
Answer: c
229) A flexible reward system should be: a) Rigid and top-down b) Adaptable to
workforce
c) Removed annually d) Government controlled
Answer: b
230) ESOP plans help in: a) Reducing loyalty b) Boosting ownership feeling
c) Decreasing engagement d) Creating conflict
Answer: b
231) Reward-based retention is effective when: a) Delayed 6 months b) Immediate and
valuable
c) Unrelated to performance d) Random
Answer: b
232) Cafeteria plans offer: a) Fixed plans for all b) Limited choices
c) Multiple personalized options d) Manager-only benefits
Answer: c
233) Incentive plans must be: a) Confusing b) Well communicated
c) Department secret d) Avoided
Answer: b
234) What is the primary benefit of using reward systems aligned with KPIs? a) Cost
savings b) Employee confusion
c) Enhanced performance focus d) Time management
Answer: c
235) In a cafeteria plan, employees: a) Are given free lunch b) Choose from a menu of
benefits
c) Receive uniform compensation d) Must opt out of rewards
Answer: b
236) Fringe benefits are generally: a) Taxed higher than salaries b) Mandated by
government
c) Non-monetary perks d) Equal to variable pay
Answer: c
237) The best time to revise reward strategies is: a) Every month b) When employees
request
c) Based on business review cycles d) Before new hires
Answer: c
238) Which of the following is a monetary incentive? a) Flexible timing b) Public
praise
c) Gift vouchers d) Training opportunity
Answer: c
239) The purpose of profit-sharing is to: a) Transfer losses b) Control employees
c) Reward based on company performance d) Avoid taxation
Answer: c
240) Employee retention is strongly supported by: a) Punitive actions b) Higher
workloads
 c) Reward recognition system d) Outsourcing policies
Answer: c
241) A good reward system increases: a) Attrition b) Miscommunication
c) Employee satisfaction d) Conflict
Answer: c
242) PLI schemes stand for: a) Paid Leave Incentive b) Profit Linked Index
c) Performance Linked Incentive d) Permanent Labor Incentive
Answer: c
243) Recognition programs usually aim at: a) Cost savings b) Employee discipline
c) Enhancing morale d) Data compliance
Answer: c
244) A long-term benefit plan that builds ownership is: a) Commission b) ESOP
c) Bonus d) Attendance reward
Answer: b
245) Incentives for white-collar employees differ in: a) Volume b) Customization
c) Cost d) Lawfulness
Answer: b
246) The biggest disadvantage of vague reward systems is: a) Too many choices b)
Lack of direction
c) Employee enthusiasm d) Increased productivity
Answer: b
247) A perk differs from salary because it: a) Is taxed the same b) Is part of regular
CTC
c) Offers extra benefits d) Reduces net pay
Answer: c
248) Time-based incentive plans focus on: a) Output quantity b) Work duration
c) Sales value d) Appraisal ratings
Answer: b
249) What defines output-based incentive? a) Number of hours b) Performance quality
c) Production volume d) Attendance
Answer: c
250) Cafeteria plans are preferred because: a) All benefits are fixed b) One-size-fits-all
c) Employees get benefit choice d) No approval needed
Answer: c
251) Incentives for management employees should be: a) Same as workers b) Based
on team size
c) Tailored to performance d) Compulsory
Answer: c
252) Which element is missing in poor reward systems? a) Cost control b) Salary
break-up
c) Motivation d) Recruitment details
Answer: c
253) Incentive plans should be: a) Delayed b) Equitable and motivating
c) One-time only d) Based only on seniority
Answer: b
254) Recognition is more effective when: a) Given silently b) Linked to money
c) Public and timely d) Once a year
Answer: c
255) Fringe benefits today include: a) Free snacks only b) Life insurance, wellness
programs
 c) Work stress d) Basic salary
Answer: b
256) Performance-based incentives may lead to: a) Disengagement b) Decreased
competition
c) Focused effort d) Wage freeze
Answer: c
257) Reward strategies must evolve due to: a) New tax laws b) Changing employee
expectations
c) Office politics d) Vendor prices
Answer: b
258) Transparent reward criteria build: a) Confusion b) Trust and clarity
c) Division d) HR burden
Answer: b
259) Incentives fail if: a) Evaluations are unclear b) Training is regular
c) Benefits are many d) Employees are aware
Answer: a
260) The modern workforce values: a) Rigid structures b) Personalized recognition
c) Fixed timings d) Uniform bonus
Answer: b
261) Output-based rewards help to: a) Increase errors b) Reduce productivity
c) Encourage performance d) Delay targets
Answer: c
262) Which of the following is part of a perk system? a) Retirement age b) Travel
allowance
c) Minimum wage d) Payslip format
Answer: b
263) Cafeteria benefit plans are designed for: a) Employee choice b) CEO only
c) HR preference d) Temporary staff
Answer: a
264) A reward program fails when: a) It motivates b) Criteria is subjective
c) Communication is strong d) Feedback is open
Answer: b
265) An example of recognition is: a) Salary deduction b) Bonus freeze
c) Employee of the month d) Contract renewal
Answer: c
266) The role of HR in rewards includes: a) Avoiding evaluation b) Implementing fair
systems
c) Delaying benefits d) Promoting layoffs
Answer: b
267) PLI schemes are best implemented when: a) Employees lack training b) Goals are
measurable
c) Roles are unclear d) Incentives are delayed
Answer: b
268) White-collar incentives often include: a) Hourly bonus b) Commission-based
structures
c) Tailored bonuses d) Minimum wage only
Answer: c
269) A flexible reward system should be: a) Rigid and top-down b) Adaptable to
workforce
 c) Removed annually d) Government controlled
Answer: b
270) ESOP plans help in: a) Reducing loyalty b) Boosting ownership feeling
c) Decreasing engagement d) Creating conflict
Answer: b
271) Reward-based retention is effective when: a) Delayed 6 months b) Immediate and
valuable
c) Unrelated to performance d) Random
Answer: b
272) Cafeteria plans offer: a) Fixed plans for all b) Limited choices
c) Multiple personalized options d) Manager-only benefits
Answer: c
273) Incentive plans must be: a) Confusing b) Well communicated
c) Department secret d) Avoided
Answer: b
274) Which reward system is focused on aligning individual goals with company strategy?
a) Uniform increment b) Annual appraisals c) Performance-linked incentives d)
Attendance rewards
Answer: c
275) In a cafeteria plan, the term "modular design" implies: a) No flexibility in benefits
b) Mandatory selection of all benefits c) Grouping benefits into choice blocks d) Pre-
approved perks only
Answer: c
276) Which of the following is a non-monetary recognition? a) Bonus b) Promotion c)
Verbal appreciation d) ESOP
Answer: c
277) A major benefit of fringe benefits is: a) Reduction in gross salary b) Employee
dissatisfaction c) Attraction and retention of employees d) Elimination of taxation
Answer: c
278) Time-based incentives are most suitable for: a) Workers in creative roles b)
Workers with fixed task cycles c) Consultants d) Managers
Answer: b
279) Which strategy improves reward effectiveness? a) Keeping it confidential b)
Avoiding regular reviews c) Linking to key performance areas d) Offering same
benefits to all
Answer: c
280) Personalized rewards are most effective because: a) They save costs b) They
require no planning c) They address unique motivators d) They are always financial
Answer: c
281) Perquisites usually include: a) Net salary b) Flexible working hours c)
Reimbursement benefits d) Minimum wage
Answer: c
282) ESOP is effective for: a) Low engagement teams b) Building a sense of
ownership c) Outsourcing tasks d) Short-term hiring
Answer: b
283) Which is not a principle of reward management? a) Equity b) Consistency c)
Unilateral decisions d) Transparency
Answer: c
284) A core role of HR in reward management is: a) Avoiding feedback b) Drafting
fair reward systems c) Reducing bonuses d) Promoting conflict
Answer: b
285) The cafeteria plan is considered flexible because: a) It is expensive b) It offers
limited choice c) Employees select benefits as per needs d) It includes payroll
processing only
Answer: c
286) Profit-sharing plans directly depend on: a) Company’s profit levels b) Number of
leaves taken c) Salary level d) Fixed budget
Answer: a
287) Which is a drawback of rigid reward systems? a) Better planning b) Enhanced
engagement c) Lack of adaptability d) Encouraged innovation
Answer: c
288) Incentive plans should be: a) Ambiguous b) Disconnected from performance c)
Clear and measurable d) Annually fixed
Answer: c
289) White collar incentives differ mainly in: a) Job level b) Shift timings c) Salary
band d) Customization and nature
Answer: d
290) Fringe benefits are a type of: a) Fixed wage b) Incentive plan c) Indirect
compensation d) Direct compensation
Answer: c
291) Cafeteria benefits increase satisfaction due to: a) Uniformity b) Enforced policies
c) Personalization of options d) Performance pressure
Answer: c
292) The latest trend in rewards emphasizes: a) Only cash rewards b) Formal letters c)
Work-life balance perks d) Seniority-based increments
Answer: c
293) One feature of modern reward systems is: a) No flexibility b) Inclusion of
wellness benefits c) Elimination of incentives d) Mandatory unpaid leaves
Answer: b
294) Perks such as mobile phone reimbursement are categorized as: a) Time-based pay
b) Perquisites c) Mandatory rewards d) Legal incentives
Answer: b
295) The cafeteria plan is most suitable when: a) Workforce is homogeneous b)
Budget is rigid c) Diverse employee needs exist d) Company is downsizing
Answer: c
296) ESOP motivates employees by: a) Offering instant salary raises b) Building long-
term commitment c) Avoiding retirement plans d) Reducing HR workload
Answer: b
297) The core aim of reward management is: a) Performance punishment b) Delaying
hikes c) Enhancing motivation and retention d) Cost cutting only
Answer: c
298) Cafeteria plan design must consider: a) Legal restrictions b) Employee
demographics c) Organizational structure d) All of the above
Answer: d
299) Which reward system is focused on aligning individual goals with company strategy?
a) Uniform increment b) Annual appraisals c) Performance-linked incentives d)
Attendance rewards
Answer: c
 i) ...(Questions 252–275 remain unchanged)...
300) Performance-Linked Incentives (PLI) are usually based on: a) Attendance only b)
Sales alone c) Specific performance benchmarks d) Tenure in company
Answer: c
301) Which of the following is not part of fringe benefits? a) Health insurance b)
Travel allowance c) Basic salary d) Meal coupons
Answer: c
302) The primary purpose of non-monetary incentives is to: a) Increase taxation b)
Motivate without financial input c) Avoid performance appraisals d) Comply with
legal rules
Answer: b
303) A reward system is said to be equitable if: a) All employees get equal pay b) It
reflects employee contribution c) It is biased towards management d) It is fixed for
all
Answer: b
304) Stock option plans are designed to: a) Reduce working hours b) Build long-term
retention c) Increase job rotation d) Replace salary hikes
Answer: b
305) HR's role in reward management includes: a) Hiding pay differences b)
Facilitating fair practices c) Blocking benefits d) Promoting secrecy
Answer: b
306) Which incentive is based on the number of units produced? a) Seniority bonus b)
Output-based incentive c) Loyalty reward d) Cafeteria plan
Answer: b
307) Recognition systems are successful when: a) Delayed b) Personalized and timely
c) Equal for all d) Only monetary
Answer: b
308) A retention strategy focuses on: a) Exit interviews b) Hiring replacements c)
Rewarding loyalty and performance d) Outsourcing
Answer: c
309) Time-based incentives are paid for: a) Meeting annual goals b) Working extra
hours c) Completing projects d) Monthly feedback
Answer: b
310) Effective incentive plans should: a) Change randomly b) Be transparent and
measurable c) Stay the same for all roles d) Be hidden from staff
Answer: b
311) PLI is effective because it: a) Ignores seniority b) Encourages performance
culture c) Rewards tenure d) Removes accountability
Answer: b
312) Fringe benefits add value by: a) Increasing working hours b) Supporting well-
being c) Decreasing leave d) Replacing incentives
Answer: b
313) A cafeteria plan can improve: a) Uniform compensation b) Employee satisfaction
c) Turnover rates d) Payroll errors
Answer: b
314) The term "perquisites" refers to: a) Daily wages b) Extra monetary benefits c)
Legal obligations d) Job roles
Answer: b
315) HR must review incentive systems regularly to: a) Ensure legal compliance b)
Confuse employees c) Remove feedback systems d) Add complexity
Answer: a
316) Reward systems fail when: a) They are aligned with goals b) They ignore
feedback c) They motivate d) They support performance
Answer: b
317) Which incentive is likely to improve output? a) Attendance bonus b) Piece rate
plan c) Medical insurance d) ESOP
Answer: b
318) The key to reward management is: a) Secrecy b) Employee engagement c)
Ignoring needs d) Avoiding trends
Answer: b
319) A reward system becomes strategic when: a) Linked to business objectives b)
Based on seniority c) Same for all departments d) Not reviewed
Answer: a
320) Which of these motivates management employees? a) Hourly wages b) Role-
specific incentives c) Shift allowance d) Overtime pay
Answer: b
321) Non-monetary rewards work best when: a) Combined with recognition b)
Delayed c) Anonymous d) Assigned without performance
Answer: a
322) Profit-sharing is a form of: a) Mandatory incentive b) Ownership-based plan c)
Indirect reward d) Direct monetary incentive
Answer: d
323) Modern trends in reward management include: a) Uniform raises b) Work-from-
home benefits c) No appraisals d) Verbal warnings
Answer: b
324) One feature of a successful reward plan is: a) Rigidity b) Cost-only focus c)
Fairness and transparency d) Unilateral decision-making
Answer: c
325) Which component is typically included in a cafeteria benefits plan? a) Job description
b) Uniform allowance c) Employee flexibility in choosing benefits d) Recruitment
fees
Answer: c
326) Time-based incentive plans reward employees for: a) Number of units produced
b) Time spent on job c) Skill development d) Training completion
Answer: b
327) A sales incentive plan often uses which structure? a) Flat salary b) Commission-
based c) Bonus for HR only d) Uniform allowance
Answer: b
328) One of the objectives of reward management is to: a) Reduce motivation b)
Ensure pay secrecy c) Attract and retain talent d) Increase resignation
Answer: c
329) Recognition differs from rewards in that it: a) Is always monetary b) Is non-
verbal only c) Focuses on appreciation d) Must be annual
Answer: c
330) A fringe benefit usually includes: a) Basic wage b) ESOP c) Paid holidays d)
Performance bonus
Answer: c
331) HR uses incentive systems to: a) Discourage feedback b) Increase absenteeism c)
Promote goal achievement d) Lower morale
Answer: c
332) What kind of incentive is provided after achieving specific targets? a) Time-based
b) Output-based c) Performance-linked d) Uniform
Answer: c
333) One main aim of reward management is: a) Undervaluing employees b)
Promoting secrecy c) Driving organizational success d) Reducing compensation
Answer: c
334) An ESOP allows employees to: a) Own company shares b) Get travel allowance
c) Work from home d) Get overtime
Answer: a
335) Performance-Linked Incentive (PLI) systems require: a) Regular appraisals b)
One-time feedback c) Uniform salary hikes d) Random payments
Answer: a
336) A key non-monetary reward includes: a) Health insurance b) Appreciation
certificate c) Bonus d) Travel reimbursement
Answer: b
337) Which of the following contributes to employee retention? a) Frequent job transfers
b) Effective reward system c) Poor communication d) Late appraisals
Answer: b
338) A cafeteria-style plan benefits employees by: a) Forcing uniform benefits b)
Offering benefit choices c) Giving only cash benefits d) Encouraging turnover
Answer: b
339) Which of these is not a monetary incentive? a) Commission b) Bonus c)
Certificate of appreciation d) Overtime payment
Answer: c
340) A reward system should ideally: a) Be fixed for all b) Be irrelevant to
performance c) Vary with roles and responsibilities d) Discourage feedback
Answer: c
341) The purpose of an executive compensation policy is: a) Reduce senior roles b)
Avoid bonuses c) Attract and retain leadership d) Uniform salary for all
Answer: c
342) The term "perks" is often used for: a) Leave benefits b) Extra benefits given to
employees c) Job description d) Working hours
Answer: b
343) An output-based incentive depends on: a) Time spent b) Age of worker c)
Quantity of output d) Education level
Answer: c
344) Recognition can be most effective when: a) Delayed b) Generic c) Personalized
and timely d) Given annually
Answer: c
345) Profit-sharing plans benefit employees by: a) Giving shares for attendance b)
Sharing organization’s profit c) Fixing monthly salaries d) Avoiding incentives
Answer: b
346) Time-based incentives are usually measured by: a) Work units b) Hours or days
worked c) Profit percentage d) Exit interviews
Answer: b
347) One feature of a sound reward system is: a) Opaqueness b) Subjectivity c)
Transparency d) Confusion
Answer: c
348) A reward management system helps to: a) Increase attrition b) Reduce
performance c) Align individual and organizational goals d) Delay recognition
Answer: c
349) An effective recognition program encourages: a) Competition alone b)
Disengagement c) Morale and productivity d) Redundancy
Answer: c
350) Which of the following is considered a non-monetary recognition? a) Bonus b)
Appreciation email c) Sales commission d) Overtime pay
Answer: b
351) The cafeteria plan allows employees to: a) Avoid income tax b) Choose from a
variety of benefit options c) Skip performance reviews d) Get only basic pay
Answer: b
352) An example of an output-based incentive plan is: a) Hourly wages b) Piece-rate
system c) Annual increment d) Time bonus
Answer: b
353) Reward management strategy is directly linked to: a) Product pricing b)
Organizational goals c) Market analysis d) Advertising budget
Answer: b
354) A perk usually refers to: a) Travel time b) Extra benefit beyond salary c) Office
hours d) Job rotation
Answer: b
355) Fringe benefits are provided to: a) Improve production tools b) Enhance
employee well-being c) Train external vendors d) Increase customer service
Answer: b
356) Which of these is a performance-linked reward? a) ESOP b) Uniform allowance
c) Bonus based on appraisal d) Tea break
Answer: c
357) An effective incentive system helps reduce: a) Turnover b) Morale c)
Productivity d) Work-life balance
Answer: a
358) Which incentive plan is more suitable for a salesperson? a) Time-based b)
Commission-based c) Housing allowance d) Cafeteria benefit
Answer: b
359) Employee stock ownership plans encourage: a) Less productivity b) Ownership
and commitment c) More leave applications d) Uniform pay
Answer: b
360) Profit-sharing is often used to: a) Reward based on seniority b) Share company
success with employees c) Decrease employee stake d) Standardize job roles
Answer: b
361) Which of the following is an example of a cafeteria benefit? a) Fixed basic pay b)
Allowing choice of insurance cover c) Uniform dress code d) Job grade
Answer: b
362) A reward system that promotes teamwork is likely to include: a) Group bonuses
b) Pay secrecy c) Delayed benefits d) Job rotation
Answer: a
363) Which type of incentive is usually based on meeting monthly targets? a) Fringe
benefit b) Output-based incentive c) Time-based reward d) ESOP
Answer: b
364) An HR’s role in reward management includes: a) Budget forecasting only b)
Developing and administering plans c) Product launch d) Sales presentation
Answer: b
365) The main aim of incentives is to: a) Control unions b) Improve productivity and
motivation c) Reduce salaries d) Enforce HR rules
Answer: b
366) A retention strategy linked to rewards includes: a) Role transfer b) Career
stagnation c) Performance-based promotions d) Long probation period
Answer: c
367) Which reward is most directly linked to individual output? a) Festival bonus b)
Piece-rate pay c) Shift allowance d) Commuting reimbursement
Answer: b
368) A time-based incentive is NOT effective in: a) Repetitive jobs b) Managerial
performance evaluation c) Manufacturing lines d) Overtime tasks
Answer: b
369) What is the purpose of perks? a) Raise operational costs b) Support employee
needs and motivation c) Create hierarchy d) Reduce output
Answer: b
370) Cafeteria-style benefits allow: a) Equal benefits for all b) Flexibility and
customization c) No options d) Only medical coverage
Answer: b
371) Fringe benefits do NOT include: a) Pension schemes b) ESOP c) Attendance
registry d) Gratuity
Answer: c
372) Perquisites are mostly available to: a) Temporary workers b) Interns c) Senior
executives d) Contract laborers
Answer: c
373) HR uses recognition programs to: a) Penalize poor performers b) Encourage
behavior that supports company values c) Delay appraisals d) Fix salaries
Answer: b
374) Performance-linked rewards help in: a) Setting equal goals for all b) Promoting
mediocrity c) Driving excellence and performance d) Avoiding training
Answer: c
375) The purpose of fringe benefits is to: a) Replace salary b) Support work-life
balance c) Increase taxes d) Encourage resignation
Answer: b
376) Which of the following is a monetary incentive? a) Appreciation note b)
Certificate of excellence c) Cash bonus d) Flexible schedule
Answer: c
377) Which plan provides employees with ownership rights? a) Cafeteria plan b)
ESOP c) Gratuity scheme d) Provident fund
Answer: b
378) Recognition programs are primarily aimed at: a) Cutting training budgets b)
Reinforcing desired behavior c) Replacing performance appraisals d) Managing
payroll
Answer: b
379) Non-monetary rewards are mainly used to: a) Increase costs b) Comply with
labor laws c) Enhance employee morale d) Replace incentives
Answer: c
380) Output-based incentive systems measure: a) Employee presence b) Quality of
food in canteen c) Work completed d) Number of breaks taken
Answer: c
381) Which type of benefit plan offers menu-like options? a) Flat salary b) Cafeteria
plan c) Perquisite system d) Wage grid
Answer: b
382) Profit-sharing plans are influenced by: a) Market inflation b) Organizational
profits c) Election results d) Competitor strategies
Answer: b
383) Which benefit would be considered a perk? a) Overtime wages b) Club
membership c) Travel reimbursement d) House rent allowance
Answer: b
384) Incentive for management staff often includes: a) Leave encashment b)
Attendance bonus c) ESOPs d) Daily allowances
Answer: c
385) Which incentive system is generally output-based? a) Time-rate wage b)
Performance bonus c) Paid holidays d) Travel concessions
Answer: b
386) A cafeteria plan improves employee satisfaction because: a) It ensures equal pay
b) Offers flexibility and choice c) Promotes hierarchy d) Enforces strict rules
Answer: b
387) One major advantage of performance-linked incentive is: a) Demotivating employees
b) Enhancing laziness c) Boosting productivity d) Reducing training
Answer: c
388) Fringe benefits are typically offered to: a) Short-term contractors b) Long-term
employees c) Interview candidates d) Retired personnel only
Answer: b
389) Reward management aligns with retention by: a) Creating inequality b) Offering
competitive benefits c) Limiting growth d) Enforcing strict probation
Answer: b
390) Which of the following is NOT a perquisite? a) Company car b) Medical
allowance c) Shift allowance d) Club membership
Answer: c
391) Performance-linked incentives are based on: a) Company hierarchy b) Trade
unions c) Employee output and goals d) Attendance
Answer: c
392) An effective reward strategy must: a) Ignore performance b) Be rigid c) Align
with organizational objectives d) Be kept secret
Answer: c
393) The latest trend in fringe benefits includes: a) Gold bonuses b) Remote work
support c) Standard meal coupons d) Mandatory uniforms
Answer: b
394) Incentives for white-collar workers may include: a) Commission only b) Club
memberships and paid leave c) Shift duty bonus d) Daily attendance mark
Answer: b
395) Cafeteria-style benefits help in: a) Increasing turnover b) Personalized benefits
for employees c) Reducing engagement d) Managing vendors
Answer: b
396) An example of time-based incentive is: a) Piece-rate system b) Night shift
allowance c) Sales commission d) Profit sharing
Answer: b
397) The goal of reward management is to: a) Lower morale b) Attract, retain and
motivate employees c) Delay promotions d) Increase supervision
Answer: b
398) Incentive plans should be designed to: a) Punish errors b) Encourage
underperformance c) Reward desirable outcomes d) Reduce employee welfare
Answer: c
399) A recognition award is generally given for: a) Wrongful behavior b) Excess leave
c) Exceptional contribution d) Early retirement
Answer: c
400) What does ESOP stand for in reward systems? a) Employee Support and Organization
Policy b) Employee Stock Ownership Plan c) Employment Strategy for Operations
Personnel d) Equity Share Offering Program
Answer: b
401) Which of the following is typically not a part of performance-linked incentives? a)
Annual bonuses b) Sales commission c) Uniform allowance d) Target-based
rewards
Answer: c
402) Fringe benefits contribute to: a) Increased absenteeism b) Workforce
dissatisfaction c) Better employer branding d) Higher employee turnover
Answer: c
403) An output-based incentive is directly linked to: a) Attendance b) Daily working
hours c) Productivity achieved d) Job title
Answer: c
404) Which is an example of a non-financial reward? a) Cash bonus b) Flexible
working hours c) Sales target allowance d) Travel allowance
Answer: b
405) The primary role of HR in reward management is to: a) Cut costs b) Design and
implement reward systems c) Train accountants d) Manage facilities
Answer: b
406) Which benefit would be considered a part of a cafeteria plan? a) Mandatory
retirement age b) Customizable benefit packages c) Daily attendance bonus d)
Shift timings
Answer: b
407) Performance-linked incentive schemes improve: a) Job insecurity b) Employee
motivation c) Legal issues d) HR attrition
Answer: b
408) Which is NOT typically included in fringe benefits? a) Paid vacation b) Stock
options c) Personal accident insurance d) Overtime pay
Answer: d
409) The cafeteria system allows employees to: a) Receive equal benefits b) Choose
from a variety of benefits c) Enforce pay cuts d) Increase tax burden
Answer: b
410) The best reward strategy is one that: a) Demotivates poor performers b) Is
uniform for all c) Aligns with company goals and employee needs d) Focuses on
 punishment
Answer: c
411) A well-structured incentive system leads to: a) Reduced performance b) Increased
grievances c) Enhanced productivity d) High absenteeism
Answer: c
412) Profit-sharing encourages employees to: a) Avoid risks b) Take early retirement
c) Contribute towards organizational success d) Ignore performance
Answer: c
413) Reward management is an essential part of: a) Financial accounting b) Human
Resource Management c) Facility operations d) Statutory compliance
Answer: b
414) Which among these is a time-based incentive? a) ESOP b) Night shift allowance
c) Profit share d) Stock dividends
Answer: b
415) A major reason to introduce performance-linked incentives is: a) Promote favoritism
b) Link pay to results c) Increase base pay d) Eliminate HR
Answer: b
416) Which of these can be termed as a perk? a) Monthly salary b) Attendance reward
c) Company car d) Weekly off
Answer: c
417) HR should evaluate reward systems regularly to: a) Keep employees under pressure
b) Eliminate rewards c) Ensure effectiveness and relevance d) Encourage job-
hopping
Answer: c
418) Flexible benefits in cafeteria plans allow: a) Penalty deduction b) Customization
based on need c) Flat salary policy d) Strict standardization
Answer: b
419) Perquisites are generally: a) Performance bonuses b) Attendance-linked rewards
c) Non-monetary personal benefits d) Training reimbursements
Answer: c
420) Stock options are mostly provided to: a) Temporary staff b) Contractual workers
c) Management employees d) Entry-level interns
Answer: c
421) Which is a core feature of an effective incentive plan? a) Non-transparent structure
b) Biased rewards c) Clear communication and goal alignment d) Vague KPIs
Answer: c
422) HR ensures fair distribution of rewards by: a) Withholding benefits b) Using a
transparent system c) Ignoring performance d) Favoring top-level staff
Answer: b
423) Incentives tied to specific performance targets are called: a) Base pay b)
Performance-linked incentives c) Gratuity d) Travel allowance
Answer: b
424) The objective of offering fringe benefits includes: a) Reducing salary b)
Improving work-life balance c) Preventing retirement d) Promoting conflict
Answer: b
425) What is the main purpose of employee recognition programs? a) Reduce employee
benefits b) Promote workplace gossip c) Enhance employee engagement d) Limit
team collaboration
Answer: c
426) Which type of incentive is generally preferred for sales professionals? a) Time-based
b) Output-based c) Fixed salary d) Basic allowance
Answer: b
427) Non-monetary incentives often include: a) Performance bonus b) Health
insurance c) Employee of the Month awards d) Festival advance
Answer: c
428) Fringe benefits are aimed at: a) Cost cutting b) Employee downsizing c)
Enhancing job satisfaction d) Simplifying taxation
Answer: c
429) Perquisites are typically linked to: a) Managerial positions b) Entry-level
positions c) Internships d) Outsourced staff
Answer: a
430) The success of a reward system depends on: a) Frequent policy changes b) Lack
of clarity c) Transparent and fair implementation d) Hidden clauses
Answer: c
431) Cafeteria plans offer flexibility in: a) Job descriptions b) Employee duties c)
Benefit selection d) Performance appraisals
Answer: c
432) A well-designed incentive plan should avoid: a) Clear performance metrics b)
Biased outcomes c) Target-based structure d) Regular reviews
Answer: b
433) ESOPs are usually granted to encourage: a) Employee turnover b) Employee
ownership c) Low commitment d) Short-term employment
Answer: b
434) The key challenge in managing performance-linked incentives is: a) Lack of training
b) Measuring performance accurately c) Absenteeism d) Uniform pay
Answer: b
435) Which of the following is a monetary benefit? a) Recognition plaque b)
Appreciation letter c) Bonus d) Flexi-timing
Answer: c
436) A recognition system is effective when it is: a) Random and infrequent b) Bias-
driven c) Timely and consistent d) Confidential
Answer: c
437) Incentives based on group performance help in: a) Reducing team collaboration
b) Enhancing teamwork c) Encouraging competition only d) Delaying project
deadlines
Answer: b
438) Which of these is considered a contemporary reward trend? a) No-incentive policy
b) Job security focus only c) Work-from-home flexibility d) Strict office hours
Answer: c
439) Which is NOT a feature of a sound reward strategy? a) Customizable options b)
Fairness and equity c) Unclear communication d) Goal alignment
Answer: c
440) HR's involvement in reward management ensures: a) Technical accuracy b) Legal
complications c) Strategic alignment with HR goals d) Conflicts in payroll
Answer: c
441) The cafeteria approach is best suited for: a) Startups only b) Fixed-pay companies
c) Diverse workforce needs d) Government sectors
Answer: c
442) Which incentive encourages punctuality and regularity? a) Attendance bonus b)
ESOP c) Shift allowance d) Travel reimbursement
Answer: a
443) One major drawback of a poor incentive plan is: a) Employee empowerment b)
Reduced productivity c) Career growth d) Higher innovation
Answer: b
444) Non-monetary rewards are more effective when: a) Employees are disengaged b)
Coupled with recognition c) Tied to financial planning d) Randomly distributed
Answer: b
445) Incentive schemes should be: a) Punitive in nature b) Uniform for all roles c)
Role and performance-specific d) Delayed
Answer: c
446) Performance-linked reward systems need: a) Rigid rules b) Undefined
expectations c) Measurable outcomes d) Discretionary application
Answer: c
447) In ESOP, employees: a) Receive travel perks b) Get stake in the company c)
Manage cafeteria plans d) Pay overtime wages
Answer: b
448) What defines an ideal reward plan? a) Same for all departments b) Based on
favoritism c) Adaptive, fair, and performance-focused d) Time-consuming to
implement
Answer: c
449) Incentive plans are ineffective without: a) Performance measurement b) High
salary c) Conflict resolution d) Long-term contracts
Answer: a
450) What type of rewards are best suited for retaining high-performing employees? a)
Fixed bonuses b) Public recognition c) Customized incentives d) Non-
performance-based pay
Answer: c
451) What is a key feature of monetary incentives? a) Emotional satisfaction b)
Tangible financial value c) Flexible timing d) Symbolic appreciation
Answer: b
452) A cafeteria plan in reward management refers to: a) Free meals at workplace b)
Compensation based on hours c) Flexible benefit choices d) Fixed allowance to all
Answer: c
453) ESOPs help in: a) Tax deductions for employers b) Providing travel incentives c)
Building employee ownership d) Replacing performance appraisals
Answer: c
454) A time-based incentive plan is commonly used in: a) Freelancing roles b) Factory
operations c) Managerial positions d) Sales jobs
Answer: b
455) The primary role of HR in reward management is to: a) Audit financial reports b)
Maintain shift rosters c) Design and align rewards with organizational goals d)
Handle only payrolls
Answer: c
456) Which of the following is a non-cash reward? a) Provident Fund b) Travel
vouchers c) Profit-sharing d) Dearness allowance
Answer: b
457) Fringe benefits are usually offered to: a) Encourage absenteeism b) Replace
compensation c) Enhance the total reward experience d) Delay promotions
Answer: c
458) Which reward system works best in team-based environments? a) Output-based
b) Individual-focused c) Group incentive plans d) Time-tracking
Answer: c
459) The main purpose of performance-linked incentive (PLI) is: a) Equal pay for all
b) Encourage excellence c) Avoid bonus payments d) Replace annual appraisals
Answer: b
460) What is one advantage of non-monetary rewards? a) Higher tax b) Better record
keeping c) Boosts morale at lower cost d) Mandatory compliance
Answer: c
461) A good reward system should: a) Focus only on top performers b) Create internal
rivalry c) Promote fairness and recognition d) Function without HR
Answer: c
462) Perks such as company car and club membership are categorized as: a) Salary b)
Variable bonus c) Perquisites d) Fringe benefits
Answer: c
463) What does 'living wage' imply? a) Bare minimum for survival b) Wage based on
working hours c) Wage ensuring decent living standard d) Wage equal to minimum
wage
Answer: c
464) Which is NOT a purpose of reward management? a) Enhance employee retention
b) Increase absenteeism c) Attract talent d) Motivate high performance
Answer: b
465) Stock option rewards are mostly associated with: a) Daily wage workers b)
Contractual staff c) Executive employees d) Part-time roles
Answer: c
466) Reward systems should be aligned with: a) External competitors b) Company
strategy c) Union demands d) Random feedback
Answer: b
467) Which incentive focuses more on quantity of work than time spent? a) Output-based
b) Time-based c) Salary based d) Allowance based
Answer: a
468) Recognition programs are most effective when they: a) Are anonymous b) Are
consistent and visible c) Favor a few departments d) Replace salary hikes
Answer: b
469) Which plan gives employees a choice among different benefits? a) Performance-
linked plan b) Cafeteria plan c) Output-based plan d) Fixed allowance plan
Answer: b
470) One challenge in implementing ESOPs is: a) Lack of government support b) Tax
exemption rules c) Valuation of shares and equity distribution d) Currency
fluctuation
Answer: c
471) Which of the following is a key principle of a successful incentive plan? a) Confusion
b) Lack of communication c) Transparency d) Irregular evaluation
Answer: c
472) Time-based incentive plans are designed to: a) Reward speed only b) Encourage
late work c) Compensate based on hours worked d) Remove performance pressure
Answer: c
473) A perk is usually: a) Salary hike b) Compulsory for all c) An additional benefit
d) Bonus cut
Answer: c
474) One of the latest trends in reward management includes: a) Disciplinary incentives
b) Uniform bonus for all c) AI-based performance tracking d) Fixed monetary
rewards only
Answer: c
475) Which of the following is considered a long-term reward strategy? a) Monthly salary
b) ESOP c) Attendance bonus d) Gift cards
Answer: b
476) The major goal of incentives in sales jobs is to: a) Reduce market expansion b)
Limit customer interaction c) Boost revenue generation d) Maintain same sales level
Answer: c
477) Fringe benefits often include: a) Tax penalties b) Work from home deductions c)
Health insurance and company car d) Project deadlines
Answer: c
478) Which reward method helps align employee efforts with organizational profitability?
a) Output-based pay b) Cafeteria plan c) Profit-sharing d) Dearness allowance
Answer: c
479) Non-monetary incentives are mostly effective for: a) Financial stability b) Skill
development c) Motivation and recognition d) Wage correction
Answer: c
480) A key aim of reward management is to: a) Reduce training efforts b) Support
employee retention c) Avoid benefits distribution d) Enforce strict deadlines
Answer: b
481) Which of the following is not part of indirect compensation? a) Bonus b) Health
coverage c) Paid leaves d) Insurance
Answer: a
482) Performance-linked incentive is best defined as: a) Fixed pay model b) Peer
recognition c) Reward based on achievement of results d) Training reimbursement
Answer: c
483) Cafeteria plans are characterized by: a) Non-customizable choices b) No tax
advantage c) Employee benefit selection flexibility d) Employer-only decision
Answer: c
484) One benefit of a well-structured reward policy is: a) Budget imbalance b) Role
confusion c) Talent attraction and motivation d) Complicated reporting
Answer: c
485) Profit-sharing plans typically exclude: a) Bonus structure b) Stock equity c)
Insurance premium d) Performance metrics
Answer: c
486) A retention strategy in reward management aims to: a) Reduce working hours b)
Increase training costs c) Retain skilled employees through motivation d) Cut all
incentives
Answer: c
487) Which is the most suitable for white-collar workers? a) Hourly wage plan b)
Output-linked pay c) Sales commission d) Management incentive plan
Answer: d
488) One key issue with poorly implemented incentive plans is: a) Increased productivity
b) Employee confusion c) Role clarity d) Transparent communication
Answer: b
489) Which of the following is an example of a symbolic reward? a) Gift card b)
Appreciation certificate c) Salary hike d) ESOP
Answer: b
490) Which type of incentive is directly linked with quantity output? a) Time-based b)
Output-based c) Performance-based d) Fixed
Answer: b
491) A common challenge in reward systems is: a) Short probation periods b) Fixed
working hours c) Budget constraints d) Transparent reporting
Answer: c
492) Role of HR in incentive administration includes: a) Security checks b) Inventory
control c) Designing performance metrics d) Avoiding employee feedback
Answer: c
493) The cafeteria approach allows employees to: a) Receive identical benefits b) Skip
performance reviews c) Select from a menu of benefits d) Ignore incentive policies
Answer: c
494) Perquisites are mostly enjoyed by: a) Entry-level staff b) Clerical workers c)
Senior executives d) Apprentices
Answer: c
495) In modern reward management, digital platforms are used for: a) Employee
termination b) Rewards distribution tracking c) Manual attendance d) Legal
compliance
Answer: b
496) An incentive plan should be: a) Vague and open-ended b) Complex and
bureaucratic c) Fair, transparent, and achievable d) Hidden from employees
Answer: c
497) Which of the following promotes employee loyalty? a) Salary deduction b)
Recognition and rewards c) Workload increase d) Overtime denial
Answer: b
498) Which of these is a disadvantage of non-monetary incentives? a) Cost to company
b) Less impactful for financial goals c) Inflation impact d) Tax deduction
Answer: b
499) The effectiveness of reward strategy depends on: a) Management hierarchy b)
Organizational structure only c) Alignment with business goals and employee needs
d) Government pressure
Answer: c
500) What is the purpose of providing perquisites to employees? a) Legal compliance
b) Tax evasion c) Enhance job satisfaction and retention d) Increase product sales
Answer: c
501) A well-implemented recognition program leads to: a) Confusion b) High attrition
c) Increased employee morale d) Reduction in rewards
Answer: c
502) The 'cafeteria plan' is also known as: a) Rigid benefit model b) Modular pay c)
Flexible benefit plan d) Fixed allowance system
Answer: c
503) Performance-linked incentives are ideally tied to: a) Educational level b)
Company’s location c) Measurable targets d) Department hierarchy
Answer: c
504) A disadvantage of output-based incentive plans is: a) No link to performance b)
High cost c) Quantity over quality issues d) Requires no measurement
Answer: c
505) Which plan allows employees to choose benefits as per their preferences? a) Fixed
benefit plan b) Cafeteria plan c) Uniform plan d) Universal plan
Answer: b
506) A perk usually refers to: a) Core salary b) Incentives based on work hours c)
Special non-monetary benefits d) Union settlements
Answer: c
507) Stock option plans are most commonly offered to: a) Apprentices b) Senior-level
employees c) Office assistants d) Temporary workers
Answer: b
508) Time-based incentive plans are calculated based on: a) Profit growth b) Sales
conversion c) Hours worked d) Job title
Answer: c
509) Non-monetary recognition includes: a) Insurance b) Public appreciation c) Bonus
d) Commission
Answer: b
510) Effective reward systems should be: a) Unclear b) Biased c) Consistent and
performance-linked d) Disconnected from business goals
Answer: c
511) Fringe benefits provide: a) Direct cash flow b) Legal notice c) Supplemental
employee advantages d) Payroll deduction
Answer: c
512) Retention is enhanced when rewards are: a) Unplanned b) Irregular c) Linked to
career growth and recognition d) Standard for all
Answer: c
513) Performance appraisals influence: a) Hiring decisions b) Legal contracts c)
Reward distribution d) Annual leave allotment
Answer: c
514) Profit-sharing schemes motivate employees to: a) Change companies b) Reduce
output c) Work towards profitability d) Avoid responsibility
Answer: c
515) ESOP stands for: a) Employee Stock Ownership Plan b) Employee Service
Output Policy c) Enhanced Stock Option Payment d) Executive Salary Operational
Plan
Answer: a
516) HR’s role in reward management includes: a) Assigning punishments b) Auditing
only c) Designing reward strategy and evaluating its impact d) Filing taxation forms
Answer: c
517) An ineffective reward system can result in: a) Increased motivation b) Employee
dissatisfaction c) Higher productivity d) Balanced performance
Answer: b
518) In a cafeteria plan, who decides the benefit mix? a) Government b) Employer
only c) Employee d) Trade union
Answer: c
519) Which of the following is NOT a purpose of reward management? a) Enhancing
productivity b) Legal documentation c) Employee motivation d) Talent retention
Answer: b
520) An example of a tangible reward is: a) Verbal praise b) Bonus payment c)
Achievement certificate d) Job rotation
Answer: b
521) The main focus of retention strategy using rewards is: a) Keeping wages low b)
Rewarding tenure only c) Retaining key talent through meaningful recognition d)
Random benefits
Answer: c
522) Which component of reward influences the tax liability of employees? a) Recognition
b) Training c) Perquisites and fringe benefits d) Job satisfaction
Answer: c
523) A non-cash reward example is: a) Performance bonus b) ESOP c) Gift hamper
d) Travel allowance
Answer: c
524) A comprehensive reward system includes: a) Only base salary b) All forms of
recognition, monetary and non-monetary c) Disciplinary measures d) Job transfer
strategy
Answer: b