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23 Cards in this Set
- Front
- Back
1. Explain employer concerns in developing a compensation pro- ram.
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*Companies structure compensation in ways that enhance employee motivation and growth.
*Compensation must be tailored to fit the needs of the company and its employees. *Companies are concerned that employees believe the compensation be equitable. |
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2. Identify the various factors that influence the setting of wages.
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*There are internal and external Factors.
*Internal Factors include the organisation's compensation policy, the perceived worth of the job, the performance of the employee, and the employer's willingness to pay. *The external factors include labour Market conditions, cost of living, collective bargaining; and legal considerations. |
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3. Describe the major job evaluation systems.
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*job ranking system, which groups jobs on the basis of their relative worth. *job classification system, where jobs are grouped according to a series of predetermined grades based on a number of factors.
*Point system, which determines a job's relative worth by using a quantitative system of points. *Factor comparison system, where a job is evaluated on a factor-by- factor basis this type of system is typically used for legislated pay equity purposes. |
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4. Describe the parts of the compensation structure.
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*Wage and salary survey, which provides information about average wage rates external to the organization.
*Developing a wage curve, which indicates the rates currently paid for jobs within the organization. *Development of pay rates for paying individuals based on the job. |
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5. List the types of incentive plans.
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*Individual bonus
*Team- or group-based *Merit raises *Gainsharing *Profit-sharing *Employee stock ownership plan |
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6. Explain the employee benefits that are required by law.
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*Canada and Quebec pension plans which provide for a pension for employees working in Canada. *Employment insurance, which provides income protection to employees who are between jobs.
*Workers' compensation insurance, which pays people for work- related accidents or illnesses. |
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7. Describe voluntary benefits.
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*These are benefits an organization chooses to provide
*Can include health and welfare coverage, pay for time not worked (vacation, sick leave), wellness programs, and child-care assistance. |
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9. direct compensation
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*Employee wages and salaries. incentives. bonuses, and commissions
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10. indirect compensation
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Many benefits supplied by employers
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11. pay-for-performance standard
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Standard by which managers tie compensation to employee effort and performance
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12. equitable pay
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Compensation received is archived to be equal to the value of the work performed
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13. hourly work
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*Work paid on an hourly basis
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14. piecework
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Work paid according to the number of units produced
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Job evaluation
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* Systematic process of Determining the relative worth of jobs in order to establish which jobs should be paid more than others within an organization
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16. consumer price index (CPI)
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*Measure of the average change prices over time in a fixed 'market basket" of goods and Services
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17. real wages
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* Wage increases larger than rises in the consumer price index; that is, the real earning power of wages
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18. wage and salary survey
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Survey of the wages paid to employees of other employers in the surveying organization's relevant labour market
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19. pay grades
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*Groups of jobs within a particular class that are paid the same rate or rate range
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20. skill-based pay
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*Pay based on how many skills employees have or how many jobs they can perform
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21. comparable value
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*The concept that male and female jobs that are dissimilar, but equal in terms of value or worth to the employer, should paid the same
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22. wage-rate compression
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*Compression of differentials between job classes, particularly the differential between hourly workers and their managers
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8. Discuss the current compensation and benefits issues.
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*Equal pay for work of equal value, which tries to remedy the situation of undervaluing traditionally female occupations.
*Wage-rate compression, where the differences between job classes are reduced and can create inequity. *Low salary budgets, by which companies have attempted to control compensation costs. *Two-tier wage system, where new employees are paid less than present employees for the same work. *Flexible benefit plans, in which individuals can choose benefits that best fit their needs. |
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23. two-tier wage system
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*Compensation plan that pays newly hired employees less than present employees performing the same or similar jobs
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