Human Resource Management Chapter 11

The total value an employee receives from their employment, encompassing both direct financial payments (wages, salaries, incentives) and indirect payments (insurance, vacation).

A compensation program that aligns with the company's strategic goals, ensuring employee actions contribute to overall business success.

A theory suggesting people compare their input and output to others. When perceived inequity exists, it creates tension motivating them to reduce it.

The fairness of pay compared to other companies within the labor market.

The fairness of pay based on job value within your own organization.

The fairness of pay compared to others performing the same job in your organization.

The fairness of the process used to determine pay rates.

Legal acts protecting workers' wages. The Davis-Bacon Act, Walsh-Healey Public Contract Act, and Title VII of the Civil Rights Act.

A federal law guaranteeing the right to form or join labor unions, bargain collectively, and engage in other concerted activities for the purpose of collective bargaining.

A type of pay policy that considers geographical differences in living costs, such as housing, transportation, and groceries.

A specific type of job evaluation method where jobs are compared based on their relative worth and contribution to the organization.

A federal law that requires employers to provide eligible employees with unpaid, job-protected leave for certain family and medical reasons.

A federal law that prohibits discrimination based on sex in compensation, including pay, benefits, and other forms of compensation.

A federal law that sets minimum wage, overtime pay, and child labor standards for employees engaged in interstate commerce.

A legal entity that provides services to a client on an independent basis and is responsible for their own taxes and benefits.

A legal classification of an employee who receives regular payments from an employer in exchange for performing specific tasks.

The process of researching and analyzing salary data from external sources to establish competitive pay rates for similar jobs.

A pay plan that balances fairness within the organization (internal equity) and the need to remain competitive with external labor markets (external equity).

Key elements of a job that are used for comparing different jobs and determining their relative worth in terms of pay.

Jobs that are commonly found in the labor market and used as benchmarks for salary comparisons.

A job evaluation method that directly compares jobs based on their overall value and ranks them from highest to lowest. This is generally subjective.

The final salary assigned to a job after considering multiple factors like market data and job ranking.

The process of using salary surveys to compare a company's current pay structure to what other companies are paying for similar jobs in the market.

The salary range for a specific job level within a company, taking into account internal factors like experience and performance.

A graph that shows the relationship between job value and the salary offered by external companies in the same industry.

The process of comparing and adjusting salaries for similar jobs within a company to make sure they are competitive with the external market.

Groups of jobs with similar value, used to establish consistent pay scales.

The range of salaries for a particular pay grade, allowing for differences based on experience and performance.

Paying employees based on the skills and knowledge they possess, rather than their job title.

A compensation system that uses fewer pay grades and broader pay ranges, offering more flexibility in rewarding employees.

Ensuring that jobs that require similar skills and effort are paid equally, regardless of the traditional gender or societal associations with those positions.

A system that provides employees with a holistic view of their total compensation package, encompassing not just salary but benefits and other perks.

The oversight of executive pay by independent bodies like the SEC and shareholder groups to ensure fairness and accountability.

A legal requirement to pay equal wages to men and women for the same job, regardless of other factors.

A job evaluation method where specific factors (like skills, responsibilities, and working conditions) are assigned points based on their value to the organization.

A job evaluation method where jobs are assigned a grade based on their level of responsibility and complexity. Each grade has a specific set of duties and responsibilities.

The process of assigning weights to compensable factors based on their relative importance to the organization. The weight reflects the value given to them in determining overall job value.

Defining different levels or degrees within each compensable factor. For example, a skill factor could have degrees like entry-level, intermediate, and expert.

Translating the factor degrees into points for each compensable factor. This helps create a numerical system to compare job values and set pay rates.