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HCM 405 ch 8
Terms in this set (74)
Factors that may lead to job satisfaction and good performance include:
Intrest in the work, competent supervision, flexibilty, growth and earning potential, and presonal reward
A significant motivator and a frequent measure of the value an employer placed on its employees
Money, goods, and services provided to employees in return for employees contribution. May also include paid time off and other elements. All the rewards employees receive for the work they put forth
includes direct and indirect compensation. All aspects of compensation given to employees, including monetary compensation, benefits, paid time off (such as vacation pay), and stock options
Refers to wages, salaries, commissions, and bonuses
Consists of all other rewards, financial and nonfinancial. These include benefits such as health insurance and retirement plans, employer contributions to social security, paid time off (such as vacation and sick pay), and training opportunities
What is a key factor in the success of employee recruitment and retention?
What makes it difficult for organizations to respond to rising wage and salary levels?
limits placed by third party payers
Why is a fair competitive compensation system essential?
because professional shortage occurs in cycles, leaving organizations to compete which each other for a limited supply of employees
A compensation system must be approached strategically and have multiple goals including:
Rewarding employee performance
Achieving internal equity or fairness within an organization
Competing with relative labor markets
Aligning employee behavior and performance with organizational goals
Attracting and retaining high performing employees
Keeping the compensation budget within organizational financial constraints
Complying with legal requirements
The lay relationships among jobs in an organization and the extent to which workers are compensated fairly
What may distribute the organizations internal equity?
When developing a compensation strategy, the organization must first decide what?
Whether to pay above, below, or at a prevailing rate.
Second thing an organization must identify in developing a compensation policy?
Which employee behaviors will be rewarded
What adds up that shows compensation policies and plans are seldom table?
Changes in the marketplace, trends within HC professions, and redirection of organizational goals and objectives
Intangible aspects of compensation, such as public recognition; praise from a supervisor; and feelings of accomplishment, recognition, or belonging to an organization
Tangible aspects of compensation, such as pay and benefits
Strategies that cost more in time and commitment than in direct money expenditures:
encouraging employees, establishing a collegial practice environment, setting consistent performance objectives, and conducting periodic performance assessments
The theory that an employees perceived fairness of the relationship between what she contributes to an organization and what she receives in return affects her motivation and performance
Examples of inputs
Education, seniority, skills, efforts, loyalty, and experience
Examples of outcomes
Pay, benefits, job satisfaction, opportunities for growth, and recognition
What are equity issues particularly troublesome?
Because of shortages in certain healthcare professions
In some markets, what is one method for increasing compensation?
Pay positioning strategies typically follow what kind of strategy?
Most employers seek to position themselves on what quartile?
In the second quartile (the middle of the market) or higher
In a second quartile position, organizations can control what?
Costs but still attract and retain employees
An employer that uses a first quartile strategy chooses to pay how?
Below market compensation
What is a major disadvantage of first quartile strategy?
How is employees paid at a third market quartile?
above market value
A formal process for determining the relative monetary value of a job based on job descriptions and specifications
A key input for job evaluation
The availability of accurate and current job descriptions
A well understood job with relatively stable knowledge, skills, and abilities; used to anchor pay scales
The simplest job evaluation method is what?
Listing jobs in order of their value to an organization
Job classification system
A method of categorizing jobs based on predetermined job requirements wherein each job is associated with a salary range
In the federal governments General Schedule (GS), each job is classified into what?
grade based knowledge requirements, responsibilities, physical effort, and working conditions. Each grade is associated with a salary range, which varies by geographic location to account for differences in cost of living
How may job classification pose problems when applies to healthcare systems with multiple organizations?
Because two jobs with the same title may require different responsibilities in different settings
A salary range for a particular job category
Narrow bands provide little ________________ in compensation.
A method of classifying using fewer pay grades than traditional compensation systems
A major advantage of broadbanding
It provides more flexibility when managing an employees compensation
A method in which jobs are assigned points based on compensable factors predetermined by the organization. Points are the. Translated to salary levels
A fundamental element of a job such as skills, knowledge, effort, working conditions, or responsibility, that is used as a basis for assigning points to a job and establishing compensation levels
Examples of compensable factors:
Knowledge and skill requirements
Factor compensation method
A method of job evaluation in which compensable factors for one position are evaluated against those factors in a benchmark job
What factors does factor comparison method combine?
Ranking and point methods
The compensable factors in factor comparison method usually include:
A method of setting salaries based on market factors (supply and demand)
Variable compensation is most commonly used to reward employee what?
behaviors or organizational or team performance
Team based incentives
Incentive schemes based on the performance of a team. Often used to boost productivity and performance, improve quality and customer service, and increase retention. An individuals salary may be determined in party by the performance of the team.
Skill based or knowledge based compensation system
A compensation system in which employees are financially rewarded for mastering new skills or acquiring new knowledge
Pay for performance systems
A compensation system that rewards employees based on their job performance; managers evaluate their employees work according to pre established goals, standards, or company values
In HC what are the two general types of pay for performance programs?
Productivity focused pay for performance and quality focused pay for performance
Productivity focused pay for performance
A compensation system that ties financial incentives to individual employee productivity
Piece rate incentives
A method that rewards employees for each unit of output (product or service) produces
A compensation system in which employees are paid based on a percentage of their gross receipts
A one-time financial reward to recognize individual, group, or organizational performance
Profit sharing plans
a system in which some of an organizations profits are divided among employees
Gain sharing plan
A system that gives employees a portion of the gains the organization makes as a result of increased efficiency or productivity. This sharing approach has manifested itself in a number of forms such as the Scanlon Plan, the Rucker Plan, and Improshare
Regardless of program structure, with productivity focused pay for performance, rewards are tied to what?
The accomplishment of goals
Quality focused pay for performance
An approach to compensation that rewards service quality
Who is responsible for negotiating quality targets and incentives with health plans?
Managed care was created largely in response to what?
Wide variations in treatment of the same condition
Physicians practice in a variety of settings, and each setting is characterized by what?
different payment methods
3 broad categories of office practices:
Independent practice association (IPA)
A solo practice consist of how many physicians?
A group practice consist of how many physicans?
2 or more physicians who have established a legal entity to deliver care together
An IPA usually consist of what?
a collection of practices, often including solo and group practitioners, that join forces to take advantage of economies of scale for contracting, business services, or ancillary services (such as laboratory services)
What are the dominant reimbursement modes for solo and group practices?
Fee for service and salary plus incentives
IPAs are often paid from what?
A discounted FFS schedule with an incentive program that adds money to the total reimbursement for the group
Staff model HMO
A setup in which doctors and health professionals are salaried employees of the HMO and the clinics or health centers in which they practice are owned by the HMO
The mission of academic physician may be summarized as a combination of what?
teaching, research, and patient care
Faculty practice plan
A group practice that compromises the faculty of a medical center, created as a way to leverage the billings generated by the faculty into some sort of shared distributions
Locum tenes physician
A temporally employed physician; typically paid a fixed amount for services provided
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