WGU C202 MANAGING HUMAN CAPITAL ALL EXAM
QUESTIONS AND ANSWERS
Direct financial compensation - CORRECT ANSWER✅✅compensation received in the form of salary,
wages, commissions, stock options or bonuses
indirect financial compensation - CORRECT ANSWER✅✅all the tangible and financially valued rewards
that are not included in direct compensation including free meals, vacation time and health insurance
nonfinancial compensation - CORRECT ANSWER✅✅rewards and incentives given to employees that
aren't financial in nature
base pay - CORRECT ANSWER✅✅reflects the size and scope of an employee's responsibilities
severance pay - CORRECT ANSWER✅✅give to employees upon termination of their employment
fixed pay - CORRECT ANSWER✅✅pays employees a set amount regardless of performance
variable pay - CORRECT ANSWER✅✅bases some or all of an employee's compensation on employee,
team, or organizational
pay structure - CORRECT ANSWER✅✅the array of pay rates for different work or skills within a single
organization
pay mix - CORRECT ANSWER✅✅the relative emphasis give to different compensation components
pay leader - CORRECT ANSWER✅✅organization with a compensation policy of giving employees
greater rewards than competitors
pay follower - CORRECT ANSWER✅✅an organization that pays its front-line employees as little as
possible
,resource dependence theory - CORRECT ANSWER✅✅proposition that organizational decisions are
influenced by both internal and external agents who control critical resources
wage differentials - CORRECT ANSWER✅✅differences in wage between various workers, groups of
workers, or workers within a career field
labor market - CORRECT ANSWER✅✅all of the potential employees located within a geographic area
from which the organization might be able to hire
cost of living allowances - CORRECT ANSWER✅✅clauses in union contacts that automatically increase
wages base on the U.S. Bureau of Labor Statistics' cost of living index
market pricing - CORRECT ANSWER✅✅uses external sources of information about how others are
compensating a certain position to assign value to a company's similar job
Compensation surveys - CORRECT ANSWER✅✅surveys of other organizations conducted to learn what
they are paying for specific jobs or job classes
benchmark jobs - CORRECT ANSWER✅✅jobs that tend to exist across departments and across diverse
organizations allowing them to be used as a basis for compensation comparisons
job evaluation - CORRECT ANSWER✅✅a systematic process that uses expert judgement to assess
differences in value between jobs
ranking methos - CORRECT ANSWER✅✅subjectively compares jobs to each other based on their overall
worth to the organization
job classification method - CORRECT ANSWER✅✅subjectively classifies jobs into an exiting hierarchy of
grades and categories
,point factor method - CORRECT ANSWER✅✅uses a set of compensable factors to determine a job's
value. skill, resp, effort, working cond.
compensable factor - CORRECT ANSWER✅✅any characteristic used to provide a basis for judging a
job's value
skills, responsibilities, effort, working conditions - CORRECT ANSWER✅✅Four categories of
compensable factors
Hay Group Guide Chart - Profile Method - CORRECT ANSWER✅✅a point-factor system is used to
produce both a profile and a point score for each position.
know how
problem solving
accountability
working conditions
Know-how, problem solving, accountability, working conditions - CORRECT ANSWER✅✅Hay Group
Method based on four main factors
Position Analysis Questionnaire - CORRECT ANSWER✅✅a structured job evaluation questionnaire that
is statistically analyzed to calculate pay rates based on how the labor market is valuing worker
characteristics. a copyrighted, standardized, structured job analysis questionnaire. 6 sections covering
187 job elements.
job pricing - CORRECT ANSWER✅✅the generation of salary structures and pay levels for each job based
on the job evaluation data
single rate system, pay grades and broadbanding - CORRECT ANSWER✅✅Three most common job
pricing systems
pay grade (pay scale) - CORRECT ANSWER✅✅the range of possible pay for a group of jobs
, broadbanding - CORRECT ANSWER✅✅using very wide pay grades to increase pay flexibility
internal equity - CORRECT ANSWER✅✅when employees perceive their pay to be fair relative to the pay
of other jobs in the organization
employee equity - CORRECT ANSWER✅✅the perceived fairness of the relative pay between employees
performing similar jobs for the same organization
external equity - CORRECT ANSWER✅✅when an organization's employees believe that their pay is fair
when compared to what other employers pay their employees who perform similar jobs
comparable worth - CORRECT ANSWER✅✅if two jobs have equal difficulty requirements, the pay
should be the same, regardless of who fills them
wage rate compression - CORRECT ANSWER✅✅starting salaries for new hires exceed the salaries paid
to experienced employees
golden parachute - CORRECT ANSWER✅✅lucrative benefits given to executives in the event the
company is taken over
Cost-of-living adjustments - CORRECT ANSWER✅✅pay increases to account for a higher cost of living in
one country versus another
Housing allowance - CORRECT ANSWER✅✅payments to subsidize or cover housing and related costs
hardship premiums - CORRECT ANSWER✅✅increased salary for living in an area with a lower quality of
life, less safety, etc.
tax equalization payments - CORRECT ANSWER✅✅increased salary to make up for higher taxes that
reduce take-home pay and decrease employee's purchasing power
QUESTIONS AND ANSWERS
Direct financial compensation - CORRECT ANSWER✅✅compensation received in the form of salary,
wages, commissions, stock options or bonuses
indirect financial compensation - CORRECT ANSWER✅✅all the tangible and financially valued rewards
that are not included in direct compensation including free meals, vacation time and health insurance
nonfinancial compensation - CORRECT ANSWER✅✅rewards and incentives given to employees that
aren't financial in nature
base pay - CORRECT ANSWER✅✅reflects the size and scope of an employee's responsibilities
severance pay - CORRECT ANSWER✅✅give to employees upon termination of their employment
fixed pay - CORRECT ANSWER✅✅pays employees a set amount regardless of performance
variable pay - CORRECT ANSWER✅✅bases some or all of an employee's compensation on employee,
team, or organizational
pay structure - CORRECT ANSWER✅✅the array of pay rates for different work or skills within a single
organization
pay mix - CORRECT ANSWER✅✅the relative emphasis give to different compensation components
pay leader - CORRECT ANSWER✅✅organization with a compensation policy of giving employees
greater rewards than competitors
pay follower - CORRECT ANSWER✅✅an organization that pays its front-line employees as little as
possible
,resource dependence theory - CORRECT ANSWER✅✅proposition that organizational decisions are
influenced by both internal and external agents who control critical resources
wage differentials - CORRECT ANSWER✅✅differences in wage between various workers, groups of
workers, or workers within a career field
labor market - CORRECT ANSWER✅✅all of the potential employees located within a geographic area
from which the organization might be able to hire
cost of living allowances - CORRECT ANSWER✅✅clauses in union contacts that automatically increase
wages base on the U.S. Bureau of Labor Statistics' cost of living index
market pricing - CORRECT ANSWER✅✅uses external sources of information about how others are
compensating a certain position to assign value to a company's similar job
Compensation surveys - CORRECT ANSWER✅✅surveys of other organizations conducted to learn what
they are paying for specific jobs or job classes
benchmark jobs - CORRECT ANSWER✅✅jobs that tend to exist across departments and across diverse
organizations allowing them to be used as a basis for compensation comparisons
job evaluation - CORRECT ANSWER✅✅a systematic process that uses expert judgement to assess
differences in value between jobs
ranking methos - CORRECT ANSWER✅✅subjectively compares jobs to each other based on their overall
worth to the organization
job classification method - CORRECT ANSWER✅✅subjectively classifies jobs into an exiting hierarchy of
grades and categories
,point factor method - CORRECT ANSWER✅✅uses a set of compensable factors to determine a job's
value. skill, resp, effort, working cond.
compensable factor - CORRECT ANSWER✅✅any characteristic used to provide a basis for judging a
job's value
skills, responsibilities, effort, working conditions - CORRECT ANSWER✅✅Four categories of
compensable factors
Hay Group Guide Chart - Profile Method - CORRECT ANSWER✅✅a point-factor system is used to
produce both a profile and a point score for each position.
know how
problem solving
accountability
working conditions
Know-how, problem solving, accountability, working conditions - CORRECT ANSWER✅✅Hay Group
Method based on four main factors
Position Analysis Questionnaire - CORRECT ANSWER✅✅a structured job evaluation questionnaire that
is statistically analyzed to calculate pay rates based on how the labor market is valuing worker
characteristics. a copyrighted, standardized, structured job analysis questionnaire. 6 sections covering
187 job elements.
job pricing - CORRECT ANSWER✅✅the generation of salary structures and pay levels for each job based
on the job evaluation data
single rate system, pay grades and broadbanding - CORRECT ANSWER✅✅Three most common job
pricing systems
pay grade (pay scale) - CORRECT ANSWER✅✅the range of possible pay for a group of jobs
, broadbanding - CORRECT ANSWER✅✅using very wide pay grades to increase pay flexibility
internal equity - CORRECT ANSWER✅✅when employees perceive their pay to be fair relative to the pay
of other jobs in the organization
employee equity - CORRECT ANSWER✅✅the perceived fairness of the relative pay between employees
performing similar jobs for the same organization
external equity - CORRECT ANSWER✅✅when an organization's employees believe that their pay is fair
when compared to what other employers pay their employees who perform similar jobs
comparable worth - CORRECT ANSWER✅✅if two jobs have equal difficulty requirements, the pay
should be the same, regardless of who fills them
wage rate compression - CORRECT ANSWER✅✅starting salaries for new hires exceed the salaries paid
to experienced employees
golden parachute - CORRECT ANSWER✅✅lucrative benefits given to executives in the event the
company is taken over
Cost-of-living adjustments - CORRECT ANSWER✅✅pay increases to account for a higher cost of living in
one country versus another
Housing allowance - CORRECT ANSWER✅✅payments to subsidize or cover housing and related costs
hardship premiums - CORRECT ANSWER✅✅increased salary for living in an area with a lower quality of
life, less safety, etc.
tax equalization payments - CORRECT ANSWER✅✅increased salary to make up for higher taxes that
reduce take-home pay and decrease employee's purchasing power
