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Exam SPHR topic 1 question 52 discussion

Actual exam question from HRCI's SPHR
Question #: 52
Topic #: 1
[All SPHR Questions]

As a Senior HR Professional, you should be familiar with intrinsic rewards and extrinsic rewards that your company provides for its employees. Which of the following is an example of an extrinsic reward?

  • A. Satisfaction from challenging and exciting assignments
  • B. Cash compensation
  • C. Esteem from working with other talented people
  • D. On-site cafeteria
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Suggested Answer: C 🗳️
Answer option C is correct.
Esteem from working with other talented people is an extrinsic reward.
Answer option A is incorrect. Satisfaction from challenging and exciting assignments is an example of an intrinsic reward.
Answer option B is incorrect. Cash compensation is a monetary reward for employment.
Answer option D is incorrect. An on-site cafeteria is an example of a non-monetary reward.
Certification Guide, HR Certification Institute, ISBN: 978-1-586-44149-4, Section III, The US Body of Knowledge.
Chapter: Compensation and Benefits
Objective: Total Rewards Defined
by DonRichy at June 4, 2024, 11:18 p.m.

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DonRichy
5 months, 2 weeks ago
B. Cash compensation Extrinsic rewards are tangible rewards given to employees for their performance or adherence to company standards. These rewards are usually monetary or physical, such as bonuses, salaries, benefits, or other tangible perks. Cash compensation fits this definition, as it is a direct financial reward provided by the employer.
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