WGU C202 MANAGING
HUMAN CAPITAL ALL
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
,Certainly! Here are the terms and definitions numbered for you:
1. **Direct financial compensation**
Compensation received in the form of salary, wages, commissions, stock options or
bonuses.
2. **Indirect financial compensation**
All the tangible and financially valued rewards that are not included in direct compensation
including free meals, vacation time and health insurance.
3. **Nonfinancial compensation**
Rewards and incentives given to employees that aren't financial in nature.
4. **Base pay**
Reflects the size and scope of an employee's responsibilities.
5. **Severance pay**
Give to employees upon termination of their employment.
6. **Fixed pay**
Pays employees a set amount regardless of performance.
7. **Variable pay**
Bases some or all of an employee's compensation on employee, team, or organizational
performance.
8. **Pay structure**
The array of pay rates for different work or skills within a single organization.
,9. **Pay mix**
The relative emphasis given to different compensation components.
10. **Pay leader**
Organization with a compensation policy of giving employees greater rewards than
competitors.
11. **Pay follower**
An organization that pays its front-line employees as little as possible.
12. **Resource dependence theory**
Proposition that organizational decisions are influenced by both internal and external
agents who control critical resources.
13. **Wage differentials**
Differences in wage between various workers, groups of workers, or workers within a
career field.
14. **Labor market**
All of the potential employees located within a geographic area from which the
organization might be able to hire.
15. **Cost of living allowances**
Clauses in union contacts that automatically increase wages based on the U.S. Bureau of
Labor Statistics' cost of living index.
16. **Market pricing**
Uses external sources of information about how others are compensating a certain
position to assign value to a company's similar job.
, 17. **Compensation surveys**
Surveys of other organizations conducted to learn what they are paying for specific jobs or
job classes.
18. **Benchmark jobs**
Jobs that tend to exist across departments and organizations, allowing them to be used as
a basis for compensation comparisons.
19. **Job evaluation**
A systematic process that uses expert judgment to assess differences in value between
jobs.
20. **Ranking method**
Subjectively compares jobs to each other based on their overall worth to the organization.
21. **Job classification method**
Subjectively classifies jobs into existing hierarchy of grades and categories.
22. **Point factor method**
Uses a set of compensable factors to determine a job's value. Factors include skill,
responsibility, effort, working conditions.
23. **Compensable factor**
Any characteristic used to provide a basis for judging a job's value.
24. **Skills, responsibilities, effort, working conditions**
Four categories of compensable factors.
25. **Hay Group Guide Chart - Profile Method**
HUMAN CAPITAL ALL
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
,Certainly! Here are the terms and definitions numbered for you:
1. **Direct financial compensation**
Compensation received in the form of salary, wages, commissions, stock options or
bonuses.
2. **Indirect financial compensation**
All the tangible and financially valued rewards that are not included in direct compensation
including free meals, vacation time and health insurance.
3. **Nonfinancial compensation**
Rewards and incentives given to employees that aren't financial in nature.
4. **Base pay**
Reflects the size and scope of an employee's responsibilities.
5. **Severance pay**
Give to employees upon termination of their employment.
6. **Fixed pay**
Pays employees a set amount regardless of performance.
7. **Variable pay**
Bases some or all of an employee's compensation on employee, team, or organizational
performance.
8. **Pay structure**
The array of pay rates for different work or skills within a single organization.
,9. **Pay mix**
The relative emphasis given to different compensation components.
10. **Pay leader**
Organization with a compensation policy of giving employees greater rewards than
competitors.
11. **Pay follower**
An organization that pays its front-line employees as little as possible.
12. **Resource dependence theory**
Proposition that organizational decisions are influenced by both internal and external
agents who control critical resources.
13. **Wage differentials**
Differences in wage between various workers, groups of workers, or workers within a
career field.
14. **Labor market**
All of the potential employees located within a geographic area from which the
organization might be able to hire.
15. **Cost of living allowances**
Clauses in union contacts that automatically increase wages based on the U.S. Bureau of
Labor Statistics' cost of living index.
16. **Market pricing**
Uses external sources of information about how others are compensating a certain
position to assign value to a company's similar job.
, 17. **Compensation surveys**
Surveys of other organizations conducted to learn what they are paying for specific jobs or
job classes.
18. **Benchmark jobs**
Jobs that tend to exist across departments and organizations, allowing them to be used as
a basis for compensation comparisons.
19. **Job evaluation**
A systematic process that uses expert judgment to assess differences in value between
jobs.
20. **Ranking method**
Subjectively compares jobs to each other based on their overall worth to the organization.
21. **Job classification method**
Subjectively classifies jobs into existing hierarchy of grades and categories.
22. **Point factor method**
Uses a set of compensable factors to determine a job's value. Factors include skill,
responsibility, effort, working conditions.
23. **Compensable factor**
Any characteristic used to provide a basis for judging a job's value.
24. **Skills, responsibilities, effort, working conditions**
Four categories of compensable factors.
25. **Hay Group Guide Chart - Profile Method**
