WGU C202 MANAGING HUMAN CAPITAL ALL
QUESTIONS AND VERIFIED ANSWERS (2026/2027 / A+
GRADE
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
1|Page
,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.
2|Page
,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
Fair Labor Standards Act of 1938 - CORRECT ANSWER ✔✔- a federal law that sets
standards for minimum wages, overtime pay, and equal pay for men and women
performing the same jobs
exempt employees - CORRECT ANSWER ✔✔- 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 - CORRECT ANSWER ✔✔- 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 - CORRECT ANSWER ✔✔- 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 - CORRECT ANSWER ✔✔- predetermined compensation (salary and
benefits)
3|Page
, variable rewards (incentives) - CORRECT ANSWER ✔✔- "at risk" rewards which
are linked to factors determined as valuable, including performance, skills,
competence and contribution
- Recognize and reward high performers
- Increase the likelihood of achieving corporate goals
- Improve productivity
- Move away from an entitlement culture - CORRECT ANSWER ✔✔- Top four
reasons organizations give for tying pay to performance ar
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
4|Page
QUESTIONS AND VERIFIED ANSWERS (2026/2027 / A+
GRADE
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
1|Page
,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.
2|Page
,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
Fair Labor Standards Act of 1938 - CORRECT ANSWER ✔✔- a federal law that sets
standards for minimum wages, overtime pay, and equal pay for men and women
performing the same jobs
exempt employees - CORRECT ANSWER ✔✔- 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 - CORRECT ANSWER ✔✔- 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 - CORRECT ANSWER ✔✔- 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 - CORRECT ANSWER ✔✔- predetermined compensation (salary and
benefits)
3|Page
, variable rewards (incentives) - CORRECT ANSWER ✔✔- "at risk" rewards which
are linked to factors determined as valuable, including performance, skills,
competence and contribution
- Recognize and reward high performers
- Increase the likelihood of achieving corporate goals
- Improve productivity
- Move away from an entitlement culture - CORRECT ANSWER ✔✔- Top four
reasons organizations give for tying pay to performance ar
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
4|Page
