Strategic Compensation Exam 1 Study Guide (Chapter 3) || Already Passed.

Seniority Pay and Longevity Pay Systems correct answers These systems reward employees with periodic additions to base pay according to employees' length of service in performing their jobs. These pay plans assume that: 1. employees become more valuable to companies with time 2. valued employees will leave if they do not have a clear idea that their salaries will progress over time. This concept is also known as the human capital theory. correct answers What are the two assumptions made about workers in regards to Seniority/Longevity Pay? What is another term for these assumptions? Human Capital Theory correct answers This concept states that employees' knowledge and skills generate productive capital known as human capital. Job Control Unionism correct answers Collective bargaining led to _________________, in which collective bargaining units negotiated formal contracts with employees and provide quasi-judical grievance procedures to adjudicate disputes between uion members and employers. the National Labor Relations Act correct answers This act established a collective bargaining system nationwide to accommodate employer's and employees' partially conflicting and partially shared goals. True correct answers True or False: Historically, seniority pay programs have their roots in organized labor mobements. 1. They occur after an employee tops out the seniority system. 2. Usually a stand-alone lump-sum payment that does not become part of base pay. 3. They are typically common amongst government employees, excluding wisconsin. correct answers What are the three factors of a longevity pay system that differentiate them from seniority pay systems? Advantages: -Perceived as fair and easy to administer -Time efficient -Simple -Reduces Turnover -Not messy like Merit Pay Disadvantages: -Not strategic -Provides raises to high performers but also people who have done the bare minimum to avoid getting fired.