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HR Generalist (HR Management) > Chapter 11 - Total Rewards and Compensation > Flashcards

Chapter 11 - Total Rewards and Compensation Flashcards

1
Q

Define “Total Rewards”.

A

-Monetary and non-monetary rewards provided by companies to attract, motivate, and retain employees.
Page 374

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2
Q

Define “Tangible Rewards”.

A

-Elements of compensation that can be quantitatively measured and compared between different organizations.
Page 375

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3
Q

Define “Intangible”.

A

-Elements of compensation that cannot be easily measured or quantified.
Page 375

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4
Q

Define “Base Pay”.

A

-Basic compensation that an employee receives, often as an hourly wage or salary.
Page 376

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5
Q

Define “Wages”.

A

-Payments calculated directly on the basis of time worked by employees.
Page 376

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6
Q

Define “Salary”.

A

-Consistent payments made each period regardless of the number of hours worked.
Page 376

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7
Q

Define “Variable Pay”.

A

-Compensation linked directly to individual, team, or organizational performance.
Page 376

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8
Q

Define “Benefit”.

A

-Indirect reward given to an employee or group of employees as part of membership in the organization, regardless of performance.
Pages 376, 414

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9
Q

Define “Exempt Employees”.

A

-Employees who hold positions for which they are not paid overtime.
Page 377

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10
Q

Define “Nonexempt Employees”.

A

-Employees who must be paid overtime.

Page 377

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11
Q

Define “Prevailing Wage”.

A

-An hourly wage determined by a formula that considers the rate paid for a job by a majority of the employers in the appropriate geographic area.
Page 381

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12
Q

Define “Garnishment”.

A

-A court order that directs an employer to set aside a portion of an employee’s wages to pay a debt owed to a creditor.
Page 381

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13
Q

Define “Entitlement Philosophy”.

A

-Assumes that individuals who have worked another year with the company are entitled to pay increases with little regard for performance differences.
Page 382

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14
Q

Define “Pay-for-Performance”.

A

-Assumes that compensation decisions reflect performance differences.
Page 382

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15
Q

Define “Expectancy Theory”.

A

-States that an employee’s motivation is based on the probability that his/her efforts will lead to an expected level of performance that is linked to a valued reward.
Page 383

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16
Q

Define “Equity Theory”.

A

-States that individuals judge fairness (equity) in compensation by comparing their inputs and outcomes against the inputs and outcomes of referent others.
Page 383

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17
Q

Define “Competency-Based Pay”.

A

-Rewards individuals for the capabilities they demonstrate and acquire.
Page 388

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18
Q

Define “Job Evaluation”.

A

-Forma, systematic means to determine the relative worth of jobs within an organization.
Page 389

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19
Q

Define “Compensable Factor”.

A

-Job dimension commonly present throughout a group of jobs within an organization that can be rated for each job.
Page 389

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20
Q

Define “Market Pricing”.

A

-Uses market pay data to identify the relative value of jobs based on what other employers pay for similar jobs.
Page 390

21
Q

Define “Benchmark Jobs”.

A

-Jobs that are found in many other organizations that can be used for the purpose of comparison.
Page 391

22
Q

Define “Pay Survey”.

A

-Collection of data on compensation rates for workers performing similar jobs in other organizations.
Page 391

23
Q

Define “Pay Grades”.

A

-Grouping of individual jobs that have approximately the same value to the organization.
Page 392

24
Q

Define “Market Line”.

A

-Graph line that shows the relationship between job value as determined by job evaluation points and job value as determined by pay survey rates.
Page 392

25
Q

Define “Market Banding”.

A

-Grouping jobs into pay grades based on similar market survey amounts.
Page 392

26
Q

Define “Broadbanding”.

A

-Practice of using fewer pay grades with much broader ranges than in traditional compensation systems.
Page 393

27
Q

Define “Compa-Ratio”.

A

-Pay level divided by the midpoint of the pay range.

Page 394

28
Q

Define “Red-Circled Employee”.

A

-Incumbent who is paid above the range set for a job.

Page 394

29
Q

Define “Green-Circled Employee”.

A

-Incumbent who is paid below the range set for a job.

Page 394

30
Q

Define “Pay Compression”.

A

-Occurs when the pay differences among individuals with different levels of experience and performance become small.
Page 395

31
Q

Define “Salary Inversion”.

A

-Occurs when the pay given to new hires is higher than the compensation provided to more senior employees.
Page 395

32
Q

Define “Seniority”.

A

-Time spent in an organization or working in a particular job.
Page 396

33
Q

Define “Lump-Sum Increase”.

A

-One-time payment of all or part of a yearly pay increase.

Page 397

34
Q

Define “Incentives”.

A

-Tangible rewards that encourage or motivate action.

Page 398

35
Q

Define “Extrinsic Rewards”.

A

-Rewards that are external to the individual.

Page 398

36
Q

Define “Intrinsic Rewards”.

A

-Rewards that are internal to the individual.

Page 399

37
Q

Define “Line of Sight”.

A

-Idea that employees can clearly see how their actions and decisions lead to desired outcomes.
Page 400

38
Q

Define “Critical Success Factors”.

A

-Variables that have a strong influence on the results of the organization.
Page 400

39
Q

Define “Key Performance Indicators (KPIs)”.

A

-Scorecard measures that tell managers how well the organization is performing relative to critical success factors.
Page 400

40
Q

Define “Piece-Rate System”.

A

-Pay system in which wages are determined by multiplying the number of units produced by the piece rate for one unit.
Page 401

41
Q

Define “Bonus”.

A

-One-time payment that does not become part of the employee’s base pay.
Page 402

42
Q

Define “Non-monetary Incentives”.

A

-Rewards that are not given in cash.

Page 402

43
Q

Define “Free Rider”.

A

-A member of the group who contributes little.

Page 403

44
Q

Define “Gainsharing”.

A

-System of sharing with employees greater than expected gains in profits and/or productivity.
Page 404

45
Q

Define “Profit Sharing”.

A

-System to distribute a portion of an organization’s profits to employees.
Page 404

46
Q

Define “Stock Option Plan”.

A

-Gives employees the right to purchase a fixed number of shares of company stock at a specified price for a limited period of time.
Page 404

47
Q

Define “Employee Stock Ownership Plan (ESOP)”.

A

-Designed to give employees significant stock ownership in their organizations.
Page 404

48
Q

Define “Commission”.

A

-A percentage of the revenue generated by sales that is given to an agent or salesperson.
Page 405

49
Q

Define “Clawback Provision”.

A

-Provision which permits the organization to require an employee to return rewards obtained through unethical or negligent actions.
Page 405

HR Generalist (HR Management) (16 decks)

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