WGU C202 MANAGING HUMAN CAPITAL ALL
COMPREHENSIVE QUESTIONS AND VERIFIED CORRECT
ANSWERS (100%) LATEST UPDATE
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
fixed pay - (correct answer) pays employees a set amount regardless of
performance
variable pay - (correct answer) bases some or all of an employee's compensation on
employee, team, or organizational
pay structure - (correct answer) the array of pay rates for different work or skills
within a single organization
pay mix - (correct answer) the relative emphasis give to different compensation
components
pay leader - (correct answer) organization with a compensation policy of giving
employees greater rewards than competitors
pay follower - (correct answer) an organization that pays its front-line employees as
little as possible
resource dependence theory - (correct answer) proposition that organizational
decisions are influenced by both internal and external agents who control critical
resources
wage differentials - (correct answer) differences in wage between various workers,
groups of workers, or workers within a career field
,labor market - (correct answer) all of the potential employees located within a
geographic area from which the organization might be able to hire
cost of living allowances - (correct answer) clauses in union contacts that
automatically increase wages base on the U.S. Bureau of Labor Statistics' cost of living
index
market pricing - (correct 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 - (correct answer) surveys of other organizations conducted
to learn what they are paying for specific jobs or job classes
benchmark jobs - (correct 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 - (correct answer) a systematic process that uses expert judgement
to assess differences in value between jobs
ranking methos - (correct answer) subjectively compares jobs to each other based
on their overall worth to the organization
job classification method - (correct answer) subjectively classifies jobs into an
exiting hierarchy of grades and categories
point factor method - (correct answer) uses a set of compensable factors to
determine a job's value. skill, resp, effort, working cond.
compensable factor - (correct answer) any characteristic used to provide a basis for
judging a job's value
skills, responsibilities, effort, working conditions - (correct answer) Four categories
of compensable factors
Hay Group Guide Chart - Profile Method - (correct 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 - (correct answer)
Hay Group Method based on four main factors
,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
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.
, 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)
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
- Preference of individual employees
- Size of the rewards for high performance
- Method of motivating individual job performance
- Objectivity of the evaluation process that determines the rewards - (correct answer)
Before designing an incentive pay plan to motivate performance, it is important to
consider the
- Company performance
- Reduced merit increases
- Reductions in head count
- Reduced benefits
- Pay freezes - (correct answer) Most common way employers fund variable pay
programs
COMPREHENSIVE QUESTIONS AND VERIFIED CORRECT
ANSWERS (100%) LATEST UPDATE
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
fixed pay - (correct answer) pays employees a set amount regardless of
performance
variable pay - (correct answer) bases some or all of an employee's compensation on
employee, team, or organizational
pay structure - (correct answer) the array of pay rates for different work or skills
within a single organization
pay mix - (correct answer) the relative emphasis give to different compensation
components
pay leader - (correct answer) organization with a compensation policy of giving
employees greater rewards than competitors
pay follower - (correct answer) an organization that pays its front-line employees as
little as possible
resource dependence theory - (correct answer) proposition that organizational
decisions are influenced by both internal and external agents who control critical
resources
wage differentials - (correct answer) differences in wage between various workers,
groups of workers, or workers within a career field
,labor market - (correct answer) all of the potential employees located within a
geographic area from which the organization might be able to hire
cost of living allowances - (correct answer) clauses in union contacts that
automatically increase wages base on the U.S. Bureau of Labor Statistics' cost of living
index
market pricing - (correct 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 - (correct answer) surveys of other organizations conducted
to learn what they are paying for specific jobs or job classes
benchmark jobs - (correct 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 - (correct answer) a systematic process that uses expert judgement
to assess differences in value between jobs
ranking methos - (correct answer) subjectively compares jobs to each other based
on their overall worth to the organization
job classification method - (correct answer) subjectively classifies jobs into an
exiting hierarchy of grades and categories
point factor method - (correct answer) uses a set of compensable factors to
determine a job's value. skill, resp, effort, working cond.
compensable factor - (correct answer) any characteristic used to provide a basis for
judging a job's value
skills, responsibilities, effort, working conditions - (correct answer) Four categories
of compensable factors
Hay Group Guide Chart - Profile Method - (correct 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 - (correct answer)
Hay Group Method based on four main factors
,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
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.
, 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)
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
- Preference of individual employees
- Size of the rewards for high performance
- Method of motivating individual job performance
- Objectivity of the evaluation process that determines the rewards - (correct answer)
Before designing an incentive pay plan to motivate performance, it is important to
consider the
- Company performance
- Reduced merit increases
- Reductions in head count
- Reduced benefits
- Pay freezes - (correct answer) Most common way employers fund variable pay
programs
