WGU Managing Human Capital (C202) Exam Questions

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Total 50 questions
Question 1

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?



Answer : B

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.


Society for Human Resource Management (SHRM) Code of Ethical and Professional Standards

HR Confidentiality Policies and Best Practices

Question 2

How does diversity awareness improve an organization's performance?



Answer : D

Inclusion in the workplace refers to creating an environment where all employees feel valued, respected, and have equal access to opportunities and resources. An inclusive scenario is one where team members collaborate, and everyone's ideas and contributions are considered. This encourages a sense of belonging and leverages the diverse perspectives of the entire team, leading to enhanced innovation and team performance. The given example demonstrates this by showing a department where collaboration and open sharing of ideas are practiced. Reference:

Roberson, Q. M. (2006). Disentangling the meanings of diversity and inclusion in organizations. Group & Organization Management.

Dessler, G. (2020). Human Resource Management. Pearson.


Question 3

Which factor do unions prefer when negotiating with employers over criteria for job opportunities, such as promotions and job security?



Answer : A

Unionized workers typically enjoy more secure benefits compared to nonunionized workers, with guaranteed pensions being one of the most secure. Unions negotiate defined benefit pension plans that promise a specified monthly benefit at retirement, which is often based on factors such as salary history and years of service. These plans provide financial security for employees upon retirement and are less common in nonunionized workplaces, where defined contribution plans like 401(k)s are more prevalent. Reference:

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2019). Human Resource Management: Gaining a Competitive Advantage. McGraw-Hill Education.

Freeman, R. B., & Medoff, J. L. (1984). What Do Unions Do?. Basic Books.


Question 4

Which type of work culture utilizes hiring, retaining, developing, and motivating employees while making work assignments that are connected to data or outcomes?



Answer : A

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

Question 5

What is a job analysis?



Answer : B

Job analysis is a systematic process that involves identifying and documenting the essential tasks, responsibilities, and behaviors required for a job. It also assesses the qualifications, skills, and knowledge needed to perform those tasks effectively. The outcome of a job analysis includes detailed job descriptions and specifications, which are used for various HR functions such as recruitment, selection, training, performance appraisal, and compensation.


'Job and Work Analysis: Methods, Research, and Applications for Human Resource Management' by Michael T. Brannick, Edward L. Levine, and Frederick P. Morgeson

Society for Human Resource Management (SHRM) guidelines on job analysis

Question 6

What can encourage desired behaviors from employees when implementing organizational action plans by providing key details on how well the employees are fulfilling their job duties?



Answer : D

Performance metrics are quantitative measures used to assess how well employees are fulfilling their job duties. They provide specific details on various aspects of job performance, such as productivity, quality, efficiency, and adherence to deadlines. By tracking these metrics, managers can identify areas where employees excel and where they may need additional support or training. Performance metrics help in setting clear expectations, providing feedback, and aligning employee performance with organizational goals. They are essential for implementing organizational action plans as they ensure that employees' behaviors and outcomes are aligned with the desired objectives. Reference

Kaplan, R. S., & Norton, D. P. (1996). 'The Balanced Scorecard: Translating Strategy into Action.' Harvard Business Review Press.

Armstrong, M. (2021). 'Armstrong's Handbook of Performance Management: An Evidence-Based Guide to Delivering High Performance.' Kogan Page.


Question 7

Which area has the main functions of staffing, health, safety, employee-management relations, rewards, benefits, training, development, and performance management?



Answer : B

Scope of HRM: Human resource management (HRM) covers a wide range of functions critical to managing an organization's workforce.

Key Functions:

Staffing: Recruiting, selecting, and onboarding employees.

Health and Safety: Ensuring a safe workplace and promoting employee well-being.

Employee-Management Relations: Managing interactions between employees and management to maintain a positive work environment.

Rewards and Benefits: Designing compensation packages and benefits that attract and retain talent.

Training and Development: Providing learning opportunities to enhance employee skills and career growth.

Performance Management: Evaluating and improving employee performance to align with organizational goals.

Objective: The main objective of HRM is to maximize employee performance and ensure that human capital contributes effectively to the achievement of organizational goals.


Fundamentals of Human Resource Management by Gary Dessler

SHRM guidelines and best practices in HRM

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Total 50 questions