terminology differences - Midterm Flashcards
Rewards vs. Incentives
Rewards - a positive consequence of performing behaviours desired by the organization
Incentives - a promise that a specified reward will be provided if employee performs
A specified behaviour
Extrinsic rewards vs. Intrinsic rewards
Extrinsic rewards - factors that satisfy basic human needs, based on job context. I.e survival, security, social needs and needs for recognition
Intrinsic rewards - factors that satisfy higher human needs, focused on Job content (I.e self esteem, achievement, growth development )
Base pay vs. Performance pay
Base- pay: generally based on a unit of time. Foundation pay for most employees.
Performance pay: employee
Monetary rewards to some measure of performance
Salary vs. Wages
Salary - paid bi-weekly,
Monthly, annually. The person receiving a salary is not paid a smaller amount for working fewer hours and is not paid over time when working longer
Hours.
Wages - unit of time. someone who is paid wages receives a pay rate per hour multiples by the number of hours worked.
Gain sharing vs. Goal sharing
Gain-sharing - self-funding if designed properly
Can stimulate higher productivity
Goal-sharing - more flexible than gain sharing
Less costly to operate then gain sharing.
Merit Raise vs. Merit bonus
Merit Raise - focus attention on overall performance
A means of advancement through pay range.
Merit bonus - more related to financial conditions of the firm
Can be paid out in lump sums and are more visible
Classical vs. Human Relation Managerial Strategy
Classical - thinking is separate from doing (Job design)
Control - external through supervision and rules.
Human Relations - similar
To classical job design - however this job design allows more social contact
Control - through use of social or peer pressure, rules some extrinsic rewards
Competency based pay vs. Skill Based pay
Competency based pay - based on the characteristics rather than the performance of the individual employees; usually applied to managerial or professional employees.
Skill Based Pay - based on the specific skill and capabilities of individual employees, rather than on the specific tasks they are carrying out; usually applied to operational- level employees
Lagging the Market vs Leading the Market
Lagging the Market - a compensation level strategy based on paying below compensation level in a given labour market.
Leading the Market - a compensation level strategy based on paying above the average compensation level in a given market.
Membership behaviour vs task behaviour
Membership - occurs when employees join a firms and remain with that firm
Task- occurs when employees perform the specific tasks that have been assigned to them
