Download Job Evaluation and Compensation: Terms and Concepts and more Quizzes Human Resource Management in PDF only on Docsity! TERM 1 What is a job evaluation? DEFINITION 1 Formal, systematic means to identify the relative worth of jobs within an organization. TERM 2 What are methods of job evaluation? DEFINITION 2 Classification,market,point,ranking TERM 3 What are pay surveys? DEFINITION 3 Collection of data on compensation rates for workers performing similar jobs in other organizations. TERM 4 What are four compensation approaches? DEFINITION 4 Traditional, Total Rewards, Entitlement, and Performance. TERM 5 What is the Total Rewards compensation? DEFINITION 5 Monetary and non-monetary rewards provided to attract, motivate, and retain employees. It includes benefits, compensation, and performance/talent management. TERM 6 What is included in traditional compensation? DEFINITION 6 Base pay, bonuses for executives only, fixed benefits tied to long tenure, pay grade based on org. promotions, and same pay plan for everyone. TERM 7 What is included in total rewards compensation? DEFINITION 7 Variable pay, annual incentives for all employees, flexible benefits, knowledge-based broadbands to determine pay grades, and multiple pay plans available. TERM 8 What is included in entitlement compensation? DEFINITION 8 Seniority-based, across-the-board raises, industry comparisons of compensation only, and holiday bonuses given to all employees. TERM 9 What is included in the performance compensation? DEFINITION 9 No raises for length of time, no raises for poor performers, market adapted to pay structure, broader industry comparisons, and pay linked to performance targets. TERM 10 What are compensation responsibilities of the HR unit? DEFINITION 10 Develops and administers pay system, evaluate job, analyze pay surveys, and develop pay structures and policies. TERM 21 What are common pay structures? DEFINITION 21 Common pay structures include hourly and salaried, office, plant, technical, professional, managerial, clerical, information technology, professional, supervisory, management, and executive. TERM 22 What are pay grades? DEFINITION 22 Groupings of individual jobs having approximately the same job worth. TERM 23 What is a red-circled employee? DEFINITION 23 Paid above range set for the job. TERM 24 What is a green-circled employee? DEFINITION 24 Paid below range set for the job. TERM 25 What is pay compression? DEFINITION 25 When pay differences decrease across employees with different levels of experience and performance. TERM 26 What are standardized pay adjustments? DEFINITION 26 1) Across the board increases2) Cost of living adjustments (COLA)3) Lump sum increases4) Seniority TERM 27 What are reward system strategic objectives? DEFINITION 27 1) Cost-effectiveness 2) Enhanced recruitment, involvement, and retention3) Internal, external, and individual equity4) Legal compliance with laws and regulations5) Performance enhancement for the organization TERM 28 What are compensation challenges? DEFINITION 28 1) Balance work and family2) Communication of compensation pay3) Control benefit costs (Health Care)4) Different generation expectations5) Link pay to performance TERM 29 What can be paid for in compensation? DEFINITION 29 1) Cost of living2) Experience and education3) Performance4) Responsibilities of job5) Seniority6) Combination of all of these TERM 30 What are factors to consider in compensation? DEFINITION 30 1) Economy2) Employer past practices3) Govt regulations4) Future growth5) Labor relations6) Resources available7) Taxes TERM 31 What is base pay? DEFINITION 31 Compensation an employee receives as a wage or salary. TERM 32 What is internal equity? DEFINITION 32 Fairness of what a person does and what a person receives in relationship to other employees in the organization. TERM 33 What is external equity? DEFINITION 33 Employer compensation is competitive with other employers performing same or similar work. TERM 34 What are major criteria for an Exempt and non-Exempt employee? DEFINITION 34 Authority, decision, discretion, job duties and responsibilities, judgment, no overtime pay, paid on a salary basis, pay level TERM 35 What is a non-Exempt employee? DEFINITION 35 Paid overtime, and paid base pay for time overworked
