Module 1 - Strategic Overview Flashcards
Define fixed pay
Fixed pay is nondiscretionary compensation that does not regularly vary according to performance or results achieved.
Base salary, allowances, consistent pay, fixed cost for organization
Define variable pay
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.
Bonus program or short term incentive plan.
Total Rewards Design Process (circular flow chart)
Corporate vision and mission —> business strategy —> HR strategy —> total rewards strategy —> program design and administration —> program evaluation / revise
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 organizations culture. a key component is how the organization intends to pay relative to its competitors for people, for example the desired market position.
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.
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 employees efforts and business objectives
Base Pay structure design
Job Analysis –> Job documentation –> Job evaluation –> Job worth hierarchy –> 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
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 is built, a base pay structure can be created and utilized as a framework for pay decisions
Occupation
A generalized job or job family common to multiple industries/organizations.
Ex: Nursing
Job family
a group of jobs having the same nature of work (engineering) but requiring different levels of skill, effort, responsibility, or working conditions (entry level vs senior)
Ex: Nurse
Job and Benchmark Job
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.
Ex: Registered Nurse
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 total number of positions in an organization equals the number of employees plus vacancies.
Ex: Registered Nurse - Emergency Room
Job responsibility
a duty or group of duties which describes the major purpose or reasons for the existence of a job
Ex: Provide professional nursing care to patients and support physician medical interventions
Job duty
a group of tasks that constitute one of the distinct and major activities involved in the work performed.
Ex: Triage patients that arrive in the emergency room
Task
one or more elements constituting a distinct activity that forms a logical and necessary step in the performance of work by an employee
Ex: -Check vital signs. -Dispense medications. -Clean, disinfect, suture, bandage wounds. - Document and record patient medical information.
Task elements
the smallest step into which it is practical to subdivide any work activity without analyzing separate motions, movements, or mental processes
Ex: Direct patient to therapy room. -place blood pressure cuff on patient. -perform blood pressure test. - record blood pressure reading.
Job Specifications
KSA’s
Help define work characteristics required to perform the job completely. Specifications for hiring may be the minimum for the job, while the specifications for the job evaluation should be based on fully competent performance. Job specifications should be written prior to advertising or interviewing job candidates and should support the essential functions identified in the job, reducing legal liability.
KSA’s - Knowledge
- Defines mental aspects of the job
- What employee must know (through education, training, or experience)
Ex: Accounting principles. Nursing degree.
KSA’s - Skills
- Defines manual and/or applied mental aspects of job
- What employee must be able to do (typically experience or training)
Ex: Maintain general ledger. Administer first aid.
KSA’s - Abilities
- Natural talents or developed proficiencies
- Defines aptitudes normally present at birth in job incumbent, but may in some cases be acquired
Ex: Balance multiple priorities. Maintain calm in emergency situations.
KSA’s - Behaviors
- Behaviors required for performing the job
- Defines how the employee should act in support of organizational goals
Ex: Positive interaction with members of organization. Reassuring manner in dealing with patients of all ages.
Define and explain the steps that must be completed before building a base pay structure (long form answer)
-Job Analysis:
-Job documentation:
-Job Evaluation:
Job worth hierarchy:
Define and explain the terms used to describe and differentiate job and job responsibilities (long form answer)
- Job:
- Position:
- Job responsibilities:
- Job duty:
- Task elements:
Identify job specifications and distinguish between knowledge, skills, abilities, and behaviors (long form answer)
- Job specifications:
- Knowledge:
- Skill:
- Ability:
- Behaviors:
Quiz: When is the base pay structure created? A) As soon as the job documentation has been completed. B) Prior to completion of the job analysis. C) After the job worth hierarchy is built
The base pay structure is created after the job worth hierarchy is built which also comes after the job analysis, job documentation, and job evaluation
Quiz: The phrases “lifts cover, lays paper on glass, closes cover, and presses start buttons” are examples of which of the following? A) Responsibilities. B) Duties. C) Tasks. D) Task elements
The phrases “lifts cover, lays paper on glass, closes cover, and presses start buttons” are examples of TASK ELEMENTS because they are so specific
Quiz: 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
There are THREE jobs in the unit because only three titles are listed, whereas there are seven positions since there are seven employees, not including any vacancies that may or may not exist but were not mentioned.
What job specification describes what the employee should be able to do based on their experience or training? A) Knowledge. B) Skills. C) Abilities. D) Behaviors
the SKILLS job specification describes what the employee should be able to do based on their experience or training
