Chapters 1-4 Flashcards
what are the 3 main components of the compensation system?
base pay: foundation pay components for most employees, usually based on some unit of time worked
performance pay: relates employee monetary rewards to some measure of individual, group, or organization performance
indirect pay: non cash items that satisfy a variety of specific employee needs, sometimes known as employee benefits
compensation system
plan for how the organization will mix and total amount of base pay, performance pay, and indirect pay to be paid to various categories of employees.
what are the 2 key aspects of a compensation strategy?
1) mix of 3 compensation components and how mix will vary for different employees, (how should compensation be paid) and 2) total amount of compensation to be provided (how much)
optimal reward system
will be the one that adds the most value to the organization, after considering all its costs
vertical fit
alignment of strategies at different levels
horizontal fit
alignment of strategies at the same level
organizational structure
- means through which an organization generates the behaviours necessary to execute its business strategy
An company’s human resource management functions, such as recruitment, training, and performance management, are all focused on helping its organizational objectives. What is this alignment of strategies called?
horizontal fit
What are the 6 structural variables
- Reward system
- Job design
- Coordination and departmentation
- Decision-making and leadership structure
- Communication and information structure
- Control structure
what are the 5 main contextual variables
technology
nature of the workforce
organization size
organization’s environment
business strategy
What are the 3 types of reward problems
- Failure to produce desired behaviour
- Production of desired behaviour and undesirable consequences
- Production of reward dissatisfaction
What are the 3 key employee behaviours
- Membership behaviour: occurs when employees decide to join and remain with a firm.
- Task behaviour: occurs when employees perform the specific tasks that have been assigned to them.
Organizational citizenship behaviour: occurs when employees voluntarily undertake special behaviours beneficial to the organization that go beyond simple membership.
what are the 3 key employee attitudes
- Job satisfaction
- Work motivation
- Organizational identification
Maeesha is well known for her willingness to help others and participate in employee welfare activities that are not part of her job duties. What type of behaviour is this?
b. Organizational citizenship behaviour
What are the 4 main causes of reward dissatisfaction
- Violation of the psychological contract
- Perceived inequity
- Relative deprivation
- Lack of organization justice
What does violations of the psychological contract mean
when the org. violated the employee’s Expectations about the rewards offered by a given job and the contributions necessary to perform the job
equity theory
Employees’ base perceptions of equity (fairness) on a comparison of their contributions/rewards ratio to the ratios of others perceived as being similar
What are the 2 main components of organization justice
- Distributive justice○ The perception that overall reward outcomes are fair
- Procedural justice
The perception that the process for reward determination is fair
What are the 6 conditions that must be met for procedural justice
consistent:
free of bias
flexible/able to appeal
accurate
ethical
representative
What are the 2 actions that will follow reward dissatisfaction?
attempt to increase rewards
attempt to reduce contributions
what are the 5 things someone will do to try increase rewards
find more rewarding job
acquire elicit rewards
demand higher pay/unionize
increase effort/performance
demand improved job duties