20614363
Description
Flashcards by Josefine Marie, updated more than 1 year ago
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Created by Josefine Marie
over 4 years ago
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| Question | Answer |
| Executive 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 |
| Compensation | - 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) |
| Financial 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 |
| Equity 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) |
| Determinants 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) |
| Organization (Determinant of direct financial compensation) | - Compensation policies (pay leaders, market rate or going rate, pay followers) - Organizational level - Ability to pay |
| Labor 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) |
| Job (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) |
| Job Evaluation | firm 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) |
| Job Pricing | - Job evaluation results in a job hierarchy - Job pricing places a dollar value on job - Takes place after evaluation of job |
| Employee (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 |
| Team based pay | - rewards based on overall team performance - it is easier to develop performance standards for groups - potential disadvantage for exemplary performers |
| Company wide pay | - Profit sharing - Gain sharing - Scanlon Plan |
| Professional Employee Compensation | - professionals initially compensated for knowledge they bring to organization - refelcts relationship between professional compensation and years of experience |
| Sales representative compensation | - straight salary - Straight commisson - endless variety of part-salary, part comission combinations |
| Contigent worker compensation | - contigent workers earn less - far less likely to have health or retirment benefits |
| Say on pay | - gives shareholders an advisory vote on executive pay - expected the vote will cause greater accountability on executive pay |
| Golden Parachutes | -protecting executices in event another company acquires firm or executive is forced to leave firm for other reason - |
| Claw back policies | - provision allows company to recover compensation if subsequent reveiw indicates payments were not calculated accurately or performance goals were not met |
| Executive Compensation Types | - Base Salary - Bonuses and performance based pay - Stock option plans - Perquisites (perks) _ Severance packages |
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