MANAGING HUMAN CAPITAL 2026 ACTUAL
TESTED QUESTIONS AND ANSWER KEY
◉ Business Strategy. Answer: Defines how the firm will compete in
its marketplace.
◉ Total Rewards. Answer: The sum of all rewards employees
receives in exchange for their time, efforts, and performance.
The combined intrinsic and extrinsic rewards of a job.
◉ Employee Handbooks. Answer: Print or online materials that
document the organization's HRM policies and procedures.
◉ HRM: Human Resource Management. Answer: The organizational
function responsible for attracting, hiring, developing, rewarding,
and retaining talent.
◉ Outsourcing. Answer: Hiring an external vendor to do work for
the company rather than doing it internally.
◉ Nonfinancial Compensation. Answer: Rewards and incentives
given to employees that are not financial in nature including
,intrinsic rewards received from the job itself or from the work
environment.
◉ Intrinsic Reward. Answer: Non-monetary rewards derived from
the work itself.
◉ Competitive Advantage. Answer: Doing something differently
from the competitor thus leading to outperformance and success.
◉ Talent Philosophy. Answer: A system of beliefs about how an
organization's employee should be treated.
◉ Shared Service Center. Answer: Centralized routine, transaction-
based HRM activities.
◉ Professional Employer Organization. Answer: A company that
leases employees to companies that need them.
◉ Direct Financial Compensation. Answer: Compensation received
in the form of salary, wages, commissions, stock options, or bonuses.
◉ Virtue Standard. Answer: The ethical action is consistent with
certain ideal virtues including civility, compassion, benevolence,
etc...
,◉ Common Good Standard. Answer: The ethical action shows
respect and compassion for all others, especially the most
vulnerable.
Respect and compassion for all
◉ Codes of Conduct. Answer: Specifies expected and prohibited
actions in the workplace and gives an example of appropriate
behavior.
◉ Stakeholder Perspective. Answer: Considering the interests and
opinions of all people, groups, organizations, or systems that affect
or could be affected by the organization's actions.
◉ Performance Culture. Answer: Focuses on hiring, retaining,
developing, motivating, and making work assignments based on
performance data and results.
◉ Organizational Culture. Answer: The norms, values, and
assumptions of organizational members that guide members'
attitudes and behaviors.
◉ High-performance Work System. Answer: High involvement or
high commitment organizations.
, ◉ Code of Ethics. Answer: A decision-making guide that describes
the highest values to which an organization aspires.
◉ Rights Standard. Answer: The ethical action is the one that best
respects and protects the moral rights of everyone affected by the
action.
◉ Corporate Social Responsibility. Answer: Businesses showing
concern for the common good and valuing human dignity.
◉ Fairness Standard. Answer: The ethical action treats all people
equally, or at least fairly, based on some defensible standard.
◉ Ethics. Answer: The standards of moral behavior that define
socially accepted behaviors that are right as opposed to wrong.
◉ Utilitarian Standard. Answer: The ethical action that best balances
good over harm.
◉ Protected Classes. Answer: Groups underrepresented in
employment.
◉ Equal Employment Opportunity. Answer: A firm's employment
practices must be designed and used in a manner that treats
TESTED QUESTIONS AND ANSWER KEY
◉ Business Strategy. Answer: Defines how the firm will compete in
its marketplace.
◉ Total Rewards. Answer: The sum of all rewards employees
receives in exchange for their time, efforts, and performance.
The combined intrinsic and extrinsic rewards of a job.
◉ Employee Handbooks. Answer: Print or online materials that
document the organization's HRM policies and procedures.
◉ HRM: Human Resource Management. Answer: The organizational
function responsible for attracting, hiring, developing, rewarding,
and retaining talent.
◉ Outsourcing. Answer: Hiring an external vendor to do work for
the company rather than doing it internally.
◉ Nonfinancial Compensation. Answer: Rewards and incentives
given to employees that are not financial in nature including
,intrinsic rewards received from the job itself or from the work
environment.
◉ Intrinsic Reward. Answer: Non-monetary rewards derived from
the work itself.
◉ Competitive Advantage. Answer: Doing something differently
from the competitor thus leading to outperformance and success.
◉ Talent Philosophy. Answer: A system of beliefs about how an
organization's employee should be treated.
◉ Shared Service Center. Answer: Centralized routine, transaction-
based HRM activities.
◉ Professional Employer Organization. Answer: A company that
leases employees to companies that need them.
◉ Direct Financial Compensation. Answer: Compensation received
in the form of salary, wages, commissions, stock options, or bonuses.
◉ Virtue Standard. Answer: The ethical action is consistent with
certain ideal virtues including civility, compassion, benevolence,
etc...
,◉ Common Good Standard. Answer: The ethical action shows
respect and compassion for all others, especially the most
vulnerable.
Respect and compassion for all
◉ Codes of Conduct. Answer: Specifies expected and prohibited
actions in the workplace and gives an example of appropriate
behavior.
◉ Stakeholder Perspective. Answer: Considering the interests and
opinions of all people, groups, organizations, or systems that affect
or could be affected by the organization's actions.
◉ Performance Culture. Answer: Focuses on hiring, retaining,
developing, motivating, and making work assignments based on
performance data and results.
◉ Organizational Culture. Answer: The norms, values, and
assumptions of organizational members that guide members'
attitudes and behaviors.
◉ High-performance Work System. Answer: High involvement or
high commitment organizations.
, ◉ Code of Ethics. Answer: A decision-making guide that describes
the highest values to which an organization aspires.
◉ Rights Standard. Answer: The ethical action is the one that best
respects and protects the moral rights of everyone affected by the
action.
◉ Corporate Social Responsibility. Answer: Businesses showing
concern for the common good and valuing human dignity.
◉ Fairness Standard. Answer: The ethical action treats all people
equally, or at least fairly, based on some defensible standard.
◉ Ethics. Answer: The standards of moral behavior that define
socially accepted behaviors that are right as opposed to wrong.
◉ Utilitarian Standard. Answer: The ethical action that best balances
good over harm.
◉ Protected Classes. Answer: Groups underrepresented in
employment.
◉ Equal Employment Opportunity. Answer: A firm's employment
practices must be designed and used in a manner that treats
