Module 1--Strategic Overview Flashcards
What are the two Elements of Compensation
■ Fixed pay is nondiscretionary compensation that does not regularly vary according to performance or results achieved.
■ Variable pay is compensation that is contingent on discretion, performance or results achieved. It may be referred to as “pay at risk.” Much of the innovation in compensation occurs in the variable
pay element.
What is the Total Rewards Design Process
■ Corporate Vision/Mission
■ Business Strategy
■ Human Resource Strategy
■ Total Revwards Strategy
■ Program Design and administration
■ Program Evalaution: Revise and Enhance
cycle repeats
What is the Compensation Philosophy?
A defined compensation philosophy is a statement of what the
organization believes about how people should be paid. It should support the business strategy and be a good fit with the organization’s culture. A key component is how the organization intends to pay relative to its competitors for people – i.e., the desired market position.
What is the Compensation Strategy?
The compensation strategy includes the principles that guide the design, implementation and administration of a compensation program in an organization. It may also specify what programs will be used and how they will be administered.
What are Compensation Program Objectives?
- Internally equitable
- Externally competitive
- Affordable
- Understandable
- Legal / defensible
- Efficient to administer
- Capable of being reshaped for the future
- Appropriate for the organization
- Attract, motivate, engage and retain employees
- Create alignment of employee efforts and business objectives
What is the Base Pay Structure Design?
There are several steps involved in building a base pay program. These steps provide the information necessary to create a base pay structure.
■ Job analysis – provides key information about the nature and level of work performed
■ Job documentation – includes written information about job content or the functions of the job and required knowledge, skills and abilities (KSAs)
■ Job evaluation – creates a job worth hierarchy using a market data or job content approach
■ Job worth hierarchy – illustrates where each job fits, relative to other jobs
■ Base pay structure – After the job worth hierarchy
Terms and Definition:
■ Occupation:
■ Job family:
A group of jobs having the same nature of work (e.g., engineering) but requiring different levels of skill, effort, responsibility or working conditions (e.g., entry-level vs. senior engineer).
■ Job:
The total collection of tasks, duties and responsibilities assigned to one or more individuals whose work is of the same nature and is performed at the same level.
* Benchmark job: A standard job used for making pay comparisons to develop or validate a job worth hierarchy. Pay data for these jobs are readily available in published surveys.
■ Position:
The total work assignment of an individual employee, comprised of a specific set of duties /responsibilities. The The total number of positions in an organization equals the number of employees plus vacancies.
■ Job responsibility:
A duty or group of duties which describes the major purpose or reasons for the existence of a job.
■ Job duty:
A group of tasks that constitutes one of the distinct and major activities involved in the work performed.
■ Task:
One or more elements constituting a distinct activity that forms a logical and necessary step in the performance of work by an employee.
■ Task elements:
The smallest step into which it is practical to subdivide
Terms and Definition:
- When is the base pay structure created?
A. As soon as job documentation has been completed
B. Prior to completion of the job analysis
C. After the job worth hierarchy is built
B. Prior to completion of the job analysis
- The phrases “lifts cover, lays paper on glass, closes cover and presses start button” are examples of which of the following?
A. Responsibilities
B. Duties
C. Tasks
D. Task elements
D. Task elements
- An operations team has five data entry clerks, one proofreader and one supervisor. How many jobs are in the unit?
A. Two
B. Three
C. Six
D. Seven
B. Three
- What job specification describes what the employee should be able to do based on his or her experience or training?
A. Knowledge
B. Skills
C. Abilities
D. Behaviors
B. Skills
Compensation Philosopy is typically
What the organization believe about how individuals should be paid.. Tailored very closely to the organization. Strong
Compensation Strategy
How you will implement Compensation Philosophy
Talent value Proposition
Compensation Strategy weaved with the different elements of pay
