Direct financial compensation - compensation received in the form of salary, wages, commissions, stock options or bonuses
indirect financial compensation - all the tangible and financially valued rewards that are not included in direct compensation including free meals, vacation time and health ...
WGU C202 Managing Human Capital All Exam Study
Questions and Answers Graded A 2024
Direct financial compensation - compensation received in the form of salary, wages,
commissions, stock options or bonuses
indirect financial compensation - all the tangible and financially valued rewards that are
not included in direct compensation including free meals, vacation time and health
insurance
nonfinancial compensation - rewards and incentives given to employees that aren't
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
WGU C202 Managing Human Capital All exam
, WGU C202 Managing Human Capital All exam
pay leader - organization with a compensation policy of giving employees greater
rewards than competitors
pay follower - an organization that pays its front-line employees as little as possible
resource dependence theory - proposition that organizational decisions are influenced
by 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
WGU C202 Managing Human Capital All exam
, WGU C202 Managing Human Capital All exam
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, working conditions - Four categories of compensable
factors
Hay Group Guide Chart - Profile Method - a 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 - Hay Group Method
based on four main factors
WGU C202 Managing Human Capital All exam
, WGU C202 Managing Human Capital All exam
Position Analysis Questionnaire - a 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 - the generation of salary structures and pay levels for each job based on the
job evaluation data
single rate system, pay grades and broadbanding - Three most common job pricing
systems
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
WGU C202 Managing Human Capital All exam
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