WGU C202 EXAMINATION TEST VERIFIED
QUESTIONS AND SOLUTIONS GRADED A+
●● indirect financial compensation
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
Answer: rewards and incentives given to employees that aren't financial
in nature
●● base pay
Answer: reflects the size and scope of an employee's responsibilities
●● severance pay
Answer: give to employees upon termination of their employment
●● fixed pay
Answer: pays employees a set amount regardless of performance
●● variable pay
,Answer: bases some or all of an employee's compensation on employee,
team, or organizational
●● pay structure
Answer: the array of pay rates for different work or skills within a single
organization
●● pay mix
Answer: the relative emphasis give to different compensation
components
●● pay leader
Answer: organization with a compensation policy of giving employees
greater rewards than competitors
●● pay follower
Answer: an organization that pays its front-line employees as little as
possible
●● resource dependence theory
Answer: proposition that organizational decisions are influenced by both
internal and external agents who control critical resources
●● wage differentials
,Answer: differences in wage between various workers, groups of
workers, or workers within a career field
●● labor market
Answer: all of the potential employees located within a geographic area
from which the organization might be able to hire
●● cost of living allowances
Answer: clauses in union contacts that automatically increase wages
base on the U.S. Bureau of Labor Statistics' cost of living index
●● market pricing
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
Answer: surveys of other organizations conducted to learn what they are
paying for specific jobs or job classes
●● benchmark jobs
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
Answer: a systematic process that uses expert judgement to assess
differences in value between jobs
●● ranking methos
Answer: subjectively compares jobs to each other based on their overall
worth to the organization
●● job classification method
Answer: subjectively classifies jobs into an exiting hierarchy of grades
and categories
●● point factor method
Answer: uses a set of compensable factors to determine a job's value.
skill, resp, effort, working cond.
●● compensable factor
Answer: any characteristic used to provide a basis for judging a job's
value
●● skills, responsibilities, effort, working conditions
Answer: Four categories of compensable factors
QUESTIONS AND SOLUTIONS GRADED A+
●● indirect financial compensation
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
Answer: rewards and incentives given to employees that aren't financial
in nature
●● base pay
Answer: reflects the size and scope of an employee's responsibilities
●● severance pay
Answer: give to employees upon termination of their employment
●● fixed pay
Answer: pays employees a set amount regardless of performance
●● variable pay
,Answer: bases some or all of an employee's compensation on employee,
team, or organizational
●● pay structure
Answer: the array of pay rates for different work or skills within a single
organization
●● pay mix
Answer: the relative emphasis give to different compensation
components
●● pay leader
Answer: organization with a compensation policy of giving employees
greater rewards than competitors
●● pay follower
Answer: an organization that pays its front-line employees as little as
possible
●● resource dependence theory
Answer: proposition that organizational decisions are influenced by both
internal and external agents who control critical resources
●● wage differentials
,Answer: differences in wage between various workers, groups of
workers, or workers within a career field
●● labor market
Answer: all of the potential employees located within a geographic area
from which the organization might be able to hire
●● cost of living allowances
Answer: clauses in union contacts that automatically increase wages
base on the U.S. Bureau of Labor Statistics' cost of living index
●● market pricing
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
Answer: surveys of other organizations conducted to learn what they are
paying for specific jobs or job classes
●● benchmark jobs
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
Answer: a systematic process that uses expert judgement to assess
differences in value between jobs
●● ranking methos
Answer: subjectively compares jobs to each other based on their overall
worth to the organization
●● job classification method
Answer: subjectively classifies jobs into an exiting hierarchy of grades
and categories
●● point factor method
Answer: uses a set of compensable factors to determine a job's value.
skill, resp, effort, working cond.
●● compensable factor
Answer: any characteristic used to provide a basis for judging a job's
value
●● skills, responsibilities, effort, working conditions
Answer: Four categories of compensable factors
