Exam 1 Flashcards
What are the three basic building blocks of the Pay Model?
Policies, Techniques, and Objectives
What are the basic objectives of the Pay Model?
Efficiency, fairness, compliance, and ethics
Conforming to federal and state compensation laws and regulations
Compliance
What are the four policy choices on the pay model?
Internal alignment, external competitiveness, employee contributions, and management
What techniques are involved with internal alignment?
Work analysis, descriptions, evaluation/certification (internal structure)
What techniques are involved with competitiveness?
Market definitions, surveys, policy lines (pay structure)
What techniques are involved with contributions?
Seniority based, incentives, merit guidelines (pay for performance)
What techniques are involved with management?
Cost, communication, change (evaluation)
What drives everything else in the pay model
objectives
Jobs not subject to provisions of the Fair Labor Standards Act with respect to
minimum wage and overtime. Include most executives,
administrators, professionals, and outside sales representatives
Exempt
What do exempt workers get paid?
Salary
Employees who are subject to the provisions of the Fair Labor Standards Act.
Nonexempt
What do nonexempt workers get paid?
Wages
the systematic process of collecting information that identifies similarities and differences at work
job analysis
Legislation passed in 1990 that requires that reasonable
accommodations be provided to permit employees with disabilities to
perform the essential elements of a job
americans with disabilities act
The consistency of the results obtained, that is, the extent to which any measuring
procedure yields the same results on repeated trials. Job information does not
mean that it is accurate (valid), comprehensive, or free from bias.
Reliability
The accuracy of the results obtained; that is, the extent to which any measuring device measures what it purports to measure.
Validity
an be used as a basis for hiring are
knowledge, skills, and abilities required to adequately perform the tasks
Specifications
Have fewer levels and smaller differentials between adjacent levels and between the highest and lowest-paid workers
egalitarian structure
Elemental units of work, a specific statement of what a worker does on a job
Task
Salary derives from what word
Salt
Middle english that describes services done on hourly basis
Wagen
From department of labor the US gov is one of the largest for analyzing jobs
Revised handbook for analyzing jobs
What is the difference between use value and exchange value
Use value reflects the value of goods or services an employee produces in a job.
Use value is the qualitative aspect of value.
Exchange value is the wage agreed upon by the employer and the employee
Exchange value is the quantitative measure of value.
Compare equity, tournament, and institutional theory
Equity theory proposes that in an exchange relationship the equality of output/input ratios between people will determine fairness,
Tournament theory proposes that larger differences in pay are more motivating than smaller differences.
Finally, institutional theory sees firms as responding to normative pressures in their environment as to gain legitimacy and reduce risk.
One of the biggest threats/risks
Outsourcing
Internal alignment must support the ____
organizational strategy
Does not increase your wage, your hourly wage stays the same
Incentive pay
