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Comm 211 > Chapter 9: Compensation Management > Flashcards

Chapter 9: Compensation Management Flashcards

1
Q

involve cash and non-cash rewards employees receive in exchange for their work

A

compensation systems

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2
Q

the wages paid by employers to employees for the work they do

A

direct compensation

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3
Q

include bonuses, commissions, and stock paid as short-term or long-term incentives

A

direct compensation

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4
Q

used to try and enhance motivation and job satisfaction

A

compensation systems

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5
Q

perceptions of fair and adequate pay are based on _____ and _____ levels of pay

A

absolute

relative

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6
Q

are the base pay and form the foundation of compensation systems

A

wages and salaries

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7
Q

perceived equity of a pay system across different jobs within the org

A

internal equity

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8
Q

perceived fairness in pay, relative to what other employers are paying for the same type of work

A

external equity

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9
Q

what are the 4 phases to the compensation process

A
  1. establishing the compensation philosophy
  2. reviewing the job analysis
  3. pricing job
  4. matching employees to pay
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10
Q

guiding principle for how the org manages compensation

A

compensation philosophy

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11
Q

3 types of compensation philosophies

A
  • lead strategy
  • match strategy
  • lag strategy
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12
Q

company pays rates that are higher than the relative marketplace

A

lead strategy

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13
Q

company matches the market by paying comparable rates

A

match strategy

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14
Q

company will pay rates lower than those of the relative marketplace

A

lag strategy

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15
Q

3 approaches to pricing jobs are

A

job evaluation
market-pricing
skill-based evaluation

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16
Q

systematic process of assessing job content and ranking jobs according to a set of job characteristics and worker traits

A

job evaluation

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17
Q

form of job evaluation where jobs are ranked subjectively according to their worth to the org

A

job ranking

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18
Q

form of job evaluation that works by assigning each job a grade

A

job grading

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19
Q

assigns jobs to predetermined job classifications according to their worth to the org

A

job grading

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20
Q

form of job evaluation that assesses the relative importance of the job’s key factors in order to arrive at relative job worth

A

point system

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21
Q

most precise form of job evaluation but is more difficult to develop

A

point system

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22
Q

focuses on external competitiveness

A

market-pricing

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23
Q

how much orgs should pay for jobs based on what their competitors are offering for similar work

A

market-pricing

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24
Q

discover what other employers in the same labour market are paying for specific key jobs

A

wage and salary surveys

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25
Q

are benchmarks against which analysts compare compensation levels

A

wage and salary data

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26
Q

pays employees for their flexibility to do different jobs in the org, conduct simple and more complex tasks, and to work with few/no supervisors

A

skill-based pay

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27
Q

greatest advantage to skill-based pay is

A

flexibility of the workforce

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28
Q

pay system based on employee’s mastery skills or knowledge

A

skill-or-knowledge based pay

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29
Q

skill-based pay can reward the employee based on

A

depth, breadth, self-management

30
Q

gaining greater expertise in existing skills

A

depth

31
Q

increases in the employee’s range of skills

A

breadth

32
Q

gaining higher level if management-type skills

A

self-management

33
Q

seen in white collar careers, where there is a dual ladder

A

depth-based pay systems

34
Q

establishing appropriate pay level for each job and grouping the different pay levels into structures

A

matching employees to pay

35
Q

reflects a jobs relative and absolute worth

A

pay levels

36
Q

a jobs relative worth is determined by its ranking through the ________ process

A

job evaluation

37
Q

job that is commo in the org and labour market and is used to determine pay scales

A

key job

38
Q

a pay increase given to individual workers according to an evaluation of their performance

A

merit raise

39
Q

a rate of pay higher than the contractual or formerly established rate for the job

A

red-circled rate

40
Q

index that indicates how an individual’s or groups salary relates to the mid-point of their relevant pay grades

A

compa-ratio

41
Q
  • compa-ratio of above 1 =

- compa-ratio of below 1 =

A
  • larger # of employees bunched at top of pay grade

- caused by many new employees or may indicate high turnover

42
Q

the federal and provincial gov have established __________ that regulate the rights, restrictions, obligations of nonunionized workers

A

employment standards

43
Q

provide the clearest link between pay and performance or productivity

A

variable pay

44
Q

cost advantage of variable pay plan is that the award must be

A

re-earned every year

45
Q

compensation that is directly tide to an employee’s performance, productivity, or both

A

incentive pay

46
Q

better performance is reinforced on a regular basis using

A

incentive pay

47
Q

the employer wins in this case because wages are given in proportion to performance, not for indirect measure of time worked

A

incentive pay

48
Q

5 types of individual incentive plans

A
  • piecework
  • production bonuses
  • commissions
  • discretionary bonus plans
  • spot awards
49
Q

type of incentive system that compensates workers for each unit of output

A

piecework

50
Q

incentives paid to workers for exceeding a specified level of output

A

production bonuses

51
Q

used in conjunction with a base wage rate or salary

A

production bonuses

52
Q

commonly paid in sales jobs

A

comissions

53
Q

employees are paid base wages and then are paid bonus at discretion of management

A

discretionary bonus plans

54
Q

recognize special contributions as they occur

A

spot awards

55
Q

employees may receive this for a project or task that is usually accomplished in a short period

A

spot awards

56
Q

if team cohesiveness is strong, this effect may take place

A

freeloader effect

57
Q

allows groups of workers to receive bonuses for exceeding predetermined levels of output

A

production incentive plan

58
Q

tend to be short range and related to very specific group production goals

A

production incentive plan

59
Q

shares company profits with the workers

A

profit-sharing plans

60
Q

gives employees genuine ownership and voting power when it comes to major decisions relating to the company’s future

A

employee stock ownership plans (ESOPs)

61
Q

the concept that job that have comparable worth to the org should be equally paid

A

equal pay for work of equal value

62
Q

principle/policy where equal rates of pay for all employees performing the same kind and amount of work

A

equal pay for equal work

63
Q

policy to eliminate the gap between the income of men and women, ensuring the salary ranges correspond to the value of work performed

A

pay equity

64
Q

5 methods for determining a competitive wage/ salary levels

A
  1. consultant reports
  2. conduct own research
  3. Job Bank
  4. collective agreements
  5. professional associations
65
Q

purpose is to identify which jobs in a company should be paid more than others based on compensable factors like level of responsibility, skills, effort, and working conditions

A

job evaluation

66
Q

to establish pay level for each job = combination of info from (3)

A
  • job evaluation
  • wage and salary survey
  • whether company has lag, match or lead philosophy
67
Q

tie employee pay to their performance or productivity

A

incentive pay

68
Q

merit increase become part of the

A

base salary

69
Q

variable pay is only a

A

one-time lump sum reward

70
Q

aligning your ______ system with the businesses _______ is a top priority

A

compensation

objectives

Comm 211 (4 decks)

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