Chapter 11 Flashcards
Total employement rewards
An integrated package of all rewards gained by employees arising from their employment
5 components of total rewards
- Compensation
- Benefits
NO point knowing this
External Equity
Employees percives his or her pay as fair given the pay rates in other organizations
Internal equity
Employees perceives his or her pay as fair given the pay rates of others in his/her organization
Job Evaluation
A systematic comparison to determine the relative worth of jobs within a firm
Benchmark Job
A job that is critical to the firm’s operations or that is commonly found in other organizations
Compensable factor
A fundamental compensable element of a job such as skill, effort, responsibility and working conditions
Job evaluation committee
A diverse group (including employees, HR staff, managers, and union reps) established to ensure the fair and comprehensive representation of the nature and requirements of the jobs in question
Classification/grading method
A method for categorizing jobs into groups
Classes
Groups of jobs based on a set of rules for each class, such as amount of independent judgement, skill, physical effort and so forth. Classes usually contain similar jobs
Grades are
Groups of jobs based on a set of rules for each grade where jobs are similar in difficulty but otherwise different Grades often contain dissimilar jobs such as secerteries, mechanics etc
Grade/ Group description
A written description of the level of compensable factors required by jobs in each grade
Point Method
A job evaluation method in which a number of compensable factors are identified the degree to which each of these factors is present in the job is determined and an overall point value is calculated - used in the private sector
Pay grade
comprises jobs of approximately equal value
Wage/salary survey
A survey aimed at determining prevailing wage rates. A good salary survey provides specific wage rates for comparable jobs. Formal written questionnaire surveys are the most comprehensive
Wage cyrve
A graphic description of the relationship between the value of the job and the average wage paid for this job
Pay Ranges
A series of steps or levels within a pay grade, usually based on years of service
Broadbanding
Reducing the number of salary grades and ranges into just a few wide levels or bands each of which then contains a relatively wide range of jobs and salary levels
Pay for knowlege systems are
plans that pay employees for the range, depth and types of knowledge that they are capable of using, rather than for the job that they currently hold
Pay Equity
Providing equal pay to male dominated job classes and female dominated job classes of equal value to the employer
