Chapter 8 Flashcards
What is the name of the chapter?
Rewarding and recognizing employees
What is a direct compensation?
Wages, salaries, incentives, bonuses and commission
What is indirect compensation?
All other types of rewards such as extended health and dental plans and other similar programs and plan
What is total reward?
Everything that the employee feels is of values in the employment relationship
What are the five component of a total reward program?
Compensation, benefits, work-life balance, recognition of performance and learning and development and opportunities
What are goals driving pay and reward changes?
Improve employee’s focus on achieving business goals
Improve employees competencies
Focus on employee on customer needs
Create competitive advantage through our workforce
Reinforce corporate values
What are the common goals of rewards programs? (7)
- Rewarding employees for past performance
- Remain competitive in the labour market
- Maintain salary equity among employees
- Mesh employees’ performance with organizational goals
- Control the compensation budget
- Attract, motivate, maintain staff
- Influence employee work behavior and job attitude
What is a pay?
The measure of an employees’ relative worth
How does equity can be defined?
Anything of value earned through the investment of something of value
What is a pay for performance standard?
Standard by which , managers tie direct compensation to employee or organizational effort and performance
What are the types of pay-for-performance system?
Individual, tea, and organization
What is piecework?
work paid according to the number of units produced
What are the internal factor influencing the wage mix?
Compensation strategy
Worth of the job= evaluated with job evaluation systems
Employee relative worth
Employer’s ability to pay
What are external factors influencing wage mix?
General economy Conditions of the labour market Area wages rate cost of living Collective bargaining Legal requirements
What is CPI?
Consumer price index
Measure of average change in consumer prices over time in fixed market basket of goods and services
What is job ranking system?
It arrays job on the basis of their relative worth. Does not provide a very refined measure of each job’s worth. Not often used
What is job classification system?
classify job by duties and responsibilities
The ones alike gain the same advantages
What is point system?
a quantitative job evaluation procedure that determines a job’s relative value by assigning points on various factors
What is factor comparison system?
Like point system but factor by factor basis
What are wage and salary survey?
It is a survey of the wages paid by employers in an organization to employees relevantly to job market
What are pay grades?
Group of jobs within a particular class that are paid the same rate or rate range
What is competency based pay?
Pay based on how many capabilities employees have or how many jobs they can perform
What are benefits of competency based pay?
Link competencies to business objectives
identify which job or type or work could benefit
Identify competencies that demonstrably affect performance
Devise method to measure achievement of each competency
Determine appropriate amount of pay for acquired skills
Provide mechanisms to review overall effectiveness
What are the types of incentives? (5)
Individual bonuses Team or group based incentives Merit raise Profit-sharing Employee stock ownership plan
What are the benefit required by law?
CPP EI Provincial hospital and medical services Leaves without pay Other required benefits
Name voluntary benefits
Dental coverage Life insurance Extended health coverage Retirement pension plan Pay for time not worked Vacation pay Sick leave Paid holidays Wellness program Employee assistance programs educational assistance plans Childcare and eldercare
What will we do next?
Chapter 9
Why will we do that?
Because we want top grades in this class
