Chapter 9 Flashcards
Pay-for-performance standard
A standard by which managers tie compensation to employee effort and performance
Pay Equity
An employees perception that compensation received is equal to the value of work performed
Hourly Work
Work paid on an hourly basis.
Peice work
Work paid according to number of units produced
None exempt employees
Employees covered by the over time provisions fair labor standards act
Exempt employees
employees not cover by the overtime provisions in the fair labor standards act
Consumer price Index
A measure of the average change in prices over time in a fixed market basket of goods and services
esculator clauses
Clauses in labor agreements that provide for quarterly cost of living adjustments in wages, basing the adjustments on change 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
a systematic process of determine the relative worth pf jobs in order to establish which jobs should be paid more than other within an orginiazation
Job ranking system
The simplest and oldest system of job evaluation by which jobs are arrayed on the basis of there relative worth
Job classification System
A system of evaluation in which jobs are classified and grouped according to a series of predetermined wage grades.
point system
A quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it
Work valuation
A evaluation system that seeks to measure a jobs worth through its value to the orginizaton
Hay Profile Method
A job evaluation technique using three factors, Knowledge, mental activity, and accountability. to evaluator executive and managerial positions
wage and salary survey
A survey of the wages paid to employees of other employers in surveying organizations relevant labor market
Wage curve
A curve in a scattergram representing the relationship between relative worth of jobs and pay rates.
Pay Grades
Groups of jobs within particular class that are paid at the same rate
red circle rates
Payment rates above the maximum of the pay range,.
Competence based pay
Pay based on an employees skill level, variety of skills possessed or increased job knowledge
pay rate compression
Compression of pay between new and experienced employees caused by the higher starting salaries of new employees also differential between hourly workers and their managers.
