Rewards Flashcards
1
Q
Establishing pay rates
A
- Determine worth of jobs-Job evaluation
- Conduct Wage & Salary surveys
- Design Pay Structure
- Determine pay grades
- Determine pay ranges
- Wage and salary curves
- Maintaining pay structure
- Participating policies
- Pay secrecy
- Strategy of job value
2
Q
Determine worth of jobs-Job evaluation
A
- Job evaluation assesses relative job value to determine appropriate compensation
- compare 1 job with another in organisation without compairing with another
- comparable worth is notion which requires equivalent KSAO to be compensated equally, but theire are exceptions(Nurse and Dr)
- Job evaluations should be comparable, judgemental and follow analytical process
- various metiohs to be used, point method, factor method, comparison method, ranking method
3
Q
Conduct Wage & Salary surveys
A
- Used to establish compettaiveness and pay rates
- Wage sruveys - collection of data on compensation rates for employees performing similar jobs in other organisation
- wage surveys designed to indicate annual pay or total earnings levels at a givin time
- Data is collected, analyzed and data used to construct market line
- Data must be verified to identify anomalies
4
Q
Design Pay Structure
A
- Pay structures provide remuneraion guidelines
- designed by combing data gathered from Job analysis and wage survey and shows relations between these on market line
- pay structures can be influenced by management, unions, cost of living etc
5
Q
Determine pay grades
A
- Pay structure has pay grades
- pay grades groups jobs that have similar value
- pay range is established by using market line as midpoint and decide on min and max for each pay range
- range spread - difference between min and max
- should be market related
- grade overlap occures when min and max value of grade overlaps and adjoin range
6
Q
Determine pay ranges
A
- determined same time that pay grades etsbakihes
- each pay grade is assigned for acceptable pay with a min and max
- max places ceiling on that rate
- range size may vary bt should stay consistent
- pay range width determine max and min salaries
7
Q
Wage and salary curves
A
- graphically indicates relationship between pay grades and ranges
- Wage curve plots jobs in ascending order of difficulty on x axis and wagge rate along y axis
- good idea to draw seperate curves and compare
8
Q
Maintaining pay structure
A
- Sometime compensation looks good on paper but not in reality
- org fail to maintain pay structres due to
- Poor communation,not paying for performance and outdated job evalutaion
- compensation system can be designed to include
- Internal alignment, external competitiveness and employee contribution
9
Q
Participating policies
A
Communication strategy is required’org must establish committee
staff performing evaluations must receive proper training
10
Q
Pay secrecy
A
Important, disadvantage as e become suspicious if not disclosed and e find it difficult to determine if elated to performance
