WGU C202 MANAGING HUMAN CAPITAL EXAM QUESTIONS AND VERIFIED ANSWERS (2024 / 2025) / A+ GRADE

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