Chapter 11: Total Rewards And Compensation

Front 1

Monetary and non monetary rewards provided by companies to attract, motivate, and retain employees.

Back 1

Total rewards

Front 2

Elements of compensation that can be quantitatively measured and compared between organizations.

Back 2

Tangible rewards

Front 3

Elements of compensation that cannot be as easily measured or calculated.

Back 3

Intangible rewards

Front 4

Basic compensation that an employee receives, usually as a wage or salary.

Back 4

Base pay

Front 5

Payments calculate directly from the amount of time worked by employees.

Back 5

Wages

Front 6

Consistent payments made each period regardless of the number of hours worked.

Back 6

Salary

Front 7

Compensation linked directly to individual, team or organizational performance.

Back 7

Variable pay

Front 8

Indirect reward given to an employee or gourd of employees as part of the membership in the organization.

Back 8

Benefit

Front 9

Employees who are not paid overtime.

Back 9

Exempt employees

Front 10

Employees who must be paid overtime.

Back 10

Nonexempt employees

Front 11

An hourly wage determined by a formula that considers the rate paid for a job by a majority of the employers in the appropriate geographic area.

Back 11

Prevailing wage

Front 12

A court order that directs an employer to set aside a portion of an employee's wages to pay a debt owed to a creditor.

Back 12

Garnishment

Front 13

Assumes that individuals who have worked another year are entitled to pay increases, with little regard for performance differences.

Back 13

Entitlement philosophy

Front 14

Assumes that compensation changes reflect performance differences.

Back 14

Pay-for-performance philosophy

Front 15

An employee's motivation is based on (several linked concepts) the probability that his or her efforts will lead to an expected level of performance that is linked to a valued reward.

Back 15

Expectancy theory

Front 16

Individuals judge fairness (equity) in compensation by comparing their inputs and outcomes against the inputs and outcomes of referent others.

Back 16

Equity theory

Front 17

Perceived fairness of the process and procedures used to make decisions about employees.

Back 17

Procedural justice

Front 18

Perceived fairness in the distribution of outcomes.

Back 18

Distributive justice

Front 19

Rewards individuals for the capabilities they demonstrate and acquire.

Back 19

Competency-based pay

Front 20

Moving jobs to lower wage countries.

Back 20

Offshoring

Front 21

Maintain an expatriate's standard of living in the home country.

Back 21

Home-country-based approach

Front 22

Compensate the expatriate at the same level as workers from the host country.

Back 22

Host-country-based approach

Front 23

Formal, systematic means to identify the relative worth of jobs within an organization.

Back 23

Job evaluation

Front 24

Job value commonly present throughout a group of jobs within an organization.

Back 24

Compensable factor

Front 25

Use of market pay data to identify the relative value of jobs based on what other employers pay for similar jobs.

Back 25

Market pricing

Front 26

Collection of data on compensation rates for workers performing similar jobs in other organizations.

Back 26

Pay survey

Front 27

Jobs found in many organizations that can be used for the purposes of comparison.

Back 27

Benchmark jobs

Front 28

Groupings of individual jobs having approximately the same job worth.

Back 28

Pay grades

Front 29

Graph line that shows the relationship between job value as determined by job evaluation points and job value as determined pay survey rates.

Back 29

Market line

Front 30

Grouping jobs into pay grades based on similar market survey amounts.

Back 30

Market banding

Front 31

Practice of using fewer pay grades with much broader ranges than in traditional compensation systems.

Back 31

Broadbanding

Front 32

Incombent who is paid above the range set for a job.

Back 32

Red-circled employee

Front 33

Incumbent who is paid below the range set for a job.

Back 33

Green-circled employee

Front 34

Occurs when the pay differences amend individuals with different levels of experience and performance become small.

Back 34

Pay compression

Front 35

Pay level divided by the midpoint of the pay range.

Back 35

Compa-ratio

Front 36

Time spent in and organization or on a particular job.

Back 36

Seniority

Front 37

One-time payment of all or part of a yearly pay increase.

Back 37

Lump-sum increase (LSI)

Front 38

Law that essentially treats each paycheck as a new act of discrimination. Pay discrimination need not be intentional to be unlawful. Enacted in 2008.

Back 38

Lilly Ledbetter Fair Pay Act

Front 39

Limits the amount of wages that can be garnished and restricts the right of employers to terminate employees whose pay is subject to a single garnishment order.

Back 39

Consumer Credit Protection Act

Front 40

Prohibits companies from using different wage scales for men and women performing substantially the same jobs.

Back 40

Equal Pay Act of 1963