Chapter 13: Employees’ Feedback and Reward System (CAIIB – Paper 1)

1. What is the main purpose of obtaining feedback from employees?

  • A. To criticize employee performance publicly
  • B. To reduce workload of management
  • C. To understand employee perspectives and improve organizational processes
  • D. To create competition among employees
Employee feedback is collected to understand employee satisfaction, concerns, and suggestions, which helps in improving processes and policies.

2. Which of the following methods is commonly used for collecting employee feedback?

  • A. Direct observation only
  • B. Surveys, interviews, and suggestion boxes
  • C. Annual company reports
  • D. Monitoring social media posts of employees
Employee feedback can be collected through multiple channels such as surveys, interviews, and suggestion boxes to get genuine inputs.

3. Which of the following is a key benefit of effective employee feedback?

  • A. Increased absenteeism
  • B. Higher employee turnover
  • C. Reduced communication between management and staff
  • D. Improved employee engagement and performance
Effective feedback fosters engagement, motivation, and helps employees align their performance with organizational goals.

4. What is a potential challenge in collecting employee feedback?

  • A. Employees may fear retaliation and provide dishonest responses
  • B. Management always ignores feedback
  • C. Feedback is unnecessary for organizational growth
  • D. Surveys are too cheap to implement
Employees may hesitate to give honest feedback due to fear of negative consequences, making anonymity and trust critical in feedback systems.

5. Continuous employee feedback primarily helps management in:

  • A. Setting arbitrary targets for employees
  • B. Identifying areas of improvement and training needs
  • C. Reducing employee salaries
  • D. Monitoring employee social activities
Regular feedback helps management detect skill gaps, areas for improvement, and design training programs for employee development.

6. What is the primary objective of a reward and compensation system?

  • A. To reduce employee benefits
  • B. To create competition among employees only
  • C. To motivate employees and recognize performance
  • D. To comply with labor laws only
A reward and compensation system is designed to motivate employees, retain talent, and recognize their contributions to organizational goals.

7. Which of the following is considered a financial reward?

  • A. Salary increment or performance bonus
  • B. Employee recognition certificate
  • C. Flexible working hours
  • D. Training and development programs
Financial rewards include monetary benefits like salary increments, bonuses, profit sharing, or stock options to motivate employees.

8. Non-financial rewards typically include:

  • A. Annual performance bonus
  • B. Recognition, promotions, flexible work schedules
  • C. Salary hikes
  • D. Overtime payment
Non-financial rewards are intangible benefits like recognition, promotions, flexible working hours, or a positive work environment.

9. What is a key advantage of linking compensation with performance?

  • A. It eliminates the need for performance appraisals
  • B. Employees focus only on personal growth, ignoring organizational goals
  • C. Reduces transparency in reward allocation
  • D. Motivates employees to achieve targets and align with organizational objectives
Linking compensation with performance encourages employees to meet or exceed targets and supports alignment with organizational goals.

10. Which factor should be considered while designing a reward system?

  • A. Employee hobbies only
  • B. Employee performance, organizational goals, and fairness
  • C. Only senior management preferences
  • D. Random allocation of benefits
A well-designed reward system considers employee performance, organizational objectives, and fairness to ensure motivation and retention.

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