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HRM 2440 > Week 9 > Flashcards

Week 9 Flashcards

(58 cards)

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1
Q

Establishing Pay Rates 4 Stages

A
  1. Job Evaluation
  2. Conduct wage/salary survey
  3. Use 1 and 2 to determine pay
  4. Pay for knowledge
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2
Q

Employee Compensation

A

forms of pay to employee

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3
Q

Direct financial payments

A

wage, salary, bonus, commission

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4
Q

Indirect financial payments

A

insurance, vacation,

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5
Q

Compensation Policy Components (5)

A

Basis for salary increase
promotion/demotion
overtime/regular pay
probation pay
leave/time off

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6
Q

4 basic purpose of rewards

A

attract, retain, motivate, engage employees

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7
Q

Employee Engagement

A

work hard for company, clear understanding of strategic significance of job

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8
Q

Aligning Total Rewards with Strategy

A

compensation package produces employee behaviours firm needs to achieve competitive strategy

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9
Q

Stage 1: Job Evaluation

A

comparison to determine relative worth of job in firm

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10
Q

Job Evaluation Committee

A

diverse group to ensure fair representation of requirements of job

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11
Q

Compensable Factors

A

Skill, effort, responsibility and working conditions -> sub factors

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12
Q

Job Evaluation Method: Classification/Grading

A

categorize jobs in groups
outline compensable factor levels required and develop class/grade
use job description

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13
Q

Job Evaluation Method: Point Method - identify (2)

A

identify compensable factors and weights, determine degree of factor

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14
Q

Too many jobs to evaluate: Benchmarks

A

jobs critical to operations, commonly found in other organizations
<- reference point to evaluate other jobs

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15
Q

Pay Grade (3)

A

Consists of equal value/importance jobs
class/grading: already categorized into class or grade
point: pay grade consists of jobs fall within range of points

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16
Q

Stage 2: Conduct Wage/Salary Survey - 3 ways to use

A
  1. determine wage rates for comparable jobs
  2. market rates for benchmark jobs
  3. collect data on benefits, recognition programs
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17
Q

Types of wage/salary survey (5)

A

formal/informal
commercial, professional, government

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18
Q

Interpretation and use of surveys (3)

A

avoid upward wage bias
compare job description, not title
identify appropriate labour market

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19
Q

Stage 3: Combine Job Evaluation and Salary Survey Information

A

Assign pay rates to each pay grade

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20
Q

Wage Curve

A

relationship between value of job and wage paid for job

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21
Q

Pay Ranges and based on (4)

A

steps/levels within pay grade,years of service, performance, labour market

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22
Q

Broadbanding

A

reduce number of salary grades/ranges into few wide level (bands)

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23
Q

Correcting Out-of-line rates: too low

A

raise to minimum pay grade

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24
Q

Correcting out-of-line rates: too high (3)

Study These Flashcards
A

freeze pay till general salary increase
Transfer/promote employees involved to jobs for which they can legitimately be paid current pay rate
cut pay to maximum pay grade

25
Pay for Knowledge (vs)
Competency-based pay (manager, professional) vs skill based pay (manufacturing/engineer employee)
26
Competencies
knowledge skills, behaviours to successful performance based on relation to organizations value and strategy
27
Pay for Knowledge Programs include (3) advantage (1) disadvantage (1)
competencies/skills important to job cycle of competencies on-the-job training & assessment focus on people, not task measurement of competencies is a challenge
28
Pay Equity Theory
perceives an inequity, tension or drive will develop to motivate them to reduce tension and perceived inequity
29
4 types of equity
internal, external, individual, procedural
30
Internal Equity
how fair jobs pay rate is compared to other jobs within same company
31
External Equity
jobs pay rate in one company vs another company
32
Individual equity
individuals pay vs co-workers for same/similar job in company, based on performance
33
Procedural equity
processes and procedures used to make pay allocation decisions
34
Pay Equity and Gender (3)
gap has narrowed but at 30% systemic discrimination evaluation should be gender neutral
35
Theories of motivation for incentive plans (2)
Frederick Herzberg's Two-Factor Theory Victor Vroom's Expectancy Theory
36
Frederick Herzberg's Two-Factor Theory Motivate through…….(2) and ____ ______ needs
motivate through challenge and recognition (higher level needs)
37
Job Dissatisfaction: Hygiene Factors
outside job etc working conditions, salary, policies and rules
38
Job Satisfaction: satisfier/motivators arrw
achievement, recognition, responsibilities, work itself
39
Victor Vroom's Expectancy Theory
People won't go after rewards they find unattractive or too low of odds
40
Victor Vroom's Expectancy Theory: effort equation
Expectancy x Instrumentality x Valence
41
Expectancy
probability effort lead to success
42
Instrumentality
connection between performance and rewards
43
Valence
reward
44
Money and motivation : compensation plans to motivate employees - [Fixed pay]
compensation independent of performance, base pay and income stability
45
Money and motivation : compensation plans to motivate employees - [Variable Pay]
pay is tied to productivity an profitability
46
Merit Pay/ Raise
salary increase awarded based on performance, increase to base pay, not a one time bonus
47
Piecework Plan for Pay raise
oldest and most common, pay based on number of items, hours etc
48
Straight piecework plans
set payment for each piece
49
Guaranteed Piecework
minimum hourly wage + incentive for each produce beyond minimum
50
Differential Piecework
basic hourly wage + percentage of pay beyond minimum
51
Short term incentive
bonus, vacation pay
52
Long-term incentive
stock options
53
Commission plan advantage disadvantage
pay directly proportional to sales adv: incentive to perform high, based on your success disadv: competition, not in best interest of customer, variance in pay
54
Profit-Sharing Plans? To achieve
employees share in company profits, achieve financial goals
55
Gainsharing Plans
employees achieve productivity goals and share gains, small and large work groups
56
Read about Lincoln Electric
slide 69-73
57
Total Rewards Include (2)
Total Compensation and Relational Return
58
Total Compensation is (2)
Cash and Benefits

HRM 2440 (9 decks)

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