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
,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
