Chapter 11 Flashcards
What is employee compensation?
Employee compensation are all forms of pay or rewards going to employees and arising from their employment.
What are direct financial payments?
Direct financial payments are pay in the form of wages, salaries, incentives, commissions and bonuses.
What are indirect financial payments?
Indirect financial payments are pay in the form of financial benefits such as insurance.
What is pay equity?
Pay equity is providing equal pay to male-dominated job classes and female-dominated job classes of equal value to the employer.
What is equity theory?
Equity theory is a theory suggesting that people are motivated to maintain a balance between what they are perceive as their contributions and their rewards.
What is external equity?
External equity is an employee perception of pay as fair given the pay rates in other organizations.
What is internal equity?
Internal equity is an employee perception of pay as fair given the pay rates of others in the organization.
What is a job evaluation?
A job evaluation is a systematic comparison to determine the relative worth of jobs within a firm.
What is the benchmark job?
The benchmark job is a job that is critical to the firm’s operations or that is commonly found in other organizations. Standard.
What are compensable factors?
Compensable factors are fundamental, compensable element of a job, such as skill, effort, responsibility, and working conditions.
What is the job evaluation committee?
The job evaluation committee is a diverse group(including employees, HR staff, managers, and union representatives) established to ensure the fair and comprehensive representation of the nature and requirements of the jobs in question.
What is classification/grading method?
Classification and grading is a method for categorizing jobs into groups.
What are classes?
Classes are groups of jobs based on a set rules for each class, such as amount of independent judgement, skill, physical effort, and so forth. Classes usually contain similar jobs-such as all secretaries.
What are grades?
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 secretaries, mechanics, and firefighters.
What is grade/group description?
The grade/group description is a written description of the level of compensable factors required by jobs in each grade; used to combine similar jobs into grades or classes.
What is the point method?
The point method is 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.
What is pay grade?
The pay grade comprises jobs of approximately equal value.
What is the wage/salary survey?
The wage/salary survey is a survey aimed at determining prevailing wage rates.
What is the wage curve?
The wage curve is a graphic description of the relationship between the value of the job and the average wage paid for this job.
What are pay ranges?
Pay ranges are a series of steps or levels within a pay grade, usually based on years of service.
What is broadbanding?
Broadbanding is 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. Instead of keeping track of pay rates freq, you do it in intervals. Simple, and cost effective.
What is red circle pay rate?
The red circle pay rate is a rate of pay that is above the pay range maximum.
What is the market-pricing approach?
The market-pricing approach is an approach usually limited to determining compensation for professional jobs based on values established for similar benchmark jobs in the market.
What are total rewards?
Total rewards are the total compensation of pay and benefits. Used to compare companies, etc, to see if company is competitive.
What are the five components of total rewards?
Compensation
Benefits
Work-life programs: Gym, Healthy Living, Continuing Education.
Performance and recognition: Employee of the Month, Social Capita,
Development and career opportunities
What is the impact of rewards?
The impact of rewards is retaining talent and the cost, etc. Attract right people and engage employees.
