Flashcards
Chapter 9 - Financial Compensation
Flashcards do conjunto (20)
- 1Executive Pay as lightning rod for criticism- advise for managers that 20-1 salary ratio betweeen senior executives and white collar workers should be considered the limit
- 2Compensation- total rewards provided to employees in return for services
- Direct Financial compensation (wages, salaries, bonuses and commissions)
- Indirect financial compensation (benefits)
- Nonfinancial compensation (satisfaction by job, or environment) - 3Financial Equity- Perception of fair pay
- motivation is in proportion to the perceived fairness of rewards received for amount of effort
- compared to what others around the person receive for their efforts - 4Equity in financial compensation- Financial Equity (perception of fair pay)
- External Equity (employees paid comparably to workers who perform similar job in other firm)
- Internal equity ( paid according to relative value of jobs within same organization)
- Employee equity (individuals performing similar jobs for same firm paid according to factors such as performance level or seniority)
- Team equity (more productive teams are rewarded more) - 5Determinants of direct financial compensation- Organization (compensation policies, organizational level, ability to pay)
- Employee (Job performance, skills, competencies, seniority,....)
- Labor Market (cost of living, labor unions, economy, legislation)
- Job (job analysis, job descriptions, job evaluation) - 6Organization (Determinant of direct financial compensation)- Compensation policies (pay leaders, market rate or going rate, pay followers)
- Organizational level
- Ability to pay - 7Labor Market (Determinant of direct financial compensation)potential employees located within geographic area from which employees are recruited. pay for same jobs in different labor markets may vary considerably
- Compensation Survey (obtaining data regarding what other firms are paying)
- Expediency
- Cost of living (index)
- Labor Unions (mandatory collective bargaining)
- The economy (depressed economy=icreased labor supply) - 8Job (Determinant of direct financial compensation)Organizations pay for value they attach to certain duties, responsibilities, working conditions
- Job Analysis and Job description (they must define content before valueing)
- Job Evaluation (Ranking method, classification method, factor comparison method, point method) - 9Job Evaluationfirm determines value of one job in relation to another
- Ranking method (in order according to value)
- Classification method (compare job description with class description)
- Factor comparison (mental requirements, skills, physical requirements, responsibilities, working conditions)
- Point Method (numerical vaules assigned) - 10Job Pricing- Job evaluation results in a job hierarchy
- Job pricing places a dollar value on job
- Takes place after evaluation of job - 11Employee (Determinant of direct financial compensation)- Performance based (merit, variable, bonuses, spot bonuses, piecework)
- Skill-based
- Competency based
- Seniority
- Experience
- Organization Membership
- Potential
- Political influence
- Luck
-Salary compresson - 12Team based pay- rewards based on overall team performance
- it is easier to develop performance standards for groups
- potential disadvantage for exemplary performers - 13Company wide pay- Profit sharing
- Gain sharing
- Scanlon Plan - 14Professional Employee Compensation- professionals initially compensated for knowledge they bring to organization
- refelcts relationship between professional compensation and years of experience - 15Sales representative compensation- straight salary
- Straight commisson
- endless variety of part-salary, part comission combinations - 16Contigent worker compensation- contigent workers earn less
- far less likely to have health or retirment benefits - 17Say on pay- gives shareholders an advisory vote on executive pay
- expected the vote will cause greater accountability on executive pay - 18Golden Parachutes-protecting executices in event another company acquires firm or executive is forced to leave firm for other reason
- - 19Claw back policies- provision allows company to recover compensation if subsequent reveiw indicates payments were not calculated accurately or performance goals were not met
- 20Executive Compensation Types- Base Salary
- Bonuses and performance based pay
- Stock option plans
- Perquisites (perks)
_ Severance packages
Informações
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- O usuário eliminou as informações de disciplina FlashCards sobre Chapter 9 - Financial Compensation, criado por Usuário eliminado em 22-01-2020.
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- Criado por Josefine Marie · 22 jan 2020
- Copiado por Josefine Marie · 22 jan 2020
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