COMPENSATION STRATEGIES AND PRACTICES Flashcards
The ratio in which the pay level is divided by the pay range midpoint is classified as
Compa-ratio
The perceived fairness that must be considered in outcomes of performance is classified as
distributive justice
The compensation philosophy according to which the organization increase the salary of employees every year is called
entitlement orientation philosophy
The types of compensation the employees get from organization after timely completion of work includes
intrinsic rewards,
extrinsic rewards
The factors that are common in group of jobs and are used to identify the value of job are called
compensable factors
The compensation philosophy according to which compensations are not paid according to span of service, but considering performance level is called
performance orientation philosophy
The ‘compensation quartile strategy’ in which 75% of employers pay below than market and remaining 25% pay compensations higher than market is called
third quartile strategy
The position such as administrative, professionals and executive are classified as
exempt employees
If the mid-point is 20 and the current pay of an employee is $25 then the compa-ratio is
125
The group of all the jobs which have the same worth of job are classified as
pay grade
The graph which shows the relationship between job value, which is determined rates of pay survey and job evaluation points is classified as
market line
The concept in which the whole or part of yearly pay increase is paid as single payment, is called
consumer price index adjustment,
lump sum increase,
cost of living adjustment
According to compensation programs, the benefits such as retirement pensions and life insurances are classified in the category of
indirect compensation
The employee who is paid less than the specified range for the job is classified as
green circled employee
The indirect rewards given to employees of organization for being the member of organization are called
benefits
The time spent in organization while performing the particular job is classified as
seniority
The curve which is used to represent relationship between pay rate and experience is classified as
maturity curve
The perceived fairness between what person receives and what person did is classified as
equity
The procedure of using less and more broad pay grades than the traditional system of compensation is classified as
broad banding
The payments made to employees for the amount of time in which the employee has worked are classified as
wages
The payments made to employees without taking hours for which they worked into consideration are called
salaries
The perceived fairness of all the procedures and process that are considered to make decisions about employees and their pay is called
procedural justice
The multiple plans specifying business unit and family while giving compensation are considered in approach called
traditional compensation approach
The basic compensations given to employees as salaries or wages are called
base pay
The type of rewards employees get in form of praise for successfully accomplishing goals or completing project is classified a
intrinsic rewards
The factors must be considered to price the jobs in any organization includes
job importance,
difficulty of job,
skills and abilities required
The most common and usual form of direct compensation paid in organizations is
base and variable pay
The factors such as earnings level, discretionary authority and percentage of spent time in manual work are factors that must be held to define
non-exempt status
The employees to whom the overtime is must to be paid under the restriction of Fair Labor Standards Act are called
non-exempt employees
The outcomes of competency based system such as improved and higher employee satisfaction and commitment are classified as
employee-related outcomes
The employees to whom the overtime is not paid under the restriction of Fair Labor Standards Act are called
exempt employees
The concept in which the pay for the jobs that require similar skills, abilities and knowledge without taking duties into consideration is called
pay equity
The type of rewards employees get in the form of monetary or non-monetary benefits are classified as
extrinsic rewards
According to compensation programs designed for employee, the variable pay other than base pay is classified as part of
direct compensation
Considering the non-exempt status of employees, the employees to whom overtime must be paid according to FLS act are classified as
salaried non-exempt
