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HRM Chapter 11
Pay Structure Decisions
The relative pay of different jobs (job structure) and how much they are paid (pay level).
The avg. pay, including wages, salaries, and bonuses, of jobs in an organization
The relative pay of jobs in an organization
Efficiency Wage Theory
A theory stating that wages influence worker productivity.
Comparing an organization's practices against those of the competition.
Different employees in the same job may have different pay rates.
Benchmark jobs used in pay surveys, that have relatively stable content and are common to many organizations
Unique jobs to an organization. Cannot be directly valued or compared through the use of market survey
An administrative procedure used to measure internal job worth.
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.
Jobs of similar worth or content grouped together for pay administration purposes
The distance between the min. and max. amounts in a pay grade
An index of the correspondence between actual and intended pay.
Reducing the number of job levels within an organization.
Pay based on the skills employees acquire and are capable of using.
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.
Lowest amount that employers are legally allowed to pay; FLSA permits subminimum wage to workers under the age of 20 for 90 days
Employees who are not covered by FLSA. Not eligible for overtime pay.