Final:Ch 9,10,13,14 Flashcards
What are some examples of Financial Compensation?
Employee recognition programs, rewarding jobs, organizational support, work environment, and flexible work hours
What is Pay for Performance standard?
The standard by which managers tie compensation to employee effort and performance
What are some types of Pay for Performance?
Merit-based pay, bonuses, salary commissions, job and pay banding, team/group incentives, and gainsharing programs
What is the Expectancy Theory?
A theory of motivation that holds that employees should exert greater work effort if they have reason to expect that it will result in a reward that they value
What is Equity Theory?
A motivation theory that explains how people respond to situations in which they feel they have received less (or more) than they deserve
What are different ways to pay workers?
Hourly work, Piecework, Salary workers
What is the Fair Labor Standards Act (1938)?
Interstate commerce clause used to cover workers except agricultural and exempted (managerial) employees, child labor (under 16) is prohibited
What are a few things employers consider when setting salary rates?
Skill level, local labor market, cost of living, competition
What is a Job Evaluation System?
A systematic process of determining the relative worth of jobs in order to establish which jobs should be paid more than others within an organization
What are some methods of the Job Evaluation System?
Job Ranking System, Job Classification System, Point System, Work Valuation, and Hay profile method
Job Ranking System
The simplest and oldest system of job evaluation by which jobs are arrayed on the basis of their relative worth
Job Classification System
A system of job evaluation in which jobs are classified and grouped according to a series of predetermined wage grades
Point System
A quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it
Work Valuation
A job evaluation system that seeks to measure a job’s worth through its value to the organization
Hay Profile Method
A job evaluation technique using three factors-knowledge, mental activity, and accountability-to evaluate executive and managerial positions
Where can we find the average wage rate?
By comparing the wage to the local, regional, or national rate
What does the Equal Pay Act discriminate against?
Gender
Why do organizations have incentive plans?
They establish a performance threshold that employees must achieve to qualify
What are some different ways that sales people are paid?
Straight Salary, Straight Commission, Salary and Commission Combinations
Straight Salary
Salespeople are paid for performing various duties that are not reflected immediately in their sales volume
Straight Commission
Compensation based on the percentage of sales
Combined Salary and Commission
A plan that includes a straight salary and a commission component “leverage”
What are long term incentive plans?
?
What is employment at will?
A company can fire you at anytime for no particular reason; on the other hand the employee can quit at any time
