WGU Managing Human Capital - C202 - chap9
Questions and Verified Answers
Direct financial compensation Correct Answer: compensation received in the form of salary, wages,
commissions, stock options, or bonuses
Pay mix Correct Answer: the relative emphasis given to different compensation components
pay leader Correct Answer: organization with a compensation policy of giving employees greater rewards
than competitors
pay followers 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 wages 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 contracts that
automatically increase wages based 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
Questions and Verified Answers
Direct financial compensation Correct Answer: compensation received in the form of salary, wages,
commissions, stock options, or bonuses
Pay mix Correct Answer: the relative emphasis given to different compensation components
pay leader Correct Answer: organization with a compensation policy of giving employees greater rewards
than competitors
pay followers 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 wages 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 contracts that
automatically increase wages based 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
