Western Governors University WGU HRM5010
C202 Managing Human Capital Ultimate Exam
**Question 1. Which of the following best describes the shift from traditional personnel management to
strategic human capital management?**
A) Increasing paperwork for employee records
B) Aligning HR practices with overall business strategy
C) Focusing solely on payroll processing
D) Limiting employee training to compliance topics
Answer: B
Explanation: Strategic human capital management integrates HR activities—recruiting, development,
compensation—with the organization’s long-term goals, unlike the administrative focus of traditional
personnel management.
**Question 2. In a SWOT analysis for HR, which item is an external threat?**
A) Low employee engagement scores
B. Inadequate training budget
C. Emerging competitor with a highly skilled labor pool
D. Outdated HR information system
Answer: C
Explanation: External threats arise outside the organization; a rival’s access to a superior talent pool can
jeopardize the firm’s ability to attract skilled workers.
**Question 3. When aligning HR policy with a cost-leadership strategy, which compensation approach is
most appropriate?**
A) High base salary with limited variable pay
B) Market-based pay with generous bonuses for innovation
C) Salary compression to keep wages near minimum
, Western Governors University WGU HRM5010
C202 Managing Human Capital Ultimate Exam
D) Pay-for-performance plans that reward productivity gains
Answer: D
Explanation: Cost-leadership emphasizes efficiency; pay-for-performance directly ties compensation to
productivity, helping control labor costs while motivating output.
**Question 4. The concept of “human capital value” treats employees primarily as:**
A) Legal liabilities
B) Fixed costs
C) Revenue-generating assets
D) Temporary resources
Answer: C
Explanation: Viewing employees as assets emphasizes their contribution to future earnings, knowledge,
and capabilities, rather than merely expenses.
**Question 5. Title VII of the Civil Rights Act prohibits employment discrimination based on:**
A) Age only
B) Disability only
C) Race, color, religion, sex, or national origin
D) Marital status
Answer: C
Explanation: Title VII specifically covers the five protected classes listed, making discrimination on those
bases illegal.
, Western Governors University WGU HRM5010
C202 Managing Human Capital Ultimate Exam
**Question 6. Under the ADA, an employer must provide a reasonable accommodation unless it
causes:**
A) Disruption to the work schedule
B) Undue hardship on the business
C) Employee dissatisfaction
D) Increased training costs
Answer: B
Explanation: “Undue hardship” is the legal standard for refusing a reasonable accommodation under the
ADA.
**Question 7. Which scenario illustrates disparate impact?**
A) A manager refuses to promote a female employee because of bias.
B) A company’s neutral policy requiring a 5-foot-6-inch height minimum that excludes many women.
C) An employer pays lower wages to older workers.
D) A supervisor makes inappropriate sexual comments to a subordinate.
Answer: B
Explanation: Disparate impact occurs when a facially neutral practice disproportionately harms a
protected group, even without intent to discriminate.
**Question 8. Quid pro quo sexual harassment is defined as:**
A) Unwanted sexual advances that create a hostile environment.
B) A demand for sexual favors in exchange for job benefits.
C) Posting offensive jokes in the break room.
D) A manager ignoring an employee’s complaints about harassment.
, Western Governors University WGU HRM5010
C202 Managing Human Capital Ultimate Exam
Answer: B
Explanation: Quid pro quo harassment involves conditioning employment decisions on sexual
compliance.
**Question 9. Which of the following employees is most likely classified as “exempt” under the FLSA?**
A) A retail sales associate earning hourly wages.
B) A software engineer performing creative and intellectual work.
C) A warehouse worker paid time-and-a-half for overtime.
D) A receptionist handling routine clerical tasks.
Answer: B
Explanation: Exempt status applies to professional, executive, or administrative employees who meet
salary and duties criteria; a software engineer usually qualifies.
**Question 10. Federal contractors with affirmative action plans must:**
A) Hire only minorities for all positions.
B) Set specific numeric hiring quotas.
C) Conduct workforce analyses and set goals to increase representation.
D. Provide free college tuition to all employees.
Answer: C
Explanation: AA plans require contractors to assess workforce composition, identify
under-representation, and develop goals and action steps, not strict quotas.
**Question 11. Forecasting labor demand using trend analysis is most appropriate when:**
A) The organization expects a sudden market disruption.
C202 Managing Human Capital Ultimate Exam
**Question 1. Which of the following best describes the shift from traditional personnel management to
strategic human capital management?**
A) Increasing paperwork for employee records
B) Aligning HR practices with overall business strategy
C) Focusing solely on payroll processing
D) Limiting employee training to compliance topics
Answer: B
Explanation: Strategic human capital management integrates HR activities—recruiting, development,
compensation—with the organization’s long-term goals, unlike the administrative focus of traditional
personnel management.
**Question 2. In a SWOT analysis for HR, which item is an external threat?**
A) Low employee engagement scores
B. Inadequate training budget
C. Emerging competitor with a highly skilled labor pool
D. Outdated HR information system
Answer: C
Explanation: External threats arise outside the organization; a rival’s access to a superior talent pool can
jeopardize the firm’s ability to attract skilled workers.
**Question 3. When aligning HR policy with a cost-leadership strategy, which compensation approach is
most appropriate?**
A) High base salary with limited variable pay
B) Market-based pay with generous bonuses for innovation
C) Salary compression to keep wages near minimum
, Western Governors University WGU HRM5010
C202 Managing Human Capital Ultimate Exam
D) Pay-for-performance plans that reward productivity gains
Answer: D
Explanation: Cost-leadership emphasizes efficiency; pay-for-performance directly ties compensation to
productivity, helping control labor costs while motivating output.
**Question 4. The concept of “human capital value” treats employees primarily as:**
A) Legal liabilities
B) Fixed costs
C) Revenue-generating assets
D) Temporary resources
Answer: C
Explanation: Viewing employees as assets emphasizes their contribution to future earnings, knowledge,
and capabilities, rather than merely expenses.
**Question 5. Title VII of the Civil Rights Act prohibits employment discrimination based on:**
A) Age only
B) Disability only
C) Race, color, religion, sex, or national origin
D) Marital status
Answer: C
Explanation: Title VII specifically covers the five protected classes listed, making discrimination on those
bases illegal.
, Western Governors University WGU HRM5010
C202 Managing Human Capital Ultimate Exam
**Question 6. Under the ADA, an employer must provide a reasonable accommodation unless it
causes:**
A) Disruption to the work schedule
B) Undue hardship on the business
C) Employee dissatisfaction
D) Increased training costs
Answer: B
Explanation: “Undue hardship” is the legal standard for refusing a reasonable accommodation under the
ADA.
**Question 7. Which scenario illustrates disparate impact?**
A) A manager refuses to promote a female employee because of bias.
B) A company’s neutral policy requiring a 5-foot-6-inch height minimum that excludes many women.
C) An employer pays lower wages to older workers.
D) A supervisor makes inappropriate sexual comments to a subordinate.
Answer: B
Explanation: Disparate impact occurs when a facially neutral practice disproportionately harms a
protected group, even without intent to discriminate.
**Question 8. Quid pro quo sexual harassment is defined as:**
A) Unwanted sexual advances that create a hostile environment.
B) A demand for sexual favors in exchange for job benefits.
C) Posting offensive jokes in the break room.
D) A manager ignoring an employee’s complaints about harassment.
, Western Governors University WGU HRM5010
C202 Managing Human Capital Ultimate Exam
Answer: B
Explanation: Quid pro quo harassment involves conditioning employment decisions on sexual
compliance.
**Question 9. Which of the following employees is most likely classified as “exempt” under the FLSA?**
A) A retail sales associate earning hourly wages.
B) A software engineer performing creative and intellectual work.
C) A warehouse worker paid time-and-a-half for overtime.
D) A receptionist handling routine clerical tasks.
Answer: B
Explanation: Exempt status applies to professional, executive, or administrative employees who meet
salary and duties criteria; a software engineer usually qualifies.
**Question 10. Federal contractors with affirmative action plans must:**
A) Hire only minorities for all positions.
B) Set specific numeric hiring quotas.
C) Conduct workforce analyses and set goals to increase representation.
D. Provide free college tuition to all employees.
Answer: C
Explanation: AA plans require contractors to assess workforce composition, identify
under-representation, and develop goals and action steps, not strict quotas.
**Question 11. Forecasting labor demand using trend analysis is most appropriate when:**
A) The organization expects a sudden market disruption.
