HRM Chapter 11

Pay Policy Line

A mathematical expression that describes the relationship between a job's pay and its job evaluation points.

Comparable Worth

A public policy that advocates remedies for any undervaluation of women's jobs (pay equity)

Efficiency Wage Theory

A theory stating that wages influence worker productivity.

Job Evaluation

An administrative procedure used to measure internal job worth.

Compa-Ratio

An index of the correspondence between actual and intended pay.

Key Jobs

Benchmark jobs used in pay surveys, that have relatively stable content and are common to many organizations

Benchmarking

Comparing an organization's practices against those of the competition.

Rate Ranges

Different employees in the same job may have different pay rates.

Exempt

Employees who are not covered by FLSA. Not eligible for overtime pay.

Pay Grades

Jobs of similar worth or content grouped together for pay administration purposes

Minimum Wage

Lowest amount that employers are legally allowed to pay; FLSA permits subminimum wage to workers under the age of 20 for 90 days

Skill-based pay

Pay based on the skills employees acquire and are capable of using.

Delayering

Reducing the number of job levels within an organization.

Fair Labor Standards Act (FLSA)

The 1938 law that est. the minimum wage and overtime pay.

Pay Level

The avg. pay, including wages, salaries, and bonuses, of jobs in an organization

Compensable Factors

The characteristics of jobs that an organization values and chooses to pay for.

Range Spread

The distance between the min. and max. amounts in a pay grade

Pay Structure

The relative pay of different jobs (job structure) and how much they are paid (pay level).

Job Structure

The relative pay of jobs in an organization

Nonkey Jobs

Unique jobs to an organization. Cannot be directly valued or compared through the use of market survey