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