#10 - Managing Compensation | Pay for Performance - Incentive Rewards

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Terms in this set (43)
collapses many traditional salary grades into a few wide salary bands
competency-based pay
Pay based on an employee's skill level, variety of skills possessed, or increased job knowledge
consumer price index (CPI)
a measure of the average change in prices over time in a fixed "market basket" of goods and services
escalator clauses
Clauses in collective agreements that provide for quarterly cost-of-living adjustments in wages, basing the adjustments on changes in the consumer price index
Hay profile method
A job evaluation technique using three factors - knowledge, mental activity, and accountability - to evaluate executive and managerial positions
hourly work
work paid on an hourly basis
job classification system
a system of job evaluation in which jobs are classified and grouped according to a series of predetermined wage grades
job evaluation
The systematic process of determining the relative worth of jobs in order to establish which jobs should be paid more than others within an organization.
job ranking system
The simplest and oldest system of job evaluation by which jobs are arrayed on the basis of their relative worth
pay equity
equal pay for work of equal value
pay grades
groups of jobs within a particular class that are paid the same rate
work paid according to the number of units produced
point system
A quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it
real wages
Wage increases larger than rises in the consumer price index, that is, the real earning power of wages
red circle rates
payment rates above the maximum of the pay range