WGU C202 Managing Human Capital
All questions and answers 2026\2027
A+ Grade
Direct financial compensation -
correct answer compensation received in the form of salary, wages, commissions, stock options or
bonuses
indirect financial compensation -
correct 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 -
correct answer rewards and incentives given to employees that aren't financial in nature
base pay -
correct answer reflects the size and scope of an employee's responsibilities
severance pay -
correct answer give to employees upon termination of their employment
fixed pay -
correct answer pays employees a set amount regardless of performance
variable pay -
correct answer bases some or all of an employee's compensation on employee, team, or organizational
pay structure -
correct answer the array of pay rates for different work or skills within a single organization
,pay mix -
correct answer the relative emphasis give to different compensation components
pay leader -
correct answer organization with a compensation policy of giving employees greater rewards than
competitors
pay follower -
correct answer an organization that pays its front-line employees as little as possible
resource dependence theory -
correct answer proposition that organizational decisions are influenced by both internal and external
agents who control critical resources
wage differentials -
correct answer differences in wage between various workers, groups of workers, or workers within a
career field
labor market -
correct answer all of the potential employees located within a geographic area from which the
organization might be able to hire
cost of living allowances -
correct answer clauses in union contacts that automatically increase wages base on the U.S. Bureau of
Labor Statistics' cost of living index
market pricing -
correct 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 -
correct answer surveys of other organizations conducted to learn what they are paying for specific jobs
or job classes
,benchmark jobs -
correct 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 -
correct answer a systematic process that uses expert judgement to assess differences in value between
jobs
ranking methos -
correct answer subjectively compares jobs to each other based on their overall worth to the
organization
job classification method -
correct answer subjectively classifies jobs into an exiting hierarchy of grades and categories
point factor method -
correct answer uses a set of compensable factors to determine a job's value. skill, resp, effort, working
cond.
compensable factor -
correct answer any characteristic used to provide a basis for judging a job's value
skills, responsibilities, effort, working conditions -
correct answer Four categories of compensable factors
Hay Group Guide Chart - Profile Method -
correct 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 -
correct answer Hay Group Method based on four main factors
Position Analysis Questionnaire -
correct 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 -
correct 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 -
correct answer Three most common job pricing systems
pay grade (pay scale) -
correct answer the range of possible pay for a group of jobs
broadbanding -
correct answer using very wide pay grades to increase pay flexibility
internal equity -
correct answer when employees perceive their pay to be fair relative to the pay of other jobs in the
organization
employee equity -
correct answer the perceived fairness of the relative pay between employees performing similar jobs
for the same organization
external equity -
correct 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
All questions and answers 2026\2027
A+ Grade
Direct financial compensation -
correct answer compensation received in the form of salary, wages, commissions, stock options or
bonuses
indirect financial compensation -
correct 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 -
correct answer rewards and incentives given to employees that aren't financial in nature
base pay -
correct answer reflects the size and scope of an employee's responsibilities
severance pay -
correct answer give to employees upon termination of their employment
fixed pay -
correct answer pays employees a set amount regardless of performance
variable pay -
correct answer bases some or all of an employee's compensation on employee, team, or organizational
pay structure -
correct answer the array of pay rates for different work or skills within a single organization
,pay mix -
correct answer the relative emphasis give to different compensation components
pay leader -
correct answer organization with a compensation policy of giving employees greater rewards than
competitors
pay follower -
correct answer an organization that pays its front-line employees as little as possible
resource dependence theory -
correct answer proposition that organizational decisions are influenced by both internal and external
agents who control critical resources
wage differentials -
correct answer differences in wage between various workers, groups of workers, or workers within a
career field
labor market -
correct answer all of the potential employees located within a geographic area from which the
organization might be able to hire
cost of living allowances -
correct answer clauses in union contacts that automatically increase wages base on the U.S. Bureau of
Labor Statistics' cost of living index
market pricing -
correct 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 -
correct answer surveys of other organizations conducted to learn what they are paying for specific jobs
or job classes
,benchmark jobs -
correct 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 -
correct answer a systematic process that uses expert judgement to assess differences in value between
jobs
ranking methos -
correct answer subjectively compares jobs to each other based on their overall worth to the
organization
job classification method -
correct answer subjectively classifies jobs into an exiting hierarchy of grades and categories
point factor method -
correct answer uses a set of compensable factors to determine a job's value. skill, resp, effort, working
cond.
compensable factor -
correct answer any characteristic used to provide a basis for judging a job's value
skills, responsibilities, effort, working conditions -
correct answer Four categories of compensable factors
Hay Group Guide Chart - Profile Method -
correct 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 -
correct answer Hay Group Method based on four main factors
Position Analysis Questionnaire -
correct 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 -
correct 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 -
correct answer Three most common job pricing systems
pay grade (pay scale) -
correct answer the range of possible pay for a group of jobs
broadbanding -
correct answer using very wide pay grades to increase pay flexibility
internal equity -
correct answer when employees perceive their pay to be fair relative to the pay of other jobs in the
organization
employee equity -
correct answer the perceived fairness of the relative pay between employees performing similar jobs
for the same organization
external equity -
correct 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
