UARK MGMT 2103 Exam 3 questions and solutions

UARK MGMT 2103 Exam 3 questions and solutions

Internal factors affecting compensation - answers-compensation strategy of organization
ji ji ji ji ji ji ji ji




-worth of job ji ji




-employees relative worth ji ji




-employers ability to pay ji ji ji




External Factors affecting the compensation - answers-conditions of the labor market ji ji ji ji ji ji ji ji ji ji




-area pay rates ji ji




-cost of living ji ji




-collective bargaining ji




-legal requirements ji




Market Pay Surveys - answers-a form of benchmarking ji ji ji ji ji ji ji




-how much are our competitors paying, and is there any reason we should be different?
ji ji ji ji ji ji ji ji ji ji ji ji ji ji




Benchmarking - answersprocedure by which an organization compares its own practices against the ji ji ji ji ji ji ji ji ji ji ji ji




competition
ji




Key Jobs - answersbenchmark jobs that have relatively stable content and are common to many
ji ji ji ji ji ji ji ji ji ji ji ji ji ji




organizations so that market-pay-survey data can be obtained
ji ji ji ji ji ji ji ji




Non-key Jobs - answersunique to organizations and cannot be directly valued or compared through the use
ji ji ji ji ji ji ji ji ji ji ji ji ji ji ji




of market surveys
ji ji ji




Job Evaluation - answersadministrative procedure used to measure internal job worth
ji ji ji ji ji ji ji ji ji ji




-method for matching salary with a job ji ji ji ji ji ji




Point System - answersA quantitative job evaluation procedure that determines the relative value of a job by
ji ji ji ji ji ji ji ji ji ji ji ji ji ji ji ji




the total points assigned to it.
ji ji ji ji ji ji




How an organization uses the point method - answersJob evaluators often apply a weighting scheme to
ji ji ji ji ji ji ji ji ji ji ji ji ji ji ji




account for
ji ji




differing importance of compensable factors to the organization ji ji ji ji ji ji ji




Market-Survey Approach - answers-emphasizes external comparisons ji ji ji ji ji




-bases pay on market surveys that cover as many key jobs as possible
ji ji ji ji ji ji ji ji ji ji ji ji




Pay Policy Line - answersmathematical expression that describes the relationship between a job's pay and
ji ji ji ji ji ji ji ji ji ji ji ji ji ji




its job evaluation points
ji ji ji ji




Pay Grades - answersgrouping jobs of similar worth or content together for pay administrative purposes
ji ji ji ji ji ji ji ji ji ji ji ji ji ji




Broadbanding - answerscollapses many traditional salary grades into a few wide salary bands ji ji ji ji ji ji ji ji ji ji ji ji




Stock Options - answers-right to buy company stock at discounted price (not obligatory)
ji ji ji ji ji ji ji ji ji ji ji ji

, -CEO pay varies with performance of stock market
ji ji ji ji ji ji ji




Stock Grants - answersstock given to employees as compensation/ part of compensation
ji ji ji ji ji ji ji ji ji ji ji




Equal Pay Act of 1963 - answersMen and women in the same firm who do "equal work" must be
ji ji ji ji ji ji ji ji ji ji ji ji ji ji ji ji ji ji




paid equally
ji




-equal in terms of skill, effort, responsibility, and working conditions
ji ji ji ji ji ji ji ji ji




Comparable Worth (Pay Equity) - answersA public policy that advocates remedies for any undervaluation of ji ji ji ji ji ji ji ji ji ji ji ji ji ji




women's jobs ji




Fair Labor Standards Act of 1938 - answersestablished minimum wage and overtime pay rate
ji ji ji ji ji ji ji ji ji ji ji ji ji




Hourly work - answerspayed on an hourly basis ji ji ji ji ji ji ji




Salary work - answerscompensation is computed on the basis of weekly,
ji ji ji ji ji ji ji ji ji ji




biweekly, or monthly pay periods. ji ji ji ji




Exempt work - answers- those employees (executive, professional, ji ji ji ji ji ji ji




administrative and outside sales, as well as certain "computer ji ji ji ji ji ji ji ji




employees") not covered by the FLSA and not eligible for ji ji ji ji ji ji ji ji ji




overtime pay ji




Nonexempt work - answersemployees that are covered under FLSA; includes most hourly jobs ji ji ji ji ji ji ji ji ji ji ji ji




Reinforcement Theory - answersa response followed by a reward is more likely to recur in the future ji ji ji ji ji ji ji ji ji ji ji ji ji ji ji ji




Expectancy Theory - answersMotivation is fostered when an employee believes these 3 things: ji ji ji ji ji ji ji ji ji ji ji ji




-their effort will result in performance (expectancy)
ji ji ji ji ji ji




-performance will result in outcomes (instrumentality) ji ji ji ji ji




-those outcomes will be valuable (valence)
ji ji ji ji ji




Agency Theory - answersexplains the relationship between principals (owners) and agents (managers)
ji ji ji ji ji ji ji ji ji ji ji




Merit Pay - answersUsually involves increases to base salary that depend on result of
ji ji ji ji ji ji ji ji ji ji ji ji ji




performance evaluation ji




Merit Increase Grid - answerscombines an employee's performance rating with employee's
ji ji ji ji ji ji ji ji ji ji




position in a pay range to determine size and frequency of his or her pay increases
ji ji ji ji ji ji ji ji ji ji ji ji ji ji ji




Merit Bonus - answersMerit pay paid in the form of a bonus, instead of a salary increase.
ji ji ji ji ji ji ji ji ji ji ji ji ji ji ji ji




Merit Pay Criticisms - answers-accuracy of raise depends on accuracy of performance evaluation
ji ji ji ji ji ji ji ji ji ji ji ji




method
-can encourage competition when budget or economic constraints
ji ji ji ji ji ji ji




exist
-average difference in raises between high and average performers is ji ji ji ji ji ji ji ji ji




around $21.15/week (before taxes) ji ji ji




Individual Incentives - answersAttach bonuses to the fulfillment of individual employees' goals ji ji ji ji ji ji ji ji ji ji ji