Comp & benefits

6.3 As a general rule, base pay strategies rarely lead the market by more than how much?

10%

10.3 purpose principle

Employees derive intangible rewards from an organization's value-consistent purpose

4.2 A Performance-based approach assumes rewards are based on?

Results by an employee

4.1 Define internal rewards alignment.

Total Rewards System aligns each employee's rewards with those received by others in the organization

9.4 What does Merit Pay Refer to?

an annual increase in future compensation based on past performance.

Principles of Transparency

clear information on the who, what, when, and why of the reward system is available to all

2.4 Explain what an organizations Total Rewards Strategy is composed of?

combination of pay forms, plans, policies and practices that enable long term organization performance

7.4 Competency-based pay

configurations of knowledge, skills, and traits that enable employee performance

10.6 Employees perform better when they do not receive feedback

false

2.4 Absolute Level involves paying an employee an hourly salary?

false, Base salary

Rucker Plans

have a broader base of metrics, the key is to compare current performance to historic norms and share the improvements.

5.1 Define External Reward Positioning.

how an organization's Rewards compare to the Rewards offered for comparable work in other organizations

4.3 Using Job Analysis what is all work organized into?

jobs

2.3 Human Resource Strategy

links the entire human resource function with the firm's business strategy

3.1 What does an employee contribute to the organization to create value?

their work

2.4 Total Rewards Content Strategy

type, level & combination of rewards

What is a Defined Benefit Plan

Traditional pension plan where you receive "defined" pension payout at retirement per year

3.2 Job Databases and Interviews are two generalizable job information sources available to managers to review data bases of job descriptions for useful information about jobs?

True

4.2 The approaches to Internal Reward Alignment should be understood to all an organization to decide upon its Total Rewards Strategy and System?

True

5.4 The idea of Central Tendency is to find a single number that best represents a whole group of numbers?

True

9.5 Team based Bonuses are like Individual based bonuses in that they provide a lump sum reward that does not get added into future base pay, but the bonus is based on some measure of team performance instead of individual performance.

True

3.2 Generic Questions are questions brought in by a third party?

True. purchased from a third party and use general questions to which incumbents respond using scaled ratings.

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

Wages and salaries paid to employees will rise

7.1 capability based pay.

When a reward system explicitly attempts to vary rewards based upon the capabilities of the employee (same job more skills)

10.3 What is Person-Organization Fit

When the values of an employee align with the values of the organization

Scanlon Plan

a gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard. focus on improvements in labor costs

7.4 Skilled based pay

a pay plan that sets pay levels on the basis of how many skills employees have or how many jobs they can do

6.6 What does the Principle of Inclusiveness Mean?

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

6.4 When establishing pay grades, jobs are declared "similar" on the basis of their Job position points, which represent the organization's external measure of the value of jobs.

false, jobs are declared "similar" on the basis of their Job Evaluation points, which represent the organization's internal measure of the value of jobs.

9.5 Group-based Variable Pay ties rewards to the collective actions and results achieved by each individual in a group?

false, provide some incentive for the individuals to work as a team

3.4 Job Title is the category a job is placed in a company.

false, the name by which the job is known within the company

1.3 What groups of people does compensation affect in a company?

everyone

2.3 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

8.2 Reinforcement Principle states that when positive consequences (rewards) follow a behavior, that behavior becomes more likely to never be repeated.

false

8.6 Recognition, Meaning and Culture are all examples of Tangible Rewards?

false

9.1 Is variable pay better than performance based pay?

false

Benefits utilized by a very small minority of employees should not be scrutinized to ensure that they are in line with the organization's interests.

false

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

false, Performance-based pay helps ensure that when performance is low, the company's cost structure is also reduced.

6.4 In a Linear Career employees will spend their career in several roles in several organizations?

false, employees can expect to spend the duration of their careers with a single organization

3.4 Job Family groups jobs into similar departments?

false, grouping of jobs that have similar functions or content

10.1 Intrinsic Motivation Theory (Maslow)

employees are motivated to satisfy unmet needs including Physiological (food, water, sex), Safety (protection from harm), Social (relationships, belonging, social support), Esteem (autonomy, achievement, status), and Self-actualization (growth and meaning).

1.1 What does cash compensation influence in the organization?

employees perception

1.5 The first and most prominent objective of a Total Rewards System is to direct organizational activities toward higher employee promotion?

false

10.7 Location is not a part of the Intangible Rewards pie

false

6.4 Jobs are considered static if they have multiple changes over time?

false

2.4 Explain the Role and Control Strategy and State the two approaches used in the strategy.

'who is in charge of the rewards?' Centralized approach in which the HR makes all decisions relating to pay, and specific reward such as salary offers to prospective employees, pay raises to current employees, and bonuses. Decentralized approach allows such decisions to be made by the employee's immediate supervisor or manager. Most organizations find a balance between these two extremes

3.1 What are the implications of Job Analysis on the compensation system?

- provides an understanding for how work is organized and the basis for most reward systems. -detail the knowledge, skill, and ability requirement for a job, (direct connection to the reward strategy for that particular job) -defines the nature of the work forFair Labor Standards Act status (exempt vs. non-exempt). -provides an understanding of the nature of the work performance which is vital for determining the likely effectiveness of performance-based pay systems.

3.3 When creating a job analysis who should you speak with for input?

Job incumbents Supervisors Managers

3.4 What is the purpose of Job Specification?

Knowledge, Skills, Abilities, and Other (KSAOs) that an employee needs to perform the job at a satisfactory level.

9.2 Which of the following reasons to use performance-based pay?

Motivation Focus Risk & uncertainty Control costs

9.4 Explain Pay Compression.

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

8.7 What are Motivational Preferences?

Not all employees are motivated by the same rewards and systems should be designed with enough flexibility to allow for as much customization as possible.

9.4 When Does pay Inversion Occur?

One challenge that organizations face is when the external market moves faster than the internal evaluation process, new employees are paid more than those employees with substantial experience in the organization

absolute level reward

Paying an employee $50,000 salary per year,

1.3 In what ways can HR Generalist impact compensation?

Staffing, training, recruiting

10.5 Why is Organizational Culture an important of the Total Rewards design?

a major driver of how employees experience the organization. A positive organizational culture can go a long way in shaping employee satisfaction. Second, the Total Rewards systems in an organization can have a large impact on the culture of the organization. Rewards shape behavior

2.1 Cost Leadership Strategy

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

3.4 What is included in the bulk of the job description?

listing of the Tasks, Duties, and Responsibilities (TDRs) comprising a particular job.

8.1 What is the most popular Needs Theory used today?

maslow Hierarchy Needs Theory

1.4 Explain Intangible Rewards?

meaningful work, positive work relationships, work location

6.5 What is the purpose of Network Careers?

more Linear Careers are being replaced, where employees change jobs frequently, sometimes changing functions and industries to bring unique perspectives and competencies to their new roles.

3.2 How is the panel interview used to analyze a job?

multiple job incumbents (and sometimes multiple job analysts) all meet together to analyze the job.

8.3 Why is it important for managers to be aware of the Law of Unintended Consequences?

not all of the consequences of a reward system change are foreseeable. it is also possible that there are additional, perhaps less desirable, behaviors that it might also motivate.

5.3 Who should be on the Benchmark Competitor List?

not an exhaustive list of all competitors in each market, but rather represents exemplars or representative samples of such competitors

9.4 How are Spot Awards generated?

often given out based on weekly or daily behavior managers are given a cash budget from which they can immediately draw to provide employees with instant recognition of a high performance.

What is a health saving account?

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

3.5 How does FSLA monitor Child Labor?

prohibits Child Labor and defines the type of work appropriate for children and the ages at which children can work. Finally, the act specifies record keeping requirements that allow the organization to verify the classification and hours worked.

9.5 What do Stock Options provide an employee?

provide employees the right to purchase a set amount of shares of stock for a set price.

3.2 What analysis method does an organization use to overcome some of the limitations of interview methods?

questionnaires can be used to collect job information. Some of the questions are open-ended others ask incumbents to provide ratings on a scale

Cost Sharing is what?

the insurance only pays for a portion of medical expenses.

3.2 What is involved in the traditional interview?

the job analyst asks the job incumbent preset questions about the content, skills needed, and time spent on activities in the job. The interview has the advantage of allowing for exploration and clarification-type questions that yield a complete and detailed understanding of the job.

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

the job itself

5.4 The median is:

the middle number of a group of numbers when they are arranged from lowest to highest.

Define the benefit matrix strategy?

the particular combination of benefit types that an organization offers. For example, by adding on-site child care, orthodontia coverage, and low family deductibles

10.5 Define Organizational culture

the shared beliefs, values, norms, and assumptions of the organization.

With insurance, ______________ require employees to pay a set amount for each time any service is used.

copays

9.3 What does the Performance Management System Involve?

creating performance plans, providing support and resources, appraising performance, and providing feedback and coaching.

Motivational Judgement?

different views of motivation might be useful at different times. In some ways, these views are compatible. For example, reinforcement and expectancy theory would both recommend that contingencies in pay be made very clear. In other ways, the theories have some points of conflict. For example, Intrinsic Motivation would suggest that the clear contingencies in pay serve to undermine employees' intrinsic reasons for working.

6.6 What is the best way to calculate the Campa-Ratio?

dividing the average pay for the pay grade by the midpoint of that range. For example, if the organization has an average pay of $50,000 in a pay grade and the midpoint of that pay grade is $75,000 then the Compa-ratio is .66 suggesting that the organization is paying less than planned.

Describe Location Competitors.

employee can leave your organization and retain the benefits of living in a particular location (e.g., working for another company in town), then this will reduce the benefits your firm can accrue from the positive externalities.

8.1 To design effective performance-based pay systems, managers must have a good understanding of ______________?

employee motivation

3.3 What is the goal of a job analysis?

to come to a better understanding of how the work is currently organized into jobs, it can also be useful as a basis for understanding how the work could be potentially organized

Why was the Employment Retirement Income Security Act formed?

to regulate the retirement plans offered by organizations.

3.5 What does an Independent Contractor have the ability to do?

to set their own hours and work processes, and they work and are paid on a project basis with the opportunity for profit or loss

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

traditional interview panel interview (multiple job incumbents &/or analyst) Questionnaires

6.4 In an Individualistic Environment, where work is done independently by single employees reporting to a single supervisor, the many grades can capture the simplicity of that working arrangement?

true

6.4 The purpose of grades is to allow jobs creating the same amount of value for the organization to be treated in the same way.

true

8.5 Distributive Justice is also known as __________________?

Equity Theory

FMLA allows up to ____________ weeks of time off to recuperate from medical conditions or to handle qualified family needs.

12

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

18 months

Short-term disability policy could last up to ________ months.

3 (turns into long term)

8.3 What does the Expectancy Perception ask? (Give example)

Can I perform at the level required for the reward?

4.2 What does the Individual-based approach assume rewards should be based on?

Characteristics of a person holding a job

1.5 Which of the following laws relates to total rewards?

Civil Rights Laws

6.2 Regression analysis is also called?

The line of best fit

What is a Flexible Benefit Plan

allow employees to allocate a dollar amount of benefit units to various programs to design a package that more closely matches their definition of value. ie: life insurance for a middle-aged employee with dependents, or health insurance for the 60-year old employee without dependents.

3.5 What does the Fair Labor Standards Act require of organizations?

requires that organizations determine the "employee status" of each job.

8.2 The 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). 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).

true

List and define 3 types of Paid Leave

vacation, sick, holiday, personal

Employees find psychological rewards in being part of an organization that aligns with their values.

true

Life Insurance provides a payout to survivors of the employee upon his or her death

true

Organizations can ask employees directly about their benefit preferences.

true

Within the ACA, the employer mandate requires that organizations with ___ or more people either offer health insurance to their employees or pay an additional tax for not having done so

50

1.5 Organizational Performance

A measure of how efficiently and effectively a manager uses resources to satisfy customers and achieve organizational goals.

5.3 What is a Benchmark Competitor?

A selection of primary organizations that exemplify the labor and product/service markets in which the organization competes.

2.1 differentiation strategy

A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions.

2.1 Hybrid Strategy

A unique approach using a combination of all of the above (differentiation, niche, & cost leadership) approaches

7.5 Reliable Measurement

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

2.1 Niche-Focused Strategy

An organization chooses a small and segmented market and competes only in that arena. Good for small term

4.1 What potential problems can happen if there are flaws in a compensation system?

Any rewards system that does not have a clear answer to this question is destined to have difficulties not only with employee morale and turnover, but also internal processes such as collaboration and information sharing.

10.3 Strategy Shift

As organizations systematically define their activities in light of their values, there will be a gradual shift towards being involved in businesses with a more value-driven purpose.

5.2 If skills are scarce and the demand for those skills is high, the compensation levels will be relatively low as firms compete for scarce skills?

False, the compensation levels will be relatively high

broadbanding

Combining several salary grades or job classifications with narrow pay ranges into one band with a wider salary spread.

1.1 Total Reward pay

Compensation and benefits such as retirement plans

1.4 What are the forms of pay and compensation? Define Each?

Compensation can be given through benefits, variable pay, commission, bonus

9.1 variable pay?

Compensation linked directly to individual, team, or organizational performance. rewards will vary as performance varies,

7.3 Which of the following is not a reason a corporation would want to incorporate individual-based pay into its Total Reward system?

Creates a culture of learning Builds a more flexible workforce XXXXX Demonstrates good faith in the employees Allows the organization to build its capacity

3.2 Custom Questions are extra questions an interviewer asks?

False. created within the organization and often based on prior information obtained through the interview methods

8.5 Perceptions that are based upon employees' views of the distribution of rewards in the organization are known as what?

Distributive Justice

1.5 three different types of fairness perceptions in aTotal Rewards system:

Distributive, Procedural, and Interactional.

8.3 What does the Valance Perception ask? (Give example)

Do I value the reward

10.4 Describe the importance of Peer Relationships.

Due to the increasing complexity and interdependence of work, working with others is a necessity of the modern workplace.and can have a significant influence on employees' experiences at work.

1.5 Which of the following does organizational performance not include?

Effectiveness at meeting customer needs Developing employees. XXXXX New product creation Gains in market share

5.4 When calculating a salary, it is generally to the employee's interest to use the mean versus the weighted average?

False,

2.4 When formulating Reward Level Strategy, an organization must define how a reward will be calculated?

False, organizations must define what Level of each reward will be offered "how much is being offered"

What is a cafeteria plan?

Flexible Benefit Plans which allow employees to allocate a dollar amount of benefit units to various programs to design a package that more closely matches their definition of value. ie: life insurance for a middle-aged employee with dependents, or health insurance for the 60-year old employee without dependents.

9.2 What does Motivation refer to?

Focus, effort, and persistence that employees demonstrate

What is HIPPA?

Health Insurance Portability and Accountability Act

What is Long-term and Short-term Disability Policy

If injuries prevent an employee from returning to work for a relatively short period of time (e.g., three weeks), a (Short-term) a Disability Policy will replace a portion of that employee's salary. For injuries preventing work for up to 3 months are considered long term

3.5 How does FSLA require a company to cover compensatory time?

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

4.2 Which is an approach to Internal Reward Alignment?

Individual-based approach Job-based approach Performance-based approach

6.5 What is the Collaborative Environment?

Individualistic teams of employees work together in concert to be creative, solve problems, and produce results

2.5 Which questions help in in determining the effectiveness of the compensation plan?

Is it augmenting or inhibiting employee, team, and organizational performance? Does it help attract and retain its best employees or cause them to seek better opportunities elsewhere? Is your system seen as fair, and does it satisfy employees' needs? Does your Rewards System accomplish its objectives in an efficient, cost-conscious way?

5.3 Why is the Benchmark Competitor list important to the organization?

It creates the standard to which the rewards system is anchored.

9.4 What two distinctions define the Individual Bonus?

It is monetary reward given to a single employee based upon performance (individual-level reward) Second, bonuses do not accumulate into base pay. It does not affect the employees' wages or salary for the next year.

3.3 Why is it necessary to gain buy in for a job analysis to create a value-added analysis?

Job Analysis information is collected for a purpose, and the ability to use it for that purpose is enhanced if people throughout the organization find it credible.

9.2 Without a variable pay component, ________________remain the same even when revenues, sales, or profits drops.

Labor costs

5.4 Which of the following is part of the list of how an organization will pay?

Mean (or Average) Median Weighted Mean (or Weighted Average)

1.1 Total Rewards

Monetary and non-monetary rewards provided by companies to attract, motivate, and retain employees All forms of pay or compensation (tangible or intangible)

1.4 define pay

Monetary compensation given to an employee in exchange for work such as salary or hourly pay

2.4 What is the difference between Leading the Market, Lagging the Market, and Matching the Market?

Paying more than the market -leading paying less than the market - lagging paying the same as the market - matching

What are Perquisites?

Perks, (free meals, use of a company car, or on-site massages to employees) many of these are not 'standard benefits' that employees necessarily expect and are benefit forms that allow an organization to differentiate itself in the labor market.

8.1 What is the main reason the organization uses Performance Based Pay?

Provide an incentive for the types of behaviors and outcomes that enable higher performance

1.3 What is the responsibility of the Compensation Manager in the compensation plan?

Require the company to implement market standardized compensation plans

6.3 What graphical form can a company's Reward Level Strategy be displayed?

Reward Strategy Line

2.5 What strategy can be used to determine if the Total Rewards System makes sense?

Rewards Strategy Coherence

9.1 Performance-based pay

Rewards with distributions dependent upon performance levels Rewards with distributions dependent upon performance levelsSituation where an individual's performance is the basis for either the amount or timing of pay increases; also called merit pay.

10.1 intangible rewards.

Supportive work environment, challenging work, autonomy, positive reinforcement

9.4 Piece Rate Systems

Systems that reward employees based on the number of units produced

7.5 Transparent Measurement

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

7.5 Strategic Measurement

The definitions of criteria are all conceptually and empirically connected to employee, unit, and organizational outcomes. before an organization implements a reward system that pays employees a higher salary if they have certain technical skills or competencies, they should ensure that possession of these skills is important for employee performance and that the organization would benefit from greater availability and higher levels of these skills or competencies.

5.1 What is External Equity?

The degree to which employees are paid what other employees in the same area at another company

What is the Primary Duties Test?

The employee's job duties must primarily involve executive, administrative or professional duties as defined by the regulations.

2.5 Explain Organizational Cultural Fit as it relates to the Total Rewards System.

The extent to which the rewards strategy aligns with and supports the ingrained practices, norms, and values of the organization, When total rewards is used to change a culture, past norms should still be considered.

3.1 reward system

The formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded

9.3 Performance Assessment.

The process of defining and measuring the performance of individuals, teams, units, and organizations.

10.2 What is the pay as meaning principle?

The rewards employees receive from organizations have informational value in addition to their economic value. how you feel after finding out your peer makes more or less than you doing the same job

9.4 What does the Merit pay Matrix support?

This matrix is created by putting different levels of performance along one axis and an employee's position in their pay grade in the other. allows organizations to simultaneously reward past performance but also support its Integrated Reward Structure

2.4 What is considered the Communication Strategy for the Organization

a plan for creating, sharing, and receiving information relating to its Total Rewards Systems. communication proceeds in two directions, meaning that a communication strategy should consider not only how information flows to employees but also how information about the rewards system flows back to the organization.

What is a Negative Location Externalities?

a punishment or nuisance that an employee experiences by virtue of living in a particular location such as pollution, traffic, or crime

3.1 job Analysis.

a purposeful, systematic process for collecting information on the important work-related aspects of a job

9.5 What are Profit Sharing Plans and how are they designed?

a retirement plan that gives employees a share in the profits of a company. Under this type of plan, also known as a deferred profit-sharing plan (DPSP), an employee receives a percentage of a company's profits based on its quarterly or annual earnings.

Positive Location Externalities?

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

9.5 Gain Sharing

a system of establishing a baseline of unit-level results and sharing improvements above that baseline with employees in that unit. attempts to align the interests of the organization with the interests of the employees by creating a system in which they both benefit from productivity gains, service improvements, or cost savings.

2.1 Business Strategy

actions that a firm takes to achieve a goal, such as maximizing profits

What is a flexible spending account?

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.

4.3 When do pay changes occur in the Job-Based system?

an employee changes jobs

10.4 Describe the importance of Supervisory relationships.

an employee's satisfaction with work is heavily influenced by their immediate supervisor. Thus, a Total Rewards system should also consider how to build and nurture quality and rewarding management-employee relationships at work.

3.5 Salary Level Test

any employee paid less than $35,568 per year (or $684 per week) is non-exempt and covered by the FLSA for purposes of paying overtime.

2.5 Business Strategy Support

approach to adapting to changes in its environment in order to compete and win. Because Total Reward systems are a primary mechanism for shaping the behavior of employees, groups, and the organization as a whole, the value of a Total Reward System should be evaluated in relation to the business' strategy,

7.4 What does Experience/Seniority Based pay assume?

assumption that the more experience an employee has, the higher their future performance can be expected to be

6.7 What do Red Circle Rates refer to?

employees whose pay is above the range for their job

6.7 What do Green Circle Rates refer to?

employees whose pay is below the range for their job

What is a Defined Contribution Plan

employers contribute to a portable retirement account in the employee's name. These funds are then invested at the discretion of the employee and they grow tax-free until retirement. (401k 0r 403b)

5.4 An outlier is defined as:

numbers that are far above or below most of the other numbers.

Tournament Theory

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

1.5 How are Cost and Efficiency related to the outcomes of the rewards System

people related expenses affect the bottom line so rewards must be monitored but not at the expense of the asset (human capital) and / or performance or quality of the product

8.5 procedural justice

perceived fairness of the process used to determine the distribution of rewards

10.4 Customer Relationships

programs aimed at improving customer relationships will also factor into the intangible rewards in the Total Rewards System.

rewards strategy coherence

refers to the extent to which the parts of the strategy (e.g., reward forms, levels, communication, etc.) fit together in a logical and clear way. When issues arise regarding rewards in the organization, is there a simple way to explain the parts of the strategy and how they relate?

2.4 How are Data and Broad Input used in developing the Design Strategy?

reliance on objective Data (e.g., external metrics and pay surveys justify choices), and utilization of Broad Input (e.g., employees from all levels of the organization are involved in system design). The process used to design the rewards system will almost certainly come under great scrutiny and every effort should be made to make sure that each decision can be justified impartially.

2.4 Reward Form Combination Strategy

reward form offered; the way in which paying salary and the competitive climate combine. what Forms of Rewards (e.g., salary), Benefits (e.g., retirement contributions), and Intangibles (e.g., safe working conditions) will be provided & relate. (paying salary and the competitive climate both combine)

What is a employment-based reward?

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

6.2 When graphing the salaries in a value reward line, what type of graph would give the best picture of salaries?

scatterplot

3.5 Salary Basis Test

signifies that any employee whose pay is reduced based on the hours worked is non-exempt from OT (salary based)

Managed Care Plans are adopted by organizations trying to _____ the increasing cost of healthcare

slow

10.6 What is Job Characteristics Theory?

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

9.5 Why do some company's choose to use Incentive Stock Options?

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.

9.3 What does the Performance-based pay draw upon?

the Performance Appraisal step of that process to obtain ratings of an employee's past performance.

How does the organization use Total Rewards Process Strategies?

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

10.6 Define Task Identity?

the degree to which a job requires completion of a whole and identifiable piece of work

8.5 Interactional Justice

the degree to which others are treated with dignity and respect

6.3 Define Reward-Level Strategy

the extent to which a company will pay above, at, or below the market average. It is typically expressed as a percentage above or percentage below the market.

10.6 What is Growth Needs Strength

the extent to which employees value and desire challenge and responsibility in work

10.6 What is Task Significance?

the extent to which the employee perceives that completion of their work has important consequences for others

10.6 Define Skill Variety?

the extent to which work is designed to require a variety of skills and poses a reasonable degree of challenge to the employee

2.1 Define critical success factors and explain how an organization can use the process?

the factors that allows a company to outcompete its rival such as location, low cost, name, customer perception

Benefits can be one mechanism to counteract the forms of pay in order to maintain the employee/organization connection.

true

A psychological contract refers to?

the informal expectations and agreements between an employee and an organization. signals to the employee that the organization cares about them personally and creates a psychological link between the employee and the organization.

Define the benefit level strategy?

the level of each benefit type provided as well as the overall company expenditure. It is important to calculate, therefore, not just which benefits are being offered but the expense being incurred to offer such benefits.

6.6 What does the Principle of Parity Suggest?

the more grades that are used the smaller the ranges will be

3.3 Define job design and state what is its purpose?

the process of systematically constructing jobs to make them functional, efficient, and motivational. (5 people doing 5 task or 1 person doing all 5 task)

6.6 How is the Principle of Control used?

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

Expectancy Theory

the theory that people will be motivated to the extent to which they believe that their efforts will lead to good performance, that good performance will be rewarded, and that they will be offered attractive rewards

Job Performance

the value of the set of employee behaviors that contribute, either positively or negatively, to organizational goal accomplishment

6.5 Define Dynamic Role- Based.

the work employees do changes on a regular basis from a static work environment, and organizations need a compensation system that facilitates those changes instead of impeding them.

6.6 How is the Principle of Overlap used in pay grades or bands?

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

Social Security requires organizations to?

to both pay and collect taxes from employees to fund the United States Social Security, Medicare, and Medicaid systems

10.3 Transformational Leadership

transforms employees to pursue organizational goals over self-interests

1.5 An objective of a total rewards system is to sustain quality performance in each area over time?

true

1.5 Team Performance comprises the joint or collective actions of groups of employees ?

true

1.5 The outcomes of a total rewards system represent the goals or the criteria by which a rewards system can be judged?

true

10.6 Autonomy gives employees discretion in choosing what to do and how to do it.

true

10.6 Workplace relationships is a form of Intangible reward.

true

2.3 Strategic Human Resource Management ensures that HR practices are aligned with the Business Strategy in general and critical success factors in particular?

true

2.3 Total rewards plays a vital role in the Business Strategy?

true

2.4 The level of reward offered for a job can be understood in two ways Absolute Level or Relative Level?

true

3.4 A job is referenced by the Reference ID which is a letter or numeric code used to reference the job, often in databases?

true

5.2 Geography has a significant impact on how an organization should define its labor markets?

true

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

true

8.2 The Reinforcement Theory of motivation, as derived by behavioral scientist B.F. Skinner and others, is built on the assumption that behavior is a function of its consequences.

true

8.2 The Timing Principle specifies that the smaller the time gap between the behavior and the reward or punishment, the greater impact on behavior.

true

8.6 Intrinsic Motivation Theory stipulates that employees attribute their behavior to to being self-chosen (intrinsic) or imposed (extrinsic), and that attribution has implications for their attitudes and their motivation when the external factors are reduced.

true

9.2 Incentive systems are more flexible than job-based and individual-based pay systems.

true

2.4 Relative Level states the rewards strategy as greater than, equal to, or less than some labor reference point?

true, leading, matching, lagging

9.4 When are Commission-based Rewards Systems used?

used for jobs with a sales component and provide employees a set percentage of the sales that they make

What is a benefit benchmark survey?

used to gauge the type and level of benefits offered by other companies.

6.3 What are Pay form-specific reward strategies?

varying pay-level strategies across reward type, to differentiate them from their competition in the labor market. ex: lag the market by 5% on base pay, but lead the market by 10% on employee benefits.

1.5 Organizational Citizenship Behaviors (OCB)

voluntary behaviors employees perform to help others and benefit the organization

What are Labor-driven Job Markets?

when the demand for a particular set of KSAs (knowledge, skills, and abilities) is high and the supply of these KSAs is low. Thus, job seekers have more power in negotiating terms of employment, including compensation rates.

Define labor markets

where individuals are the sellers and organizations are the buyers. Prospective employees are offering to sell their time, knowledge, skills, influence, and other ways of creating value.

shadow range

which is a temporary readjustment that expands the size of the maximum pay rates associated with a pay grade

2.3 functions of Human Resources.

workforce planning, recruiting, selection, training, reward, performance and career management

6.2 What mathematical formula best explains the value-reward line?

y=mx+b