1
WGU C202 MANAGING HUMAN CAPITAL
OBJECTIVE ASSESSMENT EXAM
QUESTIONS AND VERIFIED ANSWERS (2026
/ 2027) / A+ GRADE
1. Question:
A mid-sized technology company is experiencing high turnover among its software
engineers. Exit interviews reveal that employees leave due to a lack of clear career
progression and limited opportunities for skill development. The HR department
decides to implement a mentorship program, coupled with a formal training and
certification program for emerging technologies. How will these interventions
likely impact the company’s human capital, and what should the HR team measure
to determine success?
Answer:
The interventions will likely increase employee engagement, retention, and
internal skill development, thereby strengthening the company’s human capital.
HR should measure turnover rates, employee satisfaction scores, participation
in training programs, promotion rates, and skill competency assessments to
evaluate the impact.
Rationale:
Investing in employee development addresses both motivational and capability
gaps. Mentorship programs provide guidance, support, and knowledge transfer,
while formal training ensures employees gain relevant skills that align with
organizational strategy. Measuring engagement, turnover, and competency ensures
HR can quantify improvements in workforce capability and retention.
2. Question:
A healthcare organization is planning to expand into a new regional market. Senior
leadership is concerned that the existing workforce lacks the necessary leadership
competencies and cultural knowledge to manage the expansion effectively. HR
conducts a competency gap analysis and identifies potential leaders internally but
notices a lack of project management skills among them. What steps should HR
, 2
take to prepare these internal candidates, and why is this approach preferable to
hiring externally?
Answer:
HR should implement targeted leadership development programs, project
management training, and cross-functional assignments to prepare internal
candidates. This approach is preferable because it retains institutional
knowledge, reinforces organizational culture, and increases employee loyalty,
which is more cost-effective and strategically aligned than hiring externally.
Rationale:
Developing internal talent through structured programs enhances succession
planning and workforce continuity. Internal candidates already understand
organizational processes and values, reducing onboarding time and risk. By
measuring skill acquisition and readiness for leadership roles, HR ensures the
workforce can support strategic growth.
3. Question:
A retail company operates in multiple states and faces compliance challenges
related to differing labor laws, minimum wage requirements, and overtime
regulations. Some managers inadvertently schedule employees for overtime
without proper authorization, leading to compliance risks and employee
dissatisfaction. As HR director, what systems and practices would you implement
to reduce these risks, and how do they contribute to overall human capital
effectiveness?
Answer:
HR should implement automated scheduling software with compliance rules,
standardized payroll procedures, and regular manager training on labor laws.
These practices ensure legal compliance, reduce risk of fines, and maintain
employee trust, contributing to the effective utilization and protection of human
capital.
Rationale:
Ensuring compliance protects the organization from legal liabilities and fosters a
fair work environment. Automated systems reduce human error and allow
managers to focus on strategic workforce planning. Training reinforces consistent
knowledge of employment laws, which strengthens HR governance and workforce
reliability.
, 3
4. Question:
An international manufacturing firm wants to enhance employee engagement and
reduce voluntary turnover in its production plants. Surveys reveal that employees
feel undervalued and lack recognition for their contributions. HR proposes
implementing a total rewards system combining competitive pay, performance
bonuses, recognition programs, and career development opportunities. How should
the HR team prioritize these components to maximize engagement, and why?
Answer:
HR should prioritize recognition and career development alongside competitive
pay, because while compensation is essential, employees are more engaged when
they feel valued and see a path for growth. Bonuses and benefits can reinforce
performance, but intrinsic motivators such as recognition and development have a
more sustainable impact on engagement.
Rationale:
Total rewards systems are most effective when they address both extrinsic and
intrinsic motivators. Recognition acknowledges contributions, reinforcing positive
behavior, while development opportunities prepare employees for future roles,
improving retention. Measuring engagement scores, promotion rates, and
performance metrics validates the program’s effectiveness.
5. Question:
A financial services firm is implementing a new performance management system
to replace the annual review process. Managers often struggled to provide timely
feedback, and employees felt evaluations were inconsistent. The new system
allows quarterly goal-setting, continuous feedback, and performance analytics.
What are the expected outcomes of this system on workforce performance, and
what metrics should HR monitor to ensure it achieves its objectives?
Answer:
Expected outcomes include improved employee performance, clearer alignment
with organizational goals, enhanced engagement, and reduced performance-
related disputes. HR should monitor goal achievement rates, frequency and
quality of feedback, employee engagement scores, and turnover among high
performers to measure effectiveness.
, 4
Rationale:
Continuous performance management provides regular communication, ensures
accountability, and links individual contributions to organizational strategy.
Analytics allow HR to identify performance gaps and reward high performers,
strengthening human capital by aligning skills, behaviors, and motivation with
company objectives.
6. Question:
A regional hospital notices a trend of nurses leaving for other hospitals that offer
more flexible scheduling and professional development opportunities. HR wants to
implement a retention strategy that addresses both work-life balance and skill
growth. What initiatives should HR prioritize, and how will these initiatives
strengthen human capital?
Answer:
HR should prioritize flexible scheduling, mentorship programs, and continuing
education opportunities. These initiatives strengthen human capital by retaining
experienced nurses, enhancing their skills, and maintaining continuity of care.
Rationale:
Retention strategies that address both extrinsic (flexible schedules) and intrinsic
(career development, mentoring) motivators reduce turnover and preserve critical
organizational knowledge. Measuring nurse satisfaction, retention rates, and
participation in development programs validates the strategy’s effectiveness.
7. Question:
A technology startup is preparing to scale its operations rapidly over the next two
years. The current workforce lacks experience in large-scale project management
and cross-functional collaboration. HR is tasked with preparing employees to meet
future business needs. What steps should HR take to proactively build this
capability internally, and why is this approach preferable to hiring externally?
Answer:
HR should implement cross-training, project-based teams, leadership
development, and internal certification programs. This approach leverages
existing employee knowledge and ensures cultural alignment, faster
onboarding, and loyalty, which are more cost-effective than external hiring.
WGU C202 MANAGING HUMAN CAPITAL
OBJECTIVE ASSESSMENT EXAM
QUESTIONS AND VERIFIED ANSWERS (2026
/ 2027) / A+ GRADE
1. Question:
A mid-sized technology company is experiencing high turnover among its software
engineers. Exit interviews reveal that employees leave due to a lack of clear career
progression and limited opportunities for skill development. The HR department
decides to implement a mentorship program, coupled with a formal training and
certification program for emerging technologies. How will these interventions
likely impact the company’s human capital, and what should the HR team measure
to determine success?
Answer:
The interventions will likely increase employee engagement, retention, and
internal skill development, thereby strengthening the company’s human capital.
HR should measure turnover rates, employee satisfaction scores, participation
in training programs, promotion rates, and skill competency assessments to
evaluate the impact.
Rationale:
Investing in employee development addresses both motivational and capability
gaps. Mentorship programs provide guidance, support, and knowledge transfer,
while formal training ensures employees gain relevant skills that align with
organizational strategy. Measuring engagement, turnover, and competency ensures
HR can quantify improvements in workforce capability and retention.
2. Question:
A healthcare organization is planning to expand into a new regional market. Senior
leadership is concerned that the existing workforce lacks the necessary leadership
competencies and cultural knowledge to manage the expansion effectively. HR
conducts a competency gap analysis and identifies potential leaders internally but
notices a lack of project management skills among them. What steps should HR
, 2
take to prepare these internal candidates, and why is this approach preferable to
hiring externally?
Answer:
HR should implement targeted leadership development programs, project
management training, and cross-functional assignments to prepare internal
candidates. This approach is preferable because it retains institutional
knowledge, reinforces organizational culture, and increases employee loyalty,
which is more cost-effective and strategically aligned than hiring externally.
Rationale:
Developing internal talent through structured programs enhances succession
planning and workforce continuity. Internal candidates already understand
organizational processes and values, reducing onboarding time and risk. By
measuring skill acquisition and readiness for leadership roles, HR ensures the
workforce can support strategic growth.
3. Question:
A retail company operates in multiple states and faces compliance challenges
related to differing labor laws, minimum wage requirements, and overtime
regulations. Some managers inadvertently schedule employees for overtime
without proper authorization, leading to compliance risks and employee
dissatisfaction. As HR director, what systems and practices would you implement
to reduce these risks, and how do they contribute to overall human capital
effectiveness?
Answer:
HR should implement automated scheduling software with compliance rules,
standardized payroll procedures, and regular manager training on labor laws.
These practices ensure legal compliance, reduce risk of fines, and maintain
employee trust, contributing to the effective utilization and protection of human
capital.
Rationale:
Ensuring compliance protects the organization from legal liabilities and fosters a
fair work environment. Automated systems reduce human error and allow
managers to focus on strategic workforce planning. Training reinforces consistent
knowledge of employment laws, which strengthens HR governance and workforce
reliability.
, 3
4. Question:
An international manufacturing firm wants to enhance employee engagement and
reduce voluntary turnover in its production plants. Surveys reveal that employees
feel undervalued and lack recognition for their contributions. HR proposes
implementing a total rewards system combining competitive pay, performance
bonuses, recognition programs, and career development opportunities. How should
the HR team prioritize these components to maximize engagement, and why?
Answer:
HR should prioritize recognition and career development alongside competitive
pay, because while compensation is essential, employees are more engaged when
they feel valued and see a path for growth. Bonuses and benefits can reinforce
performance, but intrinsic motivators such as recognition and development have a
more sustainable impact on engagement.
Rationale:
Total rewards systems are most effective when they address both extrinsic and
intrinsic motivators. Recognition acknowledges contributions, reinforcing positive
behavior, while development opportunities prepare employees for future roles,
improving retention. Measuring engagement scores, promotion rates, and
performance metrics validates the program’s effectiveness.
5. Question:
A financial services firm is implementing a new performance management system
to replace the annual review process. Managers often struggled to provide timely
feedback, and employees felt evaluations were inconsistent. The new system
allows quarterly goal-setting, continuous feedback, and performance analytics.
What are the expected outcomes of this system on workforce performance, and
what metrics should HR monitor to ensure it achieves its objectives?
Answer:
Expected outcomes include improved employee performance, clearer alignment
with organizational goals, enhanced engagement, and reduced performance-
related disputes. HR should monitor goal achievement rates, frequency and
quality of feedback, employee engagement scores, and turnover among high
performers to measure effectiveness.
, 4
Rationale:
Continuous performance management provides regular communication, ensures
accountability, and links individual contributions to organizational strategy.
Analytics allow HR to identify performance gaps and reward high performers,
strengthening human capital by aligning skills, behaviors, and motivation with
company objectives.
6. Question:
A regional hospital notices a trend of nurses leaving for other hospitals that offer
more flexible scheduling and professional development opportunities. HR wants to
implement a retention strategy that addresses both work-life balance and skill
growth. What initiatives should HR prioritize, and how will these initiatives
strengthen human capital?
Answer:
HR should prioritize flexible scheduling, mentorship programs, and continuing
education opportunities. These initiatives strengthen human capital by retaining
experienced nurses, enhancing their skills, and maintaining continuity of care.
Rationale:
Retention strategies that address both extrinsic (flexible schedules) and intrinsic
(career development, mentoring) motivators reduce turnover and preserve critical
organizational knowledge. Measuring nurse satisfaction, retention rates, and
participation in development programs validates the strategy’s effectiveness.
7. Question:
A technology startup is preparing to scale its operations rapidly over the next two
years. The current workforce lacks experience in large-scale project management
and cross-functional collaboration. HR is tasked with preparing employees to meet
future business needs. What steps should HR take to proactively build this
capability internally, and why is this approach preferable to hiring externally?
Answer:
HR should implement cross-training, project-based teams, leadership
development, and internal certification programs. This approach leverages
existing employee knowledge and ensures cultural alignment, faster
onboarding, and loyalty, which are more cost-effective than external hiring.
