Ch. 11 Flashcards Preview

MGMT 471 > Ch. 11 > Flashcards

Flashcards in Ch. 11 Deck (22):
1

Job Structure

- relative pay for different jobs within the org.
- internal decision makers ranking the value of work within the org.

2

Pay Level

- average amount the organization pays for a particular job
- use of some statistical indicator of average values in outside market as compared to average status value of salary within org.

3

Pay Structure

- pay policy resulting from job structure and pay level decisions
- internal hierarchy of pay rates

4

Legal Requirements

equal pay for equal work
minimum wage
overtime pay
restrictions on child labor

5

Market Forces

product markets
labor markets

6

Organization Goals

high-quality workforce
cost control
equity and fairness
legal compliance

7

Pay level, Job structure, Pay structure

pay rates
pay grades
pay ranges
pay differentials

8

FLSA

Fair Labor Standards Act

9

Product Markets

organization that offer competing goods and services

10

Labor Markets

minimum an org. must pay to hire an employee for a particular job

11

Benchmarking

procedure in which an org. compares its own practices against those of successful competitors

12

Job Evaluation

administrative procedure for measuring relative internal worth of the organization's jobs

13

Compensable Factors

experience
education
complexity
working conditions
responsibility

14

Key Jobs

jobs that have relatively stable content and are common

15

Pay Rates

1) organization obtains pay survey data for its key jobs
2) Pay policy line is established
3) pay rates for non-key jobs are determined

16

Pay Policy Line

- graphed line showing the mathematical relationship between job evaluation points and pay rate
- about mgmt.'s intentions to balance pay pressures within the org., against outside pay pressures that are in the external labor marekt

17

Pay Grades

- sets of jobs having similar worth or content, grouped together to establish rates of pay
- show compensating of employees doing similar work with the same rate of pay

18

Pay Ranges

- set of possible pay rates defined by a min, max, and midpoint of pay for employees holding a particular job or a job within a particular pay grade
- shows up and down from midpoint of pay of the job grade

19

Pay Differential

adjustment to a pay rate to reflect differences in working conditions or labor markets

20

Delayering

reducing number of levels in org.'s job structure

21

Skill-based pay systems

pay structures that set pay according to employees' levels of skill or knowledge and what they are capable of doing

22

Compa-ratio

- ratio of average pay to midpoint of pay range
- monitor and control labor cost between what decision makers practice and say