exam 2 topic 9

Question 1

pay structure

Answer 1

Relative pay of different jobs and how much theyre paid

Question 2

Pay Level

Answer 2

average pay, including wages, salary and bonuses

Question 3

Job Structure

Answer 3

relative pay of jobs in an org. (range of salary grades)

Question 4

External Equity

Answer 4

pay comparisons focusing on what employees in other orgs. are paid for doing the same job

Question 5

Internal Equity

Answer 5

pay comparisons that focus on what employees in same orgs. are paid

Question 6

efficiency wage theory

Answer 6

wages influence worker productivity

Question 7

product-market competition

Answer 7

sells goods and services at a quantity and price that will bring a return on investment; upper bound on labor costs and compensation

Question 8

labor-market competition

Answer 8

amount an org. must pay to compete with other orgs. hiring employees; lower bound on labor costs

Question 9

Market pay surveys

Answer 9

focus on key jobs, wage data is collected from a relevant labor market

Question 10

benchmarking

Answer 10

procedure by which an org. compares its own practices against the competition

Question 11

key issues in market pay surveys

Answer 11

1. which employers to include
2. Which jobs to include
3. how to weight and combine data

Question 12

Job evaluation

Answer 12

method to measure internal job value; composed of compensable factors

Question 13

Compensable factor

Answer 13

characteristics of a job that an org. values and chooses to pay for

Question 14

Point factor system

Answer 14

quantitative approach to job evaluation using points to determine relative value of the job

Question 15

point manual

Answer 15

handbook with description of compensable factors, point values and degrees

Question 16

Developing a pay structure

Answer 16

1. Market Survey
2. Pay policy Line
3. Pay grades

Question 17

Market survey

Answer 17

Based on external comparisons; pay based on market surveys covering as many key jobs as possible

Question 18

Pay policy line

Answer 18

Mathematical expression describing the relationship between a job’s pay and its job evaluation points

Question 19

Pay grades

Answer 19

grouping of jobs of similar worth or content together

Question 20

Market Survey data approach

Answer 20

emphasis on external data; (many jobs as possible) determine pay for non-key jobs

Question 21

pay policy line approach

Answer 21

internal and external data; pay is on key and not key jobs based on job evaluation points

Question 22

Pay grades approach

Answer 22

groups jobs into smaller sets of pay classes; range spread

Question 23

Range Spread

Answer 23

distance btwn minimum and maximum pay in a range

Question 24

Delayering

Answer 24

reduce the number of job lvls to achieve more flexibility

Question 25

Broad-Banding

Answer 25

Collapse salary grades into a few wide bands

Question 26

Limitations

Answer 26

fewer promotions

Question 27

Advantages

Answer 27

= flexibility

Question 28

pay-for-knowledge

Answer 28

pay increases based on mastery of new skills capable of using

Question 29

Equal pay act of 1963

Answer 29

- prohibits gender discrimination in pay | - job pay should be equal if they are on similar levels

Question 30

minimum wage

Answer 30

7.25

Question 31

overtime

Answer 31

1.5x hourly rate after working 40 hours per week

Question 32

Non exempt

Answer 32

covered by FLSA; eligible for overtime (hourly based)

Question 33

exempt

Answer 33

not covered by flsa/ineligible for overtime (usually salary based)