Scheduled maintenance: Thursday, January 26 from 6PM to 7PM PST
Upgrade to remove ads
Only $35.99/year

MGT 3320 Exam 4 (Matthes)

Terms in this set (86)

pay structure
the relative pay of different jobs (job structure) and how much they are paid (pay level)
external equity
◦Comparing to pay of employees doing the same work in other organizations
àUse of market pay surveys to determine pay levels in the organizations
internal equity
◦Comparing to pay of employees within the organization (lower, same, and higher levels)
upper bound
Product market competition places an ____________ on labor costs and compensation
lower bound
Labor market competition places a ____________ on pay levels
range of discretion
Product market competition and labor market competition create a ___________________ for pay
above
Paying _________ market can help attract and retain top talent and generate positive job attitudes, but also adds cost
efficiency wage theory
states that workers are more reluctant to shirk because they wish to retain their jobs
benchmarking
refers to comparing an organization's practices against those of the competition.
point-factor system
◦yields job evaluation points for each compensable factor
job evaluation
an administrative procedure used to measure internal job worth.
job ranking
jobs are listed in order from highest to lowest worth to the company; qualitative approach
Job classification
broad descriptions for groups of jobs with similar TDRs and qualifications are developed to assign wages; qualitative approach
factor comparison
jobs are ranked in relation to each other on several factors like mental requirements, physical requirements, etc., then a portion of the hourly rate for each job is assigned to each factor; quantitative approach
job analysis
A great source of information for job evaluations is a thoroughly conducted ___________________.
market survey data
Emphasis is mainly on external equity
pay policy line
Combines internal and external equity
pay grades
Groups jobs with more emphasis on internal equity
compa-ratio
is an index of the correspondence between actual pay and intended pay.
delayering
◦Reduce the number of job levels within the organization
banding
◦Establish broader groupings of jobs, increase spread between minimum and maximum pay
competency based pay
◦Pay structures for exempt employees based on individual characteristics (i.e., a broader set of KSAOs)
skill based pay
◦Pay based on the skills employees acquire and are capable of using
Causes distrust among employees (like they are hiding something)
Can you think of possible negative consequences emerging from pay secrecy policies?
- Help reduce salary gap
- Ability to improve compensation
- Helps build trust with potential employees
- Higher acceptance rate
- Consistency with evaluation roles
What are the benefits of pay transparency?
- Candidates know what expected pay they are getting
- Employees may get envious of other employees who get paid more
What may be some drawbacks of pay transparency?
$7.25
what is the minimum wage?
$35,568
what is the minimum salary level?
executive
Employee whose primary duty is to manage the business or a recognized department/entity and who customarily directs the work of two or more employees.
Administrative
Employee whose primary activities are performing office work or nonmanual work on matters of significance relating to the management or business operations of the firm or its customers and which require the exercise of discretion and independent judgment.
professional/creative
Employee who primarily performs work requiring advanced knowledge/education and which includes consistent exercise of discretion and independent judgment.
computer professional
Employee who primarily performs work as a computer systems analyst, programmer, software engineer or similarly skilled work in the computer field performing
outside sales
Employee who performs sales work off the company's premises and whose primary duties include making sales or obtaining order or contracts for services or for the use of facilities for which the client or customer pays.
Highly Compensated Employee
Employees who earn more than $107,432 (as of 2020) are eligible for exempt status if they meet a reduced duties test.
incentive effect
◦Pay plans are used to energize, direct, sustain, or control employee behavior
equity theory
◦Employees compare their own pay (relative to their input) with that of others
Reinforcement Theory
◦A response followed by a reward is more likely to recur in the future
Expectancy Theory
◦Behaviors are a function of ability and motivation
extrinsic motivation
◦depends on rewards (e.g., pay, benefits) that are controlled by an external source
intrinsic motivation
depends on the rewards that flow naturally from the work itself
agency theory
◦Different organizational stakeholders have diverging interests and goals
sorting effect
◦Pay plans influence the composition of the workforce (i.e., the types of workers that are attracted to and retained by the organization)
incentive intensity
◦the strength of the relationship between performance and pay
merit pay
◦a traditional form of pay in which annual base pay increases permanently
merit bonus
◦a form of variable pay that is paid in the form of a lump-sum bonus, instead of a salary increase
individual incentives
◦Payments are not rolled into base pay; they have to be continuously earned and re-earned. Cover only about 7% of all US workers
profit sharing
◦Compensation plan in which payments are based on a measure of organization performance (profits) and do not become part of the employee's base salary
ownership
◦Encourages employees to focus on the success of the organization as a whole
stock options
◦Give employees the opportunity to buy the company's stock at a previously fixed price
employee stock ownership plan (ESOP)
◦Company contributes shares of its stock to a trust set up for its employees
gainsharing
◦A form of group compensation based on group or plant performance (rather than organization-wide profits) that does not become part of the employee's base salary
total rewards
◦The sum of all rewards employees receive in exchange for their time, efforts, and performance
Direct financial compensation
compensation received in the form of salary, wages, commissions, stock options, or bonuses
indirect financial compensation
includes any and all financial rewards not considered direct financial compensation, including health insurance, wellness benefits, paid vacations, and free meals.
nonfinancial compensation
rewards and incentives given to employees that are not financial in nature including intrinsic rewards received from the job itself or from the work environment
marginal tax rates
the percentage of an additional dollar of earnings that goes to taxes
◦Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985
◦Employers must permit employees to extend health insurance coverage at group rates for up to 36 months following a qualifying event
Pension Benefit Guaranty Corporation (PBGC)
◦guarantees employees a basic retirement benefit in the event of financial difficulties forcing the employer to reduce or terminate pension benefits
Pension Protection Act of 2006
◦requires defined contribution plans holding publicly traded securities to provide employees with:
◦The opportunity to divest employer securities
◦At least three investment options other than employer securities
◦Employers may enroll employees in a 401(k) plan automatically and increase a worker's contribution to the plan to coincide with a raise or work anniversary
Family and Medical Leave Act of 1993
◦Requires employers to up to 12 weeks of unpaid leave after childbirth or adoption, to care for a seriously ill child, spouse or parent, or for an employee's own serious illness
◦Only US women who didn't expect to have external support from others
◦Euro women had govt. support for child care
◦Only women in the US take care of the children usually
◦Euro women and men share the responsibilities of parenting
◦Different types of guilt between women from US and Euro
◦In US, parental leave is a privilege, in Euro it's a right
◦What are the biggest differences between working mothers in the US and working mothers in Germany, Italy, and Sweden?
◦Incentive to be away from work and not be frowned upon
◦Universal Pre-K + discounted/free childcare
◦Flexible schedules + work from home
◦What do you think should be included in an ideal family-friendly or work-life balance-friendly policy?
◦Govt. and then shift to employers
◦Not all employees are eager to put these policies at their companies but id there was a law passed in order to achieve that policy then it would push employer to do it
◦Who should be at the forefront of putting such policies in place (governments, employers,...)?
Health Maintenance Organization (HMO)
are health care plans that provide benefits on a prepaid basis for employees who are required to use only HMO medical service providers.
Preferred Provider Organization (PPO)
are group or health care providers who contract with employers, insurance companies, and so forth to provide health care at a reduced fee.
Affordable Care Act of 2010
◦Employers are not required to provide health benefits, but larger employers (with 50 or more employees) may be subject to penalties if they do not provide insurance to their workers or if they provide unaffordable coverage
◦Strategic level choices
◦Functional level choices
◦Workplace level choices
Types of decisions made in labor interactions
union shop
requires a person to join the union within a certain amount of time (30 days) after beginning employment.
agency shop
is similar to a union shop but does not require union membership, only that dues be paid.
maintenance of membership
rules do not require union membership but do require that employees who choose to join must remain members for a certain period of time (such as the length of the contract).
declined
Union membership has consistently _________ as a percentage of employment
◦Define and protect the rights of employees and employers
◦Encourage collective bargaining
◦Eliminate certain practices on the part of labor and management that are harmful to the general welfare
goals of National Labor Relations Act of 1935
◦Failing to provide fair wages, job security, and safe working environments
◦What motivated workers at the plant to seek union representation?
◦Speeches at local meetings, wearing UAW outerwear, corporate campaigning
◦How did the union campaign to gain representation at the plant?
◦Paid consultants to talk bad things that will come from unions, firing people who are pro-union, having spies to watch the union activists
◦How did Fuyao's management campaign to keep the union out?
distributive bargaining
focuses on dividing a fixed economic "pie" between the two sides.
integrative bargaining
has a win-win focus; it seeks solutions beneficial to both sides.
attitudinal structuring
refers to the relationship and trust between labor and management negotiators. It influences the bargaining process
intraorganizational bargaining
reminds us that labor-management negotiations involve more than just two parties.
relative bargaining power
◦the ability of one party to achieve its goals when faced with opposition from some other party to the bargaining process
mediation
a procedure for resolving collective bargaining impasses by which a mediator with no formal authority acts as a facilitator and go-between in the negotiations.
fact finder
a person who reports on the reasons for a labor-management dispute, the views and arguments of both sides, and a nonbinding recommendation for settling the dispute
arbitration
a procedure for resolving collective bargaining impasses by which an arbitrator chooses a solution to the dispute. It is the most formal type of outside intervention.
greivance
a written charge by one or more employees that management has violated their contractual rights.
◦All bargaining unit members must have equal access to and representation by the union in the grievance procedure
◦Duty of fair representation as mandated by the NLRA
89.2%
_____ of U.S. workers are not part of a union (as of 2020)
Students also viewed