Chapter 9 Flashcards
value added compensation
evaluating the individual components of the compensation program to see if they advance the needs of employees and the goals of the organization
pay for performance standard
stanards by which managers tie compensation to employee effort and performance
pay equity
an employees perception that compensation received is equal to the value of the work performed
nonexempt employees
employees covered by the overtime provisions of the fair labor standards act
exempt employees
employees not covered in the overtime provisions of the fair labor standards act
consumer price index (CPI)
measure of the average change in price over time in a fixed “market basket” of goods and services
escalator clauses
clauses in labor agreements that provide for quarterly cost-of-living adjustments in wages, basing the adjustments an changes in the consumer price index
real wages
wage increases larger than rises in the consumer price index; that is, the real earning power of wages
job evaluation
systematic process of determining the relative worth of jobs in order to establish which jobs should be paid more than other within an organization
job ranking system
simplest and oldest system of job evaluation by which jobs are arrayed on the basis of their relative work
job classification system
system of job evaluation in which jobs are classifies and grouped according to a series of predetermined wage grades
point system
quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it
factor comparison system
job evaluation system that permits the evaluation process to be accomplished on a factor by factor basis by developing a factor comparison scale
hay profile method
job evaluation technique using 3 factors- knowledge, mental activity, and accountability0 to evaluate executive and managerial positions
wage and salary survey
survey of the wages paid to employees of other employers in the surveying organizations relevant labor market
