HR Chapter 9
Perception of Fairness
Adams's equity theory Output Output (Own) vs. (others) Input Input Others: same job in the same organization; other jobs in the same organization; same job in other organizations
What is Salary Workers?
Employees whose compensation is computed on the basis of weekly, biweekly, or monthly pay periods.
Which system of job evaluation is being used when cards that list the duties and responsibilities of the job are arranged by raters in order of the importance of the job?
Job ranking
Strategic Compensation Planning
Links the compensation of employees to the mission, objectives, philosophies, and culture of the organization. i.e. The allocation of compensation sends a message to employees about what is important. Serves to mesh the monetary payments made to employees with specific functions of the HR program in establishing a pay-for-performance standard. Seeks to motivate employees through compensation.
The Bases for Compensation
Nonexempt Employees Employees covered by the overtime provisions of the Fair Labor Standards Act. They must be paid time and one-half their regular pay for all work performed after forty regular hours of work in a workweek.
What is Job ranking system:
Oldest system of job evaluation by which jobs are arrayed on the basis of their relative worth. It can be done by a single person familiar with all jobs.
Job Ranking System
Oldest system of job evaluation by which jobs are arrayed on the basis of their relative worth. It can be done by a single person familiar with all jobs. Rankings are based on some critical factor to job success (e.g., responsibility), or the total importance of the job to the organization. Disadvantages Does not provide a precise measure of each job's worth. Final job rankings indicate the relative importance of jobs, not the extent of differences between jobs. Method can used to consider only a reasonably small number of jobs.
Pay-for-Performance and Expectancy Theory
One's level of motivation depends on the attractiveness of the rewards sought by employees and the probability of obtaining those rewards.
What is the theory of Expectancy Theory?
One's level of motivation depends on the attractiveness of the rewards sought by employees and the probability of obtaining those rewards.
If rates of pay are high, thereby creating a large applicant pool organizations may choose to raises their selection standards
True
When the organization pays wages that are relatively equal to that of other employers for similar work this is the basis of:
external equity
The federal civil service job classification systems use which type of job evaluation system
Job classification system
What is the Point system?
A quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it.
Point System
A quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it. Permits jobs to be evaluated quantitatively on the basis of factors or elements—compensable factors—that constitute the job. The Point Manual A handbook that contains a description of the compensable factors and the degrees to which these factors may exist within the jobs.
Job Classification system
A system of job evaluation in which jobs are classified and grouped according to a series of predetermined wage grades. (e.g. it is often used municipal and state governments.) Successive grades require increasing amounts of job responsibility, skill, knowledge, ability, or other factors selected to compare jobs. Simple but less precise than the point system because the job is evaluated as a whole.
The Bases for Compensation
Exempt Employees Employees who not covered in the overtime provisions of the Fair Labor Standards Act. Managers, supervisors, and white-collar professional employees are exempted on the basis of their exercise of independent judgment and other criteria.
Job Evaluation for Management Positions
Hay Profile Method Job evaluation technique using three factors—knowledge, mental activity, and accountability—to evaluate executive and managerial positions.
The Bases for Compensation
Hourly Work Work paid on an hourly basis. Piecework Work paid according to the number of units produced. Salary Workers Employees whose compensation is computed on the basis of weekly, biweekly, or monthly pay periods.
Job Evaluation Systems
Job Evaluation The systematic process of determining the relative worth of jobs in order to establish which jobs should be paid more than others within an organization.
Motivating Employees through Compensation
Pay Equity (also Distributive Fairness) An employee's perception that compensation received is equal to the value of the work performed. A motivation theory that explains how people respond to situations in which they feel they have received less (or more) than they deserve. Individuals form a ratio of their inputs to outcomes in their job and then compare the value of that ratio with the value of the ratio for other individuals in similar jobs.
How does Point System work?
Permits jobs to be evaluated quantitatively on the basis of factors or elements—compensable factors—that constitute the job.
The Pay-for-Performance Standard
The standard by which managers tie compensation to employee effort and performance. Refers to a wide range of compensation options, including merit-based pay, bonuses, salary commissions, job and pay banding, team/group incentives, and various gainsharing programs.
Which of the following is an example of a nonfinancial compensation
employee recognition programs