Chapter 11

Question 1

Relative pay of different jobs and how much is paid e

Answer 1

Pay Structure

Question 2

Average pay

Answer 2

pay level

Question 3

People evaluate fairness of their situations by comparing them with those of other people

Answer 3

Equity theory and fairness

Question 4

People compare their ratio of perceived outcomes to percieved inputs to the ratio comparison of others

Answer 4

Equity theory and fairness

Question 5

Focus on what employees in other organizations are paid for doing the same job

Answer 5

External equity

Question 6

Focus on what employees within same organization are paid

Answer 6

internal equity

Question 7

selling goods and services at a quantity and price that brings a sufficient return on investment

Answer 7

Product market competition

Question 8

Number of workers available relative to number of jobs available

Answer 8

Labor market competition

Question 9

view employees as a resource not a cost
competitive environment influences range of pay

Answer 9

2 ways to develop pay levels

Question 10

If employer pays employee more than they would receive anywhere else, then they would put forth effort to retain a good job

Answer 10

Efficiency Wage Theory

Question 11

comparing an organization’s practices against those of the competition-product market, labor market, or both

Answer 11

Benchmarking

Question 12

revenue/employee or revenue/ labor costs

Answer 12

Ratios to determine employee return on investment

Question 13

Benchmark jobs; stable, content, common to many organizations

Answer 13

Key Jobs

Question 14

Unique to a specific organization; cannot be directly valued or compared through market surveys

Answer 14

Non-key jobs

Question 15

Administrative procedure to measure internal job worth

Answer 15

Job evaluation

Question 16

Job characteristics that are values by employers and will pay for them

Answer 16

Compensable factors

Question 17

Assign priori weights
empirically determine weights

Answer 17

two-point factor system

Question 18

3 ways to develop a pay structure:
Greatest emphasis on external comparisons- especially key jobs

Answer 18

Market survey data

Question 19

3 ways to develop a pay structure:
external and internal comparisons- both key and non-key jobs
greater internal consistency based on job evaluation points

Answer 19

pay policy line

Question 20

grouping jobs of similar worth or content into pay classes

Answer 20

pay grades

Question 21

usually seen in jobs whose average pay falls significantly above or below the policy line
- supply and demand

Answer 21

Conflicts between market pay surveys and job evaluation

Question 22

compare actual pay to intended pay
Divide actual pay by midpoint of pay range

Answer 22

Compa-ratio

Question 23

Citizen of one country, but working for employer in another country

Answer 23

Expatriate

Question 24

Responsible for making pay policies work and communicating to employees
should be involved in all changes to pay practices

Answer 24

Line manager participation in compensation

Question 25

affects employees attitudes and behaviors
common issue: substantial change in job content in relation to pay

Answer 25

Communication by managers

Question 26

Problems with Job-Based pay structure:
Reinforces top-down decision making and information flow as well as status differentials

Answer 26

Bureaucracy

Question 27

Reduce in number of jobs

Answer 27

Delayering

Question 28

Broad bands

Answer 28

Broader grouping of jobs

Question 29

compensate employees for KSAs and competencies- no longer linking pay to the job, but focus on employee characteristics that lead to success in the job

Answer 29

Competency based pay

Question 30

Pay employees for skills that they acquire

Answer 30

skill based pay

Question 31

Total out-put of the economy

Answer 31

GDP

Question 32

prohibits sex and race based differences in employment outcomes

Answer 32

EEO

Question 33

Prohibits race or sex-based systematic compensation discrimination

Answer 33

Executive order 11246

Question 34

Discriminatory decision made in past, but still liable if effect continues currently

Answer 34

Lilly Ledbetter Fair Pay Act 2009

Question 35

Establishes minimum wage
requires paying overtime (1.5 times) after 40 hours worked in a week

Answer 35

Fair Labor Standards Act 1938

Question 36

found in tech; independent contractors are not covered

Answer 36

Sharing economy

Question 37

Exempt and non exempt

Answer 37

two types of employees

Question 38

are not eligible for overtime-status depends on job and salary

Answer 38

exempt

Question 39

hourly employees who must be paid over time

Answer 39

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