WGU Managing Human Capital C202, UXC2 Questions and Answers
A manager and an employee go on a lunch break together. The manager tells the employee about another coworker that received discipline. The manager discloses to the employee that the coworker was reprimanded for poor performance.
Which part of this scenario involves an ethical dilemma?
Options:
The employee going on a lunch break with the manager
The manager disclosing the discipline of the coworker to the employee
The manager having an unofficial one-on-one conversation with the employee
The employee listening to what the manager shared
Answer:
BExplanation:
Confidentiality Breach:The manager discussing the disciplinary actions taken against another employee violates the principle of confidentiality. Disciplinary actions are private matters and should only be shared with those directly involved or authorized personnel.
Professional Ethics:According to professional ethics, particularly in HR and management, sensitive information about employees should not be disclosed to others who do not have a legitimate need to know.
Trust and Morale:Such disclosures can erode trust within the team and negatively impact morale, as employees might feel their privacy is not respected.
Legal Implications:There could be potential legal implications if the disclosed information is used improperly or causes harm to the reputation of the disciplined employee.
Employees are allowed to have flexible work schedules.
Which form of compensation is represented in this example?
Options:
Direct financial compensation
Nonfinancial compensation
Variable financial compensation
Indirect financial compensation
Answer:
BExplanation:
Compensation includes both financial and nonfinancial rewards that employees receive in exchange for their work. According toHuman Resource Management, 16th Editionby Gary Dessler,nonfinancial compensationrefers to rewards that do not involve direct monetary payments but enhance employees’ quality of work life.
Flexible work schedules are a classic example of nonfinancial compensation. Dessler explains that flexibility improves work–life balance, reduces stress, and increases job satisfaction, making it a valuable reward even though it does not increase pay. Such arrangements can improve morale, engagement, and retention without increasing direct labor costs.
Direct and variable financial compensation involve wages, bonuses, or incentives, while indirect financial compensation includes benefits such as insurance or retirement plans. Since flexible scheduling affects how and when work is performed rather than how much employees are paid, it is classified asnonfinancial compensation.
Source:
Gary Dessler,Human Resource Management, 16th Edition, Chapter on Compensation and Benefits
What describes a bona fide occupational qualification under Title VII of the Civil Rights Act of 1964?
Options:
An exemption from performing essential job functions for people with specific traits
A quota for workforce diversity in government agencies and large organizations
A characteristic that is essential to the successful performance of a relevant job function
A provision that makes retaliation against whistleblowers illegal
Answer:
CExplanation:
A bona fide occupational qualification (BFOQ) under Title VII of the Civil Rights Act of 1964 allows employers to hire employees based on characteristics typically prohibited under the act, such as religion, sex, or national origin, if these characteristics are reasonably necessary to the normal operation of a particular business. This means the characteristic must be essential to the performance of the job. For example, hiring a female actor for a female role is considered a BFOQ.
Title VII of the Civil Rights Act of 1964, U.S. Equal Employment Opportunity Commission (EEOC) website
What explains how (or the sequence of steps) to apply company guidelines to accomplish a task?
Options:
Rule
Principle
Policy
Procedure
Answer:
DExplanation:
A procedure explains how to apply company guidelines to accomplish a task through a sequence of steps. It is more detailed than a policy and provides the exact steps to follow in order to ensure consistency and efficiency in task completion.
What is a benefit to the employer of providing a healthy and safe work environment?
Options:
Increased health benefit options
Decreased absenteeism due to health-related issues
Increased availability of the employer's assistance program
Reduced need for policies and procedures
Answer:
BExplanation:
Healthy Work Environment:Providing a healthy and safe work environment helps prevent workplace injuries and illnesses, promoting overall well-being.
Absenteeism Reduction:When employees are healthy, they are less likely to take time off due to illness or injury, leading to decreased absenteeism.
Productivity and Morale:A safe work environment enhances employee morale and productivity, as employees feel valued and protected.
Cost Savings:Reduced absenteeism also translates into cost savings for the employer, as fewer resources are spent on temporary replacements and overtime for covering absent employees.
What is organizational design?
Options:
Using a graphic representation of the structure of an organization to see the relationships between the organization's positions
Making decisions about how to plan and organize work and exercise authority
Allocating, coordinating, and supervising tasks to achieve organizational aims
Selecting and managing aspects of organizational structure in order to facilitate organizational goal achievement
Answer:
DExplanation:
Organizational design involves configuring the structure of an organization to effectively achieve its goals. This includes determining the best ways to allocate resources, coordinate activities, and supervise tasks. The aim is to create an optimal organizational framework that enhances communication, improves efficiency, and supports the achievement of strategic objectives. It includes decisions about hierarchy, departmentalization, span of control, and formalization.
"Organization Design: A Guide to Building Effective Organizations" by Naomi Stanford
Harvard Business Review articles on organizational design
What is a characteristic of psychological contracts in the workplace?
Options:
They are based on shared core values between employees and their managers.
They consist of the unwritten expectations of the employment relationship.
They are formed to encourage positive workplace environments.
They include formal agreements made during voluntary counseling sessions.
Answer:
BExplanation:
Apsychological contractrefers to the informal and unwritten set of expectations that exists between an employee and the employer. According toHuman Resource Management, 16th Editionby Gary Dessler, psychological contracts include beliefs about job security, career development, fairness, recognition, and mutual obligations that are not formally stated in employment contracts.
Dessler emphasizes that psychological contracts develop over time through communication, organizational culture, and managerial behavior. When employees believe these unwritten expectations are fulfilled, trust and commitment increase. When they are violated, employees may experience dissatisfaction, reduced engagement, or withdrawal behaviors.
Psychological contracts are not formal legal agreements, nor are they created through counseling sessions. While shared values and positive environments may influence them, their defining characteristic is that they areunwritten expectationsgoverning the employment relationship. Therefore, the correct answer isthey consist of the unwritten expectations of the employment relationship.
Source:
Gary Dessler,Human Resource Management, 16th Edition, Chapter on Employee Engagement and Organizational Culture
What is the primary purpose of progressive discipline?
Options:
To provide a method for managers to fairly administer performance evaluations that are free from biases
To make employees aware of performance problems using the least severe action necessary to motivate change
To ensure that the maximum corrective action is administered to correct future performance issues
To ensure that legal regulations are followed when collecting performance-based feedback
Answer:
BExplanation:
The primary purpose of progressive discipline is to address performance issues by making employees aware of problems in a structured manner, starting with the least severe actions. The goal is to provide employees with opportunities to correct their behavior before more severe measures are taken. This approach helps to maintain a fair and supportive work environment while ensuring that employees understand the consequences of continued poor performance. Progressive discipline typically involves a series of steps, such as verbal warnings, written warnings, and, if necessary, termination.
References
Managing Human Capital Textbook
"Progressive Discipline Handbook" by Paul Falcone
SHRM (Society for Human Resource Management) guidelines on progressive discipline
Which type of work culture utilizes hiring, retaining, developing, and motivating employees while making work assignments that are connected to data or outcomes?
Options:
Performance culture
Innovative culture
Risk culture
Compliance culture
Answer:
AExplanation:
A performance culture is one that focuses on achieving specific results and aligning employee activities with the organization's strategic goals. In this type of culture, hiring, retaining, developing, and motivating employees are driven by data and outcomes. Performance metrics are used to make work assignments and evaluate employee contributions to ensure that the organizational objectives are met effectively and efficiently.
"High Performance Work Systems" by David A. Buchanan and Andrzej A. Huczynski, "Organizational Behavior"
Society for Human Resource Management (SHRM) articles on performance culture
An employee was surprised to receive low rankings from a manager on a performance evaluation. The employee was unaware that some of the goals that caused the low rankings were job expectations because the manager had never discussed the goals with the employee.
Which obstacle to effective performance management is illustrated in this example?
Options:
Committing a leniency error in the employee’s performance evaluation
Showing bias in comparing the employee to other employees
Failing to develop a performance plan with the employee
Having personal standards that are too high for the employee’s position
Answer:
CExplanation:
Effective performance management requires clear communication of job expectations, performance standards, and goals before evaluating employee performance. According toHuman Resource Management, 16th Editionby Gary Dessler, one of the most critical steps in performance management isjointly developing a performance planthat specifies what the employee is expected to accomplish and how performance will be measured. When this step is skipped, performance appraisals often appear unfair and unexpected to employees.
In this scenario, the employee received low ratings based on goals that were never discussed or clarified. This reflects a failure in the planning phase of performance management, not a rating error such as leniency or bias. Dessler emphasizes that employees must clearly understand expectations at the start of the appraisal period; otherwise, evaluations lose credibility and can damage trust, motivation, and engagement.
Performance planning aligns employee efforts with organizational objectives and provides a standard against which performance can be fairly assessed. When managers fail to develop and communicate a performance plan, employees cannot reasonably be held accountable for unmet goals. Therefore, the obstacle illustrated here isfailing to develop a performance plan with the employee.
Source:
Gary Dessler,Human Resource Management, 16th Edition, Chapter on Performance Management and Appraisal
What is an example of affirmative action in an organization?
Options:
Removing identifying information from resumes so recruiters are unaware of applicants' backgrounds
Establishing a workforce outreach program for protected groups underrepresented in the organization
Enacting a policy that race or gender may not be criteria for hiring decisions
Including a statement in commercials that the organization has a diverse workforce
Answer:
BExplanation:
Definition of Affirmative Action:Affirmative action involves proactive efforts to improve employment or educational opportunities for underrepresented groups.
Outreach Programs:Establishing outreach programs specifically targeted at protected groups is a clear example of affirmative action, as it aims to address and reduce disparities in workforce representation.
Legal and Ethical Mandates:Such programs are often required by law for certain employers, especially federal contractors, and demonstrate a commitment to diversity and inclusion.
Impact on Workforce Diversity:These initiatives can lead to a more diverse and inclusive workplace, which can enhance organizational culture and performance.
A recruiter requests that an applicant complete a document that requests information about the applicant s medical conditions and the medical conditions of their family members.
Which law did this recruiter violate?
Options:
Family and Medical Leave Act of 1993
Americans with Disabilities Act of 1990
Genetic Information Nondiscrimination Act of 2008
Civil Rights Act of 1991
Answer:
CExplanation:
The Genetic Information Nondiscrimination Act (GINA) of 2008 prohibits employers from requesting, requiring, or purchasing genetic information about an applicant or an employee, which includes family medical history. The act aims to prevent discrimination based on genetic information in both health insurance and employment. The recruiter's request for information about the applicant’s medical conditions and those of their family members directly violates GINA.
Genetic Information Nondiscrimination Act of 2008, U.S. Equal Employment Opportunity Commission (EEOC) website
What are mandatory benefits?
Options:
Benefits that are customarily provided to employees and are rarely denied
Benefits that are in high demand and attract the most desirable candidates
Benefits that are required by law to be provided to employees
Benefits that are required by the employer to be provided to employees
Answer:
CExplanation:
Mandatory benefits are benefits that employers are legally required to provide to employees. According toHuman Resource Management, 16th Editionby Gary Dessler, these benefits are established by federal and state laws to protect employees’ economic security and well-being.
Examples of mandatory benefits include Social Security, unemployment insurance, workers’ compensation, and in some cases family and medical leave. Employers do not have discretion over whether to offer these benefits, as failure to comply can result in legal penalties.
Dessler distinguishes mandatory benefits from voluntary or customary benefits, which employers may offer to remain competitive or attract talent. Therefore, mandatory benefits are best defined as thoserequired by law.
Source:
Gary Dessler,Human Resource Management, 16th Edition, Chapter on Employee Benefits and Legal Compliance
What is the main difference between a customary benefit and an optional benefit?
Options:
Customary benefits are additional forms of insurance that an employee can add to their existing benefit plans to enhance coverage levels, while optional benefits are benefits that an employer makes available to employees.
Optional benefits are offered at the discretion of the organization, while customary benefits are commonly provided and may be expected by employees.
Optional benefits are required to be provided to employees, while customary benefits may or may not be provided to employees.
Customary benefits are required to be provided to employees, while optional benefits may or may not be provided to employees.
Answer:
BExplanation:
Employee benefits are commonly classified as mandatory, customary, or optional. According toHuman Resource Management, 16th Editionby Gary Dessler,customary benefitsare those that are not legally required but arecommonly provided by employersand therefore often expected by employees. Examples include retirement plans, paid vacations, and health insurance coverage. These benefits help organizations remain competitive in the labor market.
In contrast,optional benefits—often referred to as voluntary benefits—are offered entirely at the discretion of the employer and may be selected or declined by employees. Dessler explains that optional benefits typically allow employees to tailor their benefits package to their personal needs, such as additional life insurance, vision coverage, or supplemental disability insurance, often at the employee’s own cost.
The key difference lies in employee expectations and organizational norms. Customary benefits are widely anticipated as part of standard employment, while optional benefits provide flexibility and choice. Therefore, the correct distinction is thatoptional benefits are discretionary, while customary benefits are commonly provided and expected.
Source:
Gary Dessler,Human Resource Management, 16th Edition, Chapter on Employee Benefits and Total Rewards
What is an example of a situational interview question?
Options:
"What have you done to successfully turn a difficult customer into a satisfied and loyal customer?"
"How have you handled a situation in which you and a coworker could not cooperate and had to get management involved?"
"Which type of leadership style do you prefer from your direct manager, and why do you prefer this style?"
"How would you handle a scenario in which you are asked to do something that goes against company policy?"
Answer:
DExplanation:
Situational interview questions are designed to assess how candidates would handle hypothetical scenarios related to the job. The question "How would you handle a scenario in which you are asked to do something that goes against company policy?" requires the candidate to demonstrate their problem-solving abilities, ethical judgment, and adherence to organizational rules. This type of question helps employers gauge a candidate's potential behavior and decision-making skills in challenging situations.
Which factor influences employees’ attitudes about workplace safety?
Options:
An employee’s potential for career development
An organization’s generous attendance policy
An employee’s level of compensation
Leadership’s positive reinforcement of reporting potential hazards
Answer:
DExplanation:
Employees’ attitudes toward workplace safety are strongly shaped by leadership behavior and organizational culture. According toHuman Resource Management, 16th Editionby Gary Dessler, one of the most influential factors in shaping safety attitudes ismanagement’s visible commitment to safety, particularly through positive reinforcement of safe behaviors and hazard reporting.
Dessler explains that when leaders actively encourage employees to report unsafe conditions without fear of retaliation and recognize those who do so, employees perceive safety as a core organizational value. This perception increases safety awareness, compliance with safety rules, and employee participation in safety initiatives. In contrast, if leadership ignores or discourages hazard reporting, employees may believe productivity is valued more than safety, which weakens safety attitudes.
Factors such as compensation, attendance policies, or career development opportunities may affect motivation or satisfaction, but they do not directly shape employees’ perceptions of safety priorities. Leadership behavior sends a powerful signal about what truly matters in the organization. Therefore,positive reinforcement by leadership for reporting potential hazardsmost directly influences employees’ attitudes about workplace safety.
Source:
Gary Dessler,Human Resource Management, 16th Edition, Chapter on Employee Safety and Health
How is understanding a trainee’s learning style important to training effectiveness?
Options:
It improves training outcomes.
It expands employee skill gaps.
It influences the location of the training.
It increases the positive feedback given to the trainer.
Answer:
AExplanation:
Understanding a trainee’s learning style is crucial for the effectiveness of training because it allows the training to be tailored to the individual’s preferred method of learning, thereby improving retention and application of the material. For instance, visual learners benefit from diagrams and videos, auditory learners from lectures and discussions, and kinesthetic learners from hands-on activities. By aligning training methods with learning styles, the overall training outcomes improve, leading to better performance and skill acquisition.
References
Managing Human Capital Textbook
"Training and Development for Dummies" by Elaine Biech
SHRM (Society for Human Resource Management) guidelines on training effectiveness
How can an employee handbook assist employees?
Options:
It prevents the employer from being sued.
It creates laws that must be followed.
It contains employees’ individual performance goals.
It communicates policies against discrimination.
Answer:
DExplanation:
An employee handbook can assist employees by communicating the company's policies against discrimination. It serves as a reference document that outlines the company’s expectations, policies, and procedures, including those related to anti-discrimination, thus helping employees understand their rights and obligations.
What is a human resource management (HRM) strategy for enhancing employee engagement?
Options:
Increase investment in recruitment
Lower education requirements
Provide open communication
Improve benefits options
Answer:
CExplanation:
Enhancing employee engagement is a central goal of strategic human resource management. According toHuman Resource Management, 16th Editionby Gary Dessler, one of the most effective HRM strategies for improving engagement isproviding open and transparent communicationbetween management and employees.
Dessler explains that open communication builds trust, clarifies expectations, and helps employees understand how their roles contribute to organizational success. When employees feel informed and heard, they are more likely to be committed, motivated, and willing to contribute discretionary effort. Communication also supports psychological contracts by aligning employee expectations with organizational realities.
While improving benefits or recruitment investments can support engagement indirectly, they do not address the ongoing relationship between employees and management. Lowering education requirements does not contribute to engagement and may negatively affect performance. Therefore, fostering open communication is a direct and effective HRM strategy for enhancing engagement.
Source:
Gary Dessler,Human Resource Management, 16th Edition, Chapter on Strategic HRM and Employee Engagement
What is a driver for employee retention?
Options:
Performance metrics
Succession management
Competency databases
External sourcing
Answer:
BExplanation:
Employee retention is strongly influenced by opportunities for growth, advancement, and long-term career development. According toHuman Resource Management, 16th Editionby Gary Dessler,succession managementis a key driver of employee retention because it signals to employees that the organization is invested in their future.
Succession management involves identifying, developing, and preparing employees for future leadership or critical roles. Dessler explains that when employees see clear career paths and development opportunities within the organization, they are more likely to remain committed and less likely to seek opportunities elsewhere.
Performance metrics and competency databases are tools used to measure and manage performance and skills, but they do not directly motivate employees to stay. External sourcing focuses on hiring from outside the organization and does not contribute to retaining existing employees. Therefore, the strongest driver of employee retention among the options issuccession management.
Source:
Gary Dessler,Human Resource Management, 16th Edition, Chapter on Career Development, Succession Planning, and Retention
What is a cost associated with avoidable voluntary turnover?
Options:
Severance pay
Lost talent
Reorganization costs
Discipline costs
Answer:
BExplanation:
Avoidable voluntary turnover occurs when employees voluntarily leave the organization for preventable reasons, such as dissatisfaction with pay, management, or working conditions. According toHuman Resource Management, 16th Editionby Gary Dessler, one of the most significant costs associated with avoidable voluntary turnover islost talent.
Dessler explains that when experienced and high-performing employees leave, organizations lose valuable knowledge, skills, and institutional memory. This loss can negatively affect productivity, customer relationships, team morale, and overall performance. Additionally, replacing talented employees requires recruitment, selection, onboarding, and training costs, further increasing the financial impact.
Severance pay is typically associated with involuntary turnover, while reorganization and discipline costs relate to internal restructuring or performance management processes. These are not primary costs of voluntary turnover.
Therefore, the key cost linked to avoidable voluntary turnover is theloss of skilled and experienced talent.
Source:
Gary Dessler,Human Resource Management, 16th Edition, Chapter on Employee Retention, Turnover, and Workforce Planning