Compensation 4Th Cdn Edition Chapters 8-13 Milkovich

Front 1

compensation survey

Back 1

the systematic process of collecting and making judgements about the compensation paid by other employers p. 161

Front 2

market pricing

Back 2

establishing pay structure by relying almost exclusively on external market pay rates p. 162

Front 3

survey levelling

Back 3

multiplying survey data by a numerical factor to adjust for differences between the company job and the survey job p.172

Front 4

outlier

Back 4

a data point that falls outside the majority of the data points p.173

Front 5

aging/trending survey data

Back 5

adjusting survey data to represent pay at the current or future date when the pay decisions will be implemented p. 174

Front 6

market pay line

Back 6

a graph that links a company's benchmark jobs on the horizontal axis (internal structure) with market rates paid by competitors (market survey) on the vertical axis p. 175

Front 7

pay policy line

Back 7

pay line representing an adjustment to the market pay line to reflect the company's external competitive position in the market (i.e. lead, match or lag) p. 177

Front 8

pay grade

Back 8

grouping of jobs considered substantially equal for pay purposes

Front 9

pay range

Back 9

the range between the upper and lower limits on pay for all jobs in a particular pay grade

Front 10

range spread

Back 10

the size of a pay range based in a judgement about how the ranges support career paths, promotions, and other organization systems
p.180

Front 11

broadbanding

Back 11

a large band of jobs containing several pay grades
p.181

Front 12

reference rates

Back 12

pay rates from market data used in pricing broad bands p. 182

Front 13

employee benefits

Back 13

part of the total compensation package, other than pay for time worked, provided to employees in whole or in part by employer payments, such as life insurance, pension plan, workers' compensation, vacation and so on. p. 190

Front 14

vesting

Back 14

waiting period for entitlement to the employer-paid portion of pension benefits p. 195

Front 15

coinsurance

Back 15

percentage of insurance premiums paid for by the employer p.197

Front 16

deductible

Back 16

specified dollar amount of claims paid by the employee each year before insurance benefits begin p. 197

Front 17

coordination of benefits

Back 17

reduction of benefits by any amount paid under a spouse's plan p.197

Front 18

workers' compensation

Back 18

a mandatory, government sponsored, employee paid, no fault insurance plan that provides compensation for injuries and diseases that arise out of, and while in the course of, employment. p.199

Front 19

Canada/Quebec Pension Plan (C/QPP)

Back 19

a mandatory, government sponsored pension plan for all employed Canadians, funded equally by employers and employees p. 199

Front 20

Employment Insurance (EI)

Back 20

a mandatory, government sponsored plan for all employed Canadians that provides workers with temporary income replacement as a result of employment interruptions due to circumstances beyond their control; funded by employer and employee contributions p. 200

Front 21

pension plan

Back 21

plan that provides income to an employee at retirement as compensation for work performed now
p.200

Front 22

defined benefit plan

Back 22

pension plan in which an employer agrees to provide a specific level of retirement pension, the exact cost of which is unknown p. 200

Front 23

defined contribution plan

Back 23

pension plan in which an employer agrees to provide specific contributions but the final benefit is unknown p. 202

Front 24

Short term disability plans/ salary continuation plans

Back 24

employer-sponsored plans that provide a continuation of all or part of an employee's earnings when the employee is absent from work due to an illness or inquiry that is not work-related
p. 205

Front 25

Sick leave plans

Back 25

employer-sponsored plans that grant a specified number of paid sick days per month or per year
p. 205

Front 26

long term disability plans

Back 26

employer-sponsored plans that provide income protection due to long term illness or injury that is not work related
p.205

Front 27

employee assistance plan (EAP)

Back 27

employer-sponsored program that provides employees with confidential counselling and/or treatment programs for personal problems including addiction, stress, and mental health issues
p. 206

Front 28

flexible benefit plans

Back 28

benefit plans in which the employee is provided with a specified amount of money and then chooses which benefits to spend the money on, according to their attractiveness and cost
p. 208

Front 29

pay for performance plan

Back 29

a pay plan that links individual pay to some measure of performance on the job
p. 217

Front 30

motivation

Back 30

a process involving the determination of what is important to a person, and offering it in exchange for desired behaviour
p. 220

Front 31

expectancy theory

Back 31

motivation theory stating that people cognitively evaluate potential behaviours in relation to rewards offered in exchange
p. 220

Front 32

equity theory

Back 32

motivation theory stating that people are concerned about fairness of the reward outcomes exchanged for employee inputs
p. 220

Front 33

agency theory

Back 33

motivation theory stating that employees and management/owners both will act opportunistically to obtain the most favourable exchange possible
p. 222

Front 34

total reward system

Back 34

all financial and non financial rewards provided by organizations to their employees
p. 223

Front 35

performance appraisal

Back 35

process of evaluating or appraising an employee's performance on the job
p. 228

Front 36

evaluation format

Back 36

the method used to evaluate an employee's performance either ranking against other employees or rating on one or more performance criteria
p. 229

Front 37

alternation ranking

Back 37

ranking the best employee, then the worst employee then the next best and next worst and so on
p. 230

Front 38

paired comparison performance ranking

Back 38

ranking each employee against all other employees one pair at a time
p. 230

Front 39

behaviourally anchored rating scale (BARS)

Back 39

performance rating scales using behavioural descriptions as anchors for different levels of performance on the scale
p. 230

Front 40

management by objectives (MBO)

Back 40

performance rating method based on meeting objectives set at the beginning of the performance review period
p. 231

Front 41

360 degree feedback

Back 41

performance appraisal method that includes feedback from up to five sources: supervisors, peers, self, customers, and subordinates
p. 234

Front 42

merit pay

Back 42

increase in base pay related to past performance
p. 249

Front 43

group incentive plans

Back 43

incentive pay for meeting or exceeding team performance standards
p. 255

Front 44

gain sharing plan

Back 44

group incentive plan in which employees share in cost savings
p. 258

Front 45

profit sharing plans

Back 45

variable pay plans requiring a profit target to be met before any payouts occur
p. 261

Front 46

earnings at risk plan

Back 46

an incentive plan that includes reductions in base pay in unsuccessful years
p. 261

Front 47

stock options

Back 47

the right to purchase stock at a specified (exercise) price for a fixed time period
p. 265

Front 48

broad based option plans (BBOPs)

Back 48

stock options provided to employees at all levels
p. 265

Front 49

Employee stock ownership plan (ESOP)

Back 49

plan offering employees the opportunity to purchase company stock, often partially or fully matched by employer paid stock for the employee
p. 265

Front 50

dual career track

Back 50

career progression on either a managerial path of a professional path
p. 272

Front 51

gender wage gap

Back 51

the amount by which the average pay for female workers is less than the average pay for male workers
p. 286

Front 52

occupational segregation

Back 52

the historical segregation of women into a small number of occupations such as clerical, sales, nursing and teaching
p. 287

Front 53

pay equity legislation

Back 53

legislation intended to redress the unexplained portion of the gender wage gap by requiring employers to proactively pursue equal pay for work of equal value between female dominated and male dominated jobs
p. 289

Front 54

job to job method

Back 54

method of comparing pay for male and female dominated job classes in which each female job class is compared to a male job class of equal or comparable value
p. 291

Front 55

proportional value/wage line method

Back 55

method of comparing pay for male and female dominated job classes when female job classes have no appropriate male comparators under the job to job system, in which the wage line for male job classes is applied when setting pay for female job classes
p. 291

Front 56

proxy comparison method

Back 56

method of comparing pay for make and female dominated job classes when pay equity cannot be achieved through job to job or proportional value methods, in which female job classes are compared to similar female job classes that have achieved pay equity with another employer
p. 291

Front 57

spillover effect

Back 57

employers' seeking to avoid unionization offer workers the wages, benefits, and working conditions won in rival unionized firms
p. 294

Front 58

turnover effect

Back 58

decreased budget required as lower paid workers replace employees who leave, calculated as annual turnover rate times planned average increase
p. 305

Front 59

red circle rates

Back 59

pay rates above the range maximum

p. 309

Front 60

green circle rates

Back 60

pay rates below the range minimum
p. 310

Front 61

compa-ratio

Back 61

ratio of average rates actually paid to range midpoint

compa ratio= average rated actually paid/range midpoint
p. 310