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PSYIND1 > 09 Employee Compensation > Flashcards

09 Employee Compensation Flashcards

1
Q

Refers to all forms of pay or rewards given to employees

A

compensation

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2
Q

2 main components of compensation

A

direct and indirect financial payments

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3
Q

Direct financial payments come in the form of (blank)

A

wages, salaries, incentives, commissions, bonuses

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4
Q

Indirect financial payments come in the form of (blank)

A

financial benefits such as insurance

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5
Q

What is the minimum wage in NCR in the service sector?

A

Php 500-537

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6
Q

4 types of financial rewards in the workplace

A
  1. membership- and seniority-based
  2. job status-based
  3. competency-based
  4. performance-based
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7
Q

[Financial Rewards]

Given on the basis of being part of the organization and years rendered

A

membership- and seniority-based

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8
Q

[Financial Rewards]

2 main advantages of membership- and seniority-based rewards

A
  1. guaranteed wages are attractive to applicants

2. seniority-based rewards reduce turnover

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9
Q

[Financial Rewards]

3 main disadvantages of membership- and seniority-based rewards

A
  1. not motivating
  2. discourages poor performers from leaving
  3. golden handcuffs not facilitating affective commitment
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10
Q

Why is early retirement offerred?

A

expensive to maintain senior employees because they require higher pay

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11
Q

[Financial Rewards]

Given on the basis of status or worth of the jobs they occupy

A

job status-based

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12
Q

[Financial Rewards]

Job status-based rewards include (blank) and (blank)

A

job evaluation and status perks

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13
Q

[Financial Rewards]

This is used to systematically rate the worth of jobs

A

job evaluation

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14
Q

[Financial Rewards]

3 main advantages of job status-based rewards

A
  1. maintains internal equity
  2. minimizes pay discrimination
  3. motivates employees to compete for promotions
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15
Q

[Financial Rewards]

5 main disadvantages of job status-based rewards

A
  1. encourages hierarchy
  2. increases costs
  3. reduces responsiveness
  4. reinforces status differences
  5. motivates job competition and exaggerated job worth
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16
Q

[Financial Rewards]

Given on the basis of their assessed competencies and whether they actually use those in their current job

A

competency-based rewards

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17
Q

[Financial Rewards]

Refers to a specific competency-based reward where people receive higher pay based on their mastery of measurable skills

A

skill-based pay

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18
Q

[Financial Rewards]

2 main advantages of competency-based rewards

A
  1. motivates employees to learn new competencies

2. improves quality with multi-skilled employees

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19
Q

[Financial Rewards]

2 main disadvantages of competency-based rewards

A
  1. subjective measurement of competencies

2. expensive because employees spend more time learning new skills

20
Q

[Financial Rewards]

Given on the basis of high levels of performance

A

performance-based rewards

21
Q

[Financial Rewards]

Performance-based rewards given based on objective performance measures

A

pay-for-performance

22
Q

[Financial Rewards]

Pay-for-performance is also known as (blank)

A

earning-at-risk

23
Q

[Financial Rewards]

Performance-based rewards based on subjective measures

A

merit pay

24
Q

[Financial Rewards]

3 types of performance-based rewards

A
  1. organizational
  2. team
  3. individual
25
Q

[Financial Rewards]

Individual performance-based rewards may come in these 3 forms

A
  1. bonuses
  2. commissions
  3. piece rates
26
Q

[Financial Rewards]

Team performance-based rewards may come in these 2 forms

A
  1. bonuses

2. gainsharing

27
Q

[Financial Rewards]

Organizational performance-based rewards may come in these 4 forms

A
  1. profit sharing
  2. share ownership
  3. stock options
  4. balanced scorecard
28
Q

[Financial Rewards]

4 main advantages of performance-based rewards

A
  1. motivates performance
  2. attracts performance-oriented aspects
  3. organizational rewards create an ownership culture
  4. profit sharing may avoid layoffs
29
Q

[Financial Rewards]

5 steps to improving reward system effectiveness

A
  1. link rewards to performance
  2. ensure that rewards are relevant
  3. use team rewards for interdependent jobs
  4. ensure that rewards are valued
  5. watch out for unintended consequences
30
Q

Refers to creating a total rewards package to elicit employee behaviors the firm needs to support and achieve its competitive strategy

A

aligned reward strategy

31
Q

The equity theory of motivation states that employees are strongly motivated to maintain a balance between (blank) and (blank)

A

their perceived contributions and rewards

32
Q

4 forms of equity

A
  1. external
  2. internal
  3. individual
  4. procedural
33
Q

[Forms of Equity]

Refers to how a job’s pay rate in one company compares to the equivalent job’s pay rate in other companies

A

external equity

34
Q

[Forms of Equity]

Refers to how fair a job’s pay rate is compared to other jobs in the same company

A

internal equity

35
Q

[Forms of Equity]

Refers to the fairness of an individual’s pay as compared to his/her coworkers

A

individual equity

36
Q

[Forms of Equity]

Refers to the perceived fairness of the processes and procedures used to make in allocating pay

A

procedural equity

37
Q

This method monitors and maintains external equity

A

job surveys

38
Q

2 methods that maintain internal equity

A

job analysis and job evaluation

39
Q

2 methods that maintain individual equity

A

performance appraisal and incentive pay

40
Q

3 methods to ensure transparency in the pay process

A
  1. communication
  2. grievance mechanisms
  3. employees’ participation
41
Q

2 ways to establish pay rates

A

salary survey and job evaluation

42
Q

Used to anchor the employer’s pay scale around other jobs arranged in order of relative worth

A

benchmarking

43
Q

4 compensable elements of a job

A

skills, effort, responsibilities, and working conditions

44
Q

4 steps in job evaluation using the Point Method

A
  1. determines compensable factors
  2. evaluate the degree of each compensable factor to each job
  3. sum the points of each job for each factor
  4. plot actual salaries for each job against the total points
45
Q

Refers to the requirement to pay men and women equal wages for jobs that are of comparable value to the employer

A

comparable worth

46
Q

Comparable worth seeks to address which issue?

A

women being paid less for being given jobs that are valued less compared to those given to men

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