WGU C202 Managing Human Capital All
Direct financial compensation - pay mix - ANSWER -the relative
ANSWER -compensation received in emphasis give to different compensation
the form of salary, wages, commissions, components
stock options or bonuses
pay leader - ANSWER -organization with
indirect financial compensation - a compensation policy of giving employees
ANSWER -all the tangible and greater rewards than competitors
financially valued rewards that are not
included in direct compensation including
free meals, vacation time and health pay follower - ANSWER -an organization
insurance that pays its front-line employees as little as
possible
nonfinancial compensation -
ANSWER -rewards and incentives given resource dependence theory -
to employees that aren't financial in nature ANSWER -proposition that
organizational decisions are influenced by
both internal and external agents who control
base pay - ANSWER -reflects the size critical resources
and scope of an employee's responsibilities
wage differentials - ANSWER -
severance pay - ANSWER -give to differences in wage between various workers,
employees upon termination of their groups of workers, or workers within a career
employment field
fixed pay - ANSWER -pays employees a labor market - ANSWER -all of the
set amount regardless of performance potential employees located within a
geographic area from which the organization
might be able to hire
variable pay - ANSWER -bases some or
all of an employee's compensation on
employee, team, or organizational cost of living allowances - ANSWER -
clauses in union contacts that automatically
increase wages base on the U.S. Bureau of
pay structure - ANSWER -the array of Labor Statistics' cost of living index
pay rates for different work or skills within a
single organization
market pricing - ANSWER -uses external
sources of information about how others are
, WGU C202 Managing Human Capital All
compensating a certain position to assign skills, responsibilities, effort, working
value to a company's similar job conditions - ANSWER -Four categories
of compensable factors
Compensation surveys - ANSWER -
surveys of other organizations conducted to Hay Group Guide Chart - Profile Method -
learn what they are paying for specific jobs or ANSWER -a point-factor system is used
job classes to produce both a profile and a point score for
each position.
know how
benchmark jobs - ANSWER -jobs that problem solving
tend to exist across departments and across accountability
diverse organizations allowing them to be working conditions
used as a basis for compensation
comparisons
Know-how, problem solving, accountability,
working conditions - ANSWER -Hay
job evaluation - ANSWER -a systematic Group Method based on four main factors
process that uses expert judgement to
assess differences in value between jobs
Position Analysis Questionnaire -
ANSWER -a structured job evaluation
ranking methos - ANSWER -subjectively questionnaire that is statistically analyzed to
compares jobs to each other based on their calculate pay rates based on how the labor
overall worth to the organization market is valuing worker characteristics. a
copyrighted, standardized, structured job
analysis questionnaire. 6 sections covering
job classification method - ANSWER - 187 job elements.
subjectively classifies jobs into an exiting
hierarchy of grades and categories
job pricing - ANSWER -the generation of
salary structures and pay levels for each job
point factor method - ANSWER -uses a based on the job evaluation data
set of compensable factors to determine a
job's value. skill, resp, effort, working cond.
single rate system, pay grades and
broadbanding - ANSWER -Three most
compensable factor - ANSWER -any common job pricing systems
characteristic used to provide a basis for
judging a job's value
pay grade (pay scale) - ANSWER -the
range of possible pay for a group of jobs
, WGU C202 Managing Human Capital All
pay increases to account for a higher cost of
living in one country versus another
broadbanding - ANSWER -using very
wide pay grades to increase pay flexibility
Housing allowance - ANSWER -
payments to subsidize or cover housing and
internal equity - ANSWER -when related costs
employees perceive their pay to be fair
relative to the pay of other jobs in the
organization hardship premiums - ANSWER -
increased salary for living in an area with a
lower quality of life, less safety, etc.
employee equity - ANSWER -the
perceived fairness of the relative pay
between employees performing similar jobs tax equalization payments - ANSWER -
for the same organization increased salary to make up for higher taxes
that reduce take-home pay and decrease
employee's purchasing power
external equity - ANSWER -when an
organization's employees believe that their
pay is fair when compared to what other inflation adjustments - ANSWER -larger
employers pay their employees who perform and/or more frequent raises to maintain
similar jobs employee's purchasing power in the face of
inflation
comparable worth - ANSWER -if two
jobs have equal difficulty requirements, the Fair Labor Standards Act of 1938 -
pay should be the same, regardless of who ANSWER -a federal law that sets
fills them standards for minimum wages, overtime pay,
and equal pay for men and women
performing the same jobs
wage rate compression - ANSWER -
starting salaries for new hires exceed the
salaries paid to experienced employees exempt employees - ANSWER -
employees who meet one of the FLSA
exemption tests, are paid on a fixed salary
golden parachute - ANSWER -lucrative basis and are not entitled to overtime pay
benefits given to executives in the event the
company is taken over
non-exempt employees - ANSWER -
employees who do not meet any of one of the
Cost-of-living adjustments - ANSWER - FLSA exemption tests and are paid on an
, WGU C202 Managing Human Capital All
hourly basis and covered by wage and hour motivate performance, it is important to
laws regarding minimum wage, overtime pay consider the
and hours worked
- Company performance
workers' compensation - ANSWER -a - Reduced merit increases
type of insurance that replaces wages and - Reductions in head count
medical benefits for employees injured on - Reduced benefits
the job in exchange for relinquishing the - Pay freezes - ANSWER -Most common
employee's right to sue the employer for way employers fund variable pay programs
negligence
reward differnentiation - ANSWER -
fixed rewards - ANSWER - differentiating rewards based on performance
predetermined compensation (salary and rather than giving all employees the same
benefits) reward
variable rewards (incentives) - short-term incentives - ANSWER -one-
ANSWER -"at risk" rewards which are time variable rewards used to motivate short-
linked to factors determined as valuable, term employee behavior and performance
including performance, skills, competence (typically one year or less). ie bonus or profit
and contribution sharing. to motivate attendance, cust serv,
safety, production quality and quantity
- Recognize and reward high performers
- Increase the likelihood of achieving profit sharing - ANSWER -the
corporate goals distribution of organizational profits to all
- Improve productivity employees
- Move away from an entitlement culture -
ANSWER -Top four reasons
organizations give for tying pay to stock options - ANSWER -the right of an
performance ar employee to buy shares of the company's
stock at a certain price (the exercise price)
during some future period of time
- Preference of individual employees
- Size of the rewards for high performance
- Method of motivating individual job long-term incentives - ANSWER -
performance incentives that motivate behaviors and
- Objectivity of the evaluation process that performance that support company value
determines the rewards - ANSWER - and long-term organizational health. ie stock
Before designing an incentive pay plan to options
Direct financial compensation - pay mix - ANSWER -the relative
ANSWER -compensation received in emphasis give to different compensation
the form of salary, wages, commissions, components
stock options or bonuses
pay leader - ANSWER -organization with
indirect financial compensation - a compensation policy of giving employees
ANSWER -all the tangible and greater rewards than competitors
financially valued rewards that are not
included in direct compensation including
free meals, vacation time and health pay follower - ANSWER -an organization
insurance that pays its front-line employees as little as
possible
nonfinancial compensation -
ANSWER -rewards and incentives given resource dependence theory -
to employees that aren't financial in nature ANSWER -proposition that
organizational decisions are influenced by
both internal and external agents who control
base pay - ANSWER -reflects the size critical resources
and scope of an employee's responsibilities
wage differentials - ANSWER -
severance pay - ANSWER -give to differences in wage between various workers,
employees upon termination of their groups of workers, or workers within a career
employment field
fixed pay - ANSWER -pays employees a labor market - ANSWER -all of the
set amount regardless of performance potential employees located within a
geographic area from which the organization
might be able to hire
variable pay - ANSWER -bases some or
all of an employee's compensation on
employee, team, or organizational cost of living allowances - ANSWER -
clauses in union contacts that automatically
increase wages base on the U.S. Bureau of
pay structure - ANSWER -the array of Labor Statistics' cost of living index
pay rates for different work or skills within a
single organization
market pricing - ANSWER -uses external
sources of information about how others are
, WGU C202 Managing Human Capital All
compensating a certain position to assign skills, responsibilities, effort, working
value to a company's similar job conditions - ANSWER -Four categories
of compensable factors
Compensation surveys - ANSWER -
surveys of other organizations conducted to Hay Group Guide Chart - Profile Method -
learn what they are paying for specific jobs or ANSWER -a point-factor system is used
job classes to produce both a profile and a point score for
each position.
know how
benchmark jobs - ANSWER -jobs that problem solving
tend to exist across departments and across accountability
diverse organizations allowing them to be working conditions
used as a basis for compensation
comparisons
Know-how, problem solving, accountability,
working conditions - ANSWER -Hay
job evaluation - ANSWER -a systematic Group Method based on four main factors
process that uses expert judgement to
assess differences in value between jobs
Position Analysis Questionnaire -
ANSWER -a structured job evaluation
ranking methos - ANSWER -subjectively questionnaire that is statistically analyzed to
compares jobs to each other based on their calculate pay rates based on how the labor
overall worth to the organization market is valuing worker characteristics. a
copyrighted, standardized, structured job
analysis questionnaire. 6 sections covering
job classification method - ANSWER - 187 job elements.
subjectively classifies jobs into an exiting
hierarchy of grades and categories
job pricing - ANSWER -the generation of
salary structures and pay levels for each job
point factor method - ANSWER -uses a based on the job evaluation data
set of compensable factors to determine a
job's value. skill, resp, effort, working cond.
single rate system, pay grades and
broadbanding - ANSWER -Three most
compensable factor - ANSWER -any common job pricing systems
characteristic used to provide a basis for
judging a job's value
pay grade (pay scale) - ANSWER -the
range of possible pay for a group of jobs
, WGU C202 Managing Human Capital All
pay increases to account for a higher cost of
living in one country versus another
broadbanding - ANSWER -using very
wide pay grades to increase pay flexibility
Housing allowance - ANSWER -
payments to subsidize or cover housing and
internal equity - ANSWER -when related costs
employees perceive their pay to be fair
relative to the pay of other jobs in the
organization hardship premiums - ANSWER -
increased salary for living in an area with a
lower quality of life, less safety, etc.
employee equity - ANSWER -the
perceived fairness of the relative pay
between employees performing similar jobs tax equalization payments - ANSWER -
for the same organization increased salary to make up for higher taxes
that reduce take-home pay and decrease
employee's purchasing power
external equity - ANSWER -when an
organization's employees believe that their
pay is fair when compared to what other inflation adjustments - ANSWER -larger
employers pay their employees who perform and/or more frequent raises to maintain
similar jobs employee's purchasing power in the face of
inflation
comparable worth - ANSWER -if two
jobs have equal difficulty requirements, the Fair Labor Standards Act of 1938 -
pay should be the same, regardless of who ANSWER -a federal law that sets
fills them standards for minimum wages, overtime pay,
and equal pay for men and women
performing the same jobs
wage rate compression - ANSWER -
starting salaries for new hires exceed the
salaries paid to experienced employees exempt employees - ANSWER -
employees who meet one of the FLSA
exemption tests, are paid on a fixed salary
golden parachute - ANSWER -lucrative basis and are not entitled to overtime pay
benefits given to executives in the event the
company is taken over
non-exempt employees - ANSWER -
employees who do not meet any of one of the
Cost-of-living adjustments - ANSWER - FLSA exemption tests and are paid on an
, WGU C202 Managing Human Capital All
hourly basis and covered by wage and hour motivate performance, it is important to
laws regarding minimum wage, overtime pay consider the
and hours worked
- Company performance
workers' compensation - ANSWER -a - Reduced merit increases
type of insurance that replaces wages and - Reductions in head count
medical benefits for employees injured on - Reduced benefits
the job in exchange for relinquishing the - Pay freezes - ANSWER -Most common
employee's right to sue the employer for way employers fund variable pay programs
negligence
reward differnentiation - ANSWER -
fixed rewards - ANSWER - differentiating rewards based on performance
predetermined compensation (salary and rather than giving all employees the same
benefits) reward
variable rewards (incentives) - short-term incentives - ANSWER -one-
ANSWER -"at risk" rewards which are time variable rewards used to motivate short-
linked to factors determined as valuable, term employee behavior and performance
including performance, skills, competence (typically one year or less). ie bonus or profit
and contribution sharing. to motivate attendance, cust serv,
safety, production quality and quantity
- Recognize and reward high performers
- Increase the likelihood of achieving profit sharing - ANSWER -the
corporate goals distribution of organizational profits to all
- Improve productivity employees
- Move away from an entitlement culture -
ANSWER -Top four reasons
organizations give for tying pay to stock options - ANSWER -the right of an
performance ar employee to buy shares of the company's
stock at a certain price (the exercise price)
during some future period of time
- Preference of individual employees
- Size of the rewards for high performance
- Method of motivating individual job long-term incentives - ANSWER -
performance incentives that motivate behaviors and
- Objectivity of the evaluation process that performance that support company value
determines the rewards - ANSWER - and long-term organizational health. ie stock
Before designing an incentive pay plan to options
