chapitre 8

Question 1

What is total employment rewards?

Answer 1

Total employment rewards: an integrated package of all rewards (monetary and non-monetary, extrinsinc and intrinsic) gained by employees arising from their employment

Question 2

What are the five components of total rewards?

Answer 2

1. Compensation
2. Benefits (avantages sociaux)
3. Work-life programs
4. Performance and recognition
5. Development and career opportunities

Question 3

Explain internal vs external equity.

Answer 3

external equity: employees perceive the oay fair given the pay rates in other organizations
internal: pay fair given the pay rate in the organization

Question 4

Have we achieved pay equity yet?

• ___$ estimated per-woman lifetime difference financial loss due to pay inequities
• sept __ 71% of the way through the calendar year, marking the day Canadian Woman start working for free
• __ canada’s rank among organization for economic co-operation and development contries
• __ amount young women graduating from university earn less than male
• __ cents is what the women earns for each dollar the man makes in ontario
• __ amount young women graduating from high school earn less than male high school graduates

Answer 4

Have we achieved pay equity yet?

• 0.7-2M$ estimated per-woman lifetime difference financial loss due to pay inequities
• Sept 17 71% of the way through the calendar year, marking the day Canadian Woman start working for free
• 17th canada’s rank among organization for economic co-operation and development contries
• 16% amount young women graduating from university earn less than male
• 71 cents is what the women earns for each dollar the man makes in ontario
• 27% amount young women graduating from high school earn less than male high school graduates

Question 5

What is benchmark jobs?

Answer 5

benchmark jobs: a job that is critical to the firm’s operations or that is commonly found in other organizations

Question 6

What is compensable effort?

Answer 6

compensable effort: a fundamental, compensable element of a job, such as skill, effort, responsibility, and working conditions. Four more popular: skill, responsibility,effort and working conditions.

Question 7

What is job evaluation committee?

Answer 7

group of people different backgrounds they select 10 to 15 benchmark jobs and start by analyzing them.

Question 8

What is classification/grading method?

Answer 8

classification/grading method: a method for categorizing method into groups

Question 9

Explain classes vs grades of jobs.

Answer 9

classes: similar jobs
grades: similar in difficulty but not similar jobs

Question 10

what is grade/group description?

Answer 10

grade/group description: a written description of the level of compensable required by jobs in each grade, used to combine similar jobs into grades or classes

Question 11

what is point method?

Answer 11

Point method: a job evaluation method in which a number of compensable factors are identified , the degree to which each of these factors is present in the job is determined and an overall point value is calculated.

Question 12

Point method steps?

Answer 12

1. Preliminary steps
2. Determine weights and degrees
3. Assign points for each degree of each sub-factor
4. Evaluate the jobs

Question 13

What is a wage/salary survey?

Answer 13

Wage/salary survey: a survey aimed at determining prevailing wage rates. a good salary survey provides specific wage rates for comparable jobs . Formal written questionnaire surveys are the most comprehensive.

Question 14

What is wage curve?

Answer 14

wage curve: a graphic description of the relationship between the value of the job and the average wage paid for this job.

Question 15

What is pay ranges?

Answer 15

pay ranges: a series of steps of levels within a pay grade, usually based on years of service.

Question 16

What is broadbanding?

Answer 16

broadbanding: reducing the nomber of salary grades and ranges into just a few wide levels bands each of which then contains a relatively wide range of jobs and salaries

Question 17

What is red circle pay rate?

Answer 17

red circle pay rate: a rate of pay that is above the pay range maximum.

Question 18

Name 5 points to remmber in effective incentive plans

Answer 18

1. Performance pay cannot replace good management
2. Firms get what they pay for
3. Pay is not a motivator
4. Rewards rupture relationship
5. Rewards may undermine responsiveness

Question 19

What are the seven principles of implementing incentive plans?

Answer 19

1. Pay for performance
2. Link inentives to other activities that engage employees in the business
3. Link incentives to measurable competencies
4. Match incentives to the culture of the organization
5. Keep group incentives clear and simple
6. Overcommunicate
7. remember that the greatest incentive is the work itself.

Question 20

What is variable pay?

Answer 20

Variable pay: any plan that ties pay to productivity or profitability

Question 21

On average organizations spend roughly __% of total pay related spending on variable pay-related expenses

Answer 21

On average organizations spend roughly 11% of total pay related spending on variable pay-related expenses

Question 22

More than __% of Canadian employers have one or more type of variable pay plans in place.

Answer 22

More than 84% of Canadian employers have one or more type of variable pay plans in place.

Question 23

What is merit pay or merit raise?

Answer 23

Merit pay (merit raise): any salary increase due to the employee’s productivity

Question 24

What is a piecework plan?

Answer 24

piecework: a system of pay based on the number of items processed by each individual worker in a unit of time, such as items per hour or items per day

Question 25

What is a straight piecework plan vs a guaranteed piecework plan vs a differential piece-rate plan?

Answer 25

Straight piecework plan: a set payment for each piece produced or processed in a factory or shop;
Guaranteed piecework plan: the minimum hourly wage plus an incentive for each piece produced above a set number of pieces per hour;
Differential piece-rate plan: a plan by which a worker is paid a basic hourly rate plus an extra percentage of his or her base rate for production exceeding the standard per hour or per day. It is similar to piecework payment but is based on a percentage premium.

Question 26

What are the advantages and disadvantages of piecework incentive plans?

Answer 26

advantages:
- Simple to calculate
- Easily understood
- Equitable in principle
Disadvantages:
- Resistance to revision of production standards

Question 27

Name 3 issues with short term incentives.

Answer 27

1. Eligibility
2. How much not to pay out
3. Determining individual awards

Question 28

What is capital accumulation programs?

Answer 28

capital accumulation programs: long-term incentives most often reserved for senior executives