C236 Compensation and Benefits

Role and control strategy=

'who is in charge of the rewards?' (centralized (HR) and decentralized (managers))

As a general rule, base pay strategies rarely lead the market by more than __%.

10%

The average number of paid holidays per year is

8

Co-pay

A fixed fee that an individual pays for specific medical services, like a visit to the doctor's office.

Job family

A grouping of jobs that have similar functions or content.

Sunset Clause

A law or regulation that ceases to have effect, after a specific date is reached

Preferred Provider Organization (PPO) plan

A plan in which the organization or health benefits provider establishes a network of health services providers with whom they have negotiated cost-saving terms in exchange for inclusion in the network.

Compa-ratio

A ratio frequently used to measure the conformity of pay rates to the pay plan. calculated by dividing the average pay for the pay grade by the midpoint of that range

Positive Location Externality

A reward or benefit, not paid for by the organization, that the employee experiences by virtue of living at a particular location.

Shadow Ranges

A system of smaller ranges within the pay ranges, applied to specific job families to provide guidance on appropriate compensation levels.

Piece Rate

A system that rewards employees with a fixed amount of compensation for each unit of work they produce.

Paying an employee $50,000 salary per year, for example, is a defining ....

Absolute level

Internal Reward Alignment is the extent to which the relative value of all jobs in the organization is ___________ the business strategy. Clear about Coherent with Fair to Supportive of All of the above

All of the above

Reward forms include: Salary Retirement Intangibles All of the above

All of the above

Which way is not a good way to find out employee satisfaction? Employee surveys Email Conversation All of the above

All of the above

What is an advantage to broadbanding? Allows for a better training guide in an orgranization Allows for stronger relationships Allows for more productive work results Allows for greater flexibility

Allows for greater flexibility

Employee Retirement Income Security Act (ERISA)

An Act that regulates retirement plans offered by organizations.

In a job-based system, pay changes occur when:

An employee changes jobs

Salary Level Test

Any employee paid less than $35,568 per year (or $684 per week) is nonexempt and covered by the FLSA.

Valence Perception

Asks, "Do I value the reward?" Employees use their personal value systems and circumstances to evaluate the extent to which the rewards being offered are rewarding to them.

Instrumentality Perception

Asks, "If I perform, will I receive the reward"? It focuses on the contingency between employee actions and the reward.

Of the following, which most aligns with the Strategy Shift? Being willing to learn and adapt new skills Being involved in business with a value-driven purpose Recruiting for talent as well as match to the organization Leading through directions, stories, & actions

Being involved in business with a value-driven purpose

How do you measure dispersion? Range Standard deviation Both A & B None of the above

Both A & B

Self-reported information is important because: It provides an additional source of data that can help make your overall reward estimates more reliable Data sources often are the exact sources that employees use to define market rates and their own reward expectations Both A & B None of the above

Both A & B

Rucker plans have a ___________ base on metrics. Smaller Broader Wider Larger

Broader

Critical Success Factors

Capabilities, activities, customer perceptions, and market positions that allow an organization to outcompete its rivals

Spot Awards

Cash bonuses given out based on weekly or daily behavior, to recognize extra effort.

Managers should remember that the process of __________ is important and also consider any legal ramifications of the historic pay disparity.

Change

The ___________________ is creating a job structure using logical categories and descriptions to organize the jobs.

Classification approach

Rucker plans provides incentives for: Collaboration Exempt employees Hourly workers Senior management

Collaboration

In the public sector, employers are allowed to grant paid time off instead of overtime pay, referred to as _____

Compensatory time

Job analysis is designing a process to understand how to _______________________.

Create value

Product and service markets are where organizations compete to ____________ through the production of products or the provision of services for customers in exchange for money and loyalty.

Create value

Transformational Leadership

Creates a sense of purpose in the minds of employees, motivating them to transcend self-interest in order to accomplish the goals of the organization. Through their directions, stories, actions, and systems, Transformational Leaders inspire employees in such a way that employees see the connection between their values and the purpose of the organization. Through this leadership approach, therefore, employees can receive greater intangible rewards from their membership in the organization.

Which of the following is not a reason a corporation would want to incorporate individual-based pay into its Total Reward system? Demonstrates good faith in the employees Creates a culture of learning Builds a more flexible workforce Allows the organization to build its capacity

Demonstrates good faith in the employees

Reinforcement Theory

Derived by behavioral scientist B.F. Skinner and others, is built on the assumption that behavior is a function of its consequences

The most fundamental question of internal reward alignment relates to the number of ____________ in an organization.

Distinct reward structures

The Employment and Training Administration (ETA) (part of DOL)

ETA provides job training and employment services through state and local workforce development programs. Also is a source of current labor market information and grant opportunities for workforce initiatives.

The value in having policies that slow the process of topping out include all except: Better understand the system implementation Organization can control costs Allow for growth potential Employee development

Employee development

Cash compensation influences: Management perception Government perception Market perception Employee perception

Employee perception

Red Circle Rates

Employees whose pay is above the range for their job.

Broadbanding

Entails the use of a few broad bands (or grades) to organize work for pay purposes.

How often should a job description be updated?

Every time a performance review is completed

motivation results from employees having three specific perceptions:

Expectancy, Instrumentality, and Valence

Which item can job evaluation, job analysis, market surveys, and performance measurement assist with? Explanation Voice Correcting mechanism Multiple sources

Explanation

Percentiles have the disadvantage of telling you how you compare to the mean and the dispersion simultaneously. True or false?

FALSE

Performance-based pay helps ensure that when performance is high, the company's cost structure is also increased. True or false

False

The capability-based approach makes a surprisingly similar assumption to the job-based approach about how rewards should be determined. True or false?

False

Blue-collar workers are always non-exempt employees. True or false?

False. Blue-collar workers performing repetitive manual work are non-exempt, up to $27.62 per hour.

Procedural Justice

Focuses on the process by which the reward distribution was determined.

________________________ ties rewards to the collective actions and results achieved by teams, groups and units in the organization. Group-based variable pay Individual-based variable pay Single pay Variable pay

Group-based variable pay

HIPPA stands for:

Health Insurance Portability and Accountability Act

Without any grade structure, a job-based pay strategy could involve ___________ of different reward strategies in one organization. Hundreds Zero Thousands Tens

Hundreds

Herzberg

Hygiene-motivator

An employees' satisfaction with work is heavily influenced by ____________________. Management Colleagues Immediate supervisor Amount of work

Immediate supervisor

Labor markets are where ____________ are the sellers and ____________ are the buyers.

Individuals, organizations

The rollout of capability-based pay systems, like all reward system changes, should be accompanied by: Expressive communication No communication Expensive communication Intensive communication

Intensive communication

top-down budgeting

Involves estimating the pay increase budget for an entire organisation and then allocating an amount to each manager orsupervisor and then the managers and supervisors are then responsible for distributing the budget increases among the members of their groups

Individual characteristics should be categorized into two categories: Strategic utility, job frequency Job analyses, strategic utility Strategic utility, employer frequency Job analyses, job frequency

Job analyses, strategic utility

In which approach would it appear that jobs are ordered based on rank and file? Job comparison approach Point factor approach Classification approach None of the above

Job comparison approach

Through what method do you understand how valuable a job is? Job analysis Job devaluation Job creation Job evaluation

Job evaluation

Using job analysis, all work in business is organized into: Jobs Job families Job approaches Job classes

Jobs

Who should be involved in the job analysis?

Key personnel

KSAOs

Knowledge, Skills, Abilities, and Other

Without a variable pay component, ________________remain the same even when revenues, sales, or profits drop. Utility costs Variable costs Fixed costs Labor costs

Labor costs

Using expectancy theory terms, when valence is high, then expectancy and instrumentality matter _____________. About the same More Less None of the above

Less

_________________ are one way to establish the price for any good or service.

Markets

There are three basic ways an organization will pay. Which of the following is not part of this list? Weighted Mean Mean Median Mode

Mode

Maslow

Need hierarchy

Pay Compression.

New employees and long-tenured employees are paid very similar amounts

Pay Inversion

New employees are paid more than those employees with substantial experience in the organization.

Performance appraisals look at the process to obtain ratings of an employee's:

PAST performance

It would be wise to establish a _____________ when developing the information sources. Group meeting Panel Benchmarking study Pamphlet

Panel

Job analysis is gathered by ____________

People

Distributive Justice (Equity theory)

Perceptions are based upon employees' views of the distribution of rewards in the organization.

Hierarchy of Needs Theory

Physiological needs, Safety and security, Social, ego and esteem, and self-actualization

It is better to have a _____________ approach in job analysis. Quantitative Qualitative Both A & B None of the above

Quantitative

What is a generic questionnaire?

Questions brought in by a third party

Interactional Justice

Refers to perceptions of the extent to which the employee was treated with due respect

Reward-level Strategy

Refers to the extent to which a company will pay above, at, or below the market average.

Job descriptions often contain information about the _________ that are important for accomplishing the job. Monetary values Understanding Strengths Relationships

Relationships. These relationships include supervisory or reporting relationships as well as peer relationship, team membership, and interfaces with customers.

The bulk of job descriptions do not include which of the following: Duties Requirements Tasks Responsibilities

Requirements (remember TDRs)

Employment-based Reward

Rewards that are only contingent on an employee maintaining employment with the organization.

Principle of Overlap

Says that there should be overlap in the pay ranges for successive pay grades or bands.

When graphing the salaries in a value reward line, what type of graph would give the best picture of salaries? Line graph Bar graph Scatterplot Pie chart

Scatterplot

regular workweek

Seven consecutive periods of 24-hour days

Principle of Inclusiveness

States that a pay range needs to be large enough to capture the pay range of all jobs in that grade or band.

Principle of Control

States that the size of pay ranges should be kept sufficiently small to enable an organization to control labor costs.

Intrinsic Motivation Theory

Stipulates that employees attribute their behavior to internal and external causes; also referred to as Self-determination Theory.

TDRs

Tasks, Duties and Responsibilities

Transparent Measurement

The criteria and system should be easily understood and the processes for implementing the system should also be well documented and followed.

Internal Reward Alignment

The extent to which an organization's Total Rewards System aligns each employee's rewards with those received by others in the organization.

Growth Needs Strength

The extent to which employees value and desire challenge and responsibility in work.

Rewards Strategy Coherence refers to:

The extent to which the parts of the strategy fit together in a logical and clear way

Dispersion represents: The gap between industries The gap between two data points The gap between the highest and lowest data point The gap between lower and higher level employees

The gap between two data points

Dynamic Role-based

The work employees do changes on a regular basis.

McClelland

Theory of learned needs

perquisites (perks)

There are an almost unlimited number of ways that employers can provide value to the employees through unique forms of benefits. Often referred to as Perquisites, or Perks, many of these are not 'standard benefits' that employees necessarily expect.

Law of Unintended Consequences

This principle states that not all of the consequences of a reward system change are foreseeable.

The overtime provision specifies that any employee working above 40 hours per week must be paid ____

Time and a half

Job descriptions can also reference any _______ involved in doing the job. Tools Necessities Both A & B None of the above

Tools

Total compensation can be calculated as: Total Compensation = Salary + Benefits + Perks Total Compensation = Salary + Variable Total Compensation = Salary + Benefits Total Compensation = Salary + Variable + Benefits

Total Compensation = Salary + Variable + Benefits

Intrinsic motivation would suggest that the clear contingencies in pay serve to undermine employees' intrinsic reasons for working. True or false?

True

Job databases in interviews are to generalizable job information sources available to managers to review databases of job descriptions for useful information about jobs? True or false

True

Over the past two decades, organizations have tried to understand how many pay bands they should have. True or false?

True

Total Rewards are one of those decisions that businesses make that influences their cost structure and their ability to provide those low costs to customers. True or false?

True

Using pay grades is useful because it allows the organization to establish different pay strategies for different pay grades. True or false

True

Gain sharing plans typically are at the ___________that would include a significant number of the employees in a particular location. Ceiling Floor Unit-level Main level

Unit-level

Anchored Rating Scale

Uses examples or definitions of typical behaviors to define each point along the scale.

The most obvious downside to a capability-based pay is?

Wages and salaries paid to employees will rise

Capability-based Pay

When a reward system explicitly attempts to vary rewards based upon capabilities of the employees. Types include Skill-based pay, Competency-based pay, and Seniority-based pay.

sabbatical leave

When an employee is on leave for performing work that has value to society or that enhances their professional competence. For example, some executives are asked by their companies to become involved in urban development projects and other full-time civic activities.

merit increase grid

a grid that combines an employee's performance rating with the employee's position in a pay range to determine the size and frequency of his or her pay increases

Lagging the market

an organization providing a lesser amount of the reward than its competitors

Critical Success Factors (CSFs)

crucial steps companies perform to achieve their goals and objectives and implement their strategies

cost leadership strategy

keep the costs, and hence prices, of a product or service below those of competitors and to target a wide market

A regression analysis plots a line ____ distant for each point in the data.

minimally

There are two basic ways to measure dispersion:

range and standard deviation.

Rating scales

raters rate the extent to which the job involves the compensable

External equity

refers to employee perceptions regarding the worth of their work conditions and rewards compared to the work conditions and rewards of individuals outside the company.

Benefit Level Strategy

refers to the level of each benefit type provided as well as the overall company expenditure.

Reward form combinations strategy

reward forms (cash, benefits, etc) offered and the way in which they related to each other

Individual-based approach

rewards should be based upon the characteristics of the person holding a job

Total Rewards Content Strategy

specifies the type, level, and combination of rewards offered to employees.

Job Characteristics Theory

specifies those qualities of work that will be inherently motivating and rewarding to employees

Occupational Outlook Handbook (OOH)

the OOH provides information on expected changes in demand for occupations and general Salary information.

Group based approach IS NOT an approach to Interal Reward Alignment? True or false

true

Relationships can either add to or reduce the ___________ employees receive from their employment and performance. Rewards Desire Value All of the above

value

As a general rule, base pay strategies rarely lead the market by more than ________. 5% 12% 10% 7%

10%

Employees have a right to continue their employer-sponsored health care plan, at the employees' expense, for up to___.

18 months

A job title is:

A name by which the job is known throughout the company NOT A name by which the employee is known throughout the company

Indemnity Plans

A plan that allows employees to go to any physician and create costs for the organization only when health services are utilized.

In loco parentis ("in the place of a parent")

A principle whereby a person (coach or teacher), by undertaking the care and control of a minor child, takes on the parent's rights, duties and responsibilities.

Differential Piece Rate

A system in which a lower rate is paid for the first 10 units assembled, and then a higher rate is paid for each unit over 10 assembled.

Tournament Theory

A theory which states that people are highly motivated to receive extremely valuable rewards, even when the probability of receiving the reward is quite small.

Benefit Benchmark Survey

A tool that helps organizations better understand how employee benefits may impact their ability to attract and retain qualified employees.

Which is not a reason why organizational culture is important to a total rewards program? It is a major driver of how employees experience the organization A total rewards system measures the market conditions set through organizational culture The total rewards system can have a large impact on the culture of the organization All of the above are important factors in a total rewards program

A total rewards system measures the market conditions set through organizational culture

Statements of TDRs typically begin with an ____, with 7-15 statements typically being sufficient to describe most jobs at the appropriate level of detail.

Action verb

Reward Surveys

Aggregations of reward information gathered from other market organizations.

Cost-sharing

An approach in which the insurance only pays for a portion of medical expenses. usually approximately 80% paid by the insurer and 20% paid by the employee.

Reliable Measurement

An employee's level of skill, competency, or experience can be assessed consistently across employees and raters.

Niche/Focus Strategy

An organisation choose a small and segmented market and competes only in that small arena

A job structure is:

An organized listing of the business's jobs that functionally groups and hierarchically arranges the jobs for rewards purposes

fringe benefits or perks

Any financial extras beyond the regular pay check, such as health insurance, life insurance, paid vacation and/or retirement

Expectancy Perception

Asks, "Can I perform at the level required for the reward"? Which grows out of employees' perceptions of the clarity of performance expectations and of their own abilities

Broadbanding allows employees to do all of the following except: Be promotable within a given time period Manage lateral changes in their career Modify their role in the organization Join and exit multiple organizational teams

Be promotable within a given time period

A downside to the comparison approach is it: Becomes inefficient as management shinks Becomes inefficient as size of company shrinks Becomes inefficient as management grows Becomes inefficient as size of company grows

Becomes inefficient as size of company grows

The reinforcement theory is: Behavior predicts consequences Consequences follow behavior Consequences predict behavior Behavior follows consequences

Behavior follows consequences

Through the use of __________________, an organization is going to create a link between its reward structures and the external markets. Surveys Benchmark jobs Exit interviews Interviews

Benchmark jobs

Central Tendency

Describes what's typical for a set of data, usually measured by the arithmetic mean, median, or mode.

Profit Sharing

Designed to distribute a portion of the firm's annual profits back to the firm's employees. The goal of these systems is to align both the incentives for employees and the variable labor costs with the interests of the organization.

A variable distance scale uses: Different point distances but narrowing the gap in each level of the scale Similar point distances between each level in the scale Different point distances between each level in the scale Similar point distances but narrowing the gap in each level of the scale

Different point distances between each level in the scale

Differentiation strategy

Distinguishing an organization's products from the products of competitors on dimensions such as product design, quality, or after-sales service.

When low distributive justice occurs, which of the following changes will employees not make? Changing inputs Seeking higher rewards Earning lower rewards Leaving the organization

Earning lower rewards

Linear Careers

Employees can expect to spend the duration of their careers with a single organization.

Networked Careers

Employees change jobs frequently, sometimes changing functions and industries to bring unique perspectives and competencies to their new roles.

To have an effective rewards system, you will NOT need to understand: Profitability Market conditions Customer needs Employees' previous salary

Employees previous salary

Green Circle Rates

Employees whose pay is below the range for their job.

Social Security

Enacted in 1935, it is a program that provides a retirement safety net for retiring employees who are of approved retirement age and have worked for a specified number of years.

Job-Specific Reward Level Strategy

Establishing different Reward Level Strategies for different job families or hierarchical levels.

The Law of Unintended Consequences can appear in the: Tournament theory Reinforcement theory Expectancy theory Justice theory

Expectancy theory

An organization does not need to investigate if the increases in productivity offset the higher wage rates. True or false

False

When customer perceptions is part of the business strategy not making a good impression on the customer is not in alignment with the business strategy?

False

When formulating reward level strategy, in organisation must have find highway reward will be calculated? True or false?

False

It is important that multiple people had input into the process. This can be done through all except: Market prices established Competencies rated Government mandates Performance assessed

Government mandates

There are three broad categories of sources of publicly available Reward Information: ___

Government, self report, and popular press

Broad Input

Help, advice and thoughts from employees of all levels of the organization.

meaningful work is or isn't considered a discretionary employee benefit

ISNT

Primary Duties Test

If an employee has significant discretion and exercises independent judgment, that employee is classified as exempt from FLSA provisions. The tests of duties are broken into exemption criteria for Executives, Learned Professionals, Creative Professionals, Administrative, Computer, Outside Sales, and High Compensated.

Scanlon plans focus on __________________. Improvements in all costs Improvements in product costs Improvements in capital costs Improvements in labor costs

Improvements in labor costs

_______________________specify an exercise price that is above the current market price to take into account that the organization expects the employees to outperform expected market returns.

Incentive stock options

Job Performance Model

Is a depiction that defines performance and outlines its causes.

Gain Sharing

Is a system of establishing a baseline of unit-level results and sharing improvements above that baseline with employees in that unit.

The list of Benchmark Competitors (is or isn't) an exhaustive list of all competitors in each market,

Isn't

Why is the list of benchmark competitors important? It creates the standard to which the rewards system fluctuates according to the market It creates the standard to which the company adds value to the community It creates the standard to which the rewards system is anchored It creates the standard to which the company adds value to the industry

It creates the standard to which the rewards system is anchored

Decentralized approach

Managers make decisions relating to pay strategy, as well as specific reward decisions such as salary offers to prospective employees, pay raises to current employees, and allocations of bonuses

Because of profit sharing plans, when an _______________ is profitable, the employees receive a portion. Employee Organization Employer Government

Organization

shift differential pay

Pay for inconvenience of working less desirable hours

There are three primary concerns when integrating data from multiple rewards surveys: ____

Pay forms, matching benchmark jobs, aging the data

Exclusive Provider Organization (EPO)

Plan in which participants must use providers in the network of coverage or no payment will be made.

Managed Care Plans

Plans that are adopted by organizations trying to slow the increasing cost of healthcare.

Cost leadership focuses more on:

Price, not cost

Differentiation strategy

Providing innovative, exceptional, in high quality products and/or services to customers

Psychological Contract

Refers to the informal expectations and agreements between an employee and an organization.

Benefit Mix Strategy

Refers to the particular combination of benefit types that an organization offers.

________________ and ___________ theory would both recommend that contingencies in pay be made very clear. Enforcement and expectancy Reinforcement and expected Reinforcement and expectancy None of the above

Reinforcement and expectancy

Organisational citizenship behaviours

Represent those value creating activities in which employees engaged but which are not part of their job. Employees who go beyond their defined responsibilities to help a colleague at work contribute significantly to an organisation success

Define variable pay: Rewards that grow based on government regulations Rewards earned independently Rewards that are dependent on a team Rewards that move in and out depending on market trends

Rewards that are dependent on a team

__________________ are an important part of the modern workplace. Benefits Social relationships Paid time off All of the above

Social relationships

Timing Principle

Specifies that the smaller the time gap between the behavior and the reward or punishment, the greater impact on behavior.

Total rewards content strategy

Specifies the type, Level, and combination of rewards offered to employees

Principle of Parity

Suggests that, in general, the more grades that are used the smaller the ranges will be.

Business Strategy

The collection of decisions, approaches, and activities that allow an organization to compete and win

Strategic Measurement

The definition of criteria are all conceptually and empirically connected to employee, unit, and organizational outcomes.

Value-Reward Line

The resulting line when regression is used to estimate the line summarizing the relationship between Job Evaluation Points and a compensation metric.

Absolute level

The reward can be defined. Paying an employee a salary for example

The basic approach is to define the performance-related behaviors and results for each employee and then to numerically assess the extent to which those behaviors were demonstrated or the results were achieved. True or false

True

Broadbanding allows organizations to: Use a few broad bands to organize work for pay purposes Use many broad bands to organize work for pay purposes Both A and B None of the above

Use a few broad bands to organize work for pay purposes

Job Family

a grouping of jobs that either call for similar worker characteristics or contain parallel work tasks

Matching the market

a rewards strategy of providing an amount of the reward equal to the market average

Compensable factors

a statement of what the organization values

Regression analysis

a statistical technique for drawing that line, sometimes called the line of best fit

Point Factor Approach

allocates points to jobs based upon the job's value to the organization.

Flexible Spending Account (FSA)

allow employees to set aside pre-tax funds from their wages into an account that then can be drawn upon to receive reimbursement for health related expenses.

Job-based approach

assumes that organizations provide rewards based upon the job that a person holds.

total rewards includes

base salary and benefits ONLY

Regular rate of pay

basic hourly rate of pay plus any non-discretionary bonuses, shift differentials, production bonuses, and commissions earned.

base pay

basic wage or salary paid employees in exchange for doing their jobs

to create a strategic total rewards plan, you need to understand all of the following except: market benefits customers none of the above

benefits

The assumption of the value of carrying and growing capacity lies at the heart of justifying a ______________________. capability-based rewards system performance-based rewards system opportunity-based rewards system none of the above

capability-based rewards system

Health Maintenance Organization (HMO)

creates pre-paid services contracts with those health services providers. Thus, there is a set per-employee fee that is paid regardless of the service utilization

Portal-to-Portal Act of 1947

defines the term hours worked that appears in the FLSA

organizational performance includes all but: new market share profits meeting customer needs employee satisfaction

employee satisfaction

flexible benefit plan (cafeteria plan)

employees may choose from a variety of benefit options

discretionary employee benefit

employment benefits that are not mandated by law. They can include a range of employee benefits, such as health insurance, sick leave, maternity leave, vacation leave, pension plans, life insurance, and prescription drug insurance.

The following describes the ___ 1. Identify job 2. Observe and Interview Leadership 3. Observe and Interview Incumbents (Holder of a position) 4. Consolidate information into Hob description draft 5. Obtain feedback and revise job description

general job analysis process.

Dispersion

how much distance there is between the data points.

SWOT analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)

An employee's satisfaction with work is heavily influenced by their: Coworkers Job description Immediate supervisor Job skills

immediate supervisor

hedonism

individuals compute a hedonistic calculus that enables them to choose among possible alternatives on the basis of their assumptions about the relative amounts of pleasure and pain each option has to offer (Jeremy Bentham and John Stuart Mill)

Short-Term Disability Insurance

insurance that pays a percentage of a disabled employee's salary as benefits to the employee for usually 3 weeks

Job Comparison Approach (or ranking approach)

jobs are placed in a relative hierarchy based upon how their value compares to the other jobs.

_________________ can have an important impact on employees and the meaning they perceive in work. Government Senior management Managers Leaders

leaders

Gain sharing plans typically are at the ___________that would include a significant number of the employees in a particular location.

main-level

Which is NOT discussed as a group of work relationships? Customer relationships Supervisory relationships Manager relationships Peer relationships

manager relationships

Expectancy Theory

motivation is determined by the outcomes people expect to occur as a result of their actions. The amount of effort an individual is willing to exert depends on (a) the perceived relationship between effort and performance (expectancy), (b) the perceived relationship between performance and the outcomes (instrumentality), and (c) the value of the outcomes (valence).

Do job families Group jobs into similar departments?

no

Workers Compensation follows the ____ principle

no fault

With the increased use of laser-based vision correction, about ________ of plans also cover that procedure.

one-quarter

Health Savings Account (HSA)

organizations or employees put pretax funds into an account upon which employees can draw for medical expense reimbursement.

Which of the following would not be considered a strategic benefit? Onsite childcare Overtime pay Credit union Onsite exercise

overtime pay

What are 3 job analysis methods available to a company to analyze a job?

panel, traditional interview, and questionnaire

defined benefit plan

pension plan that guarantees a specified level of retirement income

Variability Principle

points out that new behaviors are most quickly acquired when employees receive the reward every time a behavior is exhibited (low variability), but they are more likely to persist in an acquired behavior even after rewards have stopped when the behavior was not rewarded every time (high variability, also known as intermittent reinforcement).

Total Rewards

refers to all forms of pay and compensation, tangible benefits, and other intangible rewards that an organization provides.

Merit pay

refers to an annual increase in future compensation based on past performance.

Factor weighting

refers to determining the relative value of the compensable factors for a given reward plan.

Which statistical analysis will produce a value-reward line? Correlation P-Value Regression All of the above

regression

defined contribution plan

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

Performance-based approach

rewards should be based upon the performance or results produced by an employee.

Employees attribute their own behavior to being ______________ or ________________. imposed; unavoidable self-chosen; automatic self-chosen; imposed imposed; exposed

self-chosen; imposed

Salary basis test

signifies that any employee whose pay is reduced based on the hours worked is non-exempt.

Point of Service (POS)

similar to the PPO with the exception that the plan specifies a medical services point of contact for employees.

There are three broad types of capability-based pay approaches:

skill-based pay, competency-based pay, and experience- or seniority-based pay.

employer mandate (ACA)

states that organizations with 50 or more employees are required to either offer health insurance to their employees or pay an additional tax for not having done so.

Relative level

states the rewards strategy as greater than, equal to, or less than some labor market reference point. This Leading, Lagging, or Matching portion of the rewards strategy is often expressed in terms of a percentage and is the most common way that an organization defines the Level of rewards that it offers.

Centralized approach

the Human Resources department makes all decisions relating to pay strategy, as well as specific reward decisions such as salary offers to prospective employees, pay raises to current employees, and allocations of bonuses.

Job Specification translates

the TDRs into the Knowledge, Skills, Abilities, and Other (KSAOs) that an employee needs to perform the job at a satisfactory level. Therefore, the Job Description describes the job, the Job Specification describes the person.

Total rewards strategy

the combination of pay forms, plans, policies, and practices that enable long-term organizational performance.

Total rewards process strategies

the decisions, policies, and practices that define how Total Rewards are designed and implemented.

premium sharing policy

the employer does not pay the full premium for the health insurance. Instead, the employee shares in paying a minority of the premium.

Face validity

the extent to which the system produces relative job values that appear to be accurate and credible.

Leading the market

the firm is trying to provide more of a given reward than its competitors for those employees.

Traditional interview method

the job analyst asks the job incumbent preset questions about the content, skills needed, and time spent on activities in the job.

In a Job-Based System, what is the fundamental unit for designing the rewards system?

the job itself

Human Resource Management (HRM)

the policies, practices, and systems that manage the interface between the organization and its employees in order to enable long-term organizational performance.

Job analysis

the process of systematically analyzing positions that result in completed work in organizations.

Pay as Meaning principle

the rewards employees receive from organizations have informational value in addition to their economic value

Incentive systems are more flexible than Job-based and Individual-based pay systems and they, therefore, allow the organization to more quickly adapt incentive systems to changing strategic needs. True or false?

true

Organizations put jobs into categories known as Pay Grades that are treated as a group for reward purposes? true or false

true

_____________________ would be made available as a break from work, with no constraints on why the employee wants to use the time. Sick days Paid time off Vacation time PPO

vacation time

Pay Form-Specific Reward Strategies

varying pay-level strategies across reward types.

In _______ organizational cultures, more individuality is shown through the organization's rules being less strictly applied.

weak

Purpose Principle

when the core purposes of a business align with the values of an employee, then that employee will perceive value in maintaining his or her relationship with the organization.

Are generic questions brought in by a 3rd party?

yes