Compensation

Front 1

ability

Back 1

an individual's capability to engage in a specific behavior

Front 2

alternation ranking

Back 2

a job eval method that involves ordering the job description alternately at each extreme. all the jobs are considered. agreement is reached on which is the most valuable and then the least valuable. evaluators alternate bw the next most values and the next least values and so on until the jobs have been ordered

Front 3

ADA

Back 3

legislation passed in 1990 that req that reasonable accommodations be provided to permit EE with disabilities to perform the essential elements of a job

Front 4

appeals process

Back 4

mechanisms are created to handle pay disagreements. they provide a forum for EE and mgr to voice their complaints and receive a hearing

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base wage/pay/salary

Back 5

the basic cash compensation that an employer pays for the work performed. tends to reflect the value of the work itself and ignore differences in individual contributions

Front 6

benchmark conversion

Back 6

process of matching survey jobs by applying the employer's plan to the external jobs and then comparing the worth of the external job with its internal match

Front 7

benchmark (key) job

Back 7

jobs used as a reference point for making pay comparisons within or without the organization. they have well-known and stable contents; their current pay rates are generally acceptable, and the pay differentials among them are stable. a group of benchmark jobs, taken together, contains the entire range of compensable factors and is accepted in the external labor market for setting wages

Front 8

best-pay practices

Back 8

comp practices that allow employers to gain preferential access to superior HR talent and competencies which in turn influence the strategies the org adopts

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bonus

Back 9

a lump-sum payment to an EE in recognition of goal achievement

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broad banding

Back 10

collapsing a number of salary grades into a small number of broad grades with wide ranges

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Bureau of Labor Statistics (BLS)

Back 11

major source of publicly available pay data...also calculates CPI

Front 12

career path

Back 12

a progress of jobs within an org

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central tendency

Back 13

a midpoint in a group of measures

Front 14

classification

Back 14

job eval method that involves slotting job descriptions into a series of classes or grades that cover the range of jobs and that serve as a standard against which job descriptions are compared

Front 15

commission

Back 15

payment tied directly to achievement of performance standards

Front 16

committee a priori judgement approach

Back 16

compensable factor importance weights are assigned by a committee based on judgement

Front 17

compensable factor

Back 17

job attributes that provide the basis for evaluating the relative worth of jobs inside an org. a compensable factor must be work-related, business-related, and acceptable to the parties involved

Front 18

compensation

Back 18

all forms of financial returns and tangible services and benefits EE receive as part of an employer relationship

Front 19

compensation differentials

Back 19

differentials in pay among jobs across the org and differences among individuals in the same job in an org

Front 20

compensation objectives

Back 20

the desired results of a pay system...the basic pay obj. include efficiency, fairness, and compliance. they shape the design of the pay system and serve as the standard against which the success of the pay systems is evaluated

Front 21

competency

Back 21

basic knowledge and abilities EE must acquire or demonstrate in a competency-based plan in order to successfully perform the work, satisfy customers, and achieve bus obj.

Front 22

competency analysis

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a systematic process to identify and collect info about the competencies required for the person and the org to be successful

Front 23

competency-based sys

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compensation approach that links pay to the depth and scope of competencies that are relevant to doing the work...typically used in managerial positions where is its difficult to identify what is being accomplished

Front 24

competitive intelligence

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the collection and analysis of info about external conditions and competitors that will enable an org to be more competitive

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competitive position

Back 25

the comparison of compensation offered by 1 employer relative to that paid by its competitors

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compliance

Back 26

conforming to federal and state compensation laws and regs

Front 27

Consumer Price Index

Back 27

a measure of the changes in prices in a fixed market basket of goods and services purchased by a hypothetical average family

Front 28

content

Back 28

the work performed in a job and how it gets done (tasks, behaviors, knowledge req, etc)

Front 29

conventional job analysis

Back 29

methods that typically involve an analyst using a questionnaire in conjunction with structured interviews of job incumbents and supervisors. the methods place considerable reliance on analysts' ability to understand the work performed and to accurately describe it

Front 30

correlation coefficient

Back 30

a common measure of association that indicates how changes in 1 variable are related to changes in another

Front 31

cost containment

Back 31

attempt to contain benefit costs, such as imposing deductibles and coinsurance

Front 32

cost cutter

Back 32

efficiency-focused strategy stresses doing more with less by minimizing costs, encouraging productivity increases, and specifying how exactly jobs should be done

Front 33

cost of living

Back 33

actual individual expenditures on goods and services

Front 34

culture

Back 34

informal rules, rituals, and value systems that influence how people behave

Front 35

customer-focused business strategy

Back 35

stresses delighting customers and bases EE pay on how well they achieve this

Front 36

delayering

Back 36

eliminating some layers or job levels in the pay structure

Front 37

differentials

Back 37

pay differences among levels within the org

Front 38

direct compensation

Back 38

pay received directly in the form of cash (wages, bonuses, IC)

Front 39

distributive justice

Back 39

fairness in the amount of reward distributed to EE

Front 40

EE contributions

Back 40

comparisons among individuals doing the same job for the same org

Front 41

entitlement

Back 41

EE believe that returns and/or rewards are due regardless of individual or company performance

Front 42

entry jobs

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jobs that are filled from the external labor market and whose pay tends to reflect external economic factors

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essential elements

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the parts of a job that cannot be assigned to another EE

Front 44

exchange value

Back 44

price of labor (the wages) determined in a competitive market....the labor's worth is whatever the buyer and seller agree upon

Front 45

exempt jobs

Back 45

jobs not subject to provisions of the FLSA with respect to wage and OT

Front 46

external competitiveness

Back 46

the pay relationships among orgs; focuses attention on the competitive positions reflected in these relationships

Front 47

factor scales

Back 47

measures that reflect different degrees within each compensable factor

Front 48

factor weights

Back 48

measures that indicate the importance of each compensable factor in a job eval system

Front 49

flat rate

Back 49

a single rate rather than a a range for all individuals performing a certain job...ignores seniority and performance

Front 50

forms of compensation

Back 50

various types of pay which may be received directly in the form of cash or indirectly through series and benefits

Front 51

hierarchies (job structure)

Back 51

jobs ordered according to their relative content and/or value

Front 52

hit rate

Back 52

the ability of a job eval plan to replicate a predetermined, agreed-upon structure

Front 53

incentive

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inducement offered in advance to influence future performance

Front 54

incentive effect

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the degree to which pay influences individual and aggregate motivation among EE at any given point in time

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indirect comp

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noncash benefits provided to an EE

Front 56

innovator

Back 56

stresses new products and short response time to market trends

Front 57

internal alignment

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pay relationships among job or skill levels within a single org. focuses on establishing equal pay for jobs of equal worth.

Front 58

interval scaling

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a particular numerical point difference has the same meaning on all parts of a scale

Front 59

job analysis

Back 59

collecting info related to the nature of a specific job....provides the knowledge needed to define jobs and conduct job eval

Front 60

job-based structure

Back 60

structure that relies on work content - tasks, behaviors, and responsibilities

Front 61

job-based system

Back 61

focus on jobs as the basic unit of analysis to determine the pay structure...job analysis req

Front 62

job classification (grade)

Back 62

a grouping of jobs that are considered substantially similar for pay purposes

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job content

Back 63

info that describes a job...may include responsibility assumes and/or tasks performed

Front 64

job description

Back 64

a summary of the most imp features of a job...identifies the job and describes the general nature of the work, specific task responsibilities, outcomes, and EE characteristics req to do the job

Front 65

job eval

Back 65

procedure designed to aid in establishing pay differentials among jobs within a single company...includes classification, comparison of relative worth of jobs, blending int and ext market forces, measurement, negotiation, and judgement

Front 66

job eval committee

Back 66

group that selects a job eval system, carries out / supervises the process of job eval, and evaluates the job eval success

Front 67

job family

Back 67

a group of jobs involving work of the same nature but req diff skill and responsibility levels

Front 68

job pricing

Back 68

process of assigning pay to jobs based on thorough job analysis and job eval

Front 69

job specifications

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used as a bsis for hiring on KSA to adequately perform the tasks

Front 70

job structure

Back 70

relationship among jobs inside an org, based on work content and each job's relative contribution to achieving org obj

Front 71

just wage doctrine

Back 71

pay structures should be designed on the basis of societal norms, customs, and tradition not on the basic of economic and market forces....an equitable wage for any occupation based on the jobs place in larger social hierarchy

Front 72

lag pay-level policy

Back 72

wage structure that matches market rates at beginning of the plan year only...then it lags behind market rates...obj is to offset labor costs

Front 73

lead pay-level policy

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wage structure that leads market rates throughout the plan year...obj is to maximize the firm's ability to attract and retain quality EE

Front 74

line of sight

Back 74

an EE ability to see how indiv performance affects incentive payout

Front 75

low-high approach

Back 75

use of the lowest and highest paid benchmark job in the ext mk to anchor an entire skill-based structure

Front 76

marginal productivity theory (MPT)

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focuses on labor demand rather than supply...work is compensated in proportion to its contribution to the org's production obj

Front 77

market pay line

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using key/benchmark jobs, a market pay policy line can be constructed that shows ext mk pay survey data as a function of internal job evaluation points...obtained by using regression analysis

market pay = intercept + slope * job eval points....predicted pay for each job can be obtained

Front 78

market pricing

Back 78

setting pay structures almost exclusively through matching pay for a very lg percentage of jobs with the rates paid in the ext mk

Front 79

maturity curve

Back 79

a plot of the relationship bw pay and years since a professional has last received a degree

Front 80

motivation

Back 80

an individual's willingness to engage in some behavior

Front 81

multiskill sys

Back 81

link pay to the number of diff jobs (breadth) an EE is certified to do

Front 82

National Electrical Manufacturers Association (NEMA) plan

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point factor job eval sys that evolved into the National Position Evaluation Plan sponsored by NMTA associates

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National Metal Trades Association (NMTA) plan

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a point factor job eval plan for production, maintenance, and service personnel

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nonexempt EE

Back 84

EE who are subject to FLSA provisions

Front 85

objective performance-based pay sys

Back 85

pay approach that focuses on obj perf stds derived from org obj and a thorough job analysis

Front 86

offshoringg

Back 86

refers to the movement of jobs to locations beyond a country's borders

Front 87

outsourcing

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hiring outside vendors to perform functions that don't directly contribute to bus obj and in which the org does not have a comparative advantage

Front 88

paired comparison ranking

Back 88

a ranking job eval method that involves comparing all possible pairs of jobs under study

Front 89

pay-for-knowledge plans

Back 89

EE are paid for the number of different jobs they can adequately perform or the amount of knowledge they possess

Front 90

pay-for-performance plans

Back 90

pay that varies with some measure of indiv or org performance

Front 91

pay forms

Back 91

various types of payments or pay mix that make up total compensation

Front 92

pay grade

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one of the classes, levels, or groups into which jobs of the same or similar values are grouped for comp purposes....all jobs in a pay grade have the same pay range - max, min, and midpoint

Front 93

pay level

Back 93

an average of the array of rates paid by an employer

Front 94

pay-level policies

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lead, match, or lag

Front 95

pay-policy line

Back 95

representation of the org's pay-level policy relative to what competitors pay for similar jobs

Front 96

pay ranges

Back 96

range of pay rates from min to max set for a pay grade or class

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pay structures

Back 97

the array of pay rates for different jobs within a single org; they focus attention on differential comp paid for work of unequal worth

Front 98

pay techniques

Back 98

technologies of comp mgt...job analysis, job descriptions, market surveys, job eval, etc that tie the four basic pay policies to the pay obj

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perquisites (perks)

Back 99

extras bestowed on top mgt

Front 100

person-based structure

Back 100

shifts the focus to the EE....skills, knowledge, and competencies

Front 101

point factor method

Back 101

job eval method that employs:

1. compensable factors

2. factor degrees numerically scaled

3. weights reflecting the relative imp of each factor

each job is measured against each compensable factor and a total score is calculated for each job...total points determine the relative value and its location in the pay structure

Front 102

policy capturing

Back 102

compensable factor importance weights are inferred using statistical methods such as regression analysis

Front 103

Position Analysis Questionnaire (PAQ)

Back 103

job analysis technique that classifieds job info into 7 basic factors

work-oriented data

Front 104

procedural justice/fairness

Back 104

concept concerned with the process used to make and implement decisions about pay

Front 105

quantitative job analysis (QJA)

Back 105

relies on scaled questionnaires and inventories that produce job-related data

Front 106

range overlap

Back 106

the degree of overlap bw. adjoining grade ranges is determined by the differences in midpoints among ranges and the range spread. A high degree of overlap and narrow midpoint differentials indicate small differences in the value of the jobs in the adjoining grades and permit promotions without much change in the rates paid. By contrast, a small degree of overlap and wide midpoint differentials allow the manager to reinforce a promotion with a large salary increase.

Front 107

range max

Back 107

the max values to be paid for a job grade, representing the top value the org places on the output of work

Front 108

range midpoint

Back 108

The salary midway between the min and max rates of a salary range. The midpoint rate for each range is usually set to correspond to the pay-policy line and represents the rate paid for satisfactory performance on the job

Front 109

range min

Back 109

the minimum values to be paid for a job grade, representing the minimum value the org places on the work. Often, rates below the min are used for trainees.

Front 110

ranking format

Back 110

type of performance appraisal format that req that the rater compare EE against each other to determine the relative ordering of the group on some performance measure

Front 111

reengineering

Back 111

making changes in the way work is designed to include external customer focus..often incl delayering and job restructuring

Front 112

regression

Back 112

relating present pay differentials to pay rates in the external market

Front 113

relational returns

Back 113

non-quantifiable returns that EE get from employment...social satisfaction, friendship, belonging, accomplishment, etc

Front 114

relative value of jobs

Back 114

contribution of jobs to org goals

Front 115

reliability

Back 115

consistency of results obtained

Front 116

salary

Back 116

pay given to EE who are exempt from FLSA

pay is calculated at a annual or monthly rate

Front 117

scaling

Back 117

determining the intervals on a measurement instrument

Front 118

single-rate pay system

Back 118

a comp policy under which all EE in a given job are paid at the same rate instead of being placed in a pay grade...ex: pay in an assembly line

Front 119

skill analysis

Back 119

a systematic process to identify and collect info about the skills req to perform work in an org

Front 120

skill-based structure

Back 120

pay structure that links pay to depth or breadth of the KSA

Front 121

skill-based system

Back 121

compensation approach that links pay to depth and/or breadth of the KSA.

Front 122

skill blocks

Back 122

basic units of knowledge EE must master to perform the work, satisfy customers, and achieve business obj

Front 123

sorting effect

Back 123

different types of pay strategies may cause different types of people to apply to and stay with an org

Front 124

strategy

Back 124

fundamental direction of the org....guides the deployment of all resources, including comp

Front 125

survey

Back 125

systematic process of collecting and making judgements about the compensation paid by other employers

Front 126

tacit work

Back 126

complex work

Front 127

task (work) data

Back 127

info on the elemental units of work (tasks) with emphasis on the purpose of each task, collected for job analysis

Front 128

transactional work

Back 128

routine work

Front 129

topping out

Back 129

EE in a skill-based comp plan attain the top pay rate in a job category

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total cash

Back 130

base wage plus cash bonus; does not include benefits or stock options

Front 131

total compensation

Back 131

complete pay package for EE; all forms of money, bonuses, benefits, services, and stock

Front 132

total returns / total rewards

Back 132

all returns to EE including total compensation + status and recognition, development, autonomy, feedback, etc.

Front 133

tournament theory

Back 133

the notion that larger differences in pay are more motivating than smaller differences

Front 134

validity

Back 134

accuracy of the results obtained

Front 135

value

Back 135

worth of work; relative contribution to org obj

Front 136

variable pay

Back 136

pay tied to productivity or some measure that can vary with the firm's profitability

Front 137

wage

Back 137

pay given to EE who are covered by overtime and FLSA...usually calculated hourly

Front 138

work flow

Back 138

the process by which goods and services are delivered to the customer

Front 139

zones

Back 139

ranges of pay used as controls/guidelines within pay bands that can keep the system more structurally intact. max, midpoint, and min provide guides to appropriate pay for certain levels of work

Front 140

inventories

Back 140

questionnaires in which tasks, behaviors, and abilities are listed