Exam 3 Flashcards by Elizabeth Glass

the monetary and nonmonetary rewards employees receive in exchange for the work they do for an organization

compensation

How well did you know this?

Not at all

Perfectly

the sum of all the aspects of a compensation package (base pay, incentives, benefits, perks, and so forth) that signal to current and future employees that they are receiving more than just base pay in exchange for their work

total rewards

How well did you know this?

Not at all

Perfectly

communicates information to employees about what is valued within an organization, enhances the likelihood of consistency in pay across the organizational units, and helps attract, motivate, and retain employees

compensation philosophy

How well did you know this?

Not at all

Perfectly

the theory that employees compare their input (work effort) and outcome (wages) levels with those of other people in similar situations to determine if they are being treated the same in terms of pay and other outcomes

equity theory

How well did you know this?

Not at all

Perfectly

occurs when each job in a company is valued appropriately relative to every other job in terms of its ability to help the firm achieve its goals

internal alignment

How well did you know this?

Not at all

Perfectly

the systematic process of establishing the relative worth of the jobs within the company

job evaluation

How well did you know this?

Not at all

Perfectly

a type of job evaluation that involves reviewing job descriptions and listing the jobs in order, from highest to lowest worth to the company

job ranking

How well did you know this?

Not at all

Perfectly

a type of job evaluation that involves developing broad descriptions for groups of jobs that are similar in terms of their tasks, duties, responsibilities, and qualifications for the purpose of assigning wages

job classification

How well did you know this?

Not at all

Perfectly

a quantitative method of job evaluation that involves assigning point values to jobs based on compensable factors to create a relative worth hierarchy for jobs in the company

point method or point factor method

How well did you know this?

Not at all

Perfectly

an aspect of jobs, such as skill, effort, responsibility, and working conditions, that exist across jobs in a company, are needed by employees for the firm to achieve its objectives, and for which the company is willing to pay

compensable factor

How well did you know this?

Not at all

Perfectly

a job that is used to represent the range of jobs in a company and that can be used for comparison with jobs in other companies for the purpose of establishing pay rates

benchmark job

How well did you know this?

Not at all

Perfectly

a grouping of jobs with comparable points together to reflect the hierarchy of jobs within a company for the purpose of establishing wage rates

job grade

How well did you know this?

Not at all

Perfectly

a quantitative type of job evaluation that involves ranking benchmark jobs in relation to each other on each of several factors, such as mental requirements, physical requirements, skill, responsibility, and working conditions, and then assigning a portion of the hourly rate for each job to each factor

factor comparison

How well did you know this?

Not at all

Perfectly

ensuring pay rates for jobs in a company are appropriately aligned relative to pay rates for similar jobs in the company’s external labor market

external competitiveness

How well did you know this?

Not at all

Perfectly

a systematic process for collecting information about wages in the external labor market

salary survey

How well did you know this?

Not at all

Perfectly

the systematic process of assigning monetary rates to jobs so that a firm’s internal wages are aligned with the external wages in the marketplace

job pricing

How well did you know this?

Not at all

Perfectly

the market line that represents the relationship between the job evaluation points and the salaries paid for the various jobs in the labor market

wage curve or pay policy line

How well did you know this?

Not at all

Perfectly

sets the organization’s policy line at the middle of the market

match policy (follow)

How well did you know this?

Not at all

Perfectly

the organization intends to pay somewhat above the market rate in valuing employees as a competitive advantage

lead policy

How well did you know this?

Not at all

Perfectly

the organization intentionally pays below the market

lag policy

How well did you know this?

Not at all

Perfectly

an approach used to reduce the complexity of a compensation system by consolidating a large number of pay grades into a fewer number of broad grades (or bands)

broadbanding (career banding)

How well did you know this?

Not at all

Perfectly

jobs for which the person in the job is being paid above the maximum wage for that pay grade

red circled jobs

How well did you know this?

Not at all

Perfectly

jobs for which the person’s salary is below the minimum of the range

green circled jobs

How well did you know this?

Not at all

Perfectly

systems that require employees to acquire certain skills in order to receive a pay increase

skill-based pay

How well did you know this?

Not at all

Perfectly

systems that require employees to acquire certain knowledge in order to receive a pay increase

knowledge-based pay

a highly structured pay system that identifies the competencies employees need to master to be eligible for pay raises

competency-based pay

a method for determining pay for jobs by collecting salary information from the external labor market first, rather than starting with the development of an internal structure based on the value of the jobs within the company

market pricing

direct payments such as salary wages and bonuses, and indirect payments such as payments to cover benefits and services

monetary compensation

the wage or salary an employee receives, exclusive of any incentive pay or benefits - is predictable and fixed

base pay

payments contingent on the performance of the employee, his/her work group, or overall company performance

variable pay

Forms of social and psychological rewards—recognition and respect from others, enjoyment from doing the job itself, opportunities for self development

non-monetary compensation

pay rates are established for

jobs not people

commonly used to establish pay rates but requires significant adjustment in the long run because it lacks an overarching compensation strategy/philosophy/structure

market pricing

four types of job evaluation

job ranking, job classification, point factor method, factor comparison

exists when employees feel they are being paid fairly relative to what people in similar jobs (or with similar competencies) are paid by other employers

external equity

specifies the pay rates that will be used for the jobs in a particular organization

organization pay policy

employers cannot pay lower wages to employees of one gender than it pays to employees of the other gender, employees within the same establishment for equal work at jobs that require equal skill, effort, and responsibility, and that are performed under similar working conditions

Equal Pay Act (EPA)

most commonly, refers to the median annual pay of all women who work full time and year-round, compared to the pay of a similar cohort of men

gender pay gap

What does the Fair Labor Standards Act (FSLA) do?

establishes a minimum wage, sets what constitutes a work week and overtime requirements for pay, defines exempt vs. non exempt employees, restricts use of child labor

exempt employees

employees that meet the requirements and are exempt from FSLA so that employers do not have to pay overtime

non exempt employees

employers have to pay overtime for these

3 tests for exempt vs. non exempt

salary level test, salary basis test, and duties test

strategic importance of performance based pay

use pay to align individual goals with strategic objectives, can change and direct employee behavior, managing labor costs

four types of performance based pay

merit pay, recognition awards, incentive pay, and earnings-at-risk pay

employees receive a compensation adjustment based on results of their performance evaluation

merit pay programs

one-time payment for performance not rolled into employees’ salaries

lump-sum merit bonuses

reward employees for future performance

piecework incentive plans

receive a certain rate of pay for each unit produced

straight piecework plan

the pay received per unit produced changes at certain levels of output

differential piecework plan

pay rate set based on expected amount of time an employee needs to complete task; if employees exceed minimum, they will receive a premium for higher level of work

standard hour plan

used to encourage employees to work toward specific outcomes; Manager gives awards “on the spot” when they see certain behaviors exhibited by employees; Can be cash or non-cash; Recognition programs like employee-of-the-month can also be used; Peer-to-peer recognition programs

recognition awards

employee have part of their salary tied to sales

sales incentive plans

pays an employee a percentage of the total sales they generate

straight commission plan

employees receive a set compensation, regardless of their level of sales (employees may not be as motivated to sell as much as they can)

straight salary plan

employees receive a lower base salary (50%) and the remaining is commission based

mixed salary/commission plan

all members are rewarded when team reaches or exceeds its target objectives; downside is the potential for "free riders"

team incentive plans

designed to help increase a company’s efficiency by rewarding teams that exceed productivity levels with a share of the gains realized

gain sharing plans

company profits are shared with employees

profit sharing plans

a % of profits distributed quarterly or annually

current distribution plans

funds are distributed at retirement, termination, death, or disability

deferred distribution plans

combination of current & deferred

combined plans

involves stocks

ownership plans

provides employees the right to purchase shares of their company stock at some established price for period of time

stock option plans

plans that apply widely to a firm’s employees

broad-based stock option

company contributes shares of its stock to a trust set up for its employees

employee stock ownership plan (ESOP)

the trust borrows against the company’s future earnings and as debt is repaid, employees receive shares of stock from trust

leveraged ESOP

in-kind (noncash) payments to employees for their membership or participation in the organization

employee benefits

provides all employees with a base benefits package then allows employees to choose additional benefits from a wide array of options

flexible benefits plan

provides different types and levels of benefits depending on an employee’s location and position in the organization

targeted benefits plan

examples of legally mandated benefits

social security insurance, unemployment compensation benefits, workers compensation and disability insurance, family and medical leave, the patient protection and affordable care act employer shared responsibility provisions

examples of voluntary benefits

retirement savings plans and pensions, health care benefits and services, wellness programs, employee assistance programs, paid leave, work-life benefits and services

enacted in 1935 as a forced savings plan intended to provide older Americans with a reliable source of income in retirement

social security

the age at which a person may first become entitled to unreduced retirement benefits – depends on when you were born

full retirement age

what is the full retirement age for those born after 1960

Is an insurance program providing unemployment compensation as income for employees who lose their jobs at no fault of their own

unemployment insurance

Covers medical costs and lost income due to work-related injuries/illnesses

workers compensation insurance

parts of the Family and Medical Leave Act (FMLA)

Required to grant up to 12 weeks of unpaid leave annually; Employee keeps preexisting health coverage and must be allowed to return to same or equivalent job

what do voluntary benefits focus on

health, wellness, and welfare work-life balance management retirement benefits

percentage of union membership in the us

about 11%

reasons for decline in union membership

globalization resulted in manufacturing (a heavily unionized industry) moving abroad, job growth in service sector, small businesses, and professional services, anti union tactics by employers, workers are more capable of negotiating better workplace conditions for themselves, progressive HR policies, departments, and war on talent substituting the need for unions

what do unions do and advocate

Works and negotiates with management things employees care about: raises, affordable health care, job security, safety

Most important piece of labor relations legislation in the U.S.; passed to Protect rights of both employees and employers, Encourage parties to engage in collective bargaining, Control activities so economy wouldn’t be adversely affected; established the national labor relations board (NLRB)

Wagner Act (National Labor Relations Act of 1935)

employee rights

To form, or attempt to form, a union in the workplace To join a union, even if it’s not recognized by the employer To assist in union-organizing efforts To engage in group activities (collective bargaining) such as attempting to modify wages or working terms and conditions To refuse to do any or all of above unless clause requiring employees to join union exists

employer rights

Correct inaccurate statements made by union organizers Inform employees of the effects of unionization on the company Say that the company is opposed to the union Give information about the union, its officers, fees, collective bargaining process etc.

employers cannot

Forbid employees to solicit other employees during breaks, off-duty time, in non-working areas Ban the wearing of union buttons or shirts without a valid business reason. Spy on employees or ask other employees to spy on others Forbid union representatives from entering the premises if public is permitted Prohibit discussion among employees during work time if other discussions are permitted

protects the rights of employees and employers, encourages these parties to engage in collective bargaining, and controls their activities so the economy won't be adversely affected by their actions; also established the National Labor Relations Board (NLRB)

Wagner Act (National Labor Relations Act (NLRA))

when two or more nonunion employees act together to try to improve working conditions, or when a single employee approaches management after conferring with other employees on their behalf or is acting on behalf of other employees

concerted activity

a violation of the NLRA that denies rights and benefits to employees; can be the result of employer or union activity

unfair labor practice (ULP)

an agency of the US government that was created by Congress to administer the National Labor Relations Act (NLRA)

National Labor Relations Board (NLRB)

protects the rights of employees and makes the NLRB a more impartial referee for industrial relations, rather than having it serve as an advocate for organized labor

Taft-Hartley Act (Labor Management Relations Act)

laws that prevent workers from having to join a union as a condition of employment, be prevented from joining a union as a condition of employment, be forced to pay dues to a labor union, or be fired for not paying such dues

right-to-work laws

requires workers to join a union before they can be hired and requires employers tot go to the union first to hire new employees

closed shop

an arrangement under which all workers except managers in an organizational unit represented by a union have to become members of that union within a certain period of time after being hired, or at least pay the equivalent of union dues

union shop

a labor union arrangement under which employees cannot be required to join a union but can be required to pay to a union an agency fee for purposes such as initiation

agency shop

a strike or lockout that affects an entire industry, or a substantial part of it, and national health and safety are imperiled

national emergency strike

a group of employees designated by the National Labor Relations Board or identified by the union and employer together as eligible to participate in a union election

bargaining unit

also knowns as signature card; document indicating that an employee is interested in being represented by a union

union authorization card

a list of names and addresses the company must supply of employees who are eligible to vote in the representation election fo a union

excelsior list

a process whereby a company recognizes a union has produced evidence that the majority of workers have signed authorization cards indicating that they want the union to represent them

card check

an arrangement in which a company agrees that it will not express its views about unionization during the time when signatures are collected

neutrality agreement

the process that labor unions and employers use to reach agreement about wages, benefits, hours worked, and other terms and conditions of employment

collective bargaining

the process that requires parties to meet at a reasonable time and come to the bargaining table ready to reach a collective bargaining agreement

good faith bargaining

topics that must be negotiated, including compensation and benefits, hours of employment, and other conditions of employment

mandatory bargaining topics

non-mandatory issues, such as employee rights, managerial control, and benefits for retired union members, that are often part of the collective bargaining negotiations and agreement

permissive topics

entering into a collective bargaining situation with no intention of reaching an agreement, or in some other way violating the protocol for appropriate collective bargaining

bad faith bargaining

a negotiation strategy in which each party takes a defensive position during the bargaining session resulting in a winner and a loser

distributive bargaining strategy

a negotiation strategy in which each party cooperates and works to reach a win win outcome

integrative bargaining strategy

an extension of integrative bargaining in which each party looks for common goals in order to meet the interests of the other party

interest-based bargaining

the situation in which both parties have made their final offers and are not willing to make further concessions

impasse

a method of resolving disputes in which a third party acts as an intermediary and actually makes the decision about how the issue should be resolved

arbitration

the arrangement whereby an outside party works with each side in a negotiation to reach an acceptable agreement

mediation

a type of facilitation used when an impasse occurs in a collective bargaining session so that both parties keep working toward an agreement until they can resolve the issues at hand

conciliation

Exam 3 Flashcards

(112 cards)