WGU C202 Managing Human Capital All
Actual Questions & Verified Answers
2025/26.
Direct financial compensation - Answercompensation received in the form of salary,
wages, commissions, stock options or bonuses
indirect financial compensation - Answerall the tangible and financially valued rewards
that are not included in direct compensation including free meals, vacation time and
health insurance
nonfinancial compensation - Answerrewards and incentives given to employees that
aren't financial in nature
base pay - Answerreflects the size and scope of an employee's responsibilities
severance pay - Answergive to employees upon termination of their employment
fixed pay - Answerpays employees a set amount regardless of performance
variable pay - Answerbases some or all of an employee's compensation on employee,
team, or organizational
pay structure - Answerthe array of pay rates for different work or skills within a single
organization
pay mix - Answerthe relative emphasis give to different compensation components
pay leader - Answerorganization with a compensation policy of giving employees
greater rewards than competitors
pay follower - Answeran organization that pays its front-line employees as little as
possible
resource dependence theory - Answerproposition that organizational decisions are
influenced by both internal and external agents who control critical resources
wage differentials - Answerdifferences in wage between various workers, groups of
workers, or workers within a career field
labor market - Answerall of the potential employees located within a geographic area
from which the organization might be able to hire
,cost of living allowances - Answerclauses in union contacts that automatically
increase wages base on the U.S. Bureau of Labor Statistics' cost of living index
market pricing - Answeruses external sources of information about how others are
compensating a certain position to assign value to a company's similar job
Compensation surveys - Answersurveys of other organizations conducted to learn
what they are paying for specific jobs or job classes
benchmark jobs - Answerjobs that tend to exist across departments and across
diverse organizations allowing them to be used as a basis for compensation
comparisons
job evaluation - Answera systematic process that uses expert judgement to assess
differences in value between jobs
ranking methos - Answersubjectively compares jobs to each other based on their
overall worth to the organization
job classification method - Answersubjectively classifies jobs into an exiting hierarchy
of grades and categories
point factor method - Answeruses a set of compensable factors to determine a job's
value. skill, resp, effort, working cond.
compensable factor - Answerany characteristic used to provide a basis for judging a
job's value
skills, responsibilities, effort, working conditions - AnswerFour categories of
compensable factors
Hay Group Guide Chart - Profile Method - Answera 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 - AnswerHay Group
Method based on four main factors
Position Analysis Questionnaire - Answera 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 - Answerthe generation of salary structures and pay levels for each job
based on the job evaluation data
single rate system, pay grades and broadbanding - AnswerThree most common job
pricing systems
pay grade (pay scale) - Answerthe range of possible pay for a group of jobs
broadbanding - Answerusing very wide pay grades to increase pay flexibility
internal equity - Answerwhen employees perceive their pay to be fair relative to the
pay of other jobs in the organization
employee equity - Answerthe perceived fairness of the relative pay between
employees performing similar jobs for the same organization
external equity - Answerwhen 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 - Answerif two jobs have equal difficulty requirements, the pay
should be the same, regardless of who fills them
wage rate compression - Answerstarting salaries for new hires exceed the salaries
paid to experienced employees
golden parachute - Answerlucrative benefits given to executives in the event the
company is taken over
Cost-of-living adjustments - Answerpay increases to account for a higher cost of living
in one country versus another
Housing allowance - Answerpayments to subsidize or cover housing and related costs
hardship premiums - Answerincreased salary for living in an area with a lower quality
of life, less safety, etc.
tax equalization payments - Answerincreased salary to make up for higher taxes that
reduce take-home pay and decrease employee's purchasing power
, inflation adjustments - Answerlarger and/or more frequent raises to maintain
employee's purchasing power in the face of inflation
Fair Labor Standards Act of 1938 - Answera federal law that sets standards for
minimum wages, overtime pay, and equal pay for men and women performing the same
jobs
exempt employees - Answeremployees 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 - Answeremployees 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 - Answera 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 - Answerpredetermined compensation (salary and benefits)
variable rewards (incentives) - 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 - AnswerTop 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 - AnswerBefore
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 - AnswerMost common way employers fund variable pay programs
reward differnentiation - Answerdifferentiating rewards based on performance rather
than giving all employees the same reward
Actual Questions & Verified Answers
2025/26.
Direct financial compensation - Answercompensation received in the form of salary,
wages, commissions, stock options or bonuses
indirect financial compensation - Answerall the tangible and financially valued rewards
that are not included in direct compensation including free meals, vacation time and
health insurance
nonfinancial compensation - Answerrewards and incentives given to employees that
aren't financial in nature
base pay - Answerreflects the size and scope of an employee's responsibilities
severance pay - Answergive to employees upon termination of their employment
fixed pay - Answerpays employees a set amount regardless of performance
variable pay - Answerbases some or all of an employee's compensation on employee,
team, or organizational
pay structure - Answerthe array of pay rates for different work or skills within a single
organization
pay mix - Answerthe relative emphasis give to different compensation components
pay leader - Answerorganization with a compensation policy of giving employees
greater rewards than competitors
pay follower - Answeran organization that pays its front-line employees as little as
possible
resource dependence theory - Answerproposition that organizational decisions are
influenced by both internal and external agents who control critical resources
wage differentials - Answerdifferences in wage between various workers, groups of
workers, or workers within a career field
labor market - Answerall of the potential employees located within a geographic area
from which the organization might be able to hire
,cost of living allowances - Answerclauses in union contacts that automatically
increase wages base on the U.S. Bureau of Labor Statistics' cost of living index
market pricing - Answeruses external sources of information about how others are
compensating a certain position to assign value to a company's similar job
Compensation surveys - Answersurveys of other organizations conducted to learn
what they are paying for specific jobs or job classes
benchmark jobs - Answerjobs that tend to exist across departments and across
diverse organizations allowing them to be used as a basis for compensation
comparisons
job evaluation - Answera systematic process that uses expert judgement to assess
differences in value between jobs
ranking methos - Answersubjectively compares jobs to each other based on their
overall worth to the organization
job classification method - Answersubjectively classifies jobs into an exiting hierarchy
of grades and categories
point factor method - Answeruses a set of compensable factors to determine a job's
value. skill, resp, effort, working cond.
compensable factor - Answerany characteristic used to provide a basis for judging a
job's value
skills, responsibilities, effort, working conditions - AnswerFour categories of
compensable factors
Hay Group Guide Chart - Profile Method - Answera 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 - AnswerHay Group
Method based on four main factors
Position Analysis Questionnaire - Answera 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 - Answerthe generation of salary structures and pay levels for each job
based on the job evaluation data
single rate system, pay grades and broadbanding - AnswerThree most common job
pricing systems
pay grade (pay scale) - Answerthe range of possible pay for a group of jobs
broadbanding - Answerusing very wide pay grades to increase pay flexibility
internal equity - Answerwhen employees perceive their pay to be fair relative to the
pay of other jobs in the organization
employee equity - Answerthe perceived fairness of the relative pay between
employees performing similar jobs for the same organization
external equity - Answerwhen 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 - Answerif two jobs have equal difficulty requirements, the pay
should be the same, regardless of who fills them
wage rate compression - Answerstarting salaries for new hires exceed the salaries
paid to experienced employees
golden parachute - Answerlucrative benefits given to executives in the event the
company is taken over
Cost-of-living adjustments - Answerpay increases to account for a higher cost of living
in one country versus another
Housing allowance - Answerpayments to subsidize or cover housing and related costs
hardship premiums - Answerincreased salary for living in an area with a lower quality
of life, less safety, etc.
tax equalization payments - Answerincreased salary to make up for higher taxes that
reduce take-home pay and decrease employee's purchasing power
, inflation adjustments - Answerlarger and/or more frequent raises to maintain
employee's purchasing power in the face of inflation
Fair Labor Standards Act of 1938 - Answera federal law that sets standards for
minimum wages, overtime pay, and equal pay for men and women performing the same
jobs
exempt employees - Answeremployees 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 - Answeremployees 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 - Answera 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 - Answerpredetermined compensation (salary and benefits)
variable rewards (incentives) - 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 - AnswerTop 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 - AnswerBefore
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 - AnswerMost common way employers fund variable pay programs
reward differnentiation - Answerdifferentiating rewards based on performance rather
than giving all employees the same reward
