Hrm Final Test - Ch 8

Front 1

flexible benefits plan

Back 1

A benefits plan that offers employees a set of alternatives from which they can choose the types and amounts of benefits they want.

Front 2

Total rewards

Back 2

A comprehensive approach to compensating and rewarding employees.

Front 3

Canada Pension Plan (CPP)/Quebec Pension Plan (QPP)

Back 3

A contributory, mandatory plan that provides retirement pensions, disability benefits, and survivor benefits.

Front 4

Employment Insurance (EI)

Back 4

A federally mandated program to provide temporary financial assistance to unemployed workers.

Front 5

phased retirement

Back 5

A gradual transition into full retirement by reducing hours or job responsibility.

Front 6

Pay policy line

Back 6

A graphed line showing the mathematical relationship between job evaluation points and pay rate.

Front 7

defined benefit plan

Back 7

A pension plan that guarantees a specified level of retirement income.

Front 8

benchmarking

Back 8

A procedure in which an organization compares its own practices against those of successful competitors.

Front 9

defined contribution plan

Back 9

A retirement plan in which the employer sets up an individual account for each employee and specifies the size of the investment into that account.

Front 10

Pay ranges

Back 10

A set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job or a job within a particular pay grade or band.

Front 11

Health spending account

Back 11

A specific amount of money set aside per employee by the employer to cover health-related costs.

Front 12

Merit pay

Back 12

A system of linking pay increases to ratings on performance appraisals.

Front 13

contributory plan

Back 13

All costs of the plan are funded by employees, employers, and the plan’s own investments.

Front 14

Total compensation

Back 14

All types of financial rewards and tangible benefits and services employees receive as part of their employment.

Front 15

Job evaluation

Back 15

An administrative procedure for measuring the relative internal worth of the organization’s jobs.

Front 16

employee stock ownership plan (ESOP)

Back 16

An arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust.

Front 17

Standard hour plan

Back 17

An incentive plan that pays workers extra for work done in less than a preset “standard time.”

Front 18

employee benefits

Back 18

Compensation in forms other than cash.

Front 19

Direct compensation

Back 19

Financial rewards employees receive in exchange for their work.

Front 20

Incentive pay

Back 20

Forms of pay linked to an employee’s performance as an individual, group member, or organization member.

Front 21

Commissions

Back 21

Incentive pay calculated as a percentage of sales.

Front 22

Profit sharing

Back 22

Incentive pay in which payments are a percentage of the organization’s profits and do not become part of the employees’ base salary.

Front 23

long-term disability insurance

Back 23

Insurance that pays a percentage of a disabled employee’s salary after an initial period and potentially for the rest of the employee’s life

Front 24

short-term disability insurance

Back 24

Insurance that pays a percentage of a disabled employee’s salary as benefits to the employee for six months or less.

Front 25

Compentency-based pay systems

Back 25

Pay structures that set pay according to the employees’ levels of skill or knowledge and what they are capable of doing.

Front 26

Workers’ Compensation Acts

Back 26

Provincial programs that provide benefits to workers who suffer work-related injuries or illnesses.

Front 27

Hourly wage

Back 27

Rate of pay for each hour worked.

Front 28

Piecework rate

Back 28

Rate of pay for each unit produced.

Front 29

Salary

Back 29

Rate of pay for each week, month or year worked.

Front 30

Stock options

Back 30

Rights to buy a certain number of shares of stock at a specified price.

Front 31

Pay grades

Back 31

Sets of jobs having similar worth or content, grouped together to establish rates of pay.

Front 32

gainsharing

Back 32

Team incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees.

Front 33

Pay level

Back 33

The average amount (including wages, salaries, and bonuses) the organization pays for a particular job.

Front 34

Indirect compensation

Back 34

The benefits and services employees receive in exchange for their work.

Front 35

Pay structure

Back 35

The pay policy resulting from job structure and pay-level decisions.

Front 36

Job structure

Back 36

The relative pay for different jobs within the organization.

Front 37

Broadbanding

Back 37

Reducing the number of pay ranges in the organization's pay structure.