WGU Managing-Human-Capital WGU Managing Human Capital C202, UXC2 Exam Practice Test

The main reason for the failure of mergers and acquisitions is often a culture mismatch between the merging organizations. When two companies with different corporate cultures come together, clashes can occur if their values, beliefs, and ways of doing business do not align. This can lead to misunderstandings, conflicts, and a lack of cohesion, ultimately hindering the integration process and reducing the chances of a successful merger or acquisition.

"Mergers and Acquisitions: Managing Culture and Human Resources" by Mark E. Mendenhall and Gary R. Oddou

McKinsey & Company articles on mergers and acquisitions

Pay-for-performance plans link employee compensation directly to individual or organizational performance outcomes. According toHuman Resource Management, 16th Editionby Gary Dessler, a key advantage of pay-for-performance systems is that they serve as apositive reinforcement method, encouraging employees to perform at higher levels by rewarding desired behaviors and results.

Dessler explains that when employees clearly understand that superior performance leads to tangible rewards such as bonuses, incentives, or merit pay, they are more likely to align their efforts with organizational goals. This reinforcement strengthens the connection between effort and reward, increasing motivation and accountability.

Pay-for-performance does not primarily focus on tenure or knowledge alone, nor does it rely on intrinsic motivation, which comes from internal satisfaction rather than external rewards. Instead, it leverages extrinsic rewards to motivate performance improvements. Therefore, the primary advantage highlighted in human capital management literature is its role as apositive reinforcement mechanism.

Source:

Gary Dessler,Human Resource Management, 16th Edition, Chapter on Incentive Pay and Employee Motivation

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

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

A primary focus of global leadership training is cross-cultural collaboration. In a globalized business environment, leaders must be adept at working with diverse teams across different cultures. Training programs in this area aim to develop skills such as cultural awareness, communication, and adaptability. These skills enable leaders to effectively manage and collaborate with employees from various cultural backgrounds, fostering an inclusive and cohesive work environment that can enhance global business operations and performance.

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

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.

References

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.

The learning level of Kirkpatrick's training evaluation model measures the degree to which participants have acquired the intended knowledge, skills, and attitudes based on their participation in the training. A survey is an effective tool at this level as it can assess participants' perceptions of their learning and gather feedback on the training's content and delivery. Surveys can be designed to include specific questions related to the learning objectives and can provide quantitative data on the effectiveness of the training.

References

Managing Human Capital Textbook

"Evaluating Training Programs: The Four Levels" by Donald Kirkpatrick and James Kirkpatrick

SHRM (Society for Human Resource Management) guidelines on training evaluation

Exit interviews are an important tool for understanding employee turnover. According toHuman Resource Management, 16th Editionby Gary Dessler, exit interviews are most effective when used toidentify the underlying causes of employee departuresand to guide improvements in current workplace conditions.

Dessler notes that while exit interviews cannot prevent the departure of the exiting employee, they provide valuable insights into organizational weaknesses such as poor supervision, inadequate pay, limited advancement opportunities, or unsatisfactory working conditions. When organizations systematically analyze exit interview data, they can identify patterns and take corrective action to reduce future voluntary turnover.

Exit interviews are not designed to investigate wrongful termination or to determine why employees were fired, as they are typically conducted during voluntary separations. Ensuring equitable departure processes is an administrative concern, not a retention strategy. Thus, the primary value of exit interviews lies inidentifying causes of turnover and improving organizational practices.

Source:

Gary Dessler,Human Resource Management, 16th Edition, Chapter on Employee Retention, Turnover, and Exit Interviews

Aculture of safetyexists when safety is deeply embedded into an organization’s values, beliefs, and everyday practices. According toHuman Resource Management, 16th Editionby Gary Dessler, organizations with a strong safety culture treat safety not as a short-term priority or a compliance requirement, but as acore organizational valuethat guides behavior at all levels.

In a true culture of safety, employees and managers alike understand that safety is non-negotiable and integral to how work is performed. Safety responsibilities are shared, openly discussed, and consistently reinforced through training, leadership behavior, and organizational policies. Dessler notes that safety cultures are strongest when top management visibly supports safety initiatives and integrates them into daily operations rather than treating them as secondary to productivity.

Options suggesting that safety is only important after productivity goals are met or merely a tool for profit generation contradict the definition of a safety culture. Similarly, while safety may influence performance evaluations, it is not the sole factor. The defining characteristic of a culture of safety is thatsafety is a core value understood and practiced throughout the organization, making option C the correct answer.

Source:

Gary Dessler,Human Resource Management, 16th Edition, Chapter on Employee Safety and Health

A customary benefit refers to benefits that are traditionally offered by employers, though not legally required. Retirement plans, such as 401(k) plans or pension plans, are common examples of customary benefits. These plans provide financial security for employees in their post-working years and are often used by employers to attract and retain talent by offering long-term financial planning options.

References

Managing Human Capital Textbook

"Employee Benefits" by Joseph J. Martocchio

SHRM (Society for Human Resource Management) guidelines on customary benefits

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.

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

A procedure is a series of steps or actions that need to be followed in order to achieve a specific outcome. Option D specifies that the store manager requires all employees to clean their workstations at the end of each shift, indicating a clear, consistent, and repeatable set of actions (steps) that employees must follow, which is the essence of a procedure.

Motivation can originate from internal or external sources. According toHuman Resource Management, 16th Editionby Gary Dessler,intrinsic motivationoccurs when employees are driven by internal satisfaction, enjoyment, or fulfillment derived from the work itself rather than external rewards.

Employees who find their work meaningful, challenging, or personally rewarding are intrinsically motivated. Dessler emphasizes that intrinsic motivation is associated with higher levels of engagement, creativity, and long-term commitment because the motivation comes from within the individual rather than from pay, bonuses, or promotions.

External, extrinsic, or incentive motivation refers to behavior driven by external rewards or avoidance of punishment. Since the question specifies fulfillment from the work itself, the correct classification isintrinsic motivation.

Source:

Gary Dessler,Human Resource Management, 16th Edition, Chapter on Employee Motivation and Engagement

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.

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

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

Customary benefits are benefits that employers commonly provide but arenot legally required. According toHuman Resource Management, 16th Editionby Gary Dessler, these benefits are offered to remain competitive in the labor market and to attract and retain employees.

Retirement plans, such as employer-sponsored pension plans or 401(k) contributions, are classic examples of customary benefits. While highly valued by employees, employers are not legally mandated to provide them. In contrast, workers’ compensation, Social Security, and unemployment insurance are mandatory benefits required by law.

Dessler explains that customary benefits allow organizations flexibility in designing compensation packages that align with their strategy and workforce needs. Thus, the correct example of a customary benefit is aretirement plan.

Source:

Gary Dessler,Human Resource Management, 16th Edition, Chapter on Employee Benefits and Total Rewards

Wellness programs are organizational initiatives designed to promote employees’ physical and mental well-being through activities such as fitness programs, stress management, health screenings, and lifestyle education. According toHuman Resource Management, 16th Editionby Gary Dessler, a key benefit of wellness programs for both employers and employees isimproved employee morale.

From the employee perspective, wellness programs demonstrate that the organization values their health and quality of life, which increases job satisfaction, motivation, and organizational commitment. Employees who feel supported are more engaged and experience lower stress levels. From the employer perspective, improved morale often leads to reduced absenteeism, lower turnover, and higher productivity.

Dessler notes that while wellness programs may also contribute to long-term cost savings related to healthcare and insurance, they do not eliminate the need for health insurance nor are they designed to build technical skills or directly influence promotions. Their primary shared benefit lies in fostering a healthier, more positive, and more engaged workforce.

Thus, the correct answer isimproving employee morale.

Source:

Gary Dessler,Human Resource Management, 16th Edition, Chapter on Employee Health and Safety and Employee Benefits

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.