chapitre 6 Flashcards
What is equity?
It is a principle advocating equal compensation for employees for equal work or job contribution
What are the basic principles of equitable treatment of employees?
- Internal job consistency
- External salary competitiveness.
- Employee motivation and mobilization
What is a job evaluation?
It is a process that assigns a relative value to jobs based on their worth to the organization.
What is internal equity?
It is the equity between salaries and requirements for similar or different jobs within the organization.
What is external equity?
It is the equity among salaries for similar jobs in different organizations.
What is individual equity?
It is equity between the wages of individuals in the same job in the same organization.
What is collective equity?
It is equity in recognizing collective efforts to achieve the oranization’s objectives.
What are the four imortant objectives in setting salaries?
- Internal equity
- External equity
- Individual equity
- Collective equity
What is the salary differential?
It is the difference in salary between jobs of various hierarchical levels.
What are the 4 main recommendations for a job evaluation?
- Qualifications and experience required.
- Responsibilities
- Intellectual and physical effort
- Working conditions
What are the steps to consider while creating a compensation package?
- Choosing benchmark markets.
- Salary surveys
- Salary positioning
- Salary ranges
- Indirect compensation
What are the 2 types of compensation?
- Direct compensation
- Indirect compensation
What are the types of direct compensation?
- Base salary (job, competencies)
- Salary increases (seniority, merit, etc.)
- Cost-of-living and market adjustments.
- Incentives and profit-sharing
What are the types of indirect compensation?
- Benefits
- Paid time off
- Employee services
What is a lead pay policy?
It’s paying above the market level
What is a lag pay policy?
It’s paying below the market level
What is a match pay policy?
It’s paying equal to the market reference point.
What is a payroll?
It is the total amount spent by an organization to pay its personnel.
What is the utility of wage ranges?
It can help the manager to certain leeway in determining a new employee’s salary.
What are the 3 reasons for determining increases in salary for an employee?
- Merit
- Seniority
- Competencies
Give examples of benefits.
- Pension plans
- Insurance plans
- Government plans
Give examples of paid time off.
- Vacations
- Parental leave
- Sick days
- Special leave
Give examples of miscellaneous services.
- Rest and entertainment areas.
- Gymnasium
- Employee Assistance Programs (EAPs)
What is a preferential price?
It is a price lower than the market price or advantageous conditions offered to employees wishing to purchase shares in the company.
