Relative pay for different jobs within the organization
Average amount (including wages, salaries, and bonuses) the organization pays for a particular job.
Pay policy resulting from a job structure and pay-level decisions.
Fair Labor Standards Act (FLSA)
Federal law that establishes a minimum wage and requirements for overtime pay and child labor.
Managers, outside salespeople, and any other employees not covered by the FLSA requirement for overtime pay.
Employees covered by the FLSA requirements for overtime pay.
Organizations that offer competing goods and services. Organizations in product market are competing to serve the same customers. Need to sell goods and services at a quantity and price that will bring them a sufficient profit.
Procedure in which an organization compares its own practices against hose of successful competitors.
Administrative procedure for measuring the relative internal worth of the organization's jobs.
Rate of pay for each unit produced.
Rate of pay for each week, month, or year worked.
Pay Policy Line
Graphed line showing the mathematical relationship between job evaluation points and pay rate.
Sets of jobs having similar worth or content, grouped together to establish rates of pay.
Set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job or a job within a particular pay grade.
Adjustment to a pay rate to reflect differences in working conditions or labor markets.
Reducing the number of levels in the organizations job structure.
Skill-Based Pay Systems
Pay structures that set pay according to the employees levels of skill or knowledge and what they are capable of doing.