module 1 Flashcards
represents the rewards employees receive for performing their jobs
compensation
represents employees’ critical psychological state that result from performing their jobs
intrinsic compensation
includes both monetary and nonmonetary rewards
extrinsic compensation
refers to the design and implementation of compensation systems to reinforce the objectives of both hr strategies and competitive business strategies
strategic compensation
financial capital
equipment capital
human capital
competitive business strategy
the use of multiple hr practices to reinforce the competitive business strategy
human resource strategies
key to giving employees the necessary knowledge and skill to use new workplace technology effectively
pay for knowledge and skill based pay programs
refers to the factors that enable companies to generate income, higher stock prices and economic value and reputation
capital
refers to sets of collective skills, knowledge and abilities that employees can apply to create value for the employers
human capital
reinforce excellent job performance
well-designed merit pay and incentive programs
focus on being the lowest cost producer/seller of goods
lowest cost strategy
focus on offering unique goods or service to the public
differentiation strategy
core compensation
adjustments to core compensation
legally require employee benefits
discretionary employee benefits
focuses of extrinsic compensation
hourly wage
annual salary
base pay
skill level
effort
level of responsibility
severity of the working conditions
compensable factors
cost of living adjustments seniority pay merit pay incentive pay person-focused pay or competency pay
how base pay is adjusted over time
represent periodic base pay increases that are founded on changes in prices as indexed by the consumer price index
COLAS- cost of living adjustments
systems that reward employees with periodic additions to base pay according to employees length of service in performing their jobs
seniority pay
assumes that employees’ compensation over time should be determined at least in part by differences in job performance
merit pay
rewards employees for partially or completely attaining a predetermined work objective
Incentive
rewards managerial, service or professional workers for successfully learning specific curricula
pay for knowledge plans
is used mostly for employees who perform physical work and increased these workers pay as they master new skills
skill-based pay
provide family benefits, promote health an guard against income loss cause by such catastrophic factors as unemployment disability or serious illness
protection programs
provides employee with pay for time when they are not working
PTO
provides such enhancements as tuition reimbursement and day care assistance to employees and their families
services
promote worker safety and health
maintain family income
assist families in crisis
provide assistance in case of disability and unemployment
legally required benefits
determined by employees’ credentials, job knowledge and job performance
pay structures
based on compensable factors
pay grades
pay ranges
built on grades, uses midpoint min and max pay rates
merit plans sales compensation plans broadband structures two-tier wage structures executive compensation contingent worker compensation expatriate compensation conpensation structures in countries other than the us
alternative pay structure confgurations
directly involved in producing companies’ goods or delivering their services such as manufacturing leaders
line employees
support the line functions, human resource professional and accountants are examples of
staff employees
report directly to the corporation’s ceo or head of a major division
executives
perform tasks in a variety of hr-related areas such as involvement in most or all of the compensation functions
generalists
work within only one of the areas of compensation practice such as compensation survey development
specialists
recruitment relocation selection performance appraisal training career development labor-management relations employment termination legislation
practices implemented by hr professionals
employees line managers executives
unions
us govt
entities directly affected by compensation practices
- rely on compensation professionals to: develop and implement systematic training programs, inform them of training pay link, and offer discretionary benefits that provide income protection, paid time off, services
employees
– rely on compensation professionals to ensure knowledge of relevant laws to help make sound compensation judgments, advise for establishing pay differentials and train them how to properly evaluate jobs
line managers
- rely on compensation professionals to develop and manage sound compensation systems, insure the company’s practices are legally consistent, sufficiently attractive to recruit and retain
executives
- rely on compensation professionals to:a bide by their collective bargaining agreements, ensure they get their COLA adjustments and seniority pay
unions
the - - requires compensation professionals to: keep updated and comply with all employment legislation, demonstrate that alleged discriminatory pay practices are not in fact discriminatory; or, are a business necessity
u.s. govt
