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Oracle Fusion HCM: Compensation 2014 Essentials Sample Questions:

1. You create a compensation plan and attach a Compensation Performance rating model to it. While the manager is allocating compensation, he specifies a rating for each of the employeesunder him. Where will the rating specified by the manager be available?

A) Only within the current compensation plan and all cycles associated with it
B) To the current compensation plan and the Performance Management system
C) Only within the current compensation plan and the current cycle
D) To the current compensation plan and HR system

2. You are required to explain to your client the use of Hierarchy design in Compensation Process.
Which two Compensation-related activities use Hierarchy?

A) Allocating budgets
B) Plan access
C) Sending Compensation alerts
D) Feedback survey
E) Approval routing

3. What are the two correct options with respect to budgeting when the salary has multiple components?

A) Budgets cannot be separate for each component.
B) Multiple components can have a single budget.
C) Multiple components cannot have a single budget.
D) Budgets can be separate for each component.

4. A corporation is implementing Oracle Fusion Compensation Management and has set up an Individual Compensation plan for contribution towards a retirement benefit. This contribution must be approved by the four-level manager hierarchy.
Identify all the four builders that support a restriction for the number of levels.

A) Supervisory
B) Job level
C) Resource
D) Management Chain
E) Position
F) Department Level

5. A manager publishes budgets as amounts to the managers reporting to him. The following table shows the allocations made to each direct report (managers) and the total salaries of the employees in their chain.

Now, one of Manager 2's employees with eligible salary of $ 100,000 is reassigned to Manager 3. What will be the impact on Budget Percentage?

A) No Impact. The budget allocated to the employee will automatically be allocated to Manager 3. Budget percentage will remain as 10.
B) Budget allocated for the employee will be released back to the manager for reallocation. Budget percentage will remain unchanged.
C) Allocated budget will not change. Budget percentage of Manager 2 will increase to 12.5% and Manager 3 will decrease to 8%.
D) Allocated budget will not change. Budget percentage of Manager 3 will increase to 12.5% and Manager 2 will decrease to 8%.

Solutions: