PHR · Question #50
Diane is the HR Professional for her organization and she's examining the ranges for the compensation levels of her company. Which one of the following statements best describes what a range for compe
The correct answer is B. A range specifies the lowest/minimum and the highest/maximum compensation rates for which. This question tests understanding of how compensation ranges are defined in HR practice, covering the minimum and maximum pay boundaries for a given job or grade.
Question
Diane is the HR Professional for her organization and she's examining the ranges for the compensation levels of her company. Which one of the following statements best describes what a range for compensation is?
Options
- AA range specifies the lowest/minimum and the highest/maximum compensation rates for which
- BA range specifies the lowest/minimum and the highest/maximum compensation rates for which
- CA rangespecifies the lowest/minimum and the highest/maximum compensation rates for the worth
- DA range specifies the lowest/minimum and the highest/maximum value for which employees are
How the community answered
(32 responses)- A6% (2)
- B78% (25)
- C3% (1)
- D13% (4)
Why each option
This question tests understanding of how compensation ranges are defined in HR practice, covering the minimum and maximum pay boundaries for a given job or grade.
This choice is functionally identical in visible text to B; based on the answer key, B represents the most complete and technically accurate phrasing of the compensation range definition.
A compensation range correctly defines both the lowest (minimum) and highest (maximum) pay rates applicable to a specific job or pay grade, establishing the boundaries within which employees in that role can be compensated. This range reflects the market value and internal equity for the position. It is the standard HR definition used in salary structure design.
This choice introduces the concept of 'worth' in a way that does not accurately reflect standard compensation range terminology used in HR practice.
Framing the range around 'value for which employees are' is an incomplete and inaccurate characterization that omits the critical reference to the job or pay grade being bounded.
Concept tested: Compensation range definition in salary structure design
Source: https://www.shrm.org/topics-tools/tools/toolkits/designing-and-managing-a-base-pay-program
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