WGU C202 Managing Human Capital All Actual
Questions & Verified Answers 2025.
Terms in this set (536)
Direct financial compensation received in the form of salary, wages,
compensation commissions, stock options or bonuses
indirect financial all the tangible and financially valued rewards that are not
compensation included in direct compensation including free meals,
vacation time and health insurance
nonfinancial rewards and incentives given to employees that aren't
compensation financial in nature
base pay reflects the size and scope of an employee's responsibilities
severance pay give to employees upon termination of their employment
fixed pay pays employees a set amount regardless of performance
variable pay bases some or all of an employee's compensation on
employee, team, or organizational
pay structure the array of pay rates for different work or skills within a
single organization
pay mix the relative emphasis give to different compensation
components
pay leader organization with a compensation policy of giving
employees greater rewards than competitors
an organization that pays its front-line employees as little as
pay follower
possible
,resource dependence proposition that organizational decisions are influenced by
theory both internal and external agents who control critical
resources
wage differentials differences in wage between various workers, groups of
workers, or workers within a career field
labor market all of the potential employees located within a geographic
area from which the organization might be able to hire
cost of living allowances clauses in union contacts that automatically increase wages
base on the U.S. Bureau of Labor Statistics' cost of living index
market pricing uses external sources of information about how others
are compensating a certain position to assign value to a
company's similar job
Compensation surveys surveys of other organizations conducted to learn what they
are paying for specific jobs or job classes
benchmark jobs jobs that tend to exist across departments and across diverse
organizations allowing them to be used as a basis for
compensation comparisons
job evaluation a systematic process that uses expert judgement to assess
differences in value between jobs
ranking methos subjectively compares jobs to each other based on their
overall worth to the organization
job classification method subjectively classifies jobs into an exiting hierarchy of grades and
categories
point factor method uses a set of compensable factors to determine a job's value. skill,
resp, effort, working cond.
compensable factor any characteristic used to provide a basis for judging a job's
value
skills, responsibilities, effort, Four categories of compensable factors
working conditions
,Hay Group Guide Chart - a point-factor system is used to produce both a
Profile Method profile and a point score for each position. know
how problem solving accountability working
conditions
Know-how, problem Hay Group Method based on four main factors
solving, accountability,
working conditions
Position Analysis a structured job evaluation questionnaire that is statistically
Questionnaire 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 the generation of salary structures and pay levels for each job
based on the job evaluation data
single rate system, pay Three most common job pricing systems
grades and broadbanding
pay grade (pay scale) the range of possible pay for a group of jobs
broadbanding using very wide pay grades to increase pay flexibility
internal equity when employees perceive their pay to be fair relative to the
pay of other jobs in the organization
employee equity the perceived fairness of the relative pay between employees
performing similar jobs for the same organization
external equity 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 if two jobs have equal difficulty requirements, the pay should be
the same, regardless of who fills them
wage rate compression starting salaries for new hires exceed the salaries paid to
, experienced employees
golden parachute lucrative benefits given to executives in the event the company is
taken over
Cost-of-living adjustments pay increases to account for a higher cost of living in one
country versus another
Housing allowance payments to subsidize or cover housing and related costs
hardship premiums increased salary for living in an area with a lower quality of
life, less safety, etc.
tax equalization payments increased salary to make up for higher taxes that
reduce take-home pay and decrease employee's
purchasing power
inflation adjustments larger and/or more frequent raises to maintain employee's
purchasing power in the face of inflation
Fair Labor Standards Act of a federal law that sets standards for minimum wages,
1938 overtime pay, and equal pay for men and women
performing the same jobs
exempt employees 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 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 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 predetermined compensation (salary and benefits)
Questions & Verified Answers 2025.
Terms in this set (536)
Direct financial compensation received in the form of salary, wages,
compensation commissions, stock options or bonuses
indirect financial all the tangible and financially valued rewards that are not
compensation included in direct compensation including free meals,
vacation time and health insurance
nonfinancial rewards and incentives given to employees that aren't
compensation financial in nature
base pay reflects the size and scope of an employee's responsibilities
severance pay give to employees upon termination of their employment
fixed pay pays employees a set amount regardless of performance
variable pay bases some or all of an employee's compensation on
employee, team, or organizational
pay structure the array of pay rates for different work or skills within a
single organization
pay mix the relative emphasis give to different compensation
components
pay leader organization with a compensation policy of giving
employees greater rewards than competitors
an organization that pays its front-line employees as little as
pay follower
possible
,resource dependence proposition that organizational decisions are influenced by
theory both internal and external agents who control critical
resources
wage differentials differences in wage between various workers, groups of
workers, or workers within a career field
labor market all of the potential employees located within a geographic
area from which the organization might be able to hire
cost of living allowances clauses in union contacts that automatically increase wages
base on the U.S. Bureau of Labor Statistics' cost of living index
market pricing uses external sources of information about how others
are compensating a certain position to assign value to a
company's similar job
Compensation surveys surveys of other organizations conducted to learn what they
are paying for specific jobs or job classes
benchmark jobs jobs that tend to exist across departments and across diverse
organizations allowing them to be used as a basis for
compensation comparisons
job evaluation a systematic process that uses expert judgement to assess
differences in value between jobs
ranking methos subjectively compares jobs to each other based on their
overall worth to the organization
job classification method subjectively classifies jobs into an exiting hierarchy of grades and
categories
point factor method uses a set of compensable factors to determine a job's value. skill,
resp, effort, working cond.
compensable factor any characteristic used to provide a basis for judging a job's
value
skills, responsibilities, effort, Four categories of compensable factors
working conditions
,Hay Group Guide Chart - a point-factor system is used to produce both a
Profile Method profile and a point score for each position. know
how problem solving accountability working
conditions
Know-how, problem Hay Group Method based on four main factors
solving, accountability,
working conditions
Position Analysis a structured job evaluation questionnaire that is statistically
Questionnaire 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 the generation of salary structures and pay levels for each job
based on the job evaluation data
single rate system, pay Three most common job pricing systems
grades and broadbanding
pay grade (pay scale) the range of possible pay for a group of jobs
broadbanding using very wide pay grades to increase pay flexibility
internal equity when employees perceive their pay to be fair relative to the
pay of other jobs in the organization
employee equity the perceived fairness of the relative pay between employees
performing similar jobs for the same organization
external equity 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 if two jobs have equal difficulty requirements, the pay should be
the same, regardless of who fills them
wage rate compression starting salaries for new hires exceed the salaries paid to
, experienced employees
golden parachute lucrative benefits given to executives in the event the company is
taken over
Cost-of-living adjustments pay increases to account for a higher cost of living in one
country versus another
Housing allowance payments to subsidize or cover housing and related costs
hardship premiums increased salary for living in an area with a lower quality of
life, less safety, etc.
tax equalization payments increased salary to make up for higher taxes that
reduce take-home pay and decrease employee's
purchasing power
inflation adjustments larger and/or more frequent raises to maintain employee's
purchasing power in the face of inflation
Fair Labor Standards Act of a federal law that sets standards for minimum wages,
1938 overtime pay, and equal pay for men and women
performing the same jobs
exempt employees 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 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 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 predetermined compensation (salary and benefits)
