Hmgt4150 - Chapter 7

Front 1

1. Explain employer concerns in developing a compensation pro- ram.

Back 1

*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.

Front 2

2. Identify the various factors that influence the setting of wages.

Back 2

*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.

Front 3

3. Describe the major job evaluation systems.

Back 3

*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.

Front 4

4. Describe the parts of the compensation structure.

Back 4

*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.

Front 5

5. List the types of incentive plans.

Back 5

*Individual bonus
*Team- or group-based
*Merit raises
*Gainsharing
*Profit-sharing
*Employee stock ownership plan

Front 6

6. Explain the employee benefits that are required by law.

Back 6

*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.

Front 7

7. Describe voluntary benefits.

Back 7

*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.

Front 8

9. direct compensation

228

Back 8

*Employee wages and salaries. incentives. bonuses, and commissions

Front 9

10. indirect compensation

228

Back 9

Many benefits supplied by employers

Front 10

11. pay-for-performance standard

230

Back 10

Standard by which managers tie compensation to employee effort and performance

Front 11

12. equitable pay

231

Back 11

Compensation received is archived to be equal to the value of the work performed

Front 12

13. hourly work

231

Back 12

*Work paid on an hourly basis

Front 13

14. piecework

232

Back 13

Work paid according to the number of units produced

Front 14

Job evaluation

Back 14

* Systematic process of Determining the relative worth of jobs in order to establish which jobs should be paid more than others within an organization

Front 15

16. consumer price index (CPI)

235

Back 15

*Measure of the average change prices over time in a fixed 'market basket" of goods and Services

Front 16

17. real wages

Back 16

* Wage increases larger than rises in the consumer price index; that is, the real earning power of wages

Front 17

18. wage and salary survey

240

Back 17

Survey of the wages paid to employees of other employers in the surveying organization's relevant labour market

Front 18

19. pay grades

Back 18

*Groups of jobs within a particular class that are paid the same rate or rate range

Front 19

20. skill-based pay

243

Back 19

*Pay based on how many skills employees have or how many jobs they can perform

Front 20

21. comparable value

258

Back 20

*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

Front 21

22. wage-rate compression

259

Back 21

*Compression of differentials between job classes, particularly the differential between hourly workers and their managers

Front 22

8. Discuss the current compensation and benefits issues.

Back 22

*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.

Front 23

23. two-tier wage system

260

Back 23

*Compensation plan that pays newly hired employees less than present employees performing the same or similar jobs