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20 terms

HRM Chapter 11

Pay Structure Decisions
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Pay Structure
The relative pay of different jobs (job structure) and how much they are paid (pay level).
Pay Level
The avg. pay, including wages, salaries, and bonuses, of jobs in an organization
Job Structure
The relative pay of jobs in an organization
Efficiency Wage Theory
A theory stating that wages influence worker productivity.
Benchmarking
Comparing an organization's practices against those of the competition.
Rate Ranges
Different employees in the same job may have different pay rates.
Key Jobs
Benchmark jobs used in pay surveys, that have relatively stable content and are common to many organizations
Nonkey Jobs
Unique jobs to an organization. Cannot be directly valued or compared through the use of market survey
Job Evaluation
An administrative procedure used to measure internal job worth.
Compensable Factors
The characteristics of jobs that an organization values and chooses to pay for.
Pay Policy Line
A mathematical expression that describes the relationship between a job's pay and its job evaluation points.
Pay Grades
Jobs of similar worth or content grouped together for pay administration purposes
Range Spread
The distance between the min. and max. amounts in a pay grade
Compa-Ratio
An index of the correspondence between actual and intended pay.
Delayering
Reducing the number of job levels within an organization.
Skill-based pay
Pay based on the skills employees acquire and are capable of using.
Comparable Worth
A public policy that advocates remedies for any undervaluation of women's jobs (pay equity)
Fair Labor Standards Act (FLSA)
The 1938 law that est. the minimum wage and overtime pay.
Minimum Wage
Lowest amount that employers are legally allowed to pay; FLSA permits subminimum wage to workers under the age of 20 for 90 days
Exempt
Employees who are not covered by FLSA. Not eligible for overtime pay.