Employee Rewards System Exam 1 Review

Compensable factors

Characteristics of a job that the organization values and chooses to pay for (skill, effort, responsibility, working conditions)

Government Survey

Provided by Bureau of Labor Statistics (BLS), lowest cost but is designed for researching and economic studies

Private Survey

Provided by consulting firms or trade associations, most expensive but gathers current information that can be sorted based on client's needs

Job Evaluation methods

Ranking - most basic, used in small firms Classification - used in larger organizations Point - uses points assigned to compensable factors

Factors that define equal work

Skill: KSAOs, talents Effort Responsibility Working Conditions

Negative skewed

Tail to the left Mean, median, mode

Positive skewed

Tail to the right Mode, median, mean

Instrumentality

The perceived likelihood that performance will be followed by a particular outcome. What is the probability of success? Fairness increases High performance levels must have attractive rewards and performance levels must be reasonable

Disparate Treatment

intentional discrimination that occurs when people are purposely not given the same hiring, promotion, or membership opportunities because of their race, color, sex, age, ethnic group, national origin, or religious beliefs

3 factors support intrinsic motivation

Autonomy - in control of own progress without supervision Competence - personal mastery/confidence Higher purpose than profits

Job Analysis

Collection and gathering of data to study what employees do who to hold their various job titles

Pay Survey

Collection of data on compensation rates for workers performing similar jobs in other organizations to create a price key or benchmark

Self-Designed Survey

Company does an in-house survey that's done by inside management Caution: the courts may view this as a form or price fixing

Standard Deviation

Computed distance of data from the mean in a normal distribution (bell-curve)

Dimensions of motivation

Form: non-verbal Direction: goals Duration: longevity Intensity: passionate

Goal Setting Theory

Goals target and energize employee behavior Clear and specific goals Difficult but achievable goals Participate in goal-setting process Receive frequent feedback

Valence

Is the reward desirable to me and is it worth the effort to work hard to attain it? Reward must be attractive to each employee

Minimum wage disadvantages

Limits opportunity for unskilled/youth Encourage substitutes (automation and outsourcing) Raises labor costs for employer Tipped employees min wage is $2.13/hr

Output Schedule

Number of units produced Fixed Ratio - reward received after a fixed amount of time (sales commission) Variable Ratio - reward received after an uncertain amount of time (gambling)(more resistant to extinction)

Disparate Impact

Occurs when an employer creates a seemingly fair employment practice that has a negative impact on members of a protected class, unintentional discrimination

Expectancy

Person's subjective feeling that a particular behavior will lead to a reinforcing consequence What is the probability of obtaining reward after successfully achieving a high level of performance? Frequent coaching and feedback increases

Maslow's Hierarchy of Needs

Physiological - survival issues (salary, stable enviornment) Security - stable work environment (benefits, work safety) "Belongingness" - social concerns (cooperative peers, good boss) Esteem - respect and recognition concerns (perks, job titles) Self-Actualization - achievement concerns (autonomy, subject matter expert)

Job Evaluation

Process of determining the relative worth of the various jobs within a firm that can lead to internal consistency in the pay system

To reduce inequity, employee may:

Reduce inputs (effort) Try to influence manager to increase outcomes (complaints) Try to influence co-workers' input (criticize others) Withdraw emotionally & physically (tardiness or quitting) Counterproductive behavior (violence)

Minimum wage advantages

Regulate exploitation of low pay workers Increase standard of living Consumer spending increases Few families on government welfare Increase productivity Spreads to their managers and supervisors

Recommended pay survey practices

Relevance Match based on job descriptions Consistent use of same statistical measures Keep pay data current Monitor effectiveness using HR benchmark

Intermittent Schedule

Schedule of reinforcement that rewards some responses while others are not Recognition and feedback can be easily used as a substitute Behavior is strengthened and takes longer to become extinct

Legal exceptions to Equal Pay Act

Seniority Performance/Merit Quantity or quality of output Factors other than gender (skill, effort, responsibility, working conditions)

Time-Based Schedule

Timely rewards Fixed Interval - reward received after a fixed amount of time (salary, hourly wage) Variable Interval - reward received on an uncertain schedule (extinction takes longer)

Reward Variables

Timing of reward - schedule of reward Anticipation of reward - explicit or unexpected Disclosure of reward - in public or secret

Continuous Schedule

When reinforcers follow all instances of positive behavior Useful for learning easy, new skills (like on computers) Behavior is quickly extinguished without reward

Comparable Worth

Women should be paid salaries equal to men for equivalent job responsibilities and skills "equal pay for jobs of comparable worth"

Job Description

Written description of general tasks, duties, responsibilities, qualifications, and working conditions