WGU C202 Managing Human Capital All Exam: Questions and
Answers (2025/2026) (100% (Verified Answers by Expert)
Assured A+
1. Direct financial compensation - ✓✓✓compensation received in the form of salary,
wages, commissions, stock options or bonuses
2. 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
3. nonfinancial compensation - ✓✓✓rewards and incentives given to employees that aren't
financial in nature
4. base pay - ✓✓✓reflects the size and scope of an employee's responsibilities
5. severance pay - ✓✓✓give to employees upon termination of their employment
6. fixed pay - ✓✓✓pays employees a set amount regardless of performance
7. variable pay - ✓✓✓bases some or all of an employee's compensation on employee,
team, or organizational
8. pay structure - ✓✓✓the array of pay rates for different work or skills within a single
organization
9. pay mix - ✓✓✓the relative emphasis give to different compensation components
10. pay leader - ✓✓✓organization with a compensation policy of giving employees greater
rewards than competitors
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,11. pay follower - ✓✓✓an organization that pays its front-line employees as little as possible
12. resource dependence theory - ✓✓✓proposition that organizational decisions are
influenced by both internal and external agents who control critical resources
13. wage differentials - ✓✓✓differences in wage between various workers, groups of
workers, or workers within a career field
14. labor market - ✓✓✓all of the potential employees located within a geographic area from
which the organization might be able to hire
15. 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
16. market pricing - ✓✓✓uses external sources of information about how others are
compensating a certain position to assign value to a company's similar job
17. Compensation surveys - ✓✓✓surveys of other organizations conducted to learn what
they are paying for specific jobs or job classes
18. benchmark jobs - ✓✓✓jobs that tend to exist across departments and across diverse
organizations allowing them to be used as a basis for compensation comparisons
19. job evaluation - ✓✓✓a systematic process that uses expert judgement to assess
differences in value between jobs
20. ranking methos - ✓✓✓subjectively compares jobs to each other based on their overall
worth to the organization
21. job classification method - ✓✓✓subjectively classifies jobs into an exiting hierarchy of
grades and categories
P a g e 2 | 135
,22. point factor method - ✓✓✓uses a set of compensable factors to determine a job's value.
skill, resp, effort, working cond.
23. compensable factor - ✓✓✓any characteristic used to provide a basis for judging a job's
value
24. skills, responsibilities, effort, working conditions - ✓✓✓Four categories of compensable
factors
25. Hay Group Guide Chart - Profile Method - ✓✓✓a point-factor system is used to produce
both a profile and a point score for each position.
26. know how
27. problem solving
28. accountability
29. working conditions
30. Know-how, problem solving, accountability, working conditions - ✓✓✓Hay Group
Method based on four main factors
31. 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.
32. job pricing - ✓✓✓the generation of salary structures and pay levels for each job based
on the job evaluation data
33. single rate system, pay grades and broadbanding - ✓✓✓Three most common job pricing
systems
34. pay grade (pay scale) - ✓✓✓the range of possible pay for a group of jobs
P a g e 3 | 135
, 35. broadbanding - ✓✓✓using very wide pay grades to increase pay flexibility
36. internal equity - ✓✓✓when employees perceive their pay to be fair relative to the pay of
other jobs in the organization
37. employee equity - ✓✓✓the perceived fairness of the relative pay between employees
performing similar jobs for the same organization
38. 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
39. comparable worth - ✓✓✓if two jobs have equal difficulty requirements, the pay should
be the same, regardless of who fills them
40. wage rate compression - ✓✓✓starting salaries for new hires exceed the salaries paid to
experienced employees
41. golden parachute - ✓✓✓lucrative benefits given to executives in the event the company
is taken over
42. Cost-of-living adjustments - ✓✓✓pay increases to account for a higher cost of living in
one country versus another
43. Housing allowance - ✓✓✓payments to subsidize or cover housing and related costs
44. hardship premiums - ✓✓✓increased salary for living in an area with a lower quality of
life, less safety, etc.
45. tax equalization payments - ✓✓✓increased salary to make up for higher taxes that
reduce take-home pay and decrease employee's purchasing power
P a g e 4 | 135
Answers (2025/2026) (100% (Verified Answers by Expert)
Assured A+
1. Direct financial compensation - ✓✓✓compensation received in the form of salary,
wages, commissions, stock options or bonuses
2. 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
3. nonfinancial compensation - ✓✓✓rewards and incentives given to employees that aren't
financial in nature
4. base pay - ✓✓✓reflects the size and scope of an employee's responsibilities
5. severance pay - ✓✓✓give to employees upon termination of their employment
6. fixed pay - ✓✓✓pays employees a set amount regardless of performance
7. variable pay - ✓✓✓bases some or all of an employee's compensation on employee,
team, or organizational
8. pay structure - ✓✓✓the array of pay rates for different work or skills within a single
organization
9. pay mix - ✓✓✓the relative emphasis give to different compensation components
10. pay leader - ✓✓✓organization with a compensation policy of giving employees greater
rewards than competitors
P a g e 1 | 135
,11. pay follower - ✓✓✓an organization that pays its front-line employees as little as possible
12. resource dependence theory - ✓✓✓proposition that organizational decisions are
influenced by both internal and external agents who control critical resources
13. wage differentials - ✓✓✓differences in wage between various workers, groups of
workers, or workers within a career field
14. labor market - ✓✓✓all of the potential employees located within a geographic area from
which the organization might be able to hire
15. 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
16. market pricing - ✓✓✓uses external sources of information about how others are
compensating a certain position to assign value to a company's similar job
17. Compensation surveys - ✓✓✓surveys of other organizations conducted to learn what
they are paying for specific jobs or job classes
18. benchmark jobs - ✓✓✓jobs that tend to exist across departments and across diverse
organizations allowing them to be used as a basis for compensation comparisons
19. job evaluation - ✓✓✓a systematic process that uses expert judgement to assess
differences in value between jobs
20. ranking methos - ✓✓✓subjectively compares jobs to each other based on their overall
worth to the organization
21. job classification method - ✓✓✓subjectively classifies jobs into an exiting hierarchy of
grades and categories
P a g e 2 | 135
,22. point factor method - ✓✓✓uses a set of compensable factors to determine a job's value.
skill, resp, effort, working cond.
23. compensable factor - ✓✓✓any characteristic used to provide a basis for judging a job's
value
24. skills, responsibilities, effort, working conditions - ✓✓✓Four categories of compensable
factors
25. Hay Group Guide Chart - Profile Method - ✓✓✓a point-factor system is used to produce
both a profile and a point score for each position.
26. know how
27. problem solving
28. accountability
29. working conditions
30. Know-how, problem solving, accountability, working conditions - ✓✓✓Hay Group
Method based on four main factors
31. 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.
32. job pricing - ✓✓✓the generation of salary structures and pay levels for each job based
on the job evaluation data
33. single rate system, pay grades and broadbanding - ✓✓✓Three most common job pricing
systems
34. pay grade (pay scale) - ✓✓✓the range of possible pay for a group of jobs
P a g e 3 | 135
, 35. broadbanding - ✓✓✓using very wide pay grades to increase pay flexibility
36. internal equity - ✓✓✓when employees perceive their pay to be fair relative to the pay of
other jobs in the organization
37. employee equity - ✓✓✓the perceived fairness of the relative pay between employees
performing similar jobs for the same organization
38. 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
39. comparable worth - ✓✓✓if two jobs have equal difficulty requirements, the pay should
be the same, regardless of who fills them
40. wage rate compression - ✓✓✓starting salaries for new hires exceed the salaries paid to
experienced employees
41. golden parachute - ✓✓✓lucrative benefits given to executives in the event the company
is taken over
42. Cost-of-living adjustments - ✓✓✓pay increases to account for a higher cost of living in
one country versus another
43. Housing allowance - ✓✓✓payments to subsidize or cover housing and related costs
44. hardship premiums - ✓✓✓increased salary for living in an area with a lower quality of
life, less safety, etc.
45. tax equalization payments - ✓✓✓increased salary to make up for higher taxes that
reduce take-home pay and decrease employee's purchasing power
P a g e 4 | 135
