Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Human Resource Management > Chapter 9 > Flashcards

Chapter 9 Flashcards

1
Q

Both the intrinsic and extrinsic rewards employees receive for
performing their jobs.

A

Total compensation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Pay that a person receives in

the form of wages, salary, commissions, and bonuses.

A

Direct financial compensation (monetary compensation)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

All financial rewards that are not

included in direct financial compensation.

A

Indirect financial compensation (employee benefits)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Satisfaction that a person receives from the job itself or

from the psychological and/or physical environment in which the person works

A

Nonfinancial compensation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Potential employees located within the geographic area from which
employees are recruited.

A

Labor market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Non-union companies offer of similar compensation unionized
companies with the goal of reducing the likelihood that non-union workforces will seek
union representation

A

Spillover effect

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Pattern of pay and benefits

associated with characteristics of industries

A

Interindustry wage or compensation differentials

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Employees categorized as executive, administrative, professional, or
outside salespersons, and not required to be paid at an overtime rate for work beyond the
completion of standard work hours

A

Exempt employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Employees not categorized as executive, administrative,
professional, or outside salespersons, and required to receive overtime pay for work
beyond the completion of standard work hours.

A

Nonexempt employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The monetary compensation employees earn on a regular basis for performing
their jobs. Hourly pay and salary are the main forms.

A

Base pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

One type of base pay. Employees earn hourly pay for each hour
worked.

A

Hourly pay (wage)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

One type of base pay. Employees earn salaries for performing their jobs,
regardless of the actual number of hours worked. Companies generally measure salary on
an annual basis

A

Salary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Escalator clause in a labor agreement that
automatically increases wages as the U.S. Bureau of Labor Statistics’ cost-of-living index
rises.

A

Cost-of-living adjustment (COLA)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Measure of the purchasing power of a dollar

A

Real hourly compensation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

The face value of a dollar.

A

Nominal hourly compensation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Length of time an employee has been associated with the company, division,
department, or job

A

Seniority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Pay program in which pay increases are based on length of service

A

Seniority pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

A theory premised on the idea that employees’ knowledge and
skills generate productive capital known as human capital. Employees can develop
knowledge and skills from formal education or on-the-job experiences

A

Human capital theory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

As defined by economists, refers to sets of collective skills, knowledge,
and ability that employees can apply to create economic value for their employers

A

Human capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Classification of federal government jobs into 15 classifications (GS-
1 through GS-15), based on such factors as skill, education, and experience levels. In
addition, jobs that require high levels of specialized education (e.g., a physicist),
significantly influence public policy (e.g., law judges), or require executive decision
making are classified in three additional categories: Senior Level (SL), Scientific &
Professional (SP) positions, and the Senior Executive Service (SES)

A

General Schedule

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Pay increase added to employees’ base pay based on their level of
performance.

A

Merit pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

One-time annual financial award based on productivity that is not added
to base pay.

A

Merit bonuses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Relatively small monetary gift provided employees for outstanding work or
effort during a reasonably short period.

A

Spot bonus

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Compensation, other than base wages or salaries, that fluctuates
according to employees’ attainment of some standard (e.g., a pre-established formula,
individual or group goals, or company earnings)

A

Incentive pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Incentive pay plan in which employees are paid for each unit they produce

A

Piecework

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Bonuses to managers who meet or exceed objectives
based on sales, profit, production, or other measures for their division, department, or
unit

A

Management incentive plans

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Individual incentive pay plans that reward employees

for specific behavioral accomplishments as such good attendance.

A

Behavioral encouragement plans

28
Q

Individual incentive pay plans for rewarding the referral of new
customers or recruiting successful job applicants

A

Referral plans

29
Q

Group incentive systems that provide participating employees with an
incentive payment based on improved company performance for increased productivity,
increased customer satisfaction, lower costs, or better safety records

A

Gain sharing

30
Q

Gainsharing plan that provides a financial reward to employees for
savings in labor costs resulting from their suggestions

A

Scanlon plan

31
Q

Compensation plans that result in the distribution of a predetermined
percentage of the firm’s profits to employees.

A

Profit sharing

32
Q

The right to purchase shares of company stock.

A

Employee stock plans

33
Q

Incentive plan in which employees can buy a specified amount of stock in
their company in the future at or below the current market price

A

Stock option

34
Q

The total equity or worth of the company.

A

Company stock

35
Q

Equity segments of equal value, which increase with the

number of stock shares held

A

Company stock shares

36
Q

Employee compensation for jobs employees currently perform.

A

Job-based pay

37
Q

Compensation for developing the flexibility, knowledge, and skills
to perform a number of jobs effectively

A

Person-focused pay

38
Q

System that compensates employees for their job-related skills and
knowledge, not for their job titles

A

Skill-based pay

39
Q

Compensation plan that rewards employees for the capabilities
they attain

A

Competency-based pay

40
Q

An ordered set of similar jobs based on worth.

A

Job structure

41
Q

Process that determines the relative value of one job in relation to
another

A

Job evaluation

42
Q

Job evaluation method in which the raters examine the
description of each job being evaluated and arrange the jobs in order according to their
value to the company

A

Job evaluation ranking method

43
Q

Job evaluation method in which classes or grades are defined to
describe a group of jobs

A

Classification method

44
Q

Job evaluation method that assumes there are five universal
factors consisting of mental requirements, skills, physical requirements, responsibilities,
and working conditions; the evaluator makes decisions on these factors independently.

A

Factor comparison method

45
Q

Job evaluation method in which the raters assign numerical values to
specific job factors, such as knowledge required, and the sum of these values provides a
quantitative assessment of a job’s relative worth.

A

Point method

46
Q

Policies that provide general guidelines for making compensation
decisions

A

Compensation policy

47
Q

Determine whether the company will be a pay leader
(market lead), a pay follower (market lag), or assume an average position (market match)
in the labor market.

A

Pay level compensation policies

48
Q

Pay policy that distinguishes companies from the competition by
compensating employees more highly than most competitors. Leading the market denotes
pay levels above the market pay line.

A

Market lead policies

49
Q

Average pay that most employers provide for a similar job in a
particular area or industry.

A

Market match policies

50
Q

Pay policy that distinguishes companies from the competition by
compensating employees less than most competitors. Lagging the market indicates that
pay levels fall below the market pay line

A

Market lag policies

51
Q

Pay rate differences for jobs of unequal worth and the framework for
recognizing differences in employee contributions.

A

Pay structures

52
Q

A means of obtaining data regarding what other firms are paying
for specific jobs or job classes within a given labor market

A

Compensation survey

53
Q

Grouping of similar jobs to simplify pricing jobs.

A

Pay grade

54
Q

Minimum and maximum pay rate with enough variance between the two to
allow for a significant pay difference.

A

Pay range

55
Q 
Fitting of plotted points on a curve to create a smooth progression between
pay grades (also known as the pay curve)
A

Wage curve

56
Q

Compensation technique that collapses many pay grades (salary grades)
into a few wide bands to improve organizational effectiveness.

A

Broadbanding

57
Q

A wage structure where newly hired workers are paid less than
current employees for performing the same or similar jobs

A

Two-tier wage systems

58
Q

A company’s pay spread between newly hired or less qualified

employees and more qualified job incumbents is small.

A

Pay compression

59
Q

Allows the company to recover compensation if subsequent review
indicates that payments were not calculated accurately or performance goals were not
met

A

Clawback policy

60
Q

Special benefits provided by a firm to key executives to give the
executives something extra

A

Perquisites (perks)

61
Q

Perquisite that protects executives in the event that another
company acquires their firm or if the executive is forced to leave the firm for other
reasons.

A

Golden parachute contract

62
Q

Provision that gives shareholders in all but the smallest companies an
advisory vote on executive pay.

A

Say on pay

63
Q

Management techniques used for determining a job’s

relative worth including job analysis, job descriptions, and job evaluation.

A

Job Structures

64
Q

After companies have
clearly written job descriptions and they have specified job structures, they move
on to deciding _______, which focus on pay level and
pay mix.

A

Competitive Compensation Policies

65
Q

Coupled closely with these choices is job pricing, which

leads to the construction of _______.

A

Pay Structures

Human Resource Management (14 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions