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118 Cards in this Set
- Front
- Back
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compensation: represents the __ __ __ for __ __ __. they are either __ or __. |
rewards employees receive performing their job intrinsic or extrinsic |
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intrinsic compensation: represents employees __ __ __ that result from __ __ __
it is s__ and a __ __ __ from the work they do |
critical psychological states performing their jobs
satisfaction, sense of accomplishment |
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extrinsic compensation: includes both __ and __ rewards |
monetary and nonmonetary |
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2 types of base pay: __ __ and __ __ |
hourly pay and annual salary |
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base pay adjustments: __ __ __ ___, __ pay, __ pay, __ pay, __-__ pay, and __-__ pay |
cost of living adjustments, merit, incentive, seniority, person-focused, skill-based |
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core compensation consists of __ __ and its __ |
base pay, adjustments |
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Base pay is influenced by 4 compensable factors: an employee's __ __, an employee's __, an employee's __ __ __, the __ of the __ __ |
skill level, effort, level of responsibility, severity of the working conditions |
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Cost of living adjustments (COLAs): represent __ base pay __ that are founded on __ in __ as indexed by the __ __ __. |
periodic, increases, changes, prices, consumer price index |
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seniority pay: reward employees with __ additions to base pay according to employees' __ __ __ in __ __ __. |
periodic, length of service, performing their jobs |
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merit pay: assume that employees' __ __ __ should be determined , at least in part, by __ in __ __. |
compensation over time, differences, job performance |
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incentive pay: rewards employees for __ or __ attaining a __ __ __ |
partially, completely, predetermined work objective |
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pay for knowledge plans: reward __, __, or __ workers, for successfully learning __ __. |
managerial, service, professional, specific curricula |
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skill-based pay: used mostly for employees who perform __ __ and __ these workers __ as they __ __ __. |
physical work, increase, pay, master new skills |
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2 types of employee benefits: __ __ and __ __ __. |
discretionary benefits and legally required benefits |
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discretionary benefits has 3 broad categories: __ __, __ __-__, and __.
where tax incentive are relevant, companies can reduce their __ __ by __ the __ they spend on __ __
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protection programs, paid time-off, and services
taxable profits, deducting, costs, employee benefits |
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discretionary benefit- protection programs: provide __ __, promote __, and guard against __ __ caused by such catastrophic factors as __, __ or __ __. |
family benefits, health, income loss, unemployment, disability, serious illness |
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discretionary benefits- paid time-off: provides employees with __ for __ when they are __ __. |
pay, time, not working |
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discretionary benefits- services: provides such __ as t__ r__ and __ __ assistance to __ and their __. |
enhancements, tuition reimbursement, day care, employees, families |
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legally required benefits are __ __ that are designed to __ worker __ and __ and maintain __ __. They __ families in __ and provide __ when an employee is __ or __. |
protection programs, promote, safety, health, family income, assist, crisis, assistance, disabled, unemployed |
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Know at least 2 historical events in the evolution of compensation practice leading to the current strategic compensation era. historical perspective on compensation: 1) many employees instituted so-called __ __ practices to control __ __, as well as __ practices to maintain control over __ |
scientific management labor costs welfare labor |
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Know at least 2 historical events in the evolution of compensation practice leading to the current strategic compensation era. historical perspective on compensation: 2) __-__-__ studies analyze the __ it took employees to __ their jobs. These studies literally focused on employees' __ and the __ of the __ __ __ to __ __ in the __ __ __ __. |
time-and-motion time complete movements identification most efficient steps complete jobs least amount of time
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4 historical perspectives on compensation: __ __ __, __-__-__ __, __ __, and __ __ |
scientific management practices, time-and-motion studies, welfare practices, and competitive advantage |
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Know at least 2 historical events in the evolution of compensation practice leading to the current strategic compensation era. historical perspective on compensation: 3) __ __ were originated to provide __ and __, i__ or s__, to employees over and above wages paid to discourage __, promote __ __ and enhance __. Some of the examples of benefits under __ __ include use of __ and __ __, e__ assistance, and __ insurance. |
welfare practices comfort and improvement intellectual or social unionization effective management productivity welfare practices libraries and recreational facilities educational medical
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Know at least 2 historical events in the evolution of compensation practice leading to the current strategic compensation era. historical perspective on compensation: __ __ refers specifically to a __ ability to __ __ __ and __ over a __ period of __ __. |
competitive advantage company's maintain market share and profitability sustained several years |
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2 types of competitive strategy choices: __ __ strategy and __ strategy. |
lowest cost strategy and differentiation stratgey |
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competitive strategy- lowest-cost strategy: generally used for jobs that include __ and __ behaviors, have a __-__ __, require __ activity, and focus on __ of __. Example is Ryanair.. they only use one type of aircraft which reduces __ __ and __ __. seating costs and labor costs are minimized because the seats take up minimum room and passengers are asked to carry their luggage, |
repetitive and predictive short-term focus individual quantity of output aircraft training and maintenance costs
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competitive strategy- differentiation strategy: the main emphasis is generally not __ __ __. Employees usually have jobs that require __ __ __, a relatively __-__ __, c__ and i__, and a greater degree of __ __.
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increasing employee productivity highly creative behaviors long-term focus cooperation and independence risk taking
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human resource professionals are __ employees because they offer a wide variety of __ __ for __ employees. HR professionals promote the e__ use of all employees in companies. E__ use means __ work objectives that fit with the overall __ of the __. |
staff support services for line employees effective effective use means attaining mission of the company
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human resource practices: R__, S__, P__ A__, T__, C__ D__, L__-M__ relations, E__ T__, and I__ L__ C__. |
recruitment, selection, performance appraisal, training, career development, labor-management relations, employment termination, insuring legal compliance |
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compensation department's main goals: Compensation professionals promote __ __ __ by meeting 3 important goals. These goals include i__ c__, m__ c__, and recognizing i__ c__. |
effective compensation systems internal consistency, market competitiveness, and recognizing individual contributions |
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compensation department's main goals- internal consistency: internal consistency refers to __ __ that define the r__ v__ of each job among jobs. It represents job __ or __. According to internal consistency, employees working at jobs that require greater __, more __, and more __ job duties should be __ __. In order to achieve internal consistency, compensation professionals use job __ and job __. |
compensation systems, relative value, structure or hierarchy qualifications, responsibilities, complex, paid more job analysis and job evaluation
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compensation department's main goals- market competitiveness: Setting pay __ and __ offerings is essential to r__ and r__ the best employees. Companies make j__ about what is best based on the __ in companies with whom the compete for __. They use s__ a__ (understanding who the __ are) and c__ s__ (understanding what competitors __). |
pay rates and benefits offerings, recruiting and retaining judgments, norms, labor strategic analyses, competitors compensation surveys, pay
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3 main methods of individual contributions: pay s__, pay g__, and pay r__. 1) pay __: pay rate __ for jobs of __ worth. Pay is determined by employees' c__, job k__, and job p__. 2) pay __: group jobs based on similar c__ f__ and __. 3) pay __: builds on pay __, uses m__, m__ and m__. |
pay structures, pay grades, and pay ranges pay structure: differences, unequal, credentials, knowledge, performance pay grades: compensable factors and value pay ranges: grades, midpoints, minimums,and maximums |
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stakeholders: __ or __ d__ affected by __ __.
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individuals or entities directly affected by compensation practices |
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various stakeholders include: e__, l__ m__, e__, u__, and _._. __ |
employees, line managers, executives, unions, and u.s govt |
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unions rely on compensation professionals to abide by their __ __ __. |
collective bargaining agreements |
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stakeholders- employees rely on compensation professionals to develop and implement systematic __ __, inform them of __ and __ links, and offer discretionary benefits that provide: i__ p__, p__ t__ o__, and s__. |
training programs, training and pay links, income protection, paid time off, and services |
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stakeholders- line managers rely on compensation professionals to ensure k__ of r__ l__ to help them make __ __ __, advise for establishing p__ d__, and train them how to properly e__ j__. |
knowledge of relevant laws, sound compensation judgments, pay differentials, evaluate jobs |
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stakeholders- executives rely on compensation professionals to develop and manage __ __ __ and insure the company's practices are l__, sufficiently __ to r__ and r__, and are c__ e__. |
sound compensation systems, legal, attractive to recruit and retain, cost effective |
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stakeholders- unions rely on compensation professionals to 1) abide by their __ __ __. 2) ensure they get their c__ of l__ a__ and __ pay. |
collective bargaining agreements cost of living adjustments and seniority pay |
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stakeholders- the u.s. govt requires compensation professionals to 1) keep updated and __ with all employment l__. 2) demonstrate that alleged __ pay practices are a business __. 3) demonstrate that alleged __ pay practices are mot __ |
comply, legislation discriminatory, necessity discriminatory, discriminatory |
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employment laws are essential to maintain a balance of __ between __ and __. 4 Compensation law themes: i__ continuity, s__ and w__ h__ p__ d__ meeting d__ and f__ n__ prevailing w__ laws |
income, safety, work hours pay discrimination disabilities, family needs wage laws |
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government makeup levels: __, __, and __. branches: __, __, and __. |
federal, state, and local executive, legislative, and judicial |
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government makeup levels: Federal- oversees the entire __ __ and its __. State- e__ and e__ laws that pertain exclusively to their respective __. Local- e__ and e__ laws that are most pertinent to __ __ regions.
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united states and its territories enact and enforce, regions enact and enforce, smaller geographic |
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government makeup branches: executive- __ laws legislative- __ laws judicial- __ laws |
enforces makes interprets |
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FLSA of 1938 3 broad issues: __ __, __ __, and __ __ __. FLSA exempt positions: e__, a__, l__ professional, c__ professional, c__ p__, and o__ s__. __ pay does not apply to these jobs. |
minimum wage, overtime pay, and child labor provisions executive, administrative, learned, creative, computer positions, outside sales overtime |
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compensable work activities: w__ time, o__-c__ __, __ and __ periods, __ time, l__, m__ and t__ programs, and __ time |
waiting, on-call time, rest and meal periods, sleeping, lectures, meetings, travel time |
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child labor: _________ cant work ages 14 and 15 can work ________ age 16 and 17 have... and cant... |
age 14 and younger 3 hours on school nights, 18 hours in school week, and 40 hours in a week when school is out no hourly restrictions and cant work in hazardous conditions |
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equal pay act of 1963 broadened ______ and was enforced by _____. according to this men and woman should receive __ __ for performing __ __. |
FLSA, EEOC equal pay, equal work
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4 compensable factors: __, __, __ and __ __ |
skill, effort, responsibility, and working conditions |
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pay differential are not always __. They are __ when payment made due to __ system, __ system, system which measures __ by q__ or __ of production, and factors other than __. |
illegal legal, seniority, merit, earnings, quantity, quality, gender |
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civil rights act of 1964 (title __) promotes equal employment opportunities for __. 2 types of discrimination: __ __ and __ __. 1)__ __ is __ discrimination 2)__ __ is __ discrimination |
7 minorities disparate treatment and disparate impact intentional unintentional |
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disparate treatment: workers treated unfairly because of __, __, __, __, __ __. |
race, color, religion, gender, national origin |
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disparate impact example: awarding pay increases to male and female workers based on seniority when female had less seniority |
a |
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lilly ledbetter fair pay act: pay discrimination charge must simply be __ with __ __ of __ __. |
filed, 180 days, discriminatory paycheck |
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Age discrimination in employment act of 1967: protect workers age __ and older from __ discrimination. Eliminated minimum __ __. |
40, age retirement age |
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Civil rights act of 1991 shifts burden of __ __ to __ |
disparate impact, employees |
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family and medical leave act of 1993: job protection during __ and __ emergencies. guarantees __ __. employee return with same or similar p__, p__, c__ and b__, |
family and medical unpaid leave position, pay, conditions, and benefits |
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employee retirement income security act of 1974: regulates the implementation of various employee __ __, including m__, l__, d__, and p__. |
benefits programs medical, life, disability, and pension |
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COBRA 1985: provide employees opportunity to continue receiving __-__ __ __ insurance temporarily if their coverage otherwise ceases die to- t__, l__ or other changes in __ __. employers exempt: companies with __ than __ workers, c__ p__, and _._. __ __. |
employer- sponsored medical care termination, layoff, employment status
fewer, 20, church plans, and u.s. govt plans |
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federal employees not protected by _______, _____, and ____ |
title 7 of the civil rights act, ADEA, and equal pay act |
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decline in union representation: since 1954 the percentage of __ __ in both the __ and __ sectors represented by __ has steadily __. |
civilian workers, public and private, unions, declined |
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seniority pay: employees become more __ __ __. rationale based on the __ __ theory.
designed to award job __, time designed __, avoids perception of __, poor fit with most c__ s__ |
valuable over time human capital
tenure, increases, favoritism, competitive strategies |
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collective bargaining designed to n__ l__ c__ and provide g__ p__, led to j__ c__ u__, c__ b__ a__, and u__ s__ |
negotiate labor contracts and provide grievance procedures job control unionism, collective bargaining agreements, and union shops |
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longevity pay rewards employees who have reached __ __ maximums and are not likely to move into higher __. Used by most __ employees. subject to longevity pay via the __ __. |
pay grade, grades general schedule |
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merit pay plans: pay increases based on __, motivate __ __, help retain __ __. based on o__ and s__ indicators of job __, p__ performance reviews, and r__ and a__ standards. |
performance, future performance, valued employees objective and subjective, performance, periodic, realistic and attainable |
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4 performance appraisal plans: __ systems, __ systems, __ systems, and __-__ systems |
trait, comparison, behavioral, goal-oriented |
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PA plans- trait systems: ask raters to __ each employees __ or __. comparison systems: evaluate a given employee's __ against the __ of other __. |
evaluate, traits or characteristics
performance, performance, enmployees
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PA plans- behavioral systems: rate employees on the extent to which they display __ __ __ __. goal-oriented systems: used mainly for __ and __ employees and typically evaluate employees' __ toward strategic planning o__. |
successful job performance behaviors
managerial, professional, progress, objectives |
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trait system characteristics: __ of work, __ of work, d__, c__, i__, j__, l__ r__, d__-m__ a__, and c__. |
quality, quantity, dependability, cooperation, initiative, judgement, leadership responsibility, decision-making ability, and creativity |
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performance appraisal practices 1) conduct a j__ a__ 2) incorporate r__ into r__ 3) trains __ on use 4) impelment formal a__ p__ |
job analysis results, ratings supervisors appeals process |
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sources of performance appraisal information: e__, s__, c__, s__, c__/c__ |
employee, supervisor, coworker, subordinate, and customer/client |
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360 degree PA: uses __ __ __ appraisal source. Reduces ___ and __ costs appropriate for __ __ __. |
more than one recruiting and hiring work team evaluations |
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major 4 types of rater errors: __ errors, __ errors, errors of __ __, and errors of __ or __. |
bias, contrast, central tendency, leniency, strictness |
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bias errors happen when rater evaluates employee based on a __ or __ opinion of the employee rather than on the employee's __ __.
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positive or negative actual performance |
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contrast errors take place when rater compares the employee to other employees rather than to a __ __ __. problem: what if the best employee is __? |
specific performance standards average |
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errors of central tendency occur when a supervisor rates all employees as __. Usually only occurs when only __ __ require __. |
average extreme behaviors, documentation |
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with a leniency error, managers rate employees performance more __ than they would rate them using __ __. With strictness error, supervisors rate employees performance __ than they would using __ __. |
higher, objective criteria lower, objective criteria |
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link between pay and performance: link __ to business __, analyze __, ___, establish effective __, empower __, and differentiate among p__. |
appraisals, goals jobs communicate appraisals employees performers |
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limitations of merit pay programs: failure to d__ among p__, poor m__, s__ biases, poor c__, undesirable s__ s__, using n__ factors, undesirable c__, and little m__ v__. |
differentiate, performers, measures, supervisor, communication, social structures, non merit, competition, motivational value |
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companies usually institute incentive pay programs to control __ costs or to __ employee __. Compensation fluctuates according to: a p__ formula, __ or __ goals, and __ earnings. adds to __ pay, controls __, and __ employees |
payroll, motivate, productivity predetermined, individual or group, company base, costs, motivates |
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effective incentive pay systems are based on 3 assumptions: 1) __ employees and __ teams differ in how much they __ to the __. 2) the company's overall __ depends on its __. 3) To a__, r__, and m__ high performers and to be __ to all employees, a company needs to __ employees on the basis of their __ __. |
individual, work, contribute, company performance, employees attract, retain, and motivate, fair, reward, relative performance |
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traditional pay: traditional pay generally includes an __ __ or __ __ which is increased periodically on a __ or __ basis. |
annual salary or hourly wage seniority or merit |
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merit increases are __ increases to base pay. incentive pay does not add __ __ to base pay. |
permanent recurring amounts |
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3 incentive pay categories: __, __, and __-__. |
individual, group, and company-wide |
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incentive pay categories: individual- reward employees whose __ is performed __. group- promote s__, c__ behavior among employees. company-wide- tie employees __ to a company's __ over a __ time frame. |
work, individually supportive, collaborative compensation, performance, short |
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individual incentive performance measures: __ and __ of work output, __ sales, w__ s__ record, and __ attendance |
quality and quantity, monthly, work safety, work |
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4 types of individual incentive plans: __ plans, __ __ plans, __ __ plans, and __ plans |
piecework, managment incentive, behavioral encouragement, referall |
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piecework plans: reward workers for every item __ over a __ production standard management incentive plans: award b__ to m__ when they meet or exceed objectives based on sales , profit, and production. |
produced, designated bonuses, managers |
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behavioral encouragement plans: employees receive __ for specific __ accomplishments. Referral plans: employees receive __ for __ of highly qualified __. |
payments, behavioral bonuses, recruitment, employees |
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individual incentive plan advantages: helps relate __ to __, promotes equitable d__ of c__, helps retain best __. disadvantages: may promote i__, unrealistic s__ may hamper employee __, setting standards is __ __. |
pay, performance, distribution, compensation, performers inflexibility, standards, motivation, time consuming |
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group incentive plans reward employees for their c__ __. Has __ in industry. Two major types: __ based or __ group and g__ s__. |
collective performance, increased team, small, gain sharing |
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group incentive performance measures: __ satisfaction, l__ c__ savings, m__ c__ savings, reduction in a__, and s__ c__ savings |
customer, labor cost, materials cost, accidents, services cost |
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types of teams for team incentive plans: work (process) teams: organizational units that perform the work of the organization on an __ __. project teams: group of people assigned to complete a __-__ __. parallel teams (task forces): employees assigned to work on a __ __ in addition to __ __ __. |
ongoing basis one-time project specific task, normal work duties |
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rewards can be allocated in 3 ways: 1) e__ i__ payments 2) differential payments based c__ to g__ 3) differential payments according to __ pay. |
equal incentive contribution to goals base |
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gain sharing: incentives based on __ performance in increased p__, increased c__ s__, lower __, and better s__ records. involves employee __ includes b__ |
company, productivity, customer service, costs, safety participation bonuses |
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the 3 components of gain sharing programs are l__ philosophy, e__ i__ systems, and b__. |
leadership, employee involvement, bonuses |
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three most common forms of gain sharing plans are S__ plan, R__ plan and I__. |
scanlon, rucker, improshare |
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gain sharing plan- scanlon plan: emphasis on t__ to reduce costs, production-level employees |
teamwork |
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gain sharing plan- rucker plan: emphasizes employee __ and provides m__ incentives. Uses a v__-a__ formula to measure p__. |
involvement, monetary, value-added, productivity |
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gain sharing plan- improshare: measure productivity p_ rather than in terms of __ savings. Emphasis on providing employees with an incentive to __ products bonuses paid __ |
physically, dollar finish weekly |
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adv of group incentives: companies can more easily develop p__ m__ for group plans than __ plans. Greater group c__. disadv: may lead to higher employee __ because of the f__-r__ effect, members may feel uncomfortable with the fact other members' performance influences their __ __ |
performance measures, individual cohesion
turnover, free-rider, compensation level |
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company-wide incentive plans: rewards employees when __ meets __ __. 2 types: p__ s__ plans and e__ s__ options |
company, performance standards profit sharing plans and employee stock options |
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company-wide performance measures: __ profits, cost a__, __ share, and __ revenue |
company, attainment, market, sales |
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3 distribution methods: e__ p__, proportional payments based on __ salary, and proportional payments based on __ to profits |
equal payments annual contribution |
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incentive pay considerations: based on __ or __ performance? acceptable level of __? replace __ pay? performance __ evaluated? appropriate t__ h__. |
individual or group risk traditional criteria time horizon |
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person-focused plans: rewards employees for acquiring j__-r__ competencies, k__, and s__. 2 main types: p__-__-k__ and s__-b__ pay |
job-related, knowledge, and skills pay-for-knowledge and skill-based pay |
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competency-based pay programs pay-for-knowledge: reward managerial, service, or professional workers for successfully __ specific __. skills based: used mostly for employees who do __ work, increases pay as they __ __ __. |
learning, curricula physical, master new skills |
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horizontal skills: skills at the same __ of r__ or d__. vertical skills: skills that are traditionally considered s__ depth of skills: level of e__ or s__ an employee possesses |
level of responsibility or difficulty
supervisory
expertise or specialization |
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reasons for adopting person-focused pay programs: removes e__ label, connects pay to j__-r__ a__, jobs require new and different worker __. |
entitlement job-related abilities skills |
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person focused pay program models: s__ step, skill b__, j__-p__ accrual, and cross-d__. |
stair, block, job-point, departmental |
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stair step model: jobs from same job f__ differ in c__ |
family complexity |
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skill block model: same family, employees expected to progress to increasingly c__ jobs, skills may not __ on one another. |
complex build |
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job-point accrual model: d__ job families, created organizational f__, points assigned to various __. |
different flexibility skills |
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cross-departmental model: develop skills usable in __ __ |
other departments |
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job-based pay: compensated employees for c__ jobs pay limits set for each __ evaluations based on job d__ and o__ |
current job descriptions and pbjectives |
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adv to person focused pay to employees: can provide job e__, provides job s__, jobs more i__ motivating, increases employee f__ |
enrichment, security, intrinsically, flexibility |
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job characteristic theory: employees are motivated to perform jobs that contain: s__ v__, t__ i__, a__, and f__. |
skill variety, task identity, autonomy, and feedback |
