Test Bank for Compensation, 14th Edition by Barry Gerhart

Test Bank for Compensation, 14th Edition by Barry Gerhart Compensation - Answers All forms of financial returns and tangible services and benefits that employees receive as part of an employment relationship relational returns - Answers psychological returns employees believe they receive in the workplace total rewards - Answers All rewards received by employees, including cash compensation, benefits, and relational returns wage - Answers pay calculated at an hourly rate salary - Answers pay calculated at an annual or monthly rate merit increases - Answers increment to base pay in recognition of past work behavior cost-of-living adjustment - Answers percentage increment to base pay provided to all employees regardless of performance incentives (variable pay) - Answers one-time payments for meeting previously established performance objectives (Total Returns) (Total Compensation) Cash Compensation - Answers Direct - Base, Merit/cost of living, short term incentives (Total Returns) (Total Compensation) Benefits - Answers Indirect - Life, Health & Disabilty Insurance , Work/Life Programs, Allowances (Total Returns) Relational Returns - Answers Non-Financial - Recognition & Status, Employment Security, Challenging Work, Learning Opportunities Work/Life Programs - Answers Programs that help employees better integrate their work and life responsibilities Allowances - Answers Compensation to provide for items that are in short supply Employee Engagement - Answers A level of connection employees feel to their employer that results in them giving full discretionary effort on a sustained basis above and beyond specific job requirements Procedural Fairness - Answers Fairness of the process used to make a decision The Pay Model - Answers Strategic Policies ( Alignment- Internal Structure, Competiveness - Pay Structure, Contributors - Incentive Programs, Management - Evaluation) - Techniques - Strategic Objextives (Efficiency, Fairness, Compliance) Internal Alignment - Answers Pay comparisons between jobs or skill levels inside a single organization External Competiveness - Answers Comparison of compensation with that of one's competitors Developing a Total Compensation Strategy (4 Steps) - Answers Step 1: Assess Total Compensation Implications -Competitive Dynamics - Understand the Business - Culture/Values - Social and Political Context - Employee Preferences - Choice is good - Union Preferences Prominence of Pay in Overall HR Strategy Step 2: Decide on a Total Compensation Strategy Step 3 and 4: Implement and Reassess Source of Competitive Advantage: Three Tests - Answers 1) Does the pay strategy align - alignment with business strategy - alignment externally with the economic and socio political conditions - alignment internally with overall HR system 2) Does the pay strategy differentiate? 3) Does the pay strategy add value? Internal Alignment (internal equity) - Answers the pay relationships between relationships between the jobs/skills/competencies within a single organization Pay Structure - Answers The array of pay rates for different work or skills within a single organization; the number of levels, and the criteria used to determine these differences create the structure workflow - Answers process by which goods and services are delivered to the customer line of sight - Answers link between an individual employee's work and the achievement of organizational objectives differentials - Answers pay difference between job levels Internal pay structure is defined by: - Answers 1) the number of levels of work 2) pay differentials between the levels 3) criteria used to determine those levels and differentials marginal productivity theory - Answers unless an employee can produce something of value from his/her job equal to the value received in wages, it will not be worthwhile for an employer to hire that employee What Factors Shape Internal Structures - Answers Economic Pressures, Government Policies, Laws, and Regulations, External Stakeholders, Cultures and Customs, Organization Strategy, Organization's human capital, Technology and Work design, Overall HR Policies, Internal Labour Markets: Combining External and Organizational Factors, Employee Acceptance: A Key Factor, Pay Structures Change Internal labour markets - Answers rules and procedures that determine the pay for different to within a single organization and that allocate employees to those different jobs Procedural Justice - Answers Fairness of a process by which a decision is reached Distributive Justice - Answers Fairness of a decision outcome Tailored Structure - Answers Pay structure for well defined jobs with relatively small differences in pay Loosely coupled structure - Answers pay structure for jobs are flexible, adaptable, and changing Job Analysis - Answers The systematic process of collecting information about the nature of specific jobs Internal Job Structure - Answers Job Analysis - - Job Descriptions (summary reports that identify, define, and describe the job as it actually performed) - - Job Evaluation (comparison of jobs within an organization) -- Job Structure (An ordering of jobs based on their content or relative value_ General Procedures for Conventional Job Analysis - Answers 1) Develop Preliminary Job Information 2) Conduct Initial Tour of Work Site 3) Conduct initial tour of work site 4) Conduct second tour of work site 5) Consolidate job information 6) Verify job description Position Analysis Questionnaire (PAQ) - Answers A structures job analysis questionnaire used for analyzing jobs on the basis of 194 job elements that describe generic work behaviors How can information be collected - Answers - Conventional Methods (involvement of employees increase their understanding of the process. However, results are only as good as people involved. -Quantitive Methods (an analyst will direct job holders to a web site where they complete a questionnaire online. Results can be analyzed arithmetically. Job Description - Answers Written summary of a job, including responsibilities, qualification and relationships Job Specification - Answers Qualifications required to be hired for a job may be included in the job ddescription Judging Job Analysis - Answers 1) Reliability 2)Validity 3) Acceptability 4) Usefulness 5) Judgment Call Reliability - Answers Consistency of results from repeated applications of a measure Validity - Answers Accuracy of a measure Job Structure - Answers Hierarchy of all jobs based on value to the organization; provides the basis for the pay structure Job Evaluation - Answers The process of systematically determining the relative worth of jobs to create a job structure for the organization Defining Job Evaluation - Answers 1) Content 2) Value 3) External Market Links Major Job Evaluation Decisions - Answers 1) Establish Purpose 2) Decide on single versus multiple plans (diverse ex; Engineering, Corporate, Operations) 3) choose among alternative methods