CAIIB · Advanced Bank Management · Module B — Human Resources Management
CAIIB ABM Unit 13 — Employees' Feedback and Reward System: Free MCQs with Explanations
By Swarnakshi Jha (ex-banker) · Updated 29 October 2026 · Paper I of the December 2026 cycle (Sunday 6 December 2026)
This is the free practice page for CAIIB ABM Unit 13 — Employees' Feedback and Reward System (Module B — Human Resources Management). The CAIIB Mock Centre holds 179 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five practice questions with explanations, and the traps that cost marks.
ABM · Module B179 MCQs in the Mock Centre5 free belowPaper on 6 December
Key facts examiners test from this unit
Employees' feedback and climate surveys — feedback, gathered formally and informally and above all through well-run climate surveys, tells management how well it manages people and where to fine-tune policy.
Total rewards and reward strategy — pay should attract, retain and motivate, but it is one pillar of total rewards, and reward strategy must follow business strategy.
Compensation: bases, theories and job evaluation — pay is set by company objectives, the market and internal and external factors; job evaluation values jobs fairly; compa-ratio checks pay against performance.
Changed since the textbook
The four Labour Codes brought into force (21 November 2025). The Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 took effect on 21 November 2025, consolidating 29 central labour laws. The Code on Wages now carries minimum wages, timely payment, limits on deductions, bonus and equal remuneration for men and women. Source: PIB
12th Bipartite Settlement and revised norms for Performance Linked Incentive (8 March 2024). The 12th Bipartite Settlement was signed on 8 March 2024, revising wages by 17% from 1 November 2022, for the period to 31 October 2027. Under an IBA circular of 16 July 2024, PLI norms were revised from 2023-24: each bank chooses its own parameters (such as CASA, NPA, profitability and ROA) and pays PLI of 1 to 15 days' pay, instead of the uniform matrix. Source: Bankersadda
5 free practice questions — tap an option
Five practice questions from this unit. Answers lock on the first tap, exactly as in the exam, and an explanation opens underneath. The Mock Centre has all 179 questions on this unit, from easy to tough, with caselets and key-in numericals, why every other option is wrong and the exam tip — and tracks your score and revision dates.
Question 1 of 5
Why do many organisations combine climate-survey data with performance data?
Why (c): Climate surveys capture how staff experience the way they are managed; set alongside performance data, they show whether better-managed units also perform better, which is how many organisations measure the quality of their people management. (a) is wrong: Survey answers are anonymous and do not set increments. (b) is wrong: Surveys are confidential; they are not used to trace individuals. (d) is wrong: Surveys complement appraisal; they do not replace it.
Question 2 of 5
Which of these is NOT one of the five pillars of a comprehensive rewards system?
Why (d): The five pillars are compensation, benefits, flexibility, performance recognition and career development; seniority is not one of them. (a) is wrong: Career development is a pillar. (b) is wrong: Flexibility is a pillar. (c) is wrong: Performance recognition is a pillar.
Question 3 of 5
A wage between the minimum wage and the level the capacity to pay allows, considering productivity and prevailing rates, is the:
Why (b): The fair wage lies between the minimum wage and what the capacity to pay allows. (a) is wrong: The living wage is defined by needs, not capacity to pay. (c) is wrong: The minimum wage is the floor. (d) is wrong: The need-based wage meets minimum human needs.
Question 4 of 5
A compa-ratio of 100% means the employee is paid:
Why (c): At 100% the salary equals the midpoint, the pay of a fully competent performer. (a) is wrong: The minimum gives a ratio below 100%. (b) is wrong: The maximum gives a ratio above 100%. (d) is wrong: The midpoint is for the position, not all jobs.
Question 5 of 5
Under the 2020 matrix, PLI days depended on the bank's year-on-year growth in:
Why (a): PLI days were set by growth in operating profit, with a net-profit condition for the higher slabs. (b) is wrong: Deposits were not the measure. (c) is wrong: Headcount was not the measure. (d) is wrong: NPAs were not the measure.
0 of 5 answered.
Traps in this unit
A badly run survey can create more problems than it solves.
Total rewards are not financial rewards alone.
Reward strategy is never independent of business strategy.
Practise all 179 questions on Unit 13. The free CAIIB demo opens Units 1–2 of every paper with full explanations; the ABM Online Mock Centre unlocks all 4,600+ ABM questions, the full-length papers with caselets and key-ins, module mocks and Smart Revision for 18 months (₹1,499).
Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. CAIIB content follows rules and developments up to IIBF's cut-off of 30 June 2026 (where a rule changed later, the update box says so); verify from official sources before relying on them in practice.