Worldatwork Certified Executive Compensation Professional CECP Preparation Questions

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Worldatwork Certified Executive Compensation Professional CECP exam information is available here for you to understand the test. There are 110-160 questions on the competency-based exam. WorldatWork recommends candidates have three or more years of experience. We have cracked the latest Worldatwork Certified Executive Compensation Professional CECP preparation questions, which are the best material for you to study. The latest FREE Worldatwork Certified Executive Compensation Professional CECP exam preparation questions are below.

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1. Administering budgets is an example of what key competency for compensation professionals?

Financial Management

HR Management

Resource Management

Policy Management

2. “Cost-benefit thinking” is most useful in the context of financial management for purposes of what?

Procurement

Recruiting

Setting priorities

Plan administration

3. To ensure appropriate funding levels, the compensation professional must generally do which of the following?

Possess a high level of education and competency in accounting principles

Determine which programs are crucial to the enterprise and which programs are expendable

Partner with multiple departments and external consultants and vendors

Demonstrate broad understanding of principles of financial management and business expertise

4. Understanding basic organization design principles is an example of what key competency for compensation professionals?

Financial Management

HR Management

Resource Management

Policy Management

5. Assessment of current and future staffing needs should be based primarily on what?

Compensation budgets only because staffing cannot exceed the funds available

A combination of organizational goals and budget realities

The consensus of HR management and line management estimates

The opinions of senior leaders in the organization

6. What best describes a key competency of compensation professionals regarding HR management of the organization’s employees?

Ensuring they are appropriately selected, developed, appraised and rewarded

Monitoring individual employee career paths and succession planning

Communicating regularly with line management on performance management

Ensuring that all regulatory and voluntary payroll deductions are properly administered

7. Using efficient and cost-effective approaches to integrate technology into the workplace is an example of what key competency for compensation professionals?

Financial Management

HR Management

Resource Management

Policy Management

8. What best describes the most effective approach for facilitating fact-based decisions?

Ensuring support from all internal and external stakeholders

Estimating results based on historical data

Using statistical methods to predict outcomes

Determining, sourcing and collecting appropriate data

9. Using efficient and cost-effective approaches to integrate technology into the workplace is most likely to do what?

Reduce compensation expense

Improve program efficacy

Select the best vendors

Compensate employees competitively

10. Regarding key competencies for financial management, HR management and resource management, what sets top performers apart?

The level of formal education in each area

The ability to prioritize which is most critical in any given situation and allocate time and resources accordingly

The ability to tie them together, distill key messages and make impactful decisions

Effective interpersonal and communication skills that can overshadow minor deficiencies in any one area

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11. What best describes a necessary skill and/or behavior in relation to business executive?

An understanding of the culture and subcultures of your organization

The capacity to manage multiple projects and priorities and meet deadlines

A willingness to take on additional duties and responsibilities when resources are limited

A thorough understanding of the products and/or services your organization provides

12. What is the most likely explanation for why compensation and rewards require a strong grasp of business executive for compensation professionals?

Because the internal and external environments are constantly changing

Because the best interests of the organization take priority, which can lead to difficult decisions and implementation issues

Because they are emotional issues and stakeholders have many vested interests

Because strong business executive is required for all compensation decisions

13. What best describes an effective approach for balancing multiple priorities and perspectives regarding compensation?

Being firm and uncompromising in your decision-making

Representing your view with data and relating it to business results

Finding a compromise that may not appease all stakeholders but does not give any one group or person everything they are seeking

Giving priority to perspectives based on the job or influence level of the stakeholders

14. What is the primary reason why a compensation professional working for a multinational company should understand regulatory requirements and application of rewards globally?

Because legal compliance with compensation-related regulations is the responsibility of the compensation department

Because the compensation professional has a fiduciary responsibility to ensure that the financial resources of their organization are spent in a prudent manner

Because it is possible to pay significantly less for talent in different countries and compensation should advise management on when and where to locate various jobs within the company

They shouldn’t. Due to the complexities of global regulations and practices, compensation administration outside of the home country should be outsourced.

15. You have been asked to develop a short-term incentive plan that motivates employees in business units to increase productivity. Your team has designed a plan that rewards managers and employees quarterly based on achievement against target on measures that should generate productivity increases that will self-fund the plan.

When presenting the plan to senior management, what would be the best strategy to receive approval?

Demonstrate how it is aligned to the rewards philosophy, principles and organizational business strategy

Provide details on the plan design and measures and how they will be administered to employees at different levels

Make the case that a self-funded plan poses no risk to the organization while creating the potential for significant gains

Identify in advance the priorities of the various stakeholders and design your presentation to address any objections or perceptions they may have

16. What is the most accurate statement regarding the effect of compensation plans on the organization?

They typically have the greatest effect on net income and operating results of any organizational expense or program

Their success or failure is closely tied to the success or failure of organization wide goals and objectives

They have very little effect as long as they are managed effectively and efficiently

They affect the organization’s overall financial status and impact multiple stakeholders across most, if not all, business units

17. What best describes a benefit of business executive with regard to career development?

The ability to display confidence and decisiveness that will inspire others and make you a better leader

A greater likelihood of promotion, especially when you are competing with individuals with more experience

Increased marketability, which will lead to qualification for opportunities outside of human resources

It is critical to your career development and a deficiency is very likely to hinder career advancement and success.

18. Which of the following best describes the guiding principles and/or beliefs shared by stakeholders in an organization?

Mission

Vision

Values

Strategy

19. What is a “profit model?”

The intention or purpose of the business

A descriptor for how the company works

The financial objectives of the organization

The plan for how the organization generates revenue and makes money

20. How is the purpose of a non-profit organization typically communicated?

Explained throughout the mission, vision, values and strategy

Implied in the mission, vision and strategy and specifically explained on the organization’s website

Reflected in the mission, vision, values and strategy although often not stated directly

Documented internally but not released to the public to protect trade secrets and maintain competitive advantage

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21. What is the most accurate definition of organizational vision?

A description of who the organization is, where it is headed and what it wants for the future

A written explanation of the intention or purpose of the organization and why it is in business

A statement of what kind of organization it wants to be and the guiding principles and/or beliefs shared by stakeholders

A detailed account of the organization’s goals, directions to achieve them and how it will compete

22. What question is answered by the organization’s mission statement?

What direction will we take?

How do we work?

Why are we in business?

How will we achieve our objectives?

23. What is the most common term for the broad framework of principles and approaches that guide day-to-day decisions affecting the business, including how it positions itself in the market?

The business plan

The corporate objective

The mission statement

The competitive strategy

24. A fine jewelry chain distinguishes itself from the competition by focusing on carefully selected customers and building bonds to meet or exceed their needs and expectations.

What strategy is this company using?

Operational excellence

Product/service leadership

Customer intimacy

Brand loyalty

25. The XYZ Company produces innovative products and brings them to market in advance of their competitors.

What strategy is XYZ using?

Operational excellence

Product/service leadership

Customer intimacy

Brand loyalty

26. The “Value Store” retail company offers its customers low prices and ease of purchase by minimizing waste and striving for high efficiency.

What strategy is the “Value Store” using?

Operational excellence

Product/service leadership

Customer intimacy

Brand loyalty

27. Regarding market position, a business with a high market share but low growth potential is typically referred to as what?

A Star

A Question Mark

A Market Leader

A Cash Cow

28. The Alpha Company was once a strong company that commanded a high percentage of the market it operated in. In recent years, Alpha has been losing market share to competitors in its primary line of business and has been unable to find a competitive strategy to grow and return to profitability.

Given its market position, how is Alpha most likely finding the monetary resources to continue operations?

By using cash from other segments of the business

By using its high credit rating from prior years to receive a line of credit until the strategy begins to work

By selling its products and services at a loss until revenue increases and slowly raising prices until it begins to break even

By identifying and duplicating the strategy used by its main competitor.

29. What challenge is most likely faced by a business with low market share and high growth potential?

Its ability to generate profits is unknown.

It is in the worst market position and has insufficient resources to continue operations.

It is unclear how to best utilize the high cash flow to sustain growth.

Its excess resources are often used to develop other businesses that may not be mission-critical.

30. The XYZ Company focuses on maintaining/increasing market share and its products tend to be more evolutionary than revolutionary.

What stage of the business lifecycle is XYZ most likely in?

Start-up

Growth

Mature

Decline

Worldatwork Certified Executive Compensation Professional CECP Preparation Questions

Worldatwork Certified Executive Compensation Professional CECP Preparation Questions

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