WGU C202 Managing Human Capital Final Actual
Exam Questions With Verified And Detailed Answers
(2025) Rated A+| Assured Pass
Direct financial compensation - ✔✔ANSWER✔✔>>compensation received in the form
of salary, wages, commissions, stock options or bonuses
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
Hay Group Guide Chart - Profile Method - ✔✔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 -
✔✔ANSWER✔✔>>Hay Group Method based on four main factors
Position Analysis Questionnaire - ✔✔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 - ✔✔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 - ✔✔ANSWER✔✔>>Three most
common job pricing systems
pay grade (pay scale) - ✔✔ANSWER✔✔>>the range of possible pay for a group of jobs
broadbanding - ✔✔ANSWER✔✔>>using very wide pay grades to increase pay flexibility
internal equity - ✔✔ANSWER✔✔>>when employees perceive their pay to be fair
relative to the pay of other jobs in the organization
employee equity - ✔✔ANSWER✔✔>>the perceived fairness of the relative pay between
employees performing similar jobs for the same organization
external equity - ✔✔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 - ✔✔ANSWER✔✔>>if two jobs have equal difficulty requirements,
the pay should be the same, regardless of who fills them
wage rate compression - ✔✔ANSWER✔✔>>starting salaries for new hires exceed the
salaries paid to experienced employees
golden parachute - ✔✔ANSWER✔✔>>lucrative benefits given to executives in the
event the company is taken over
Cost-of-living adjustments - ✔✔ANSWER✔✔>>pay increases to account for a higher
cost of living in one country versus another
, Housing allowance - ✔✔ANSWER✔✔>>payments to subsidize or cover housing and
related costs
hardship premiums - ✔✔ANSWER✔✔>>increased salary for living in an area with a
lower quality of life, less safety, etc.
tax equalization payments - ✔✔ANSWER✔✔>>increased salary to make up for higher
taxes that reduce take-home pay and decrease employee's purchasing power
inflation adjustments - ✔✔ANSWER✔✔>>larger and/or more frequent raises to
maintain employee's purchasing power in the face of inflation
Fair Labor Standards Act of 1938 - ✔✔ANSWER✔✔>>a federal law that sets standards
for minimum wages, overtime pay, and equal pay for men and women performing the
same jobs
exempt employees - ✔✔ANSWER✔✔>>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 - ✔✔ANSWER✔✔>>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 - ✔✔ANSWER✔✔>>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 - ✔✔ANSWER✔✔>>predetermined compensation (salary and benefits)
variable rewards (incentives) - ✔✔ANSWER✔✔>>"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 - ✔✔ANSWER✔✔>>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
Exam Questions With Verified And Detailed Answers
(2025) Rated A+| Assured Pass
Direct financial compensation - ✔✔ANSWER✔✔>>compensation received in the form
of salary, wages, commissions, stock options or bonuses
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
Hay Group Guide Chart - Profile Method - ✔✔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 -
✔✔ANSWER✔✔>>Hay Group Method based on four main factors
Position Analysis Questionnaire - ✔✔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 - ✔✔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 - ✔✔ANSWER✔✔>>Three most
common job pricing systems
pay grade (pay scale) - ✔✔ANSWER✔✔>>the range of possible pay for a group of jobs
broadbanding - ✔✔ANSWER✔✔>>using very wide pay grades to increase pay flexibility
internal equity - ✔✔ANSWER✔✔>>when employees perceive their pay to be fair
relative to the pay of other jobs in the organization
employee equity - ✔✔ANSWER✔✔>>the perceived fairness of the relative pay between
employees performing similar jobs for the same organization
external equity - ✔✔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 - ✔✔ANSWER✔✔>>if two jobs have equal difficulty requirements,
the pay should be the same, regardless of who fills them
wage rate compression - ✔✔ANSWER✔✔>>starting salaries for new hires exceed the
salaries paid to experienced employees
golden parachute - ✔✔ANSWER✔✔>>lucrative benefits given to executives in the
event the company is taken over
Cost-of-living adjustments - ✔✔ANSWER✔✔>>pay increases to account for a higher
cost of living in one country versus another
, Housing allowance - ✔✔ANSWER✔✔>>payments to subsidize or cover housing and
related costs
hardship premiums - ✔✔ANSWER✔✔>>increased salary for living in an area with a
lower quality of life, less safety, etc.
tax equalization payments - ✔✔ANSWER✔✔>>increased salary to make up for higher
taxes that reduce take-home pay and decrease employee's purchasing power
inflation adjustments - ✔✔ANSWER✔✔>>larger and/or more frequent raises to
maintain employee's purchasing power in the face of inflation
Fair Labor Standards Act of 1938 - ✔✔ANSWER✔✔>>a federal law that sets standards
for minimum wages, overtime pay, and equal pay for men and women performing the
same jobs
exempt employees - ✔✔ANSWER✔✔>>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 - ✔✔ANSWER✔✔>>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 - ✔✔ANSWER✔✔>>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 - ✔✔ANSWER✔✔>>predetermined compensation (salary and benefits)
variable rewards (incentives) - ✔✔ANSWER✔✔>>"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 - ✔✔ANSWER✔✔>>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
