| Terms |
Definitions |
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considers how profits are divided up within the organization
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organizational equity
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union contracts can also affect _____________ organizations
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nonunionized
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What is the minimum wage as of July 24th, 2009?
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$7.25 this is in GA too
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point and hob classification systems evaluate jobs against predetermined _______ or __________.
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scale or class
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women's groups have challenged ___________________ to bridge the income gap between men and women
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pay- secrecy rules
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when do reward distribution benefit the organization?
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ONLY if the employee's desires are known
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factors that disreguard the comparable worth theory
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avalibility of qualified employees and wage rates paid by other employers
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if no conducted correctly salary surveys can yield very ___________ info
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distorted
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employee interpretations of pay equity are based on their _________________.
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perceptions
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rewards internal to the individual; normally derived from involvement in activities or tasks
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intrinsic rewards
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include incentives and benefits
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total compensation package
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how is the wage structure largely determine in a unionized organization?
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by the collective bargaining process
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primary organizational variable used to rewards employees and reinforce performance
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PAY
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___________ are assigned to each factor, subfactor, and degree to reflect their relative importance
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wrights
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what age range is restricted by the FLSA
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14-18
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determins relative worth of a job by comparing it to a predetermined scale of classes ( or grades) of jobs
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job classification method/ job grading
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T/F union rate and prevailing wage are are usually around the same amount
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true
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to ________ rankings should be done once or twice at later dates without referring to previous rankings
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validate
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Performance should be based on criteria that are job specific and focus on results achieved.
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good measurement systems
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what are the two basic ways that wage or salary survey information is obtained?
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1. conduct your own survey2. purchase wage survey from another organization
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you believe you are fairly paid
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pay equity
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how can promotions be filled?
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on basis of seniorityby someone outside the organization
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Easier to establish credible pay-for-performance plan if all employees do not receive pay adjustments on same date.
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flexible rewards schedule
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advantages to the point method(quantitative point scale)
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simple and objective
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assessing participating companies for comparibility and comparing more than base wage or salary are ways of avoiding what?
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problems with wages
|
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key jobs need a fully detailed ______________.
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job description
|
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_____________ interview is the most reliable and more expensive method
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personal
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ruled that forbidding employees to discuss their pay constitutes a violation of the NLRA
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NLRB National Labor Relations Board
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FLSA permits states, localities and collective bargaining agreements to set a _________ standard that the fed min wage
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higher
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it is ________ to determine worth of a job
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difficult
|
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is desirable at both organizational/corporate level and individual level
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performance- reward relationship
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_________ should ensure internal quality
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job evaluations
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Correlation between satisfaction and performance is?
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low
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another term for the job classification method
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job grading
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_______________ is used for designing pay structure not for appraising performance of employees
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job evaluation
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organizational morale is achieved through...?
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1. common goals2. confidence in desirability of those goals3. desire to progress toward the goals
|
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the job classification method is simple bit not always _________ since it evaluates the job as a whole
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precise
|
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based wage or salary, incentives, any benefits
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compensation
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placement of employee within pay grade should be based on ____________ or _____________
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preformance or merit
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t/f it is unusual for pay grades to overlap
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false
|
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classes of jobs are defined on basis of differences in...
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duties and responsibilities, skills and workign conditions and other job-related factors
|
|
Two justifications for pay secrecy
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1. avoid discontent resulting from employees knowing what everybody else is paid2. many employees feel strongly that their pay is nobody else's business
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selection of key jobs should adequately represent
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1. span of responsibilities2. duties3. work requirements
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called qualitative and non quantitative techniques compare whole jobs
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job classification and ranking methodas
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r/f rewards are a necessary intervening variable in the relationship
|
True
|
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________________ is prepared for each compensable factor
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monetary scale
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-Managers have more autonomy in setting pay rates-Easier to move employees around due to elimination of unnecessary distinctions among jobs-Encourages lateral moves or downgrading in flat organizations.-Helps improve team communication by eliminating freq
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advantages of broadbanding
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What are the top 3 drivers of employee job satisfaction?
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1. Pay and benefits2. Security at Work3. Felxibility
|
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content of key jobs should be __________________.
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commonly understood
|
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what is the primary objective of base wage and salary system
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establish a structure for equitable compensation of employees, depending on their jobs and level of performance in their jobs
|
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survey of selected organizations with a geographical area or industry to provide comparison of reliable information on what 3 things
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policiespracticesmethods of payment
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____________ is th elargets portion of employees compensation and often reflects the atmosphere of the entire organization
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base wage and salaries
|
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no successful formula for implementing a _________________ has been developed
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pay for performance program
|
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although _____________eventually results from satisfaction, _____________ goes much deeper and is less tenuous than happiness
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happiness, satisfaction
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another name for Fair Labor Standards Act (FLSA)
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Wage and Hour Act
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considers issue of rewarding individual contributions; very closely related to the pay for performance issue
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individual equity
|
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internet surveys fall into what 2 broad categories
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1. surveys conducted by the fed govt2. surveys conducted by private research organizations
|
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graphical depiction of relationship between relative worth of jobs and their wage rate
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wage and survey curves
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one of the most commonly used methods for pricing jobs
|
wage surveys
|
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hourly, weekly, or monthly pay that employees receive for work
|
base wages and salaries
|
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if employees are skeptical of management, difficult to make a pay-for-performance program work
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Trust in Management
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this system pays based on range of knowledge, # of business related skills mastered, level of those skills or knowledge, and some combination of level and range
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skill/knowledge based pay
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office location, allocation of certain pieces of equiptment, assignment of preferred work task, and infromal recognition are all kinds of _________.
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rewards
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Employee’s performance is not hampered by factors beyond his/her control.
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absence of performance constraints
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Does research accept or reject the idea that satisfaction leads to performance?
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reject
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the degree to which a specific job possesses these compensable factors determines its_________________
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relative worth
|
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advantages of wage and salary surveys provide __________ of market and ensure _______ equity
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knowledgeexternal
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___% is a good guideline of key jobs to represent entire pay structure and major kinds of work being evaluated
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20
|
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job satisfaction, feelings of accomplishment are examples of what kinds of rewards?
|
intrinsic rewards
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general idea of job evaluation
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1. requirements2. contribution3. classify importance
|
|
Job satisfaction and motivation are not_____________________!
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synonymous
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3 traditional methods of surveying wage data
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1. personal interviews2. telephone interviews3. mailed questionnaires
|
|
uses monetary scale for evaluation jobs on a factor by factor basis
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Factor Comparison Method
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|
quick, but yeilds incomplete information ...may be used to clarify responses to mailed questionnaires
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telephone method
|
|
inexpensive and quick...not all companies are reachable on this
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internet
|
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_______ and ______ curves are used to indicate pay classes and ranges for jobs
|
wage and salary curves
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|
builds employess commitment by creating an atmosphere in which employees feel their pay is logical and consistent with what the market would pay for their skills
|
market based pay
|
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____________, can and should be related to performance
|
promotion
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|
When dealing with compensation and min max levels of pay what 5 things must be taken into consideration?
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1. worth fo the job organization22. organizations ability to pay3. gvt regulations4. union influences5. market pressures
|
|
Requirements for the Wage and Hour Act
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employees in interstate commerce must be paid min wage and also must be paid time and a half for over 40hr weeks
|
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commonly referred to as quantitative plans
|
point and factor comparison
|
|
employee has strong need to maintain balance between what she perceives as her inputs to the job and what she receives form the job in the form of rewards (outcomes)
|
Equity Theory of Motivation
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|
perceptions of what pay should be depends on these factors
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1. job inputs2. perceived inputs and outcomes3. non-monetary outcomes
|
|
employee's state of mind, life , health and age, and level of aspiration are also components of what?
|
job satisfaction
|
|
"Key (Benchmark) jobs" are normally ones____________
|
surveyed
|
|
focus on external equity and operates wihtout traditional pay grades and ranges
|
market based pay
|
|
most skilled based systems focus on _______________ employees working in _______________ enviornments
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non exempt...manufacturing
|
|
compensation factors=_________________
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job characteristics
|
|
3 frequently used identity factors
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knowledgeresponsibilityworking conditions
|
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t/f: intrinsic and extrinsic rewards ARE related
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true
|
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t/f one point scale can be used to evaluate all types of jobs
|
false
|
|
what is a selection criteria of a key job?
|
evaluators must view pay as reasonable and fair
|
|
what act stipulated overtime as being ours worked over 40 in a week
|
Defense Authorization Act (1986)
|
|
refers to the actual dollars employees receive in exchange for work
|
Pay
|
|
Trained to set/measure performance standards.
|
trained supervisors and managers
|
|
underpaid jobs
|
green circle jobs
|
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t/f job satisfaction and morale are two concepts interrelated
|
true
|
|
3 steps of a conventional job evaluation?
|
1. Gather information2. Identify Factors3. Develop and implement plan
|
|
primary method for determining the relative worth of jobs to the organization
|
job evaluation
|
|
considers what an employee is paid for doing a job compared to what other employees in the same organization are paid to do their jobs
|
internal equity
|
|
What are the five major components of job satisfaction?
|
1. attitude toward the work group2. attitude toward management3. attitude toward the company4. general working conditions5. monetary benefits
|
|
written statements to further breakdown job subfactors
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degree/profile statements
|
|
factor comparison and job ranking methods evaluate jobs only in comparison to other _________ in the organization
|
postitions
|
|
requires organizations manufacturing or furnishing materials, supplies, articles, or equipment in excess of $10,000 to the federal government pay at least min wage for the industry as determined by the secretary of labor
|
Walsh-Healey Public contracts Act
|
|
one wage curve is based on _______ wages and another is based on _____________.
|
present and survey data
|
|
point values are derived for key jobs useing these three steps
|
1. examine job description2.determine degree statement for each subfactors3. add up total number of points
|
|
considers what employees in other organizations are paid for performing similar jobs
|
external equity
|
|
and employee can increase pay only by moving to a ______ grade
|
higher
|
|
Based on idea that employees will be satisfied with pay when their perception of what their pay is and of what they think it should be agree. In other words, employees feel good about internal and external equity of their pay.
|
Pay Satisfaction model
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|
results from employment in the organization; includes all rewards, intrinsic and extrinsic
|
organizational rewards
|
|
requires that contractiors and subcontractors on federal construction contracts in excess of $2,000 pay prevailing wage rates for locality of project
|
Davis- Bacon Act
|
|
surveys show that DO or DO NOT have confidence about relationship exists between the two variables
|
DO NOT
|
|
holds that every job should be compensated based on its value to employes and scoiety
|
comparable worth theory
|
|
to explain belief that satisfied employee is necessarily good employee
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"Path of Least Resistance"
|
|
money spread can be used for defining grades
|
factor comparison method
|
|
there will always be __________ in job descriptions
|
variations
|
|
1. employees over or under estimate pay of peers and supervisors2. create feelings of dissatisfaction3. suspicious employees
|
Drawback of pay secrecy
|
|
illegal to pay diff wages to men and women for jobs that require equal skill, effort, and responsibility and are performed under similar conditions
|
Equal Pay Act
|
|
classes normally defined within a certain point spread
|
point method
|
|
employees will be ____________ when they believe performance leads to desired rewards
|
motivated
|
|
broadbandingskill-based pay and competency based paymarket pricing of jobs
|
newer models gaining popularity
|
|
to avoid problems with wage it is smart to relate the survey data with ________________________.
|
adjustment periods
|
|
overly high wages
|
red circle jobs
|
|
amount of time required to develop point scale
|
drawback
|
|
used to evaluate jobs on a factor by factor basis. historically most used job evaluation plan in the US
|
quantitative point scale
|
|
under what theory do wages have no value
|
comparable worth theory
|
|
________ of a job is determined by adding dollar amounts assigned to each compensable factor
|
total worth
|
|
while true worth of jobs to employer may be similar, some jobs (especially those held by women) paid lower rate than other jobs (often held by men).
|
theory of comparable worth
|
|
________ questionares are used most frequently
|
mailed
|
|
surveys should be focused on pricing of _________ instead of jobs
|
skills set
|
|
_______________ is a primary factor influencing employees perception of equity
|
present pay
|
|
extend skills based pay approach to professionals and managers
|
competency based pay
|
|
systematic determination of value of each job in relation to other jobs in the organization
|
job evaluation
|
|
legal procedure by which an employer in empowered to withhold wages for payment of an employee's debt to a creditor
|
garnishment
|
|
who determines the prevailing wage rate??
|
secretary of labor
|
|
weights are assigned on basis of ________ number of points for any job
|
maximum
|
|
ranges within grades are set so ___________ can be made among employees within grades
|
distinctions
|
|
An important decision with pay and compensation is to make it_________ or ____________
|
public or private
|
|
jobs in ascending order of difficulty along the X-axis and wage rate along the Y axis
|
Wage Curve plots
|
|
minimum of 30% of jobs in an organization should be surveyed to make fair evaluation of organization's pay system
|
Rule of thumb
|
|
Executive Administrative, Professional Employees
|
Exempt and not covered by the FLSA
|
|
_________ are assigned to compensable factors, subfactors, and degrees based on their relative
|
points
|
|
Employees must have clear understanding of how merit pay fits into total pay picture.
|
well-communicated total pay policy
|
|
sources for relatively inexpensive wage/salary surveys
|
Bureau of Labor Statistics, US Dept of Labor, St and loc govt
|
|
______________________ is used to position individual employee within established range
|
performance appraisal
|
|
in market based pay to achieve goals of perceived fairness what must happen?
|
surveys should be carefully selected and use more than 3 or more surveys
|
|
_________should be viewed larger than anything employees value
|
rewards
|
|
_________ should ensure external equity
|
wage surveys
|
|
________ may provide intrinsic rewards
|
extrinsic rewards
|
|
comparable worth has received attention in what two areas?
|
1. collective bargaining table2. political arena
|
|
rank ordering of point total should be the equivalent of rank ordering according to _________
|
pay
|
|
based on the premise that rewards should depend on performance
|
Free Enterprise System
|
|
to assist in design of system and to administer the system
|
role of the hr manager
|
|
__________ firms sell expensive compensation surveys
|
consulting
|
|
collapsing job clusters or tiers of positions into a few wide bands to manage career growth and deliver pay
|
boradbanding
|
|
why is paying for performance not more widespread?
|
1. not easy ( easier to give generic reward)2. requires performance to be accurately measured3.requires discipline to relate pay to performance4. union contracts may make promotions be based on senority
|
|
t/f opportunities for promotion happen often
|
false
|
|
employee's feeling of being accepted by and belonging to a group of employees
|
Organizational Morale
|
|
Research has indicated what 2 things about satisfaction performance?
|
1. Rewards constituents a more DIRECT cause of satisfaction than performance does2. Rewards based on current performance enhance future performance
|
|
typically in skill based pay companies hire employees at ______ market rates
|
below
|
|
T/F job evaluation cannot be used to set wage rate
|
true
|
|
all extrinsic rewards that employees receive in exchange for their work
|
Compensation
|
|
performance leads to __________ that result in the level of satisfaction.
|
rewards
|
|
_________________ can have a very negative impact on an organization
|
inadequate pay
|
|
pay and health insurance benefits are examples of what kinds of rewards?
|
extrinsic rewards
|
|
what are the factor to factor basis for the factor comparison method
|
1. key jobs selected2.pay rates are reasonable and fair3. compensable factor then identified
|
|
In absence of contrary evidence, employees assume pay increase is cost-of- living or seniority is...
|
clear distinction: cost of living, seniority, and merit
|
|
each compensable factor is ranked according to its ____________ in each key job
|
importance
|
|
what has evidence show is working at the highest levels in many companies?
|
paying for performance
|
|
ex. band 1 covers technicians earning $33,000 to $74,000, band 2 covers those earning $60, 000 to $140,000
|
broadbanding
|
|
detailed breakdown of one single compensable factor of a job
|
job subfactors
|
|
compensates employees for skills the bring to the job
|
skill based pay/knowledge based pay
|
|
ranks jobs in order of their difficulty from simplest to most complex
|
job ranking method
|
|
___________ enters on these points: too many surveys, quality, difficult to interpret and use, negative impact on merit pay plans and fuel inflation
|
criticism
|
|
________ is the by-product of a group.
|
morale
|
|
2 approaches for establishing pay grades and ranges
|
1. large number of grades with identical rates of pay2. small number of grades with relatively wide dollar range
|
|
establishing pay ranges involve 2 basic phrases that are?
|
1. determine relative worth of diff jobs in the org2. pricing diff jobs
|
|
some believe ____ is outmoded in certain work places
|
job
|
|
job satisfaction is more and __________ state of mind.
|
individual
|
|
____ jobs represent jobs common throughout the industry or in a general locale
|
KEY
|
|
rewards that are almost always determined by organizational membership and seniority include what?
|
paid vacationspaid holidaysinsurance plans
|
|
________________________ does not break down compensable factors into subfactors and degrees
|
Factor Comparison Method
|
|
what is the main purpose of job evaluation?
|
establish relative worth of jobs
|
|
number of dollar value contains predetermined ____________ factors
|
compensable
|
|
Job Satisfaction has a positive impact on what 4 things?
|
1. Turnover2. Absenteeism and Tardiness3. Accidents4. Grievances and Strikes
|
|
organizations need to do better in explaining and communicating ________________ to employees.
|
compensation system
|
|
Merit portion of salary increase must be large enough to get employees’ attention.
|
ability to pay
|
|
directly controlled and distributed by organization; more tangible than intrinsic rewards
|
extrinsic rewards
|
|
breakign compensable factors into subfactors and degrees allow more __________ definition of the job and facilitates evaluation
|
precise
|
|
_______________ can also influence both job satisfaction and employee motivation
|
reward systems
|
|
allocate wage or salary for each job according to ranking of ________
|
factors
|
|
value of a particular job to an employer is only one of many factors that should influence rate of compensation for that job
|
Ninth Circuit of Appeals
|
|
t/f adoption of a set of "universal factors" is not recommended
|
true
|
|
most systems establish what foe hobs based on relative worth of job to organization?
|
pay ranges
|
|
many formal rewards are not related to _____________.
|
performance
|
|
Conventional job evaluation plans are variations or combination of what 4 basis methods?
|
1. job ranking2. job classification3. point comparison4. factor comparison
|
|
most US companies do a poor job of relating what?
|
pay- for- performance
|
|
limits amount of an employee's disposible earnings that can be garnished in any one week. also protects employee from discharge because of garnishment
|
Federal Wage Garnishment Law
|
|
includes all the experience, skills, and abilities and employee brings to the job in addition to the effort the employee puts into it
|
job inputs
|
|
permississible pay range, with minimum and maximum assigned to a given pay grade
|
pay range
|
|
classes or grads of job grouped on the basis of their worth to an organization
|
pay grades
|
|
factors to consider when defining scope of survey
|
size of georgraphic area and cost of living index for area
|
|
money allocation and factor rankings must be ____________
|
consistent
|
|
_______ is usually the first meaningful rewards and sometimes the only rewards most people think about
|
pay
|
|
compensable factors selected for unionized jobs must be acceptable to both the union and ____________.
|
management
|
|
Satisfied employees are not necessarily _______________.
|
high performers
|
