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HR Tes #2 Chapters 12-13
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206
Management
Undergraduate 4
03/01/2010

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Term
results from employment in the organization; includes all rewards, intrinsic and extrinsic
Definition
organizational rewards
Term
rewards internal to the individual; normally derived from involvement in activities or tasks
Definition
intrinsic rewards
Term
job satisfaction, feelings of accomplishment are examples of what kinds of rewards?
Definition
intrinsic rewards
Term
directly controlled and distributed by organization; more tangible than intrinsic rewards
Definition
extrinsic rewards
Term
pay and health insurance benefits are examples of what kinds of rewards?
Definition
extrinsic rewards
Term
t/f: intrinsic and extrinsic rewards ARE related
Definition
true
Term
________ may provide intrinsic rewards
Definition
extrinsic rewards
Term
_______ is usually the first meaningful rewards and sometimes the only rewards most people think about
Definition
pay
Term
_________should be viewed larger than anything employees value
Definition
rewards
Term
office location, allocation of certain pieces of equiptment, assignment of preferred work task, and infromal recognition are all kinds of _________.
Definition
rewards
Term
when do reward distribution benefit the organization?
Definition
ONLY if the employee's desires are known
Term
based on the premise that rewards should depend on performance
Definition
Free Enterprise System
Term
is desirable at both organizational/corporate level and individual level
Definition
performance- reward relationship
Term
employees will be ____________ when they believe performance leads to desired rewards
Definition
motivated
Term
many formal rewards are not related to _____________.
Definition
performance
Term
rewards that are almost always determined by organizational membership and seniority include what?
Definition
paid vacations
paid holidays
insurance plans
Term
____________, can and should be related to performance
Definition
promotion
Term
t/f opportunities for promotion happen often
Definition
false
Term
how can promotions be filled?
Definition
on basis of seniority
by someone outside the organization
Term
primary organizational variable used to rewards employees and reinforce performance
Definition
PAY
Term
most US companies do a poor job of relating what?
Definition
pay- for- performance
Term
what has evidence show is working at the highest levels in many companies?
Definition
paying for performance
Term
surveys show that DO or DO NOT have confidence about relationship exists between the two variables
Definition
DO NOT
Term
why is paying for performance not more widespread?
Definition
1. not easy ( easier to give generic reward)
2. requires performance to be accurately measured
3.requires discipline to relate pay to performance
4. union contracts may make promotions be based on senority
Term
no successful formula for implementing a _________________ has been developed
Definition
pay for performance program
Term
if employees are skeptical of management, difficult to make a pay-for-performance program work
Definition
Trust in Management
Term
Employee’s performance is not hampered by factors beyond his/her control.
Definition
absence of performance constraints
Term
Trained to set/measure performance standards.
Definition
trained supervisors and managers
Term
Performance should be based on criteria that are job specific and focus on results achieved.
Definition
good measurement systems
Term
Merit portion of salary increase must be large enough to get employees’ attention.
Definition
ability to pay
Term
In absence of contrary evidence, employees assume pay increase is cost-of- living or seniority is...
Definition
clear distinction: cost of living, seniority, and merit
Term
Employees must have clear understanding of how merit pay fits into total pay picture.
Definition
well-communicated total pay policy
Term
Easier to establish credible pay-for-performance plan if all employees do not receive pay adjustments on same date.
Definition
flexible rewards schedule
Term
What are the five major components of job satisfaction?
Definition
1. attitude toward the work group
2. attitude toward management
3. attitude toward the company
4. general working conditions
5. monetary benefits
Term
employee's state of mind, life , health and age, and level of aspiration are also components of what?
Definition
job satisfaction
Term
employee's feeling of being accepted by and belonging to a group of employees
Definition
Organizational Morale
Term
organizational morale is achieved through...?
Definition
1. common goals
2. confidence in desirability of those goals
3. desire to progress toward the goals
Term
________ is the by-product of a group.
Definition
morale
Term
job satisfaction is more and __________ state of mind.
Definition
individual
Term
t/f job satisfaction and morale are two concepts interrelated
Definition
true
Term
to explain belief that satisfied employee is necessarily good employee
Definition
"Path of Least Resistance"
Term
although _____________eventually results from satisfaction, _____________ goes much deeper and is less tenuous than happiness
Definition
happiness, satisfaction
Term
r/f rewards are a necessary intervening variable in the relationship
Definition
True
Term
performance leads to __________ that result in the level of satisfaction.
Definition
rewards
Term
Does research accept or reject the idea that satisfaction leads to performance?
Definition
reject
Term
Research has indicated what 2 things about satisfaction performance?
Definition
1. Rewards constituents a more DIRECT cause of satisfaction than performance does
2. Rewards based on current performance enhance future performance
Term
Correlation between satisfaction and performance is?
Definition
low
Term
Job Satisfaction has a positive impact on what 4 things?
Definition
1. Turnover
2. Absenteeism and Tardiness
3. Accidents
4. Grievances and Strikes
Term
Satisfied employees are not necessarily _______________.
Definition
high performers
Term
What are the top 3 drivers of employee job satisfaction?
Definition
1. Pay and benefits
2. Security at Work
3. Felxibility
Term
Job satisfaction and motivation are not_____________________!
Definition
synonymous
Term
_______________ can also influence both job satisfaction and employee motivation
Definition
reward systems
Term
all extrinsic rewards that employees receive in exchange for their work
Definition
Compensation
Term
based wage or salary, incentives, any benefits
Definition
compensation
Term
refers to the actual dollars employees receive in exchange for work
Definition
Pay
Term
When dealing with compensation and min max levels of pay what 5 things must be taken into consideration?
Definition
1. worth fo the job organization2
2. organizations ability to pay
3. gvt regulations
4. union influences
5. market pressures
Term
An important decision with pay and compensation is to make it_________ or ____________
Definition
public or private
Term
Two justifications for pay secrecy
Definition
1. avoid discontent resulting from employees knowing what everybody else is paid
2. many employees feel strongly that their pay is nobody else's business
Term
1. employees over or under estimate pay of peers and supervisors
2. create feelings of dissatisfaction
3. suspicious employees
Definition
Drawback of pay secrecy
Term
ruled that forbidding employees to discuss their pay constitutes a violation of the NLRA
Definition
NLRB National Labor Relations Board
Term
women's groups have challenged ___________________ to bridge the income gap between men and women
Definition
pay- secrecy rules
Term
another name for Fair Labor Standards Act (FLSA)
Definition
Wage and Hour Act
Term
Requirements for the Wage and Hour Act
Definition
employees in interstate commerce must be paid min wage and also must be paid time and a half for over 40hr weeks
Term
FLSA permits states, localities and collective bargaining agreements to set a _________ standard that the fed min wage
Definition
higher
Term
what age range is restricted by the FLSA
Definition
14-18
Term
Executive Administrative, Professional Employees
Definition
Exempt and not covered by the FLSA
Term
What is the minimum wage as of July 24th, 2009?
Definition
$7.25 this is in GA too
Term
requires that contractiors and subcontractors on federal construction contracts in excess of $2,000 pay prevailing wage rates for locality of project
Definition
Davis- Bacon Act
Term
who determines the prevailing wage rate??
Definition
secretary of labor
Term
T/F union rate and prevailing wage are are usually around the same amount
Definition
true
Term
requires organizations manufacturing or furnishing materials, supplies, articles, or equipment in excess of $10,000 to the federal government pay at least min wage for the industry as determined by the secretary of labor
Definition
Walsh-Healey Public contracts Act
Term
what act stipulated overtime as being ours worked over 40 in a week
Definition
Defense Authorization Act (1986)
Term
legal procedure by which an employer in empowered to withhold wages for payment of an employee's debt to a creditor
Definition
garnishment
Term
limits amount of an employee's disposible earnings that can be garnished in any one week. also protects employee from discharge because of garnishment
Definition
Federal Wage Garnishment Law
Term
illegal to pay diff wages to men and women for jobs that require equal skill, effort, and responsibility and are performed under similar conditions
Definition
Equal Pay Act
Term
how is the wage structure largely determine in a unionized organization?
Definition
by the collective bargaining process
Term
union contracts can also affect _____________ organizations
Definition
nonunionized
Term
it is ________ to determine worth of a job
Definition
difficult
Term
while true worth of jobs to employer may be similar, some jobs (especially those held by women) paid lower rate than other jobs (often held by men).
Definition
theory of comparable worth
Term
comparable worth has received attention in what two areas?
Definition
1. collective bargaining table
2. political arena
Term
_________________ can have a very negative impact on an organization
Definition
inadequate pay
Term
employee has strong need to maintain balance between what she perceives as her inputs to the job and what she receives form the job in the form of rewards (outcomes)
Definition
Equity Theory of Motivation
Term
you believe you are fairly paid
Definition
pay equity
Term
considers what an employee is paid for doing a job compared to what other employees in the same organization are paid to do their jobs
Definition
internal equity
Term
considers what employees in other organizations are paid for performing similar jobs
Definition
external equity
Term
considers issue of rewarding individual contributions; very closely related to the pay for performance issue
Definition
individual equity
Term
considers how profits are divided up within the organization
Definition
organizational equity
Term
employee interpretations of pay equity are based on their _________________.
Definition
perceptions
Term
Based on idea that employees will be satisfied with pay when their perception of what their pay is and of what they think it should be agree. In other words, employees feel good about internal and external equity of their pay.
Definition
Pay Satisfaction model
Term
_______________ is a primary factor influencing employees perception of equity
Definition
present pay
Term
includes all the experience, skills, and abilities and employee brings to the job in addition to the effort the employee puts into it
Definition
job inputs
Term
perceptions of what pay should be depends on these factors
Definition
1. job inputs
2. perceived inputs and outcomes
3. non-monetary outcomes
Term
to assist in design of system and to administer the system
Definition
role of the hr manager
Term
organizations need to do better in explaining and communicating ________________ to employees.
Definition
compensation system
Term
hourly, weekly, or monthly pay that employees receive for work
Definition
base wages and salaries
Term
____________ is th elargets portion of employees compensation and often reflects the atmosphere of the entire organization
Definition
base wage and salaries
Term
what is the primary objective of base wage and salary system
Definition
establish a structure for equitable compensation of employees, depending on their jobs and level of performance in their jobs
Term
most systems establish what foe hobs based on relative worth of job to organization?
Definition
pay ranges
Term
primary method for determining the relative worth of jobs to the organization
Definition
job evaluation
Term
one of the most commonly used methods for pricing jobs
Definition
wage surveys
Term
establishing pay ranges involve 2 basic phrases that are?
Definition
1. determine relative worth of diff jobs in the org
2. pricing diff jobs
Term
systematic determination of value of each job in relation to other jobs in the organization
Definition
job evaluation
Term
_______________ is used for designing pay structure not for appraising performance of employees
Definition
job evaluation
Term
general idea of job evaluation
Definition
1. requirements
2. contribution
3. classify importance
Term
what is the main purpose of job evaluation?
Definition
establish relative worth of jobs
Term
3 steps of a conventional job evaluation?
Definition
1. Gather information
2. Identify Factors
3. Develop and implement plan
Term
3 frequently used identity factors
Definition
knowledge
responsibility
working conditions
Term
Conventional job evaluation plans are variations or combination of what 4 basis methods?
Definition
1. job ranking
2. job classification
3. point comparison
4. factor comparison
Term
ranks jobs in order of their difficulty from simplest to most complex
Definition
job ranking method
Term
another term for the job classification method
Definition
job grading
Term
determins relative worth of a job by comparing it to a predetermined scale of classes ( or grades) of jobs
Definition
job classification method/ job grading
Term
classes of jobs are defined on basis of differences in...
Definition
duties and responsibilities, skills and workign conditions and other job-related factors
Term
the job classification method is simple bit not always _________ since it evaluates the job as a whole
Definition
precise
Term
used to evaluate jobs on a factor by factor basis. historically most used job evaluation plan in the US
Definition
quantitative point scale
Term
advantages to the point method(quantitative point scale)
Definition
simple and objective
Term
t/f one point scale can be used to evaluate all types of jobs
Definition
false
Term
____ jobs represent jobs common throughout the industry or in a general locale
Definition
KEY
Term
content of key jobs should be __________________.
Definition
commonly understood
Term
___% is a good guideline of key jobs to represent entire pay structure and major kinds of work being evaluated
Definition
20
Term
selection of key jobs should adequately represent
Definition
1. span of responsibilities
2. duties
3. work requirements
Term
key jobs need a fully detailed ______________.
Definition
job description
Term
compensation factors=_________________
Definition
job characteristics
Term
the degree to which a specific job possesses these compensable factors determines its_________________
Definition
relative worth
Term
compensable factors selected for unionized jobs must be acceptable to both the union and ____________.
Definition
management
Term
t/f adoption of a set of "universal factors" is not recommended
Definition
true
Term
detailed breakdown of one single compensable factor of a job
Definition
job subfactors
Term
written statements to further breakdown job subfactors
Definition
degree/profile statements
Term
breakign compensable factors into subfactors and degrees allow more __________ definition of the job and facilitates evaluation
Definition
precise
Term
___________ are assigned to each factor, subfactor, and degree to reflect their relative importance
Definition
wrights
Term
weights are assigned on basis of ________ number of points for any job
Definition
maximum
Term
_________ are assigned to compensable factors, subfactors, and degrees based on their relative
Definition
points
Term
point values are derived for key jobs useing these three steps
Definition
1. examine job description
2.determine degree statement for each subfactors
3. add up total number of points
Term
rank ordering of point total should be the equivalent of rank ordering according to _________
Definition
pay
Term
amount of time required to develop point scale
Definition
drawback
Term
uses monetary scale for evaluation jobs on a factor by factor basis
Definition
Factor Comparison Method
Term
what are the factor to factor basis for the factor comparison method
Definition
1. key jobs selected
2.pay rates are reasonable and fair
3. compensable factor then identified
Term
________________________ does not break down compensable factors into subfactors and degrees
Definition
Factor Comparison Method
Term
each compensable factor is ranked according to its ____________ in each key job
Definition
importance
Term
to ________ rankings should be done once or twice at later dates without referring to previous rankings
Definition
validate
Term
allocate wage or salary for each job according to ranking of ________
Definition
factors
Term
what is a selection criteria of a key job?
Definition
evaluators must view pay as reasonable and fair
Term
money allocation and factor rankings must be ____________
Definition
consistent
Term
________________ is prepared for each compensable factor
Definition
monetary scale
Term
________ of a job is determined by adding dollar amounts assigned to each compensable factor
Definition
total worth
Term
commonly referred to as quantitative plans
Definition
point and factor comparison
Term
number of dollar value contains predetermined ____________ factors
Definition
compensable
Term
called qualitative and non quantitative techniques compare whole jobs
Definition
job classification and ranking methodas
Term
point and hob classification systems evaluate jobs against predetermined _______ or __________.
Definition
scale or class
Term
factor comparison and job ranking methods evaluate jobs only in comparison to other _________ in the organization
Definition
postitions
Term
T/F job evaluation cannot be used to set wage rate
Definition
true
Term
survey of selected organizations with a geographical area or industry to provide comparison of reliable information on what 3 things
Definition
policies
practices
methods of payment
Term
advantages of wage and salary surveys provide __________ of market and ensure _______ equity
Definition
knowledge
external
Term
minimum of 30% of jobs in an organization should be surveyed to make fair evaluation of organization's pay system
Definition
Rule of thumb
Term
what are the two basic ways that wage or salary survey information is obtained?
Definition
1. conduct your own survey
2. purchase wage survey from another organization
Term
"Key (Benchmark) jobs" are normally ones____________
Definition
surveyed
Term
3 traditional methods of surveying wage data
Definition
1. personal interviews
2. telephone interviews
3. mailed questionnaires
Term
factors to consider when defining scope of survey
Definition
size of georgraphic area and cost of living index for area
Term
_____________ interview is the most reliable and more expensive method
Definition
personal
Term
________ questionares are used most frequently
Definition
mailed
Term
quick, but yeilds incomplete information
...may be used to clarify responses to mailed questionnaires
Definition
telephone method
Term
inexpensive and quick...not all companies are reachable on this
Definition
internet
Term
__________ firms sell expensive compensation surveys
Definition
consulting
Term
sources for relatively inexpensive wage/salary surveys
Definition
Bureau of Labor Statistics, US Dept of Labor, St and loc govt
Term
internet surveys fall into what 2 broad categories
Definition
1. surveys conducted by the fed govt
2. surveys conducted by private research organizations
Term
___________ enters on these points: too many surveys, quality, difficult to interpret and use, negative impact on merit pay plans and fuel inflation
Definition
criticism
Term
if no conducted correctly salary surveys can yield very ___________ info
Definition
distorted
Term
assessing participating companies for comparibility and comparing more than base wage or salary are ways of avoiding what?
Definition
problems with wages
Term
include incentives and benefits
Definition
total compensation package
Term
there will always be __________ in job descriptions
Definition
variations
Term
to avoid problems with wage it is smart to relate the survey data with ________________________.
Definition
adjustment periods
Term
holds that every job should be compensated based on its value to employes and scoiety
Definition
comparable worth theory
Term
under what theory do wages have no value
Definition
comparable worth theory
Term
value of a particular job to an employer is only one of many factors that should influence rate of compensation for that job
Definition
Ninth Circuit of Appeals
Term
factors that disreguard the comparable worth theory
Definition
avalibility of qualified employees and wage rates paid by other employers
Term
graphical depiction of relationship between relative worth of jobs and their wage rate
Definition
wage and survey curves
Term
_______ and ______ curves are used to indicate pay classes and ranges for jobs
Definition
wage and salary curves
Term
jobs in ascending order of difficulty along the X-axis and wage rate along the Y axis
Definition
Wage Curve plots
Term
one wage curve is based on _______ wages and another is based on _____________.
Definition
present and survey data
Term
underpaid jobs
Definition
green circle jobs
Term
overly high wages
Definition
red circle jobs
Term
classes or grads of job grouped on the basis of their worth to an organization
Definition
pay grades
Term
classes normally defined within a certain point spread
Definition
point method
Term
money spread can be used for defining grades
Definition
factor comparison method
Term
permississible pay range, with minimum and maximum assigned to a given pay grade
Definition
pay range
Term
2 approaches for establishing pay grades and ranges
Definition
1. large number of grades with identical rates of pay
2. small number of grades with relatively wide dollar range
Term
ranges within grades are set so ___________ can be made among employees within grades
Definition
distinctions
Term
and employee can increase pay only by moving to a ______ grade
Definition
higher
Term
placement of employee within pay grade should be based on ____________ or _____________
Definition
preformance or merit
Term
t/f it is unusual for pay grades to overlap
Definition
false
Term
_________ should ensure internal quality
Definition
job evaluations
Term
_________ should ensure external equity
Definition
wage surveys
Term
______________________ is used to position individual employee within established range
Definition
performance appraisal
Term
some believe ____ is outmoded in certain work places
Definition
job
Term
broadbanding
skill-based pay and competency based pay
market pricing of jobs
Definition
newer models gaining popularity
Term
collapsing job clusters or tiers of positions into a few wide bands to manage career growth and deliver pay
Definition
boradbanding
Term
ex. band 1 covers technicians earning $33,000 to $74,000, band 2 covers those earning $60, 000 to $140,000
Definition
broadbanding
Term
-Managers have more autonomy in setting pay rates
-Easier to move employees around due to elimination of unnecessary distinctions among jobs
-Encourages lateral moves or downgrading in flat organizations.
-Helps improve team communication by eliminating frequent barriers to communication and development, such as Level, Title, and Status.
-Works especially well in organizations that are fast moving and undergoing change
Definition
advantages of broadbanding
Term
compensates employees for skills the bring to the job
Definition
skill based pay/knowledge based pay
Term
this system pays based on range of knowledge, # of business related skills mastered, level of those skills or knowledge, and some combination of level and range
Definition
skill/knowledge based pay
Term
typically in skill based pay companies hire employees at ______ market rates
Definition
below
Term
most skilled based systems focus on _______________ employees working in _______________ enviornments
Definition
non exempt...manufacturing
Term
extend skills based pay approach to professionals and managers
Definition
competency based pay
Term
focus on external equity and operates wihtout traditional pay grades and ranges
Definition
market based pay
Term
builds employess commitment by creating an atmosphere in which employees feel their pay is logical and consistent with what the market would pay for their skills
Definition
market based pay
Term
in market based pay to achieve goals of perceived fairness what must happen?
Definition
surveys should be carefully selected and use more than 3 or more surveys
Term
surveys should be focused on pricing of _________ instead of jobs
Definition
skills set
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