WGU C202 Managing Human Capital Exam () Updated Questions with Verified Answers, 100% Guarantee Pass
Direct financial compensation ✔️compensation received in the form of salary, wages, commissions, stock options or bonuses
indirect financial compensation ✔️all the tangible and financially valued rewards that are not included in direct compensation including free
meals, vacation time and health insurance
nonfinancial compensation ✔️rewards and incentives given to employees that aren't financial in nature
base pay ✔️reflects the size and scope of an employee's responsibilities
severance pay ✔️give to employees upon termination of their employment
fixed pay ✔️pays employees a set amount regardless of performance
variable pay ✔️bases some or all of an employee's compensation on employee, team, or organizational
pay structure ✔️the array of pay rates for different work or skills within a single organization
pay mix ✔️the relative emphasis give to different compensation components
pay leader ✔️organization with a compensation policy of giving employees greater rewards than competitors
pay follower ✔️an organization that pays its front-line employees as little as possible
resource dependence theory ✔️proposition that organizational decisions are influenced by both internal and external agents who control critical
resources
wage differentials ✔️differences in wage between various workers, groups of workers, or workers within a career field
labor market ✔️all of the potential employees located within a geographic area from which the organization might be able to hire
cost of living allowances ✔️clauses in union contacts that automatically increase wages base on the U.S. Bureau of Labor Statistics' cost of living
index
market pricing ✔️uses external sources of information about how others are compensating a certain position to assign value to a company's
similar job
Compensation surveys ✔️surveys of other organizations conducted to learn what they are paying for specific jobs or job classes
benchmark jobs ✔️jobs that tend to exist across departments and across diverse organizations allowing them to be used as a basis for
compensation comparisons
job evaluation ✔️a systematic process that uses expert judgement to assess differences in value between jobs
ranking methos ✔️subjectively compares jobs to each other based on their overall worth to the organization
job classification method ✔️subjectively classifies jobs into an exiting hierarchy of grades and categories
point factor method ✔️uses a set of compensable factors to determine a job's value. skill, resp, effort, working cond.
compensable factor ✔️any characteristic used to provide a basis for judging a job's value
skills, responsibilities, effort, working conditions ✔️Four categories of compensable factors
Hay Group Guide Chart - Profile Method ✔️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 ✔️Hay Group Method based on four main factors
Position Analysis Questionnaire ✔️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 ✔️the generation of salary structures and pay levels for each job based on the job evaluation data
single rate system, pay grades and broadbanding ✔️Three most common job pricing systems
pay grade (pay scale) ✔️the range of possible pay for a group of jobs
broadbanding ✔️using very wide pay grades to increase pay flexibility
internal equity ✔️when employees perceive their pay to be fair relative to the pay of other jobs in the organization
employee equity ✔️the perceived fairness of the relative pay between employees performing similar jobs for the same organization
external equity ✔️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 ✔️if two jobs have equal difficulty requirements, the pay should be the same, regardless of who fills them
wage rate compression ✔️starting salaries for new hires exceed the salaries paid to experienced employees
golden parachute ✔️lucrative benefits given to executives in the event the company is taken over
Cost-of-living adjustments ✔️pay increases to account for a higher cost of living in one country versus another
Housing allowance ✔️payments to subsidize or cover housing and related costs
hardship premiums ✔️increased salary for living in an area with a lower quality of life, less safety, etc.
tax equalization payments ✔️increased salary to make up for higher taxes that reduce take-home pay and decrease employee's purchasing
power
inflation adjustments ✔️larger and/or more frequent raises to maintain employee's purchasing power in the face of inflation
Fair Labor Standards Act of 1938 ✔️a federal law that sets standards for minimum wages, overtime pay, and equal pay for men and women
performing the same jobs
exempt employees ✔️employees who meet one of the FLSA exemption tests, are paid on a fixed salary basis and are not entitled to overtime
pay
non-exempt employees ✔️employees who do not meet any of one of the FLSA exemption tests and are paid on an hourly basis and covered by
wage and hour laws regarding minimum wage, overtime pay and hours worked
workers' compensation ✔️a type of insurance that replaces wages and medical benefits for employees injured on the job in exchange for
relinquishing the employee's right to sue the employer for negligence
fixed rewards ✔️predetermined compensation (salary and benefits)
variable rewards (incentives) ✔️"at risk" rewards which are linked to factors determined as valuable, including performance, skills, competence
and contribution
- Recognize and reward high performers
- Increase the likelihood of achieving corporate goals
- Improve productivity
- Move away from an entitlement culture ✔️Top four reasons organizations give for tying pay to performance ar
- Preference of individual employees
, - Size of the rewards for high performance
- Method of motivating individual job performance
- Objectivity of the evaluation process that determines the rewards ✔️Before designing an incentive pay plan to motivate performance, it is
important to consider the
- Company performance
- Reduced merit increases
- Reductions in head count
- Reduced benefits
- Pay freezes ✔️Most common way employers fund variable pay programs
reward differnentiation ✔️differentiating rewards based on performance rather than giving all employees the same reward
short-term incentives ✔️one-time variable rewards used to motivate short-term employee behavior and performance (typically one year or
less). ie bonus or profit sharing. to motivate attendance, cust serv, safety, production quality and quantity
profit sharing ✔️the distribution of organizational profits to all employees
stock options ✔️the right of an employee to buy shares of the company's stock at a certain price (the exercise price) during some future period
of time
long-term incentives ✔️incentives that motivate behaviors and performance that support company value and long-term organizational health. ie
stock options
vesting ✔️the point at which employees can sell or transfer the stock option
pay for performance programs ✔️rewards employees based on some specific measure of their performance
variable pay plans ✔️pay for performance plans that put a small amount of base pay at risk, in exchange for the opportunity to earn additional
pay if performance meets or exceeds a standard
spot awards ✔️awards given immediately when a desired behavior is seen
extrinsic motivation ✔️motivation that comes from outside the individual, including performance bonuses
intrinsic motivation ✔️derived from an interest in or enjoyment from doing a task
skill-based pay ✔️rewards for employees based on the range and depth of their knowledge and skills. effort and coop w/supervisor
limited ability, partial proficiency, full competence
limited ability ✔️ability to perform simple tasks without direction
partial proficiency ✔️ability to apply more advanced principles on the job
full competence ✔️ability to analyze problems associated with the job
competency-based pay ✔️skill-based pay for professional jobs
multi-crafting ✔️employees gain proficiency in two or more trades
recognition awards ✔️rewards for specific achievements like tenure with the organization, helping a coworker or attendence
compressed workweek ✔️40 hour work week in less than five days
job sharing ✔️two or more people split a single job
flextime ✔️scheduling option that lets employees decide when to work within parameters
telecommuting ✔️allows employees to work from home and link to the company's offices via computer.
Direct financial compensation ✔️compensation received in the form of salary, wages, commissions, stock options or bonuses
indirect financial compensation ✔️all the tangible and financially valued rewards that are not included in direct compensation including free
meals, vacation time and health insurance
nonfinancial compensation ✔️rewards and incentives given to employees that aren't financial in nature
base pay ✔️reflects the size and scope of an employee's responsibilities
severance pay ✔️give to employees upon termination of their employment
fixed pay ✔️pays employees a set amount regardless of performance
variable pay ✔️bases some or all of an employee's compensation on employee, team, or organizational
pay structure ✔️the array of pay rates for different work or skills within a single organization
pay mix ✔️the relative emphasis give to different compensation components
pay leader ✔️organization with a compensation policy of giving employees greater rewards than competitors
pay follower ✔️an organization that pays its front-line employees as little as possible
resource dependence theory ✔️proposition that organizational decisions are influenced by both internal and external agents who control critical
resources
wage differentials ✔️differences in wage between various workers, groups of workers, or workers within a career field
labor market ✔️all of the potential employees located within a geographic area from which the organization might be able to hire
cost of living allowances ✔️clauses in union contacts that automatically increase wages base on the U.S. Bureau of Labor Statistics' cost of living
index
market pricing ✔️uses external sources of information about how others are compensating a certain position to assign value to a company's
similar job
Compensation surveys ✔️surveys of other organizations conducted to learn what they are paying for specific jobs or job classes
benchmark jobs ✔️jobs that tend to exist across departments and across diverse organizations allowing them to be used as a basis for
compensation comparisons
job evaluation ✔️a systematic process that uses expert judgement to assess differences in value between jobs
ranking methos ✔️subjectively compares jobs to each other based on their overall worth to the organization
job classification method ✔️subjectively classifies jobs into an exiting hierarchy of grades and categories
point factor method ✔️uses a set of compensable factors to determine a job's value. skill, resp, effort, working cond.
compensable factor ✔️any characteristic used to provide a basis for judging a job's value
skills, responsibilities, effort, working conditions ✔️Four categories of compensable factors
Hay Group Guide Chart - Profile Method ✔️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 ✔️Hay Group Method based on four main factors
Position Analysis Questionnaire ✔️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 ✔️the generation of salary structures and pay levels for each job based on the job evaluation data
single rate system, pay grades and broadbanding ✔️Three most common job pricing systems
pay grade (pay scale) ✔️the range of possible pay for a group of jobs
broadbanding ✔️using very wide pay grades to increase pay flexibility
internal equity ✔️when employees perceive their pay to be fair relative to the pay of other jobs in the organization
employee equity ✔️the perceived fairness of the relative pay between employees performing similar jobs for the same organization
external equity ✔️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 ✔️if two jobs have equal difficulty requirements, the pay should be the same, regardless of who fills them
wage rate compression ✔️starting salaries for new hires exceed the salaries paid to experienced employees
golden parachute ✔️lucrative benefits given to executives in the event the company is taken over
Cost-of-living adjustments ✔️pay increases to account for a higher cost of living in one country versus another
Housing allowance ✔️payments to subsidize or cover housing and related costs
hardship premiums ✔️increased salary for living in an area with a lower quality of life, less safety, etc.
tax equalization payments ✔️increased salary to make up for higher taxes that reduce take-home pay and decrease employee's purchasing
power
inflation adjustments ✔️larger and/or more frequent raises to maintain employee's purchasing power in the face of inflation
Fair Labor Standards Act of 1938 ✔️a federal law that sets standards for minimum wages, overtime pay, and equal pay for men and women
performing the same jobs
exempt employees ✔️employees who meet one of the FLSA exemption tests, are paid on a fixed salary basis and are not entitled to overtime
pay
non-exempt employees ✔️employees who do not meet any of one of the FLSA exemption tests and are paid on an hourly basis and covered by
wage and hour laws regarding minimum wage, overtime pay and hours worked
workers' compensation ✔️a type of insurance that replaces wages and medical benefits for employees injured on the job in exchange for
relinquishing the employee's right to sue the employer for negligence
fixed rewards ✔️predetermined compensation (salary and benefits)
variable rewards (incentives) ✔️"at risk" rewards which are linked to factors determined as valuable, including performance, skills, competence
and contribution
- Recognize and reward high performers
- Increase the likelihood of achieving corporate goals
- Improve productivity
- Move away from an entitlement culture ✔️Top four reasons organizations give for tying pay to performance ar
- Preference of individual employees
, - Size of the rewards for high performance
- Method of motivating individual job performance
- Objectivity of the evaluation process that determines the rewards ✔️Before designing an incentive pay plan to motivate performance, it is
important to consider the
- Company performance
- Reduced merit increases
- Reductions in head count
- Reduced benefits
- Pay freezes ✔️Most common way employers fund variable pay programs
reward differnentiation ✔️differentiating rewards based on performance rather than giving all employees the same reward
short-term incentives ✔️one-time variable rewards used to motivate short-term employee behavior and performance (typically one year or
less). ie bonus or profit sharing. to motivate attendance, cust serv, safety, production quality and quantity
profit sharing ✔️the distribution of organizational profits to all employees
stock options ✔️the right of an employee to buy shares of the company's stock at a certain price (the exercise price) during some future period
of time
long-term incentives ✔️incentives that motivate behaviors and performance that support company value and long-term organizational health. ie
stock options
vesting ✔️the point at which employees can sell or transfer the stock option
pay for performance programs ✔️rewards employees based on some specific measure of their performance
variable pay plans ✔️pay for performance plans that put a small amount of base pay at risk, in exchange for the opportunity to earn additional
pay if performance meets or exceeds a standard
spot awards ✔️awards given immediately when a desired behavior is seen
extrinsic motivation ✔️motivation that comes from outside the individual, including performance bonuses
intrinsic motivation ✔️derived from an interest in or enjoyment from doing a task
skill-based pay ✔️rewards for employees based on the range and depth of their knowledge and skills. effort and coop w/supervisor
limited ability, partial proficiency, full competence
limited ability ✔️ability to perform simple tasks without direction
partial proficiency ✔️ability to apply more advanced principles on the job
full competence ✔️ability to analyze problems associated with the job
competency-based pay ✔️skill-based pay for professional jobs
multi-crafting ✔️employees gain proficiency in two or more trades
recognition awards ✔️rewards for specific achievements like tenure with the organization, helping a coworker or attendence
compressed workweek ✔️40 hour work week in less than five days
job sharing ✔️two or more people split a single job
flextime ✔️scheduling option that lets employees decide when to work within parameters
telecommuting ✔️allows employees to work from home and link to the company's offices via computer.
