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WGU C202 Managing Human Capital
Complete Study Guide
Newest Actual Questions & Answers
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
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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
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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
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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
WGU C202 Managing Human Capital
Complete Study Guide
Newest Actual Questions & Answers
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
,2|Page
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
,3|Page
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
, 4|Page
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
