HR Study Guide CH11

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HR Study Guide CH11
2011-05-10 15:35:48

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  1. total rewards
    Monetary and nonmonetary rewards provided by companies to attract, motivate, and retain employees.
  2. total rewards components
  3. base pay
    Basic compensation that an employee receives, usually as a wage or salary.
  4. wages
    Payments calculated directly from the amount of time worked by employees.
  5. salaries
    Consistent payments made each period regardless of the number of hours worked.
  6. variable pay
    Compensation linked directly to individual, team, or organizational performance.
  7. benefit
    Indirect reward given to an employee or group of employees as part of membership in the organization.
  8. continuum of compensation philosophies
  9. entitlement philosophy
    Assumes that individuals who have worked another year are entitled to pay increases, with little regard for performance differences.
  10. pay-for-performance philosophy
    Requires that compensation changes reflect performance differences.
  11. equity
    Perceived fairness between what a person does and what the person receives.
  12. procedural justice
    Perceived fairness of the process and procedures used to make decisions about employees.
  13. distributive justice
    Perceived fairness in the distribution of outcomes.
  14. competency-based pay
    Rewards individuals for the capabilities they demonstrate and acquire.
  15. balance-sheet approach
    Compensation plan that equalizes cost differences between the international assignment and the same assignment in the home country.
  16. global market approach
    Compensation plan that attempts to be more comprehensive in providing base pay, incentives, benefits, and relocation expenses regardless of the country to which the employee is assigned.
  17. tax equalization plan
    Compensation plan used to protect expatriates from negative tax consequences.
  18. living wage
    Earnings that are supposed to meet the basic needs of an individual working for an organization.
  19. exempt employees
    Employees who are not paid overtime.
  20. nonexempt employees
    Employees who must be paid overtime.
  21. pay equity
    The concept that the pay for all jobs requiring comparable knowledge, skills, and abilities should be the same even if actual job duties and market rates differ significantly.
  22. garnishment
    A court order that directs an employer to set aside a portion of an employee's wages to pay a debt owed to a creditor.
  23. job evaluation
    Formal systematic means to identify the relative worth of jobs within an organization.
  24. compensable factor
    Job value commonly present throughout a group of jobs within an organization.
  25. market pricing
    Use of market pay data to identify the relative value of jobs based on what other employers pay for similar jobs.
  26. pay survey
    Collection of data on compensation rates for workers performing similar jobs in other organizations.
  27. benchmark jobs
    Jobs found in many organizations that can be used for the purposes of comparison.
  28. job family
    Group of jobs having common organizational characteristics.
  29. pay grades
    Groupings of individual jobs having approximately the same job worth.
  30. market line
    Graph line that shows the relaionship between job value as determined by job evaluation points and job value as determined pay survey rates.
  31. market banding
    Grouping jobs into pay grades based on similar market survey amounts.
  32. broadbanding
    Practice of using fewer pay grades with much broader ranges than in traditional compensation systems.
  33. red-circled employee
    Incumbent who is paid above the range set for a job.
  34. green-circles employee
    Incumbent who is paid below the range set for a job.
  35. pay compression
    Occurs when the pay differences among individuals with different levels of experience and performance become small.
  36. compa-ratio
    Pay level divided by the midpoint of the pay range.
  37. seniority
    Time spent in an organization or on a particular job.
  38. lump-sum increase (LSI)
    One-time payment of all or part of a yearly pay increase.
  39. Three general components of total rewards and give examples of each.
    • Compensation - Base pay
    • Benefits - Medical
    • Performance and Talent Management - Training
  40. Four compensation system design issues.
    • Compensation Fairness and Equity
    • External Equity
    • Internal Equity
    • Pay Secrecy vs. Openness
    • Market Competitiveness and Compensation
    • Individual v Team Rewards
    • Competency-Based Pay Systems

  41. Basic provisions of FLSA
    • Minimum Wage - Fed/State whichever is higher.
    • Child Labor - 16 yr, 18 yr, 14-15 yr
    • Exempt and Non-Exempt
    • Overtime Pay - time and a half over 40
  42. Process of building a base pay system.
    • Job Analysis
    • Valuing Jobs/Pay Surveys
    • Pay Policies - Pay Structure
    • Individual Pay - Performance Appraisal
    • Implementation, Communication, Monitoring
  43. Two Means of Valuing Jobs
    • Market Pricing
    • Job Evaluation Methods
    • Point
    • Ranking
    • Classification
    • Factor-Comparison
  44. Two Ways Individual Pay Increases Are Determined
    • Pay Adjustment Matrix - Compa-ratio
    • Standardized Pay Increases