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36 Cards in this Set

  • Front
  • Back
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Balance-sheet approach
Compensation plan that equalizes cost differences between identical international and home-country assignments.
Chap 12
Base pay
Basic compensation that an employee receives, usually as a wage or a salary.
Chap 12
Benchmark jobs
Jobs found in many organizations.
Chap 12
Benefit
Indirect reward given to an employee or a group of employees for organizational membership.
Chap 12
Broadbanding
Practice of using fewer pay grades with much broader ranges than in traditional compensation systems.
Chap 12
Compa-ratio
Pay level divided by the midpoint of the pay range.
Chap 12
Compensable factor
Factor that identifies a job value commonly present throughout a group of jobs.
Chap 12
Compensatory time off
Hours given to an employee in lieu of payment for extra time worked.
Chap 12
Competency-based pay
Rewards individuals for the capabilities they demonstrate and acquire.
Chap 12
Distributive justice
Perceived fairness in the distribution of outcomes.
Chap 12
Entitlement philosophy
Assumes that individuals who have worked another year are entitled to pay increases, with little regard for performance differences.
Chap 12
Equity
Perceived fairness between what a person does and what the person receives.
Chap 12
Exempt employees
Employees to whom employers are not required to pay overtime under the Fair Labor Standards Act.
Chap 12
Garnishment
A court action in which a portion of an employee’s wages is set aside to pay a debt owed a creditor.
Chap 12
Global market approach
Compensation plan that attempts to be more comprehensive in providing base pay, incentives, benefits, and relocation expenses regardless of the country to which the employee is assigned.
Chap 12
Green-circled employee
Incumbent who is paid below the range set for the job.
Chap 12
Job evaluation
Formal, systematic means to identify the relative worth of jobs within an organization.
Chap 12
Job family
Group of jobs having common organizational characteristics.
Chap 12
Living wage
One that is supposed to meet the basic needs of a worker’s family.
Chap 12
Lump-sum increase (LSI)
One-time payment of all or part of a yearly pay increase.
Chap 12
Market banding
Grouping jobs into pay grades based on similar market survey amounts.
Chap 12
Market line
Graph line that shows the relationship between job value as determined by job evaluation points and job value as determined by pay survey rates.
Chap 12
Market pricing
Use of pay survey data to identify the relative value of jobs based on what other employers pay for similar jobs.
Chap 12
Non-exempt employees
Employees who must be paid overtime under the Fair Labor Standards Act.
Chap 12
Pay compression
Occurs when the pay differences among individuals with different levels of experience and performance become small.
Chap 12
Pay equity
Similarity in pay for all jobs requiring comparable knowledge, skills, and abilities, even if actual duties and market rates differ significantly.
Chap 12
Pay grades
Groupings of individual jobs having approximately the same job worth.
Chap 12
Pay survey
Collection of data on compensation rates for workers performing similar jobs in other organizations.
Chap 12
Pay-for-performance philosophy
Requires that compensation changes reflect individual performance differences.
Chap 12
Procedural justice
Perceived fairness of the process and procedures used to make decisions about employees.
Chap 12
Red-circled employee
Incumbent who is paid above the range set for the job.
Chap 12
Salaries
Consistent payments made each period regardless of the number of hours worked.
Chap 12
Seniority
Time spent in the organization or on a particular job.
Chap 12
Tax equalization plan
Compensation plan used to protect expatriates from negative tax consequences.
Chap 12
Variable pay
Compensation linked directly to individual, team, or organizational performance.
Chap 12
Wages
Payments directly calculated on the amount of time worked.
Chap 12