Compensation and benefits chapter 1 notes:
Job Evaluation - Is systematic determination of the relative worth of jobs within
the organization, concerned with the value of the job to the organization. It
determines the relative worth of each job by establi
Compensation and Benefits chapter 3 notes:
compensable factor in point factor method should 1 reflect actual work being done.
2 supported by documentation such as job description.
3 Reinforce the organizations strategic plan and culture.
4 valued by all a
Compensation and Benefits Chapter 4 notes:
Factor for geography Some salary survey do not provide data for a specific geographic area. Since wage rate
vary by location an org should factor for geography any national survey data for the
local or regional r
Compensation and Benefits Chapter 2 notes:
Job Classification Involves grouping jobs into predetermined number of grades or classifications, each
having a class description to use for job comparison. Effective for grouping large
number of job and are unde
Compensation and Benefits Chapter 5 notes:
Quartiles and percentiles - shows dispersion or how groups of data relate to each other
Org use quartiles and percentile to ascertain whether they lead,lag or match the
Pay Grades - Used to group
Comp and Benefits Chapter 6 notes:
Broadbanding way to combine several salary grades or job classifications with narrow pay ranges into
one band with a wider range spread. Is implemented in large, hierarchical organizations
that have attempted to flatten
Compensation and Benefits Chapter 10 notes:
Knowledge-based system An employees pay is based on the level of knowledge he or she is in a field or defined
domain. This approach is dominant for compensating learned professionals such as
scientists or teache
Compensation and Benefits Chapter 9 notes:
Difficulties Using Merit Pay 1 The incentive value of the reward offered may be too small to motivate performance.
2 The link between performance and rewards may be weak.
3 Merit raises are permanent increase in
Compensation and Benefits chapter 8 notes:
Single- or Flat Rate System - Each incumbent of the job has the same rate of pay,
regardless of performance or seniority. eg: A newly hired factory worker may
make $9/hour with a $0.50/hour raise after six months
Compensation and Benefits Chapter 7 notes:
Master file Includes Information as 1 personal data on each employee eg: name,gender,birth date,social security number.
2 employment data on each employee eg: hire date, hours worked per day or week,