WESTERN GOVERNORS UNIVERSITY
C202 MANAGING HUMAN CAPITAL ALL
| COMPLETE STUDY GUIDE, QUESTIONS
AND ANSWERS 2026 | GRADED A+ |
GUARANTEED SUCCESS
Updated 2026 Questions and Answers | 100% Verified
Exam Prep and Comprehensive Rationales Included
,pay mix the relative emphasis give to different compensation components
pay leader organization with a compensation policy of giving employees greater rewards
than competitors
pay follower an organization that pays its front-line employees as little as possible
resource dependence theory proposition that organizational decisions are influenced by both internal and
external agents who control critical resources
wage differentials differences in wage between various workers, groups of workers, or workers
within a career field
labor market all of the potential employees located within a geographic area from which the
organization might be able to hire
cost of living allowances clauses in union contacts that automatically increase wages base on the U.S.
Bureau of Labor Statistics' cost of living index
market pricing uses external sources of information about how others are compensating a
certain position to assign value to a company's similar job
Compensation surveys surveys of other organizations conducted to learn what they are paying for
specific jobs or job classes
benchmark jobs jobs that tend to exist across departments and across diverse organizations
allowing them to be used as a basis for compensation comparisons
job evaluation a systematic process that uses expert judgement to assess differences in value
between jobs
ranking methos subjectively compares jobs to each other based on their overall worth to the
organization
job classification method subjectively classifies jobs into an exiting hierarchy of grades and categories
,point factor method uses a set of compensable factors to determine a job's value. skill, resp, effort,
working cond.
compensable factor any characteristic used to provide a basis for judging a job's value
skills, responsibilities, effort, working conditions Four categories of compensable factors
Hay Group Guide Chart - Profile Method 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 Hay Group Method based on four main factors
conditions
Position Analysis Questionnaire 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 the generation of salary structures and pay levels for each job based on the job
evaluation data
single rate system, pay grades and broadbanding Three most common job pricing systems
pay grade (pay scale) the range of possible pay for a group of jobs
broadbanding using very wide pay grades to increase pay flexibility
internal equity when employees perceive their pay to be fair relative to the pay of other jobs in
the organization
employee equity the perceived fairness of the relative pay between employees performing similar
jobs for the same organization
external equity 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 if two jobs have equal difficulty requirements, the pay should be the same,
regardless of who fills them
wage rate compression starting salaries for new hires exceed the salaries paid to experienced employees
golden parachute lucrative benefits given to executives in the event the company is taken over
Cost-of-living adjustments pay increases to account for a higher cost of living in one country versus another
Housing allowance payments to subsidize or cover housing and related costs
hardship premiums increased salary for living in an area with a lower quality of life, less safety, etc.
tax equalization payments increased salary to make up for higher taxes that reduce take-home pay and
decrease employee's purchasing power
inflation adjustments larger and/or more frequent raises to maintain employee's purchasing power in
the face of inflation
Fair Labor Standards Act of 1938 a federal law that sets standards for minimum wages, overtime pay, and equal pay
for men and women performing the same jobs
exempt employees employees who meet one of the FLSA exemption tests, are paid on a fixed salary
basis and are not entitled to overtime pay
non-exempt employees employees who do not meet any of one of the FLSA exemption tests and are paid
on an hourly basis and covered by wage and hour laws regarding minimum wage,
overtime pay and hours worked
workers' compensation a type of insurance that replaces wages and medical benefits for employees
injured on the job in exchange for relinquishing the employee's right to sue the
employer for negligence
fixed rewards predetermined compensation (salary and benefits)
variable rewards (incentives) "at risk" rewards which are linked to factors determined as valuable, including
performance, skills, competence and contribution
C202 MANAGING HUMAN CAPITAL ALL
| COMPLETE STUDY GUIDE, QUESTIONS
AND ANSWERS 2026 | GRADED A+ |
GUARANTEED SUCCESS
Updated 2026 Questions and Answers | 100% Verified
Exam Prep and Comprehensive Rationales Included
,pay mix the relative emphasis give to different compensation components
pay leader organization with a compensation policy of giving employees greater rewards
than competitors
pay follower an organization that pays its front-line employees as little as possible
resource dependence theory proposition that organizational decisions are influenced by both internal and
external agents who control critical resources
wage differentials differences in wage between various workers, groups of workers, or workers
within a career field
labor market all of the potential employees located within a geographic area from which the
organization might be able to hire
cost of living allowances clauses in union contacts that automatically increase wages base on the U.S.
Bureau of Labor Statistics' cost of living index
market pricing uses external sources of information about how others are compensating a
certain position to assign value to a company's similar job
Compensation surveys surveys of other organizations conducted to learn what they are paying for
specific jobs or job classes
benchmark jobs jobs that tend to exist across departments and across diverse organizations
allowing them to be used as a basis for compensation comparisons
job evaluation a systematic process that uses expert judgement to assess differences in value
between jobs
ranking methos subjectively compares jobs to each other based on their overall worth to the
organization
job classification method subjectively classifies jobs into an exiting hierarchy of grades and categories
,point factor method uses a set of compensable factors to determine a job's value. skill, resp, effort,
working cond.
compensable factor any characteristic used to provide a basis for judging a job's value
skills, responsibilities, effort, working conditions Four categories of compensable factors
Hay Group Guide Chart - Profile Method 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 Hay Group Method based on four main factors
conditions
Position Analysis Questionnaire 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 the generation of salary structures and pay levels for each job based on the job
evaluation data
single rate system, pay grades and broadbanding Three most common job pricing systems
pay grade (pay scale) the range of possible pay for a group of jobs
broadbanding using very wide pay grades to increase pay flexibility
internal equity when employees perceive their pay to be fair relative to the pay of other jobs in
the organization
employee equity the perceived fairness of the relative pay between employees performing similar
jobs for the same organization
external equity 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 if two jobs have equal difficulty requirements, the pay should be the same,
regardless of who fills them
wage rate compression starting salaries for new hires exceed the salaries paid to experienced employees
golden parachute lucrative benefits given to executives in the event the company is taken over
Cost-of-living adjustments pay increases to account for a higher cost of living in one country versus another
Housing allowance payments to subsidize or cover housing and related costs
hardship premiums increased salary for living in an area with a lower quality of life, less safety, etc.
tax equalization payments increased salary to make up for higher taxes that reduce take-home pay and
decrease employee's purchasing power
inflation adjustments larger and/or more frequent raises to maintain employee's purchasing power in
the face of inflation
Fair Labor Standards Act of 1938 a federal law that sets standards for minimum wages, overtime pay, and equal pay
for men and women performing the same jobs
exempt employees employees who meet one of the FLSA exemption tests, are paid on a fixed salary
basis and are not entitled to overtime pay
non-exempt employees employees who do not meet any of one of the FLSA exemption tests and are paid
on an hourly basis and covered by wage and hour laws regarding minimum wage,
overtime pay and hours worked
workers' compensation a type of insurance that replaces wages and medical benefits for employees
injured on the job in exchange for relinquishing the employee's right to sue the
employer for negligence
fixed rewards predetermined compensation (salary and benefits)
variable rewards (incentives) "at risk" rewards which are linked to factors determined as valuable, including
performance, skills, competence and contribution
