Total Compensation (10.4%) Flashcards
Relevant Legislation to Compensation
1) Employment Standards Act
2) Human Rights Legislation
3) Pay Equity Legislation
4) Income Tax Act
5) Employment Insurance Act
6) Canada & Quebec Pension Plans
7) Government Health Care Plans
Employment Standards Act
sets minimum requirements related to compensation (minimum wage, overtime pay) and benefit entitlement (statutory holidays,vacation entitlement, paid rest and lunch periods, paid and unpaid leaves, etc.)
Human Rights Legislation
ensures compensation practices are not discriminatory to protected groups
Pay Equity Legislation
governs “equal pay for equal work” and “equal pay for work of equal value”
ensures that male-dominated job classes and female-dominated job classes of equal value are paid the same
Income Tax Act
governs required “deduction at source” payroll remittances by employers on their employee’s behalf
determines which benefits must be considered taxable benefits and thereby taxed as income
Pg 436 in Strategic Compensation in Canada for status of taxability of benefits
Employment Insurance Act
ensures income in the event of job loss (this topic is dealt with at greater length later in this module)
Canada & Quebec Pension Plans
mandate employee and employer contributions to these plans based upon the employee’s income (dealt with in greater detail later)
Government Health Care Plans
in some provinces require premiums to be deducted by employees
Total Compensation
= compensation + benefits
Intrinsic Rewards
= comes from one’s enjoyment and satisfaction with the “nature” of the work
inherent in job content
Include the following:
- Job Autonomy = the degree of freedom one has for determining how a job is to be performed
- Opportunity for Achievement
- Challenge and Responsibility (although TASK COMPLEXITY is NOT associated with job satisfaction)
- Opportunity for learning and growth
- Task Identity - extent to which someone performs all aspects of the job
- Skill variety
- Task significance = the perceived importance or social value of the task
- Job Feedback = the extent to which the job itself provides feedback on worker performance (i.e. an epee can assess their performance
important but play small part in determination of total compensation strategy
Extrinsic rewards
= come from outside the work or are external to the job
embedded in the job context
Include the following:
- financial compensation
- benefits and prequisites
- physical working environment and conditions
- status
- security
- promotion
total compensation often refers to the provision of extrinsic rewards
Job Enrichment
Process of resigning jobs to incorporate more of the five core dimensions of intrinsically satisfying work
Five Core Job Dimensions:
1) Task identity = the extent to which a worker performs a complete cycle of job activities
2) Task Significance = the perceived importance or social value of a given task
3) Skill Variety = the variety of skills required for task completion
4) Job Autonomy = the degree of freedom workers have in deciding how to perform their jobs
5) Job Feedback = the extent to which the job itself provides feedback on worker performance
Acquired Needs Theory
Needs are shaped over time by experiences (also known as Three-Need Theory or Learned Need Theory)
Most needs fall into 3 categories and people have a tendency towards 1 category:
1) Achievement –> seek to excel and appreciate frequent recognition; avoid low risk activities w/ no chance of gain and high risk where significant chance of failure
2) Affiliation –> seek harmonious rel’p w/ ppl; tend to conform and shy away from standing out; seek approval rather than recognition
3) Power –> want power to control other ppl (for own goals) or achieve higher goals (for greater good); seek neither recognition nor approval from others – only agreement and compliance
Attitude-Behaviour Consistency
Our attitudes (predispositions to behaviour) and actual behaviors are more likely to align if the following factors are true:
- our attitude and behaviour are both constrained to very specific circumstances
- there have been many opportunities to express attitude through behaviour
- we have history of attitude-behaviour consistency
- the attitudes are based on personal experience rather than being copied from others
- the attitudes are proven by past experience
- there is no social desirability bias where the presence of others will lead us into uncharacteristic behaviour
- we are low in self-monitoring so we do not distract
- the attitude is strongly held and is around core beliefs
Attribution Theory
The need to attribute cause that supports our ego. Attribute cause to give greater sense of control. When explaining behaviour, it can affect the standing of people within a group
Internal attribution - when another person has erred, we contribute it to internal factors OR if we have had a success
External attribution - when another has succeed, we tend to attribute causes to situational factors; If we have erred, we tend to attribute the event to situational factors
Attributions sig driven by emotional and motivational drives
Self serving attribution - blaming others and avoiding personal recrimination; defend perceived attacks
people with high need to avoid failure will have greater tendency to make attributions that put themselves in a good light; even tend to blame victims for fate to seek distance
tend to ascribe less variability to other people than ourselves, seeing ourselves as more multifaceted and less predictable than others (may be b/c see more of what is inside ourselves)
Two step process –> start with automatic internal attribution, followed by slower consideration of external attribution; if hurried or distracted, may not get to 2nd step (makes internal more likely)
Cognitive Dissonance
Non-alignment is uncomfortable
The feeling of uncomfortable tension that comes from holding two conflicting thoughts in the mind at the same time.
Dissonance increases with:
- the importance of the subject
- how strongly the dissonant thoughts conflict
- our inability to rationalize and explain away the conflict
Very powerful motivator, which will often lead us to change one or other of the conflicting belief or action. The discomfort often feels like tension btwn 2 opposing thoughts.
To release tension, 3 possible actions:
- change behaviour
- justify our behaviour by changing the conflicting cognition
- justify our behaviour by adding new cognitions
Most powerful when it is about our self-image (feelings of foolishness and immorality are dissonance in action)
If action cannot be undone, then after the fact dissonance compels us to change our beliefs; if beliefs are moved, then dissonance appears during decision making
increases with importance, impact and difficulty of reversing
Cognitive Evaluation Theory
We select tasks based on how doable they are
Evaluate tasks in terms of how well meet needs to feel competent and in control
if think able to complete, intrinsically motivated to complete task w/ no further ext motivation
Internal Locus of Control - feel in control of how they behave
External Locus of Control - believe the environment or others have greater influence over what they do
external rewards may have some degree of control or may be informational, such as where they reinforce feelings of competence and self-determination
when see reward as mostly for control, motivated by gaining reward but not by enacting requested behaviour
occasionally called Self-Perception Theory
Consistency theory
We seek the comfort of internal alignment
When beliefs, attitudes, and values all support one another and are supported by external evidence, then comfort
discomfort of congnitive dissonance occurs when alignment is not met, which leads us to try to achieve max practical level of consistency in our world
strong need to believe consistent w/ social norms; when conflict btwn behaviours and inner systems but consistent w/ social norms, swayed despite inner dissonance
Ways we achieve consistency:
- denial or ignoring
- rationalization and excuses
- separation of items
- transcendence
- changing item
- persuasion
Control Theory
We seek to control the world around us
Deep need for control that often controls us; effort for perfect control can make one miserable
alternative is to see world as series of choices
Negative feedback principle - outcomes compared to intent and used to moderate actions until intent is optimally achieved (negative refers to the difference btwn intent and outcome)
Important consequent is self regulation –> people seen as intelligent, goal-driven individuals who attempt to control activities to achieve goals, objectives, and needs
Disconfirmation Bias
Agreeing with what supports beliefs and vice versa
When people are faced with evidence for and against their beliefs, they will be more likely to accept the evidence that supports their beliefs with little scrutiny yet criticize and reject that which disconfirms their beliefs.
Generally, we will avoid or discount evidence that might show us to be wrong.
Require significant evidence to change beliefs
Drive Theory
We seek to satisfy needs
needs prod us to actions to reduce stimuli by satisfying relevant needs
Drives necessary or needs would not be satisfied
Require perception of needs/stimuli to learn
Primary Drives –> related to basic survival and procreation
Secondary Drives –> related to social and identity factors (less important than survival)
As we act to satisfy needs, we come conditioned and acquire habits and other unconscious forms of responses and reactions
Behaviour changes only if habits are not satisfied, such that drive remains
If enacting of drives is frustrated or driven actions do not satisfy needs, can lead to anxiety and other negative emotions
Endowed Progress Effect
Progress is motivating
progress creates commitment to continued efforts to achieve goal
if feel making no progress, likely to abandon efforts
as get closer to goal, commitment likely to deepen as they strive increasingly harder to achieve success
ERG Theory
We seek to fulfill needs of existence, relatedness, and growth
simplified Maslow’s Hierarchy; seen on continuum than hierarchy
Existence –> lowest level, alive/safe, and foreseeable future; when satisfied, feel safe and physically comfortable; correlate to Maslow’s physiological and safety/security needs
Relatedness –> social needs (rel’p and what ppl think of us); feel a sense of identity and position in society; correlated with Maslow’s belonging and esteem
Growth –> seek growth and being creative (highest level); feel sense of wholeness, achievement and fulfillment; correlate with Self-Actualization
Escape Theory
We seek to escape uncomfortable realities
activities we indulge in help us get away from our lives
can be harmless or potentially dangerous
in effect trying to escape from ourselves or some aspect of our character