WGU C202 Managing Human Capital All
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
comparable worth - correct answer ✔✔if two jobs have equal difficulty requirements, the pay should be
the same, regardless of who fills them
wage rate compression - correct answer ✔✔starting salaries for new hires exceed the salaries paid to
experienced employees
golden parachute - correct answer ✔✔lucrative benefits given to executives in the event the company is
taken over
Cost-of-living adjustments - correct answer ✔✔pay increases to account for a higher cost of living in one
country versus another
Housing allowance - correct answer ✔✔payments to subsidize or cover housing and related costs
hardship premiums - correct answer ✔✔increased salary for living in an area with a lower quality of life,
less safety, etc.
tax equalization payments - correct answer ✔✔increased salary to make up for higher taxes that reduce
take-home pay and decrease employee's purchasing power
inflation adjustments - correct answer ✔✔larger and/or more frequent raises to maintain employee's
purchasing power in the face of inflation
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
comparable worth - correct answer ✔✔if two jobs have equal difficulty requirements, the pay should be
the same, regardless of who fills them
wage rate compression - correct answer ✔✔starting salaries for new hires exceed the salaries paid to
experienced employees
golden parachute - correct answer ✔✔lucrative benefits given to executives in the event the company is
taken over
Cost-of-living adjustments - correct answer ✔✔pay increases to account for a higher cost of living in one
country versus another
Housing allowance - correct answer ✔✔payments to subsidize or cover housing and related costs
hardship premiums - correct answer ✔✔increased salary for living in an area with a lower quality of life,
less safety, etc.
tax equalization payments - correct answer ✔✔increased salary to make up for higher taxes that reduce
take-home pay and decrease employee's purchasing power
inflation adjustments - correct answer ✔✔larger and/or more frequent raises to maintain employee's
purchasing power in the face of inflation
