Topic 6 Flashcards
Broadbanding
Entails the use of a few broad bands (or grades) to organize work for pay purposes.
Collaborative Environment
Teams of employees work in concert to be creative, solve problems, and produce results.
Compa-ratio
A ratio frequently used to measure the conformity of pay rates to the pay plan.
Dynamic Role-based
The work employees do changes on a regular basis.
Green Circle Rates
Employees whose pay is below the range for their job.
Individualistic Environment
Work is done independently by single employees reporting to a single supervisor.
Job-Specific Reward Level Strategy
Establishing different Reward Level Strategies for different job families or hierarchical levels.
Linear Careers
Employees can expect to spend the duration of their careers with a single organization.
Networked Careers
Employees change jobs frequently, sometimes changing functions and industries to bring unique perspectives and competencies to their new roles.
Pay Form-Specific Reward Strategies
Varying pay-level strategies across reward types.
Pay Grades
The categories organizations put jobs into for rewards purposes.
Principle of Control
States that the size of pay ranges should be kept sufficiently small to enable an organization to control labor costs.
Principle of Inclusiveness
States that a pay range needs to be large enough to capture the pay range of all jobs in that grade or band.
Principle of Overlap
Says that there should be overlap in the pay ranges for successive pay grades or bands.
Principle of Parity
Suggests that, in general, the more grades that are used the smaller the ranges will be.
Red Circle Rates
Employees whose pay is above the range for their job.
Reward Strategy Line
The extent to which a company will pay above, at, or below the market average, shown in graphical form.
Reward-level Strategy
Refers to the extent to which a company will pay above, at, or below the market average.
Scatterplot
A graphic tool used to display the relationship between two quantitative variables, using an X and Y axis.
Shadow Ranges
A system of smaller ranges within the pay ranges, applied to specific job families to provide guidance on appropriate compensation levels.
Static
Didn’t change much over time.
Value-Reward Line
The resulting line when regression is used to estimate the line summarizing the relationship between Job Evaluation Points and a compensation metric.
