Chapter 10 Flashcards
What is direct compensation
Employees wages and salaries, incentives, bonuses, commissions
What is indirect compensation
These are benefits outside regular pay supplied by employer. (Health benefits, vac pay, paid time off, retirement funds, childcare…)
What is Non-financial compensation
these are in forms of; employee rec programs, employee recognition, files work hours, work environment)
Define strategic compensation
It is a planning that goes beyond the market rate to provide compensation to employees that align with the organizations objectives
What are rewards
It’s a combination of direct, indirect and non-financial + other organizational rewards
Equity theory?
It’s a theory under motivating employees through compensation. It’s an employee perspective that they believe whatever compensation they get is equals to their performance in their roles.
Expectancy theory?
a motivation theory that employees would perform more if they have reason to expect it would resultón in a valued reward
Mention 2 basis for compensation
- Piece work
- Hourly work
What is hurly work?
it is work that is paid based on hurry basis
What is known as work whereby employee is paid according to number of units produced?
a piece work
Mention 3 internal factors affecting wage mix
- Compensation strategy
- Worth of the job
- Worth of the worth
- Ability for employer to pay
External factors affecting wage mix
- Labour market conditions.
- Cost of living
- Area wage rate
What is full meaning of CPI
CONSUMER PRICE INDEX
What is th measure of the average change in price overtime of fixed market
CPI
To achieve increase in real wages through collective bargaining is whose goal
The labour union
What is when wage increases larger than rise in the CPI is known as
Real wage
Systemic process of determining the worth of jobs to know which job should be paid more than the other
Job Evaluation
Which is the simplest and oldest way to evaluate jobs
Job Ranking systems
Where jobs are evaluated based on their relative worth is done in which system
Job Ranking system
Jobs are classified and grouped in a series of predetermined wage grades are called
Job classification System
Creating. A work environment whereby employees can perform to the best of their ability is known as
Performance management
Bob is evaluating binta’s performance based on her job requirements. This is known as
Performance Review.
Which is a reason why performance management fails
- It emphasizes short term gains over long term goals
- It emphasizes long term golas over short term gains
Which is not a purpose of performance management.
- Administrative purpose: performance data can be used to document HR actions
- Developmental purpose: provide managers with concrete framework to gather and organize info on employee performance.
- Rewards purpose: provides HR with benefits and plans of employees
