lOMoAR cPSD| 6861666
WGU C202 MANAGING HUMAN CAPITAL | CH 1-14 HUMAN
RESOURCE MANAGEMENT (HRM), COMPETITIVE
ADVANTAGE STUDY GUIDE QUESTIONS AND CORRECT
ANSWERS | NEW 2026/27 UPDATE | GRADED A+
C202 STUDY GUIDE
Ch 1
1. What is competitive advantage? Competitive advantage is the organization’s ability to
perform better than competitors in ways that matter—such as lower cost, higher quality,
stronger innovation, or better customer service. In HR terms, it often comes from a
workforce whose skills, motivation, and culture are difficult for competitors to imitate.
2. How can HR help organizations maximize their effectiveness? HR maximizes
effectiveness by ensuring the organization has the right people, with the right skills, in
the right roles, supported by systems that promote performance, engagement, and
retention. HR builds talent pipelines, develops employees, designs fair policies, and
aligns people practices with organizational goals.
3. What are the 6 functional areas of HRM? Summarize each area.
• Staffing — Recruiting, selecting, and onboarding employees to ensure the organization
has qualified talent.
• Human Resource Development (HRD) — Training, career development, leadership
development, and succession planning to grow employee capabilities.
• Compensation and Benefits — Designing pay structures, incentives, and benefits that
attract and retain employees while maintaining internal and external equity.
• Employee and Labor Relations — Managing communication, conflict resolution,
engagement, and union relationships to maintain positive workplace relations.
• Safety and Health — Ensuring compliance with OSHA, reducing workplace hazards, and
promoting employee well-being.
• Performance Management — Setting expectations, evaluating performance, giving
feedback, and aligning employee goals with organizational strategy.
4. An effective HRM system helps manage organizational risk. Explain what this means.
Managing risk means reducing threats that could harm the organization—legal
, lOMoAR cPSD| 6861666
violations, unsafe conditions, discrimination claims, turnover, skill shortages, or
inconsistent policies. HR reduces these risks through compliance, documentation, fair
processes, training, and strong hiring and performance systems.
5. When HR increases the organization’s ability to manage change, how does this benefit
the entire organization’s performance? Effective change management helps employees
adapt quickly, reduces resistance, maintains morale, and keeps productivity stable during
transitions. HR supports this through communication, training, leadership coaching, and
culture alignment, which leads to smoother implementation of strategic initiatives and
stronger overall performance.
6. Explain business strategy and how HR might help execute it. Business strategy is the
organization’s long-term plan for achieving goals—such as cost leadership,
differentiation, innovation, or market expansion. HR executes strategy by hiring people
with the needed skills, developing strategic capabilities, designing reward systems that
reinforce desired behaviors, and shaping a culture that supports strategic priorities.
7. What’s your response to the Strategic HRM Exercise p. 1.21? The exercise highlights
that HR must operate as a strategic partner rather than an administrative function. HR
adds the most value when it understands the business model, anticipates talent needs,
and aligns staffing, development, performance, and culture with organizational goals.
The key insight is that strategy succeeds only when the workforce is intentionally built
and supported to carry it out.
Ch 2
1. How can HRM influence organizational culture? By hiring people who fit the values,
training employees in expected behaviors, and reinforcing norms through policies and
rewards.
2. Explain a situation where a manager might seek out HR’s guidance. When handling a
performance issue that may lead to discipline and requires proper documentation and
legal compliance.
3. What are 3 ways HR can support and reinforce ethical behavior in the workplace? Clear
ethics policies, ethics training, and safe reporting systems that protect employees from
retaliation.
4. Which ethical standard applies to each action?
Action Ethical Standard
Rights (right to
Employee refuses unsafe glass-cutting task safety)
WGU C202 MANAGING HUMAN CAPITAL | CH 1-14 HUMAN
RESOURCE MANAGEMENT (HRM), COMPETITIVE
ADVANTAGE STUDY GUIDE QUESTIONS AND CORRECT
ANSWERS | NEW 2026/27 UPDATE | GRADED A+
C202 STUDY GUIDE
Ch 1
1. What is competitive advantage? Competitive advantage is the organization’s ability to
perform better than competitors in ways that matter—such as lower cost, higher quality,
stronger innovation, or better customer service. In HR terms, it often comes from a
workforce whose skills, motivation, and culture are difficult for competitors to imitate.
2. How can HR help organizations maximize their effectiveness? HR maximizes
effectiveness by ensuring the organization has the right people, with the right skills, in
the right roles, supported by systems that promote performance, engagement, and
retention. HR builds talent pipelines, develops employees, designs fair policies, and
aligns people practices with organizational goals.
3. What are the 6 functional areas of HRM? Summarize each area.
• Staffing — Recruiting, selecting, and onboarding employees to ensure the organization
has qualified talent.
• Human Resource Development (HRD) — Training, career development, leadership
development, and succession planning to grow employee capabilities.
• Compensation and Benefits — Designing pay structures, incentives, and benefits that
attract and retain employees while maintaining internal and external equity.
• Employee and Labor Relations — Managing communication, conflict resolution,
engagement, and union relationships to maintain positive workplace relations.
• Safety and Health — Ensuring compliance with OSHA, reducing workplace hazards, and
promoting employee well-being.
• Performance Management — Setting expectations, evaluating performance, giving
feedback, and aligning employee goals with organizational strategy.
4. An effective HRM system helps manage organizational risk. Explain what this means.
Managing risk means reducing threats that could harm the organization—legal
, lOMoAR cPSD| 6861666
violations, unsafe conditions, discrimination claims, turnover, skill shortages, or
inconsistent policies. HR reduces these risks through compliance, documentation, fair
processes, training, and strong hiring and performance systems.
5. When HR increases the organization’s ability to manage change, how does this benefit
the entire organization’s performance? Effective change management helps employees
adapt quickly, reduces resistance, maintains morale, and keeps productivity stable during
transitions. HR supports this through communication, training, leadership coaching, and
culture alignment, which leads to smoother implementation of strategic initiatives and
stronger overall performance.
6. Explain business strategy and how HR might help execute it. Business strategy is the
organization’s long-term plan for achieving goals—such as cost leadership,
differentiation, innovation, or market expansion. HR executes strategy by hiring people
with the needed skills, developing strategic capabilities, designing reward systems that
reinforce desired behaviors, and shaping a culture that supports strategic priorities.
7. What’s your response to the Strategic HRM Exercise p. 1.21? The exercise highlights
that HR must operate as a strategic partner rather than an administrative function. HR
adds the most value when it understands the business model, anticipates talent needs,
and aligns staffing, development, performance, and culture with organizational goals.
The key insight is that strategy succeeds only when the workforce is intentionally built
and supported to carry it out.
Ch 2
1. How can HRM influence organizational culture? By hiring people who fit the values,
training employees in expected behaviors, and reinforcing norms through policies and
rewards.
2. Explain a situation where a manager might seek out HR’s guidance. When handling a
performance issue that may lead to discipline and requires proper documentation and
legal compliance.
3. What are 3 ways HR can support and reinforce ethical behavior in the workplace? Clear
ethics policies, ethics training, and safe reporting systems that protect employees from
retaliation.
4. Which ethical standard applies to each action?
Action Ethical Standard
Rights (right to
Employee refuses unsafe glass-cutting task safety)
