Chapter 9 - Compensation Management

Front 1

Autonomous work groups

Back 1

Any of a variety of arrangements that allow employees to decide democratically how they will meet their group's work objectives.

Front 2

Broadbanding

Back 2

Consolidation of a large number of pay grades into a few 'broad bands.'

Front 3

Canada Labour Code

Back 3

Federal law regulating labour relations under federal jurisdiction.

Front 4

Compa-ratio

Back 4

An index that indicates how an individual's or a group's salary relates to the midpoint of their relevant pay grades.

Front 5

Equal pay for equal work

Back 5

The principle or policy of equal rates of pay for all employees in an establishment performing the same kind and amount of work, regardless of sex, race, or other characteristics of individual workers not related to ability or performance.

Front 6

Equal pay for work of equal value

Back 6

The principle of equal pay for men and women in jobs with comparable content; based on criteria of skill, effort, responsibility, and working conditions; part of the Canadian Human Rights Act.

Front 7

External equity

Back 7

Perceived fairness in pay relative to what other employers are paying for the same type of work.

Front 8

Incentive pay

Back 8

Compensation that is directly tied to an employee's performance and/or productivity.

Front 9

Internal equity

Back 9

Perceived equity of a pay system in an organization.

Front 10

Job evaluations

Back 10

Systematic process of assessing job content and ranking jobs according to a consistent set of job characteristics and worker traits.

Front 11

Job grading

Back 11

A form of job evaluation that assigns jobs to predetermined job classifications according to their relative worth to the organization.

Front 12

Job ranking

Back 12

A form of job evaluation in which jobs are ranked subjectively according to their overall worth to the organization.

Front 13

Key job

Back 13

A job that is similar and common in the organization and its labour market--for example, accountant, tool-and-die maker.

Front 14

Merit raise

Back 14

A pay increase given to individual workers according to an evaluation of their performance.

Front 15

Pay equity

Back 15

A policy to eliminate the gap between income of men and women, ensuring salary ranges correspond to value of work performed.

Front 16

Pay secrecy

Back 16

A management policy not to discuss or publish individual salaries.

Front 17

Piecework

Back 17

A type of incentive system that compensates workers for each unit of output.

Front 18

Point system

Back 18

A form of job evaluation that assesses the relative importance of the job's key factors in order to arrive at the relative worth of jobs.

Front 19

Production bonuses

Back 19

A type of incentive system that provides employees with additional compensation when they surpass stated production goals.

Front 20

Profit-sharing plan

Back 20

A system whereby an employer pays compensation or benefits to employees, usually on an annual basis, in addition to their regular wage, on the basis of the profits of the company.

Front 21

Rate range

Back 21

A pay range for each job class.

Front 22

Red-circled rate

Back 22

A rate of pay higher than the contractual, or formerly established, rate for the job.

Front 23

Scanlon Plan

Back 23

An incentive plan developed by Joseph Scanlon that has as its general objective the reduction of labour costs through increased efficiency and the sharing of resultant savings among workers.

Front 24

Skill- or knowledge-based pay

Back 24

A pay system based on the skills or knowledge that an employee has (in contrast to the more common job-based pay).

Front 25

Total reward model

Back 25

Inclusion of everything employees value in an employment relationship.

Front 26

Wage and salary surveys

Back 26

Studies made of wages and salaries paid by other organizations within the employer's labour market.