WGU C232 EXAM 2025 DIFFERENT
VERSION COMPLETE QUESTIONS
AND CORRECT ANSWERS
Which group incentive plan leads to enhanced productivity and subsequently creates
additional profits. - Correct Ans-Gainsharing
Describe the term "piecework." - Correct Ans-A form of variable compensation where
employees are guaranteed a standard pay rate for each unit of output
Describe the term "sales incentive (commission)." - Correct Ans-A form of variable
where employees are paid a percentage of the sales revenue generated by the
employee.
Define the term "job evaluation." - Correct Ans-The systematic process for assessing
the relative worth of jobs within an organization. A job evaluation should be conducted
for every new position in order to ensure the organization is hiring the correct level
based on expected tasks, qualifications and responsibilities of the job or job has
changed substantially.
Define indirect compensation. - Correct Ans-Non-monetary benefits provided to
workers, such as pension funds, mobile phones, training, health and life insurance and
employee services.
Is health care consider a form of direct or indirect compensation? - Correct Ans-Indirect
compensation
Is a bonus consider direct or indirect compensation? - Correct Ans-it goes directly into
the employee's pay check (direct)
Is merit pay an example fixed or variable compensation? - Correct Ans-the amount of
the raise changes based on the employee's performance review rating. (variable)
Is a bonus an example fixed or variable compensation? - Correct Ans-The dollar
amount of the bonus changes (or varies) based on the employee's and/or the
organization's performance. (variable)
Define fixed pay. - Correct Ans-Fixed pay is compensation that is independent of
performance.
What are the two most common forms of fixed pay? - Correct Ans-Hourly wage and/or a
yearly salary
WGU C232
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Describe the term "cash plans." - Correct Ans-The payment of profit shares at regular
intervals
Describe the term "gainsharing (or bonus based on achievement)." - Correct Ans-A
bonus payment based on achieving an operational goal. For example, increased
customer retention.
Describe the term "wage-dividend plan." - Correct Ans-The percentage of profits paid to
employees is based on the amount of dividends paid to stockholders.
What are the two ways organizations use performance appraisal data? - Correct Ans-
The two ways are administrative and developmental
Under what circumstances are peer appraisals useful? - Correct Ans-Peer appraisals
can be very useful for self-managed teams and when teamwork is encouraged.
Define the term "subordinate" as used in the performance management process. -
Correct Ans-Subordinates are all of the employees who work for a supervisor/manager.
The supervisor is responsible for assigning them work and managing their performance.
What information is learned from appraisal by subordinates? - Correct Ans-
Subordinates' appraisals can make managers more aware of their impact on their
employees.
In what circumstances is ranking performance appraisal method useful? - Correct Ans-
Peer appraisals can be very useful for self-managed teams and when teamwork is
encouraged.
Define the term "subordinate" as used in the performance management process. -
Correct Ans-Subordinates are all of the employees who work for a supervisor/manager.
The supervisor is responsible for assigning them work and managing their performance.
What information is learned from appraisal by subordinates? - Correct Ans-
Subordinates' appraisals can make managers more aware of their impact on their
employees.
In what circumstances is ranking performance appraisal method useful? - Correct Ans-
When there are limited resources (money, promotions, etc.)
What is required from the supervisor under a forced distribution performance appraisal
method? - Correct Ans-To assign only a certain proportion of subordinates (i.e. 5%,
10%, etc.) to each of several categories with respect to each other.
Using performance appraisal data to determine which employees to layoff is an
example of which use of performance appraisal data? - Correct Ans-Administrative
WGU C232
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Under what circumstances is the validity of peer appraisals reduced? - Correct Ans-If
the organizational reward system is highly competitive and based on performance, and
if there is a low level of trust among subordinates.
What role does a job analysis play in performance appraisals - Correct Ans-A job
analysis is used to determine the relationship between an employee's day to day
responsibilities and what he/she is being evaluated on.
Using performance appraisal data to identify and acknowledge strengths is an example
of which use of performance appraisal data? - Correct Ans-Developmental
What are three factors that affect the validity of an organization's performance appraisal
process? - Correct Ans-Rater errorsIncomplete or inaccurate informationPoor
communication
Which of the three types of validity (empirical, content, and construct) is legally
defensible if challenged in court? - Correct Ans-Empirical
Describe strategies for improving individual and team performance. - Correct Ans-
Coaching/feedbackTraining and developmentCompensating employees for
developing/increasing their knowledge, skills or abilities (for example, obtaining a
certification)Employee autonomy - letting workers determine how to address the issue
What are the three ranking methods? - Correct Ans-StraightAlternativePaired
comparisonNote: Regardless of the ranking method used, an organization ends up with
a list of employees from the best to the worst.
Using performance appraisal data to determine an employee's salary increase is an
example of which use of performance appraisal data? - Correct Ans-Administrative
Using performance appraisal data to provide employee feedback is an example of
which use of performance appraisal data? - Correct Ans-Developmental
An organization needs to lay off its two lowest preforming employees. Which
performance appraisal method(s) will provide the needed information (name all the
methods that will work)? - Correct Ans-All three of the ranking methods
(StraightAlternative, Paired comparison)
An organization wants to identify the top 10% of its employees for a new leadership
development program. Which performance appraisal method should the organization
use? - Correct Ans-Forced-Distribution - This method requires managers to assign only
a certain proportion of subordinates (i.e. 5%, 10%, etc.) to each of several categories
with respect to each other.
WGU C232