Human Resource Mgmt 11th Ed. Chapter 12
Terms
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- Balance-sheet approach
- Compensation plan that equalizes cost differences between identical international and home-country assignments.
- Base pay
- Basic compensation that an employee receives, usually as a wage or a salary.
- Benchmark jobs
- Jobs found in many organizations.
- Benefit
- Indirect reward given to an employee or a group of employees for organizational membership.
- Broadbanding
- Practice of using fewer pay grades with much broader ranges than in traditional compensation systems.
- Compa-ratio
- Pay level divided by the midpoint of the pay range.
- Compensable factor
- Factor that identifies a job value commonly present throughout a group of jobs.
- Compensatory time off
- Hours given to an employee in lieu of payment for extra time worked.
- Competency-based pay
- Rewards individuals for the capabilities they demonstrate and acquire.
- Distributive justice
- Perceived fairness in the distribution of outcomes.
- Entitlement philosophy
- Assumes that individuals who have worked another year are entitled to pay increases, with little regard for performance differences.
- Equity
- Perceived fairness between what a person does and what the person receives.
- Exempt employees
- Employees to whom employers are not required to pay overtime under the Fair Labor Standards Act.
- Garnishment
- A court action in which a portion of an employee’s wages is set aside to pay a debt owed a creditor.
- Global market approach
- Compensation plan that attempts to be more comprehensive in providing base pay, incentives, benefits, and relocation expenses regardless of the country to which the employee is assigned.
- Green-circled employee
- Incumbent who is paid below the range set for the job.
- Job evaluation
- Formal, systematic means to identify the relative worth of jobs within an organization.
- Job family
- Group of jobs having common organizational characteristics.
- Living wage
- One that is supposed to meet the basic needs of a worker’s family.
- Lump-sum increase (LSI)
- One-time payment of all or part of a yearly pay increase.
- Market banding
- Grouping jobs into pay grades based on similar market survey amounts.
- Market line
- Graph line that shows the relationship between job value as determined by job evaluation points and job value as determined by pay survey rates.
- Market pricing
- Use of pay survey data to identify the relative value of jobs based on what other employers pay for similar jobs.
- Non-exempt employees
- Employees who must be paid overtime under the Fair Labor Standards Act.
- Pay compression
- Occurs when the pay differences among individuals with different levels of experience and performance become small.
- Pay equity
- Similarity in pay for all jobs requiring comparable knowledge, skills, and abilities, even if actual duties and market rates differ significantly.
- Pay grades
- Groupings of individual jobs having approximately the same job worth.
- Pay survey
- Collection of data on compensation rates for workers performing similar jobs in other organizations.
- Pay-for-performance philosophy
- Requires that compensation changes reflect individual performance differences.
- Procedural justice
- Perceived fairness of the process and procedures used to make decisions about employees.
- Red-circled employee
- Incumbent who is paid above the range set for the job.
- Salaries
- Consistent payments made each period regardless of the number of hours worked.
- Seniority
- Time spent in the organization or on a particular job.
- Tax equalization plan
- Compensation plan used to protect expatriates from negative tax consequences.
- Variable pay
- Compensation linked directly to individual, team, or organizational performance.
- Wages
- Payments directly calculated on the amount of time worked.