Chapter 10 Flashcards
What is the perceived fairness to pay relative to what other employees are paying for the same type of labor?
External Equity
What is the perceived fairness of the pay structure within a firm ( or company)?
Internal Equity
What can distributive justice model of pay equity can do to help employees?
It helps compare an input/outcome ratio and gives an outcome of getting employees paid more
What does the labor market model of pay equity do?
It gives a “going rate” (type of work employees do) of market pay for what people are making
What is the rule of majority of U.S. Organizations that reduces the risks to employees and is easier to administer?
Fixed Pay
What is used advantageously in smaller companies and firms with a product that is not well established?
Variable Pay
What is pay based on units produced?
Piece-Rate Plan
The same or a similar wage to every employee in a given job, as long as the employee achieves at least satisfactory performance
Membership-Contingent Compensation
A pay plan in which most employees are part of the same compensation
Equalitarian Pay System
A pay plan in which different compensations systems are established for employees or groups at different organizational levels
Elitist Pay System
Cash or payments that can be converted into cash in the future
Monetary Rewards
Intangible
Examples: Interesting work
Nonmonetary Rewards
The process of evaluating the relative value or contribution of different jobs to an organization
Job Evaluation
What is to determine the pay ranges for each grade level?
Market Surveys
What are jobs based off of?
Pay Structure
Groups of similar jobs
Pay Grade
Minimum to the maximum
Pay Range
What we reward you in your job
Compensable Factors
Most different to most value
Job Hierarchy
A job that is similar or comparable in content across firms
Benchmark or Key Job
A firm’s decision to pay above, below, or at the market rate for its jobs
Pay Policy
Fair Labors Standards Act (FLSA) does:
Minimum wage
Overtime
Child Labor
Who are not covered by the provisions of the FLSA Act?
Exempt Employees
Who are covered by exempt from the law?
Nonexempt
