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MB-920 Practice Question: Which THREE components must be configured to…
Which THREE components must be configured to enable a complete compensation management process in Dynamics 365 Human Resources?
⚠ Common exam trap
Test-takers frequently confuse optional HR configuration items (like position types or work calendars) with the mandatory components required specifically for compensation management, leading them to select irrelevant options.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Compensation levels
Compensation levels (C) are a core component because they define the pay ranges (e.g., minimum, midpoint, maximum) associated with job grades or positions, which are essential for structuring compensation plans. In Dynamics 365 Human Resources, compensation levels are used within compensation grids to map pay rates to specific jobs or positions, enabling a complete compensation management process.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Position types
Why it's wrong here
Position types categorize positions, not directly used in compensation plans.
- ✗
Work calendars
Why it's wrong here
Work calendars are for absence and attendance, not compensation.
- ✓
Compensation levels
Why this is correct
Compensation levels group jobs with similar pay ranges.
- ✓
Compensation grids
Why this is correct
Compensation grids define pay ranges and rates.
- ✓
Eligibility rules
Why this is correct
Eligibility rules determine which employees are eligible for a compensation plan.
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