WGU C202 Managing Human Capital
All GRADE A+ SOLUTIONS
Direct financial compensation
compensation received in the form of salary, wages, commissions,
stock options or bonuses
indirect financial compensation
all the tangible and financially valued rewards that are not included
in direct compensation including free meals, vacation time and health
insurance
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nonfinancial compensation
rewards and incentives given to employees that aren't financial in
nature
base pay
reflects the size and scope of an employee's responsibilities
severance pay
give to employees upon termination of their employment
fixed pay
pays employees a set amount regardless of performance
variable pay
bases some or all of an employee's compensation on employee, team, or
organizational
pay structure
the array of pay rates for different work or skills within a single
organization
pay mix
the relative emphasis give to different compensation components
pay leader
,organization with a compensation policy of giving employees greater
rewards than competitors
pay follower
an organization that pays its front-line employees as little as
possible
resource dependence theory
proposition that organizational decisions are influenced by both
internal and external agents who control critical resources
wage differentials
differences in wage between various workers, groups of workers, or
workers within a career field
labor market
all of the potential employees located within a geographic area from
which the organization might be able to hire
cost of living allowances
clauses in union contacts that automatically increase wages base on
the U.S. Bureau of Labor Statistics' cost of living index
market pricing
uses external sources of information about how others are
compensating a certain position to assign value to a company's
similar job
Compensation surveys
surveys of other organizations conducted to learn what they are
paying for specific jobs or job classes
benchmark jobs
jobs that tend to exist across departments and across diverse
organizations allowing them to be used as a basis for compensation
comparisons
job evaluation
a systematic process that uses expert judgement to assess differences
in value between jobs
ranking methos
subjectively compares jobs to each other based on their overall worth
to the organization
job classification method
subjectively classifies jobs into an exiting hierarchy of grades and
categories
point factor method
uses a set of compensable factors to determine a job's value. skill,
resp, effort, working cond.
compensable factor
any characteristic used to provide a basis for judging a job's value
skills, responsibilities, effort, working conditions
Four categories of compensable factors
,Hay Group Guide Chart - Profile Method
a point-factor system is used to produce both a profile and a point
score for each position.
know how
problem solving
accountability
working conditions
Know-how, problem solving, accountability, working conditions
Hay Group Method based on four main factors
Position Analysis Questionnaire
a structured job evaluation questionnaire that is statistically
analyzed to calculate pay rates based on how the labor market is
valuing worker characteristics. a copyrighted, standardized,
structured job analysis questionnaire. 6 sections covering 187 job
elements.
job pricing
the generation of salary structures and pay levels for each job based
on the job evaluation data
single rate system, pay grades and broadbanding
Three most common job pricing systems
pay grade (pay scale)
the range of possible pay for a group of jobs
broadbanding
using very wide pay grades to increase pay flexibility
internal equity
when employees perceive their pay to be fair relative to the pay of
other jobs in the organization
employee equity
the perceived fairness of the relative pay between employees
performing similar jobs for the same organization
external equity
when an organization's employees believe that their pay is fair when
compared to what other employers pay their employees who perform
similar jobs
comparable worth
if two jobs have equal difficulty requirements, the pay should be the
same, regardless of who fills them
wage rate compression
starting salaries for new hires exceed the salaries paid to
experienced employees
golden parachute
lucrative benefits given to executives in the event the company is
taken over
Cost-of-living adjustments
, pay increases to account for a higher cost of living in one country
versus another
Housing allowance
payments to subsidize or cover housing and related costs
hardship premiums
increased salary for living in an area with a lower quality of life,
less safety, etc.
tax equalization payments
increased salary to make up for higher taxes that reduce take-home
pay and decrease employee's purchasing power
inflation adjustments
larger and/or more frequent raises to maintain employee's purchasing
power in the face of inflation
Fair Labor Standards Act of 1938
a federal law that sets standards for minimum wages, overtime pay,
and equal pay for men and women performing the same jobs
exempt employees
employees who meet one of the FLSA exemption tests, are paid on a
fixed salary basis and are not entitled to overtime pay
non-exempt employees
employees who do not meet any of one of the FLSA exemption tests and
are paid on an hourly basis and covered by wage and hour laws
regarding minimum wage, overtime pay and hours worked
workers' compensation
a type of insurance that replaces wages and medical benefits for
employees injured on the job in exchange for relinquishing the
employee's right to sue the employer for negligence
fixed rewards
predetermined compensation (salary and benefits)
variable rewards (incentives)
"at risk" rewards which are linked to factors determined as valuable,
including performance, skills, competence and contribution
- Recognize and reward high performers
- Increase the likelihood of achieving corporate goals
- Improve productivity
- Move away from an entitlement culture
Top four reasons organizations give for tying pay to performance ar
- Preference of individual employees
- Size of the rewards for high performance
- Method of motivating individual job performance
- Objectivity of the evaluation process that determines the rewards
Before designing an incentive pay plan to motivate performance, it is
important to consider the
All GRADE A+ SOLUTIONS
Direct financial compensation
compensation received in the form of salary, wages, commissions,
stock options or bonuses
indirect financial compensation
all the tangible and financially valued rewards that are not included
in direct compensation including free meals, vacation time and health
insurance
Previous
Play
Next
Rewind 10 seconds
Move forward 10 seconds
Unmute
0:01
/
0:15
Full screen
Brainpower
Read More
nonfinancial compensation
rewards and incentives given to employees that aren't financial in
nature
base pay
reflects the size and scope of an employee's responsibilities
severance pay
give to employees upon termination of their employment
fixed pay
pays employees a set amount regardless of performance
variable pay
bases some or all of an employee's compensation on employee, team, or
organizational
pay structure
the array of pay rates for different work or skills within a single
organization
pay mix
the relative emphasis give to different compensation components
pay leader
,organization with a compensation policy of giving employees greater
rewards than competitors
pay follower
an organization that pays its front-line employees as little as
possible
resource dependence theory
proposition that organizational decisions are influenced by both
internal and external agents who control critical resources
wage differentials
differences in wage between various workers, groups of workers, or
workers within a career field
labor market
all of the potential employees located within a geographic area from
which the organization might be able to hire
cost of living allowances
clauses in union contacts that automatically increase wages base on
the U.S. Bureau of Labor Statistics' cost of living index
market pricing
uses external sources of information about how others are
compensating a certain position to assign value to a company's
similar job
Compensation surveys
surveys of other organizations conducted to learn what they are
paying for specific jobs or job classes
benchmark jobs
jobs that tend to exist across departments and across diverse
organizations allowing them to be used as a basis for compensation
comparisons
job evaluation
a systematic process that uses expert judgement to assess differences
in value between jobs
ranking methos
subjectively compares jobs to each other based on their overall worth
to the organization
job classification method
subjectively classifies jobs into an exiting hierarchy of grades and
categories
point factor method
uses a set of compensable factors to determine a job's value. skill,
resp, effort, working cond.
compensable factor
any characteristic used to provide a basis for judging a job's value
skills, responsibilities, effort, working conditions
Four categories of compensable factors
,Hay Group Guide Chart - Profile Method
a point-factor system is used to produce both a profile and a point
score for each position.
know how
problem solving
accountability
working conditions
Know-how, problem solving, accountability, working conditions
Hay Group Method based on four main factors
Position Analysis Questionnaire
a structured job evaluation questionnaire that is statistically
analyzed to calculate pay rates based on how the labor market is
valuing worker characteristics. a copyrighted, standardized,
structured job analysis questionnaire. 6 sections covering 187 job
elements.
job pricing
the generation of salary structures and pay levels for each job based
on the job evaluation data
single rate system, pay grades and broadbanding
Three most common job pricing systems
pay grade (pay scale)
the range of possible pay for a group of jobs
broadbanding
using very wide pay grades to increase pay flexibility
internal equity
when employees perceive their pay to be fair relative to the pay of
other jobs in the organization
employee equity
the perceived fairness of the relative pay between employees
performing similar jobs for the same organization
external equity
when an organization's employees believe that their pay is fair when
compared to what other employers pay their employees who perform
similar jobs
comparable worth
if two jobs have equal difficulty requirements, the pay should be the
same, regardless of who fills them
wage rate compression
starting salaries for new hires exceed the salaries paid to
experienced employees
golden parachute
lucrative benefits given to executives in the event the company is
taken over
Cost-of-living adjustments
, pay increases to account for a higher cost of living in one country
versus another
Housing allowance
payments to subsidize or cover housing and related costs
hardship premiums
increased salary for living in an area with a lower quality of life,
less safety, etc.
tax equalization payments
increased salary to make up for higher taxes that reduce take-home
pay and decrease employee's purchasing power
inflation adjustments
larger and/or more frequent raises to maintain employee's purchasing
power in the face of inflation
Fair Labor Standards Act of 1938
a federal law that sets standards for minimum wages, overtime pay,
and equal pay for men and women performing the same jobs
exempt employees
employees who meet one of the FLSA exemption tests, are paid on a
fixed salary basis and are not entitled to overtime pay
non-exempt employees
employees who do not meet any of one of the FLSA exemption tests and
are paid on an hourly basis and covered by wage and hour laws
regarding minimum wage, overtime pay and hours worked
workers' compensation
a type of insurance that replaces wages and medical benefits for
employees injured on the job in exchange for relinquishing the
employee's right to sue the employer for negligence
fixed rewards
predetermined compensation (salary and benefits)
variable rewards (incentives)
"at risk" rewards which are linked to factors determined as valuable,
including performance, skills, competence and contribution
- Recognize and reward high performers
- Increase the likelihood of achieving corporate goals
- Improve productivity
- Move away from an entitlement culture
Top four reasons organizations give for tying pay to performance ar
- Preference of individual employees
- Size of the rewards for high performance
- Method of motivating individual job performance
- Objectivity of the evaluation process that determines the rewards
Before designing an incentive pay plan to motivate performance, it is
important to consider the
