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HRM 2440 > Week 9 > Flashcards

Week 9 Flashcards

1
Q

Establishing Pay Rates 4 Stages

A
  1. Job Evaluation
  2. Conduct wage/salary survey
  3. Use 1 and 2 to determine pay
  4. Pay for knowledge
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2
Q

Employee Compensation

A

forms of pay to employee

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3
Q

Direct financial payments

A

wage, salary, bonus, commission

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4
Q

Indirect financial payments

A

insurance, vacation,

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5
Q

Compensation Policy Components (5)

A

Basis for salary increase
promotion/demotion
overtime/regular pay
probation pay
leave/time off

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6
Q

4 basic purpose of rewards

A

attract, retain, motivate, engage employees

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7
Q

Employee Engagement

A

work hard for company, clear understanding of strategic significance of job

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8
Q

Aligning Total Rewards with Strategy

A

compensation package produces employee behaviours firm needs to achieve competitive strategy

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9
Q

Stage 1: Job Evaluation

A

comparison to determine relative worth of job in firm

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10
Q

Job Evaluation Committee

A

diverse group to ensure fair representation of requirements of job

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11
Q

Compensable Factors

A

Skill, effort, responsibility and working conditions -> sub factors

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12
Q

Job Evaluation Method: Classification/Grading

A

categorize jobs in groups
outline compensable factor levels required and develop class/grade
use job description

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13
Q

Job Evaluation Method: Point Method - identify (2)

A

identify compensable factors and weights, determine degree of factor

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14
Q

Too many jobs to evaluate: Benchmarks

A

jobs critical to operations, commonly found in other organizations
<- reference point to evaluate other jobs

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15
Q

Pay Grade (3)

A

Consists of equal value/importance jobs
class/grading: already categorized into class or grade
point: pay grade consists of jobs fall within range of points

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16
Q

Stage 2: Conduct Wage/Salary Survey - 3 ways to use

A
  1. determine wage rates for comparable jobs
  2. market rates for benchmark jobs
  3. collect data on benefits, recognition programs
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17
Q

Types of wage/salary survey (5)

A

formal/informal
commercial, professional, government

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18
Q

Interpretation and use of surveys (3)

A

avoid upward wage bias
compare job description, not title
identify appropriate labour market

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19
Q

Stage 3: Combine Job Evaluation and Salary Survey Information

A

Assign pay rates to each pay grade

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20
Q

Wage Curve

A

relationship between value of job and wage paid for job

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21
Q

Pay Ranges and based on (4)

A

steps/levels within pay grade,years of service, performance, labour market

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22
Q

Broadbanding

A

reduce number of salary grades/ranges into few wide level (bands)

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23
Q

Correcting Out-of-line rates: too low

A

raise to minimum pay grade

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24
Q

Correcting out-of-line rates: too high (3)

A

freeze pay till general salary increase
Transfer/promote employees involved to jobs for which they can legitimately be paid current pay rate
cut pay to maximum pay grade

25
Q

Pay for Knowledge (vs)

A

Competency-based pay (manager, professional) vs skill based pay (manufacturing/engineer employee)

26
Q

Competencies

A

knowledge skills, behaviours to successful performance based on relation to organizations value and strategy

27
Q

Pay for Knowledge Programs include (3)

advantage (1)
disadvantage (1)

A

competencies/skills important to job
cycle of competencies
on-the-job training & assessment

focus on people, not task
measurement of competencies is a challenge

28
Q

Pay Equity Theory

A

perceives an inequity, tension or drive will develop to motivate them to reduce tension and perceived inequity

29
Q

4 types of equity

A

internal, external, individual, procedural

30
Q

Internal Equity

A

how fair jobs pay rate is compared to other jobs within same company

31
Q

External Equity

A

jobs pay rate in one company vs another company

32
Q

Individual equity

A

individuals pay vs co-workers for same/similar job in company, based on performance

33
Q

Procedural equity

A

processes and procedures used to make pay allocation decisions

34
Q

Pay Equity and Gender (3)

A

gap has narrowed but at 30%
systemic discrimination
evaluation should be gender neutral

35
Q

Theories of motivation for incentive plans (2)

A

Frederick Herzberg’s Two-Factor Theory
Victor Vroom’s Expectancy Theory

36
Q

Frederick Herzberg’s Two-Factor Theory
Motivate through…….(2) and ____ ______ needs

A

motivate through challenge and recognition (higher level needs)

37
Q

Job Dissatisfaction: Hygiene Factors

A

outside job etc working conditions, salary, policies and rules

38
Q

Job Satisfaction: satisfier/motivators arrw

A

achievement, recognition, responsibilities, work itself

39
Q

Victor Vroom’s Expectancy Theory

A

People won’t go after rewards they find unattractive or too low of odds

40
Q

Victor Vroom’s Expectancy Theory: effort equation

A

Expectancy x Instrumentality x Valence

41
Q

Expectancy

A

probability effort lead to success

42
Q

Instrumentality

A

connection between performance and rewards

43
Q

Valence

A

reward

44
Q

Money and motivation : compensation plans to motivate employees - [Fixed pay]

A

compensation independent of performance, base pay and income stability

45
Q

Money and motivation : compensation plans to motivate employees - [Variable Pay]

A

pay is tied to productivity an profitability

46
Q

Merit Pay/ Raise

A

salary increase awarded based on performance, increase to base pay, not a one time bonus

47
Q

Piecework Plan for Pay raise

A

oldest and most common, pay based on number of items, hours etc

48
Q

Straight piecework plans

A

set payment for each piece

49
Q

Guaranteed Piecework

A

minimum hourly wage + incentive for each produce beyond minimum

50
Q

Differential Piecework

A

basic hourly wage + percentage of pay beyond minimum

51
Q

Short term incentive

A

bonus, vacation pay

52
Q

Long-term incentive

A

stock options

53
Q

Commission plan
advantage
disadvantage

A

pay directly proportional to sales
adv: incentive to perform high, based on your success
disadv: competition, not in best interest of customer, variance in pay

54
Q

Profit-Sharing Plans? To achieve

A

employees share in company profits, achieve financial goals

55
Q

Gainsharing Plans

A

employees achieve productivity goals and share gains, small and large work groups

56
Q

Read about Lincoln Electric

A

slide 69-73

57
Q

Total Rewards Include (2)

A

Total Compensation and Relational Return

58
Q

Total Compensation is (2)

A

Cash and Benefits

HRM 2440 (9 decks)

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