chapter 11 and 12 exam 3 z440
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employee compensation and two components 330
- includes all forms of pay going to employees and arising from their employment.
- direct financial payment (wages,salaries,incentives,commisions,and bonuses)
- Indirect financial payment- (financial benefits like employer-paid insurance and vacations)
Equity Theory of Motivation 331
- that people are motivated to maintain a balance between what they perceive as their contributions and their rewards.
- External- jobs pay rate in one company compares to other companies
- Internal- jobs pay rate within the same company
- Individual- fairness of pay compared to coworkers in same company similar jobs
- Procedural- is the process fair for the employees
different types of compensation laws (Davis-Bacon Act, Walsh-Healy Contract , Title 7 Civil Rights Act)
- DBA- A laws that sets wage rates for laborers employed by contractors working for the federal government
- WHC- law that requires min wage and working conditions for employees working on any government contact amounting to more then 10000
- title7- unlawful discrimination against protected class (religion, race,sex,age, national origin)
Job evaluation 337
job evaluation- is a formal and systematic comparison of jobs to determine the worth of one job relative to another . it aims to determine a jobs worth.
Job evaluation methods 339-341
- ranking method- the simplest method of evaluation that involves ranking each job relative to all other jobs,usually based on overall difficulty
- Job classification- a method for categorizing jobs into groups
- point method- the job evaluation method in which a number of compensable factors are identified and then the degree to which each of these factors is present on the job is determined
motivation theory (hierarchy of needs , motivation hygiene) 367
- the best way to motivate someone is to organize the job so that doing it helps satisfy the person's higher-level needs
- hygiene factors-lover level needs
- Motivator- high level needs
job base pay vs competency based pay 351 353
- base pay- includes the persons fixed salary as well as, often guaranteed bonuses (ex 10% end of 4 quarter)
- competency pay- where the company pays for the employee's range depth, and types of skills and knowledge, rather than for the job title they hold
Advantages and disadvantages of compensation options for salesperson and teams 375 377
- salary plan- this makes since when the main task involves prospecting (finding new clients). negative no incentive to sell more
- commission plan- tends to attract high performing sales people. negative sales ppl can neglect non sale duties
- combination plan- most companies do this
different types of stock option plans
- ESOP- employee stock ownership plans- are company wide plans in which the employer contributes shares of its own stock to a trust established to purchase shares of the firm's stock for employees
- broad base stock options- all or most employees can participate. the basic thinking is that sharing ownership in the company with employees makes motivational and practical scene
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