ESTABLISHING STRATEGIC PAY PLANS Flashcards
The situation in which senior employees’ salaries are lesser than recruited employees, called
salary compression
A job that helps employers to arrange job in relative worth is called
benchmark jobs
The salary surveys are used for monitoring and maintaining
external equity
The equity theory of motivation includes
external equity,
internal equity,
individual equity
The compensation for top executive job is largely based on
job complexity,
employer’s ability to pay,
executive’s human capital
The total profit and rate of return is classified as
employer’s ability to pay
In the professional jobs, the mostly compensable focused factors are
problem solving,
creativity,
technical knowledge and expertise
A method in which corresponding points of each compensable factors for calculation of total point is called
point method
The sales commission is an example of
performance based pay
The several jobs rated with individual ranking, comes under
combining ratings
Determining the job’s worth in comparison of other job is called
job evaluation
The grouping of dissimilar jobs such as secretaries, mechanics and firefighters, called
grades
The ‘Hay consulting firm’ emphasizes compensable factors such as
accountability
The ‘commission’ that salesmen earns is an example of
direct pay
The supplemental insurance plans are included in
executive perks
Defining the factors to be compared is included in
selection of compensable factors
The work experience and field of study are included in
human capital
The operating profit margin is included in
short-term of shareholder value
The concession, employees gets in form of discounts in air ticket and bus fares is an example of
non direct payments
The comparison of fairness between the sales manager and production manager job pay rates, is an example of
internal equity
The ways of direct financial payments are
increments based on time
On the basis of comparable jobs, the variables such as skills, responsibility and working conditions, considered as
compensable factors
‘Microsoft’ pays new programmers for learning Windows particulars, classified as
pay plan based on knowledge
The fairness of individual’s job pay rates in comparison to employees within the firm is included in
individual equity
The demonstrable skills, knowledge or behaviors that enable employee’s performance are called
competencies
