The Pay Model Flashcards
What are the three basic building blocks of the Pay Model?
Policies, Techniques, and Objectives
What are the basic objectives of the Pay Model?
Efficiency, fairness, compliance, and ethics
Improving performance, increasing quality, delighting customers and stockholders, and controlling labor costs
Efficiency
Calls for fair treatment for all e employees by recognizing both employee contributions and employee needs
Fairness
Suggests that the way a pay decision is made may be equally important to employees as the results of the decision
Procedural fairness
Conforming to federal and state compensation laws and regulations
Compliance
What are the four policy choices on the pay model?
Internal alignment, external competitiveness, employee contributions, and management
Comparisons among jobs or skill levels inside a single organization
Internal alignment
Pay comparisons with competitors
External competitiveness
Comparisons among individuals doing the same job for the same organization.
Employee contributions
Ensuring that the right people get the right pay for achieving the right objectives in the right way
Management
Mechanisms or technologies of compensation management, such as job
analysis, job descriptions, market surveys, job evaluation, and the like, that tie
the four basic pay policies to the pay objectives
Pay techniques
A common measure of association that indicates how changes in one variable are related to changes in another
Correlation coefficient
Making changes in the way work is defined to include external customer focus
Reengineering
What techniques are involved with internal alignment?
Work analysis, descriptions, evaluation/certification (internal structure)
