Exam 3 Flashcards
A ______ is the systematic process of collecting and making judgments about the compensation paid by other employers
Survey
A _________ exists whenever two or more rates are paid to employees in the same job
Pay range
A ________ highlights a class, level, or group of jobs in which compensation values are similar
Pay grade
______________ sets pay almost exclusively on external market rates
Market Pricing
Quantitative measures of performance
Performance Metrics
a failure to include all of the relevant dimensions of job performance
Criterion Deficiency
require comparison of employees to determine the relative ordering of the group on some performance measure
Ranking formats
require that raters evaluate employees on absolute measurement scales that indicate varying levels of performance
Rating formats
have two elements in common
•Require raters to evaluate employees on some absolute standard
•Each standard is measured on a scale whereby appraisers can check the point that best represents an employee’s performance
Rating formats
Most common raters – often seen as most credible
Supervisors
Can be good raters if they work closely with the employee
Peers
Are often too lenient and can lack objectivity
Self
Has become more common in some jobs, but validity can be an issue
Customers
Becoming more common to have subordinates rate managers
Subordinates
Utilizing all five sources (or all sources that are relevant to a job) is known as
360 feedback
Allowing nonperformance factors to influence performance scores
Criterion Contamination
General physical appearance or change in performance may influence ratings
Errors in observation (Attention)
Memory decay may alter storage and recall process
Errors in storage and recall
The purpose of an evaluation affects the rating process. (e.g., is the process political; aimed at distributing a “pool” of increases)
Errors in the actual evaluation
Giving favorable rating across all duties based on performance in one job function
Halo
Consistently providing ratings that are higher than deserved
Leniency
Consistently providing ratings that are lower than deserved
Severity
Giving better ratings to individuals who are similar in background, behavior, or personality
Clone
Allowing performance from a previous period to impact current ratings
Spillover
exposes supervisors to the performance dimensions to be used in rating
Performance dimension training
provides raters with a standard of comparison or frame of reference for making appraisals (what makes someone good, average, or bad
Performance standard training
are that part of the total compensation package, other than pay for time worked, provided to employees in whole or in part by employer payments (for example, life insurance, health insurance, PTO, retirement)
Employee Benefits
Benefits add about ___ cents on top of every dollar paid in wages/salary
42
continue to be ranked tops in importance for most employee groups
Medical
entitles eligible employees to receive unpaid leave up to 12 weeks per year for specified family or medical reasons
Family and medical leave Act
provides current/former employees with a temporary extension of health insurance when coverage is lost due to qualifying events
COBRA
prohibits discrimination (for health insurance coverage) on the basis of health-related status
HIPPA
What type of plan is a pension?
Defined benefit
What type of plan is a 401k?
Defined contribution
pays out varying levels of income depending on duration of illness
Salary continuation plan
pays a percentage of an employee’s salary for temporary disability because of sickness or injury
Short term disability
if available, typically kick in after the short-term plan expires
Long term disability
plans track time off for each “group” separately – Vacations, sick leave, personal leave, etc
Traditional time off plans
plans eliminate the distinction between sick days and other paid days off (e.g., vacation) and lump all time off into one bucket
Paid time off
covers all employees (with some exceptions) of companies engaged in interstate commerce or in the production of goods for interstate commerce
Fair labor standards act of 1938
legislation is intended to provide an income floor for workers
Minimum wage
is denial of jobs, promotions, or training to qualified women or minorities
Access discrimination
looks at the pay women and minorities receive for the jobs they perform
Valuation discrimination
forbids wage (valuation) discrimination on the basis of gender for “equal” work
Equal pay act of 1963
occurs when an employer applies different standards to different employees
Disparate treatment
notes that practices that have a differential effect on members of protected groups are illegal, unless the differences are work-related
Disparate impact
is a no-fault insurance covering injuries and diseases that arise during employment
Workers compensation
