Chapter 8 Flashcards
1
Q
What are total rewards
A
- comprehensive approach to reward employees
- influences the kind of employees we have and that remain
- we must align rewards with the business strategy
2
Q
What is total compensation
A
- direct and indirect
- received in exchange for the employees contribution
- can be time,talent, effort and results
3
Q
What is direct and indirect compensation
A
- direct: financial rewards
-Indirect: benefits and services
4
Q
What does the pay structure consist of
A
- Job structure (define different pay level between new hire and senior employee)
-Pay level (average amount the organization pays for one job)
5
Q
What is the benefit of a pay structure
A
- helps the company to meet goals related to employee motivation, cost control and how to attract and retain workers
6
Q
What is Job evaluation
A
- measure internal worth of organisations jobs
- identifies each job’s value
jobs rated for each factor
7
Q
5 compensable factors
A
- experience
- education
- complexity
- working conditions
- responsibility
8
Q
What is piecework rate
A
- rate of pay per each unit produced
9
Q
What are pay rates
A
- rates of jobs can be based on market research
- job evaluation points and pay rates are related
- refleccts the pay structure in the market which does not always match the payments in the company
10
Q
What are pay grades
A
- sets of jobs that are grouped together since have a similar are
- may not match market rate
11
Q
What are pay ranges
A
- possible pay rates defined by a minimum, maximum and midpoint of pay for a particular job
12
Q
2 Alternatives to job based pay
A
- Broadbanding
- Competency based pay system (skill based pay system)
13
Q
What is broadbanding
A
- pay grades into a few broad bands
- reduces promotion opportunities
- creates boarder salary range
- provides flexibility for lateral career moves
14
Q
Competency based pay system
A
- sets pay according to employee skill or knowledge
- rewards employees for getting more skills
15
Q
What is the Compa-ratio
A
- average pay to the midpoint of pay range
-ensures that pay policies and practices match
CR= 1 (average equals midpoint)
CR>1 (average is bigger)
CR<1 (midpoint is bigger)
