Job Evaluation and Compensation: Key Terms and Concepts, Exercises of Human Resource Management

Download Job Evaluation and Compensation: Key Terms and Concepts and more Exercises Human Resource Management in PDF only on Docsity! Human Resource Management (MGT501) VU Copyright © Virtual University of Pakistan 185 Lesson 43 REVISION (LESSON 27-35) KEY TERMS Job Evaluation Job evaluation means systematically determining relative worth of jobs to create job structure. Point Method Raters assign numerical values to specific job components, and the sum of these values provides a quantitative assessment of a job’s relative worth. Classification Method A job evaluation method by which a number of classes or grades are defined to describe a group of jobs is known as Classification method. Ranking Method Raters examine the description of each job being evaluated and arrange the jobs in order according to their value to the company. EAPs Specific programs designed to help employees with personal problems. Positive Reinforcement Applying a valued consequence that increases the likelihood that the person will repeat the behavior that led to it is termed as positive reinforcement. Punishment Punishment means administering an aversive consequence. Merit Pay A pay increase given to employees based on their level of performance as indicated in the appraisal. Equity Workers’ perceptions that they are being treated fairly. Compensation must be fair to all parties concerned and be perceived as fair. External Equity Exists when a firm’s employees are paid comparably to workers who perform similar jobs in other firms. Internal Equity Exists when employees are paid according to the relative value of their jobs within an organization. Compensation The total of all rewards provided employees in return for their services. Job Pricing Job pricing means placing a dollar value on the worth of a job. Flexi-time The practice of permitting employees to choose, with certain limitations, their own working hours. Capitation Typically, the reimbursement method used by primary care physicians is an approach to health care where providers negotiate a rate for health care for a covered life over a period of time. Disability protection Workers’ compensation protects employees from job-related accidents and illnesses. Some firms, however, provide additional protection that is more comprehensive. (ESOP) A defined contribution plan in which a firm contributes stock shares to a trust. Gain sharing Plans that are designed to bind employees to the firm’s performance by providing an incentive payment based on improved company performance. Scanlon plan Provides a financial reward to employees for savings in labor costs that result from their suggestions. docsity.com Human Resource Management (MGT501) VU Copyright © Virtual University of Pakistan 186 Telecommuting Telecommuting is a work arrangement whereby employees are able to remain at home, or otherwise away from the office, and perform their work over telephone lines tied to a computer. Autonomy The extent of individual freedom and discretion employees has in performing their jobs. Pay for Performance Pay for performance refers to any compensation method that ties pay to the quantity or quality of work the person produces. Empowerment Empowerment means giving employees the authority, tools, and information they need to do their jobs with greater autonomy. Extinction Withdrawing or failing or failing to provide a reinforcing consequence. Punishment Administering an aversive consequence. Positive Reinforcement applying a valued consequence that increases the likelihood that the person will repeat the behavior that led to it. Motivation Motivation is the inner drive that directs a person’s behavior toward goals. Safety Involves protecting employees from injuries due to work-related accidents. Health Refers to the employees’ freedom from physical or emotional illness. Safety Involves protecting employees from injuries due to work-related accidents. Health Refers to the employees’ freedom from physical or emotional illness. Stress Stress is the body’s nonspecific reaction to any demand made on it. Burnout The total depletion of physical and mental resources caused by excessive striving to reach an unrealistic work-related goal. Hypnosis An altered state of consciousness that is artificially induced and characterized by increased receptiveness to suggestions. Constraints Constraints are barriers that keep us from doing what we desire. Demands Desires that are backed by the purchasing power or affordability. Biofeedback A method of learning to control involuntary bodily processes, such as blood pressure or heart rate. Transcendental Meditation A stress-reduction technique in which an individual, comfortably seated, mentally repeats a secret word or phrase provided by a trained instructor. Burnout An incapacitating condition in which individuals loses a sense of the basic purpose and fulfillment of their work. Communication Exchange of information between people; it occurs when one person understands the meaning of a message sent by another person, and responds to it. Noise All factors that interfere with and distort communication. Encoding Process by which sender puts a message in a certain format to send to the receiver. docsity.com