WGU C202 Managing Human Capital All
Direct financial compensation correct answerscompensation received in
the form of salary, wages, commissions, stock options or bonuses
indirect financial compensation correct answersall the tangible and
financially valued rewards that are not included in direct compensation
including free meals, vacation time and health insurance
nonfinancial compensation correct answersrewards and incentives given to
employees that aren't financial in nature
base pay correct answersreflects the size and scope of an employee's
responsibilities
severance pay correct answersgive to employees upon termination of their
employment fixed pay correct answerspays employees a set amount
regardless of performance
variable pay correct answersbases some or all of an employee's
compensation on employee, team, or organizational
pay structure correct answersthe array of pay rates for different work or
skills within a single organization
pay mix correct answersthe relative emphasis give to different
compensation components
pay leader correct answersorganization with a compensation policy of giving
employees greater rewards than competitors
pay follower correct answersan organization that pays its front-line
employees as little as possible
resource dependence theory correct answersproposition that organizational
decisions are influenced by both internal and external agents who control
critical resources
wage differentials correct answersdifferences in wage between various
workers, groups of workers, or workers within a career field
labor market correct answersall of the potential employees located within a
geographic area from which the organization might be able to hire
,cost of living allowances correct answersclauses in union contacts that
automatically increase wages base on the U.S. Bureau of Labor Statistics'
cost of living index
market pricing correct answersuses external sources of information about
how others are compensating a certain position to assign value to a
company's similar job
Compensation surveys correct answerssurveys of other organizations
conducted to learn what they are paying for specific jobs or job classes
benchmark jobs correct answersjobs that tend to exist across departments
and across diverse organizations allowing them to be used as a basis for
compensation comparisons
job evaluation correct answersa systematic process that uses expert
judgement to assess differences in value between jobs
ranking methos correct answerssubjectively compares jobs to each other
based on their overall worth to the organization
job classification method correct answerssubjectively classifies jobs into
an exiting hierarchy of grades and categories
point factor method correct answersuses a set of compensable factors to
determine a job's value. skill, resp, effort, working cond.
compensable factor correct answersany characteristic used to provide
a basis for judging a job's value
skills, responsibilities, effort, working conditions correct answersFour
categories of compensable factors
Hay Group Guide Chart - Profile Method correct answersa 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
answersHay Group Method based on four main factors
Position Analysis Questionnaire correct answersa 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 answersthe generation of salary structures and pay
levels for each job based on the job evaluation data
single rate system, pay grades and broadbanding correct answersThree
most common job pricing systems
pay grade (pay scale) correct answersthe range of possible pay for a
group of jobs broadbanding correct answersusing very wide pay grades
to increase pay flexibility
internal equity correct answerswhen employees perceive their pay to be
fair relative to the pay of other jobs in the organization
employee equity correct answersthe perceived fairness of the relative
pay between employees performing similar jobs for the same
organization
external equity correct answerswhen 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 answersif two jobs have equal difficulty
requirements, the pay should be the same, regardless of who fills them
wage rate compression correct answersstarting salaries for new hires
exceed the salaries paid to experienced employees
golden parachute correct answerslucrative benefits given to executives in
the event the company is taken over
Cost-of-living adjustments correct answerspay increases to account for a
higher cost of living in one country versus another
Housing allowance correct answerspayments to subsidize or cover housing
and related costs
hardship premiums correct answersincreased salary for living in an area
with a lower quality of life, less safety, etc.
tax equalization payments correct answersincreased salary to make up for
higher taxes that reduce take-home pay and decrease employee's
purchasing power
inflation adjustments correct answerslarger and/or more frequent raises
to maintain employee's purchasing power in the face of inflation
, Fair Labor Standards Act of 1938 correct answersa federal law that sets
standards for minimum wages, overtime pay, and equal pay for men and
women performing the same jobs
exempt employees correct answersemployees 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 answersemployees 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 answersa 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 answerspredetermined compensation (salary and
benefits)
variable rewards (incentives) correct answers"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 answersTop 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
answersBefore 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 answersMost common way employers fund variable
pay programs
reward differnentiation correct answersdifferentiating rewards based on
performance rather than giving all employees the same reward
short-term incentives correct answersone-time variable rewards used to
motivate short- term employee behavior and performance (typically one
year or less). ie bonus or profit sharing. to motivate attendance, cust serv,
safety, production quality and quantity
Direct financial compensation correct answerscompensation received in
the form of salary, wages, commissions, stock options or bonuses
indirect financial compensation correct answersall the tangible and
financially valued rewards that are not included in direct compensation
including free meals, vacation time and health insurance
nonfinancial compensation correct answersrewards and incentives given to
employees that aren't financial in nature
base pay correct answersreflects the size and scope of an employee's
responsibilities
severance pay correct answersgive to employees upon termination of their
employment fixed pay correct answerspays employees a set amount
regardless of performance
variable pay correct answersbases some or all of an employee's
compensation on employee, team, or organizational
pay structure correct answersthe array of pay rates for different work or
skills within a single organization
pay mix correct answersthe relative emphasis give to different
compensation components
pay leader correct answersorganization with a compensation policy of giving
employees greater rewards than competitors
pay follower correct answersan organization that pays its front-line
employees as little as possible
resource dependence theory correct answersproposition that organizational
decisions are influenced by both internal and external agents who control
critical resources
wage differentials correct answersdifferences in wage between various
workers, groups of workers, or workers within a career field
labor market correct answersall of the potential employees located within a
geographic area from which the organization might be able to hire
,cost of living allowances correct answersclauses in union contacts that
automatically increase wages base on the U.S. Bureau of Labor Statistics'
cost of living index
market pricing correct answersuses external sources of information about
how others are compensating a certain position to assign value to a
company's similar job
Compensation surveys correct answerssurveys of other organizations
conducted to learn what they are paying for specific jobs or job classes
benchmark jobs correct answersjobs that tend to exist across departments
and across diverse organizations allowing them to be used as a basis for
compensation comparisons
job evaluation correct answersa systematic process that uses expert
judgement to assess differences in value between jobs
ranking methos correct answerssubjectively compares jobs to each other
based on their overall worth to the organization
job classification method correct answerssubjectively classifies jobs into
an exiting hierarchy of grades and categories
point factor method correct answersuses a set of compensable factors to
determine a job's value. skill, resp, effort, working cond.
compensable factor correct answersany characteristic used to provide
a basis for judging a job's value
skills, responsibilities, effort, working conditions correct answersFour
categories of compensable factors
Hay Group Guide Chart - Profile Method correct answersa 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
answersHay Group Method based on four main factors
Position Analysis Questionnaire correct answersa 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 answersthe generation of salary structures and pay
levels for each job based on the job evaluation data
single rate system, pay grades and broadbanding correct answersThree
most common job pricing systems
pay grade (pay scale) correct answersthe range of possible pay for a
group of jobs broadbanding correct answersusing very wide pay grades
to increase pay flexibility
internal equity correct answerswhen employees perceive their pay to be
fair relative to the pay of other jobs in the organization
employee equity correct answersthe perceived fairness of the relative
pay between employees performing similar jobs for the same
organization
external equity correct answerswhen 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 answersif two jobs have equal difficulty
requirements, the pay should be the same, regardless of who fills them
wage rate compression correct answersstarting salaries for new hires
exceed the salaries paid to experienced employees
golden parachute correct answerslucrative benefits given to executives in
the event the company is taken over
Cost-of-living adjustments correct answerspay increases to account for a
higher cost of living in one country versus another
Housing allowance correct answerspayments to subsidize or cover housing
and related costs
hardship premiums correct answersincreased salary for living in an area
with a lower quality of life, less safety, etc.
tax equalization payments correct answersincreased salary to make up for
higher taxes that reduce take-home pay and decrease employee's
purchasing power
inflation adjustments correct answerslarger and/or more frequent raises
to maintain employee's purchasing power in the face of inflation
, Fair Labor Standards Act of 1938 correct answersa federal law that sets
standards for minimum wages, overtime pay, and equal pay for men and
women performing the same jobs
exempt employees correct answersemployees 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 answersemployees 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 answersa 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 answerspredetermined compensation (salary and
benefits)
variable rewards (incentives) correct answers"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 answersTop 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
answersBefore 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 answersMost common way employers fund variable
pay programs
reward differnentiation correct answersdifferentiating rewards based on
performance rather than giving all employees the same reward
short-term incentives correct answersone-time variable rewards used to
motivate short- term employee behavior and performance (typically one
year or less). ie bonus or profit sharing. to motivate attendance, cust serv,
safety, production quality and quantity
