WGU C202 MANAGING HUMAN CAPITAL FINAL EXAM | COMPLETE
QUESTIONS AND ANSWER | 2026 LATEST UPDATED
Direct financial compensation - (Answer)compensation received in the form of salary, wages,
commissions, stock options or bonuses
indirect financial compensation - (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 - (Answer)rewards and incentives given to employees that aren't
financial in nature
base pay - (Answer)reflects the size and scope of an employee's responsibilities
severance pay - (Answer)give to employees upon termination of their employment
fixed pay - (Answer)pays employees a set amount regardless of performance
variable pay - (Answer)bases some or all of an employee's compensation on employee, team, or
organizational
pay structure - (Answer)the array of pay rates for different work or skills within a single
organization
pay mix - (Answer)the relative emphasis give to different compensation components
,pay leader - (Answer)organization with a compensation policy of giving employees greater
rewards than competitors
pay follower - (Answer)an organization that pays its front-line employees as little as possible
resource dependence theory - (Answer)proposition that organizational decisions are influenced
by both internal and external agents who control critical resources
wage differentials - (Answer)differences in wage between various workers, groups of workers, or
workers within a career field
labor market - (Answer)all of the potential employees located within a geographic area from
which the organization might be able to hire
cost of living allowances - (Answer)clauses in union contacts that automatically increase wages
base on the U.S. Bureau of Labor Statistics' cost of living index
market pricing - (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 - (Answer)surveys of other organizations conducted to learn what they
are paying for specific jobs or job classes
benchmark jobs - (Answer)jobs that tend to exist across departments and across diverse
organizations allowing them to be used as a basis for compensation comparisons
job evaluation - (Answer)a systematic process that uses expert judgement to assess differences
in value between jobs
,ranking methos - (Answer)subjectively compares jobs to each other based on their overall worth
to the organization
job classification method - (Answer)subjectively classifies jobs into an exiting hierarchy of grades
and categories
point factor method - (Answer)uses a set of compensable factors to determine a job's value.
skill, resp, effort, working cond.
compensable factor - (Answer)any characteristic used to provide a basis for judging a job's value
skills, responsibilities, effort, working conditions - (Answer)Four categories of compensable
factors
Hay Group Guide Chart - Profile Method - (Answer)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 conditions - (Answer)Hay Group Method
based on four main factors
Position Analysis Questionnaire - (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 - (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 - (Answer)Three most common job pricing
systems
pay grade (pay scale) - (Answer)the range of possible pay for a group of jobs
broadbanding - (Answer)using very wide pay grades to increase pay flexibility
internal equity - (Answer)when employees perceive their pay to be fair relative to the pay of
other jobs in the organization
employee equity - (Answer)the perceived fairness of the relative pay between employees
performing similar jobs for the same organization
external equity - (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 - (Answer)if two jobs have equal difficulty requirements, the pay should be
the same, regardless of who fills them
wage rate compression - (Answer)starting salaries for new hires exceed the salaries paid to
experienced employees
golden parachute - (Answer)lucrative benefits given to executives in the event the company is
taken over
QUESTIONS AND ANSWER | 2026 LATEST UPDATED
Direct financial compensation - (Answer)compensation received in the form of salary, wages,
commissions, stock options or bonuses
indirect financial compensation - (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 - (Answer)rewards and incentives given to employees that aren't
financial in nature
base pay - (Answer)reflects the size and scope of an employee's responsibilities
severance pay - (Answer)give to employees upon termination of their employment
fixed pay - (Answer)pays employees a set amount regardless of performance
variable pay - (Answer)bases some or all of an employee's compensation on employee, team, or
organizational
pay structure - (Answer)the array of pay rates for different work or skills within a single
organization
pay mix - (Answer)the relative emphasis give to different compensation components
,pay leader - (Answer)organization with a compensation policy of giving employees greater
rewards than competitors
pay follower - (Answer)an organization that pays its front-line employees as little as possible
resource dependence theory - (Answer)proposition that organizational decisions are influenced
by both internal and external agents who control critical resources
wage differentials - (Answer)differences in wage between various workers, groups of workers, or
workers within a career field
labor market - (Answer)all of the potential employees located within a geographic area from
which the organization might be able to hire
cost of living allowances - (Answer)clauses in union contacts that automatically increase wages
base on the U.S. Bureau of Labor Statistics' cost of living index
market pricing - (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 - (Answer)surveys of other organizations conducted to learn what they
are paying for specific jobs or job classes
benchmark jobs - (Answer)jobs that tend to exist across departments and across diverse
organizations allowing them to be used as a basis for compensation comparisons
job evaluation - (Answer)a systematic process that uses expert judgement to assess differences
in value between jobs
,ranking methos - (Answer)subjectively compares jobs to each other based on their overall worth
to the organization
job classification method - (Answer)subjectively classifies jobs into an exiting hierarchy of grades
and categories
point factor method - (Answer)uses a set of compensable factors to determine a job's value.
skill, resp, effort, working cond.
compensable factor - (Answer)any characteristic used to provide a basis for judging a job's value
skills, responsibilities, effort, working conditions - (Answer)Four categories of compensable
factors
Hay Group Guide Chart - Profile Method - (Answer)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 conditions - (Answer)Hay Group Method
based on four main factors
Position Analysis Questionnaire - (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 - (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 - (Answer)Three most common job pricing
systems
pay grade (pay scale) - (Answer)the range of possible pay for a group of jobs
broadbanding - (Answer)using very wide pay grades to increase pay flexibility
internal equity - (Answer)when employees perceive their pay to be fair relative to the pay of
other jobs in the organization
employee equity - (Answer)the perceived fairness of the relative pay between employees
performing similar jobs for the same organization
external equity - (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 - (Answer)if two jobs have equal difficulty requirements, the pay should be
the same, regardless of who fills them
wage rate compression - (Answer)starting salaries for new hires exceed the salaries paid to
experienced employees
golden parachute - (Answer)lucrative benefits given to executives in the event the company is
taken over
