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38 Cards in this Set
- Front
- Back
What are the 3 parts that make up total compensation? |
Base Pay, Performance Pay and indirect Pay |
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What is an adjustment made to Social Security and Supplemental Security Income to counteract the effects of inflation. Are generally equal to the percentage increase in the consumer price index for urban wage earners and clerical workers (CPI-W) for a specific period. |
Cost-of Living adjustments (COLA) |
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What are the goals of a reward system? (8) |
Promote achievement of organizational goals Fit with the organizational strategy Attract and retain qualified individuals |
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What are factors in the firm context that indicate the most appropriate managerial strategies and organizational structure (business strategy, organization size, technology, workforce.) |
Contextual Factors |
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Needs to be divided total tasks into manageable tasks and coordinate tasks (job design, control system, reward system) |
Structural Factors |
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An approach assumes most employees dislike work but can be induced to work and achieve |
Classical Managerial strategy |
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Assumes most employees dislike work but can be induced to achieve social needs |
Human Relation Managerial strategy |
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Assumes work can be motivating if organizations is structured properly. |
High involvement Managerial strategy |
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3 key employee behavior |
Membership, Task Behavior, Organizational citizenship |
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Employee decide to join and remain with the firm |
Membership behavior |
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Employee perform the specific task that have been assigned to them |
Task behavior |
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Employees undertake special behaviors beneficial to the organization. |
Organizational citizenship |
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Four causes of reward dissatisfaction (VPC,PI,RD,LOJ) |
Violation of psychological contract perceived inequity relative deprivation Lack of organizational justice |
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5 Steps to creating a compensation strategy |
1.Define behavior |
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Which step in the compensation strategy is the most difficult? |
Determining the compensation mix |
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An approach to analyzing whether a lead,lag, or match strategy would be efficient. |
Utility Analysis |
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What are the 5 types of job evaluation methods |
Ranking method Paired comparison Classification Factor comparison Statistically |
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HR specialists examine jobs and rank jobs according to overall worth |
Ranking Method |
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Job compared with every other job one pair at a time. Each job is ranked above the other and the ranked total |
Paired Comparison |
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Establishes and defines jobs then create series of grade descriptions for each class |
Classification |
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Identifies major factors against which all jobs in a class can be assessed rather than the role as a whole. |
Factor Comparison |
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Questionnaires to gather info about task elements of each job and the task/importance of each task |
Statistically |
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Promotes equitable pay within, stops jobs from being overpaid, motivates promotion, systemic ways to determine wages for jobs |
Pros of a job evaluation |
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Organizations may not have resources to do evaluations, create "not my job" syndrome, can be costly |
Cons of a job evaluation |
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Risk of analyzing jobholder instead of job May be gender bias |
Key issues in managing evaluation process |
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Promises that a specific reward will be provided if specified behaviour is performed |
Incentive |
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Factors that satisfy basic human needs for survival/security as well as social needs |
Extrinsic Rewards |
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What are the 4 job analysis methods (O,I,Qu,FJA) |
Observation, Interview, Questionnaires, Functional Job analysis |
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Perception that overall rewards are fair |
Distributive justice |
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Perception that the process for reward determinations is fair |
Procedural justice |
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Increases an employees' base pay in recognition of good work. |
Merit Pay |
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Cash Payment that doesn't increases base pay |
Merit Bonus |
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An incentive plan in which employees or customers receive benefits directly as a result of cost-saving measures that they initiate or participate in. |
Gain sharing |
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Total value of the skills/competencies an employee has acquired |
Pay-For-Knowledge |
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Determine average amount other employers are offering for a given job. |
Market value |
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How are Maslow's hierarchy of needs and Herzberg's motivation hygiene theory similar |
People/employees will do whatever it takes to satisfy their basic needs. |
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Expectations about the rewards offered by a given job and contribution necessary to perform a job |
Psychological contract |
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Profit Sharing bonuses are allocated to employee accounts only at a later time (retirement) |
Deferred profit sharing |