Term
| Purpose of Compensation Plan |
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Definition
To help create a willingness among
qualified persons to join the organization and
to perform the tasks needed by the organization |
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Definition
Factors that satisfy basic human needs for :
survival
security
social needs
needs for recognition |
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Definition
Factors that satisfy higher-order human needs for:
self-esteem
achievement
growth
development |
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Term
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Definition
Base pay
Merit pay
Incentives
COLA |
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Definition
Pay for time not worked
Protection programs
Employee services |
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Term
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Definition
| A plan for the mix of rewards with the means to be provided |
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Definition
| The reward system that adds the most value to the organization after considering all its costs |
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Definition
| Required Professional Capabilities |
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Term
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Definition
| A promise that a specified reward will be provided if a specified employee behaviour is performed |
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Term
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Definition
| The mix of intrinsic and extrinsic rewards provided to its members by an organization |
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Definition
| the economic or monetary part of the reward system |
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Term
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Definition
| a compensation philosophy that considers the entire spectrum of rewards that an organization may offer to employees |
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Term
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Definition
| the foundation pay component for most employees, usually based on some unit of time worked |
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Term
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Definition
| relates employee monetary rewards to some measure of individual group or organizational performance |
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Term
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Definition
| noncash items or services that satisfy a variety of specific employee needs, sometimes known as employee benefits |
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Term
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Definition
| the plan for the mix and total amount of base pay performance pay, and indirect pay to be paid to various categories of employees |
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Term
| Road Map to Effective Compensation (5 steps) |
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Definition
Understand your organization/people
Formulate your reward and compensation strategy
Determine your compensation values
Design your performance pay and indirect pay plans
Implement, manage, evaluate, and adapt the compensation system |
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Term
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Definition
| Systems that apply procedures to a set of resources to transform inputs into valued outputs |
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Term
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Definition
| Procedures and resources used by an organization to transform inputs into outputs |
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Term
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Definition
| an organization's plan for how it will achieve its goals |
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Term
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Definition
| the means through which an organization generates the behaviours necessary to execute its corporate strategy |
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Term
| Contingency Approach to Organization Design |
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Definition
| an approach to organization design based on the premise that the best type of structure for an organization depends on the key contingencies (contextual variables) associated with that organization |
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Term
Human Resources
Information Resources
Physical Resources
Financial Resources |
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Definition
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Term
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Definition
| a dimension of organization structure that describes the manner in which the total task of an organization is divided into seperate jobs |
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Term
| Coordination and departmentation |
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Definition
| a dimension of organization structure that describes the methods used to coordinate the work of individual employees and subunits in an organization |
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Term
| Decision making and leadership structure |
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Definition
| a dimension of organization structure that describes the nature of the decision making and leadership processes used in an organization |
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Term
| Communication and Information Structure |
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Definition
| a dimension of organization structure that describes the nature of and methods for communication in an organization |
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Term
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Definition
| A dimension of organization structure that describes the nature of the processes used to control employee behaviour in an organization |
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Term
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Definition
| one of the three main patterns or combinations of structural variables that can be adopted by an organization namely classical, human relations, or high involvement |
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Term
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Definition
| factors in the firms context that indicate the most appropriate managerial strategy and organizational structure |
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Term
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Definition
| describes the specific products or services offered by a given organization |
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Term
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Definition
| the portion of the general environment that has direct relevance to a given organization |
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Term
| Classical Managerial Strategy |
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Definition
| an approach to management that assumes most employees inherently dislike work, but can be induced to work in order to satisfy their economic needs |
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Term
| Human Relations Managerial Strategy |
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Definition
| an approach to management that assumes most employees inherently dislike work but can be induced to work in order to satisfy their social needs |
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Term
| High involvement managerial strategy |
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Definition
| an approach to management that assumes that work can be intrinsically motivating if the organization is structured properly |
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Term
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Definition
| The set of core values and understandings shared by members of an organization |
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Term
| Defender Corporate Strategy |
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Definition
| Focuses on dominating a narrow product or service market segment |
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Term
| Prospector Corporate Strategy |
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Definition
| focuses on identifying and exploiting new opportunities quickly |
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Term
| Analyzer Corporate Strategy |
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Definition
| Focuses on exploiting new opportunities at a relatively early stage while maintaining a base of traditional products or services |
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Term
| Low-Cost Corporate Strategy |
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Definition
| a strategy that depends on providing low cost products or services to a broad range of customers |
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Term
| Focused low-cost corporate strategy |
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Definition
| a strategy that depends on providing unique products or services to a broad range of customers |
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Term
| differentiator corporate strategy |
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Definition
| a strategy that depends on providing unique products or services to a broad range of customers |
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Term
| focused differentiator corporate strategy |
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Definition
| a corporate strategy that depends on providing unique products or services to a narrow range of customers |
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Term
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Definition
| divides the total task of producing a product or service into a series of small sequential steps performed by different employees |
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Term
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Definition
| uses standardized transactions to connect parties wishing a mutually beneficial relationship |
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Term
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Definition
| requires that each item or case be dealt with individually, depending on the specific nature of each case |
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Term
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Definition
| few exceptions occur during the production process, and those exceptions that do occur can be dealt with in a standardized way |
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Term
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Definition
| many exceptions are inherent in the production process, and there is no standardized way to deal with these exceptions |
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Term
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Definition
| few exceptions occur in the production process but there is no standardized way to deal with them when they do occur |
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Term
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Definition
| many exceptions occur in the production or service delivery process, but there are standardized ways of dealing with them |
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Term
| unit/small batch technology |
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Definition
| manufacturing technology that produces one of a kind items or small batches of unique items |
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Term
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Definition
| manufacturing technology that produces a single product in a continuous flow |
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Term
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Definition
| Defender, Prospector, Analyzer |
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Term
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Definition
| low cost, focused low cost, differentiator, focused differentiator |
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Term
| Thompson's Typology of Technology |
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Definition
| long linked, mediating, and intensive technology |
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Term
| Perrow's Typology of Technology |
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Definition
| two aspects in determining this technology. how many exceptions are involved in a particular task, and whether there is a standardized process for dealing with these exceptions |
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Term
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Definition
| manufacturing technologies divided into unit/small batch, mass/large batch, and process |
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Term
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Definition
| occurs when employees decided to join and remain with a firm |
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Term
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Definition
| occurs when employees perform the tasts that have been assigned to them |
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Term
| organziational citizenship behaviour |
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Definition
| occurs when employees voluntarily undertake special behaviours beneficial to the organization |
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Term
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Definition
| the attitude one holds toward one's job and workplace |
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Term
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Definition
| the attitude one holds toward good job performance |
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Term
| organizational indentification |
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Definition
| a sense of shared goals and belongingness and the desire to remain a menber of the organization |
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Term
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Definition
| expectations about the rewards offered by a given job and the contributions necessary to perform the job |
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Term
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Definition
| employees base perceptions of equity on a comparison of their contributions rewards ratio to the ratios of others perceived as being similar |
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Term
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Definition
| the perception that overall reward outcomes are fair |
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Term
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Definition
| the perception that the process for reward determination is fair |
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Term
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Definition
| a personality trait that entails a high perdisposition toward perceiving personal inequity |
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Term
| organizational commitment |
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Definition
| the strength of the individual's attachment to his or her organization |
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Term
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Definition
| attachment to an organization based on positive feelings toward the organization |
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Term
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Definition
| attachment to an organization based on perceived lack of better alternatives |
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Term
| Content Theories of Motivation |
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Definition
| theories that focus on understanding motivation by identifying underlying human needs |
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Term
| process theories of motivation |
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Definition
| theories that focus on understanding motivation by determining the process humans use to make choices about the specific actions they will take |
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Term
| Two factor theory of motivation |
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Definition
| argues that intrinsic factors influence work motivation while extrinsic factors influence job satisfaction |
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Term
| Job Characteristics Theory |
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Definition
| task identity, task significance, skill variety, job autonomy, job feedback, job enrichment |
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Term
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Definition
| the extent to which a worker performs a complete cycle of job activities |
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Term
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Definition
| the perceived importance or social value of a given task |
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Term
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Definition
| the variety of skills required for task completion |
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Term
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Definition
| the degree of freedom workers have in deciding how to perform their jobs |
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Term
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Definition
| the extent to which the job itself provides feedback on worker performance |
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Term
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Definition
| the process of redesigning jobs to incorporate more of the five core dimensions of intrinsically satisfying work |
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Term
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Definition
| the degree of urgency an individual attaches to the satisfaction of a particular need |
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Term
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Definition
| a theory that states that a behaviour will be repeated if valued outcomes flow from that behaviour or if performing the behavoiour reduces undesirable outcomes |
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Term
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Definition
| a theory stating that individuals are more likely to exert effort to perform a particular behaviour if they believe that behaviour will lead to valued consequences and if they expect they can perform the behaviour |
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Term
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Definition
| theory of motivation arguing that humans often act without understanding their motives for their behaviour and afterward attempt to attribute motives for their actions |
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Term
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Definition
| agents will pursue their own self interests rather than the interests of their principals unless they are closely monitored or their interests are aligned with the interests of their principals |
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Term
| noncash employee recognition program |
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Definition
| a program that provides noncash rewards to employees in recognition of employee accomplishments or actions that are valued by the organization |
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Term
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Definition
| a person's physical verbal and mental skills |
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Term
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Definition
| a person's core beliefs about appropriate and inappropriate behaviour |
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Term
| demographic characteristics |
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Definition
| a person's age gender ethnicity education marital status and similar characteristics |
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Term
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Definition
| any type of financial reward provided only when certain specified performance results occur. these results may be base on the performance of individual employees a group or team of employee or the entire organization |
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Term
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Definition
| any type of employer provided reward that serves an employee need but is not part of base or performance pay |
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Term
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Definition
| establishing base pay by determining the average amount of pay other employers are offering for a given job |
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Term
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Definition
| establishing base pay by ranking all jobs in the firm according to their value to that firm |
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Term
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Definition
| establishing base pay according to the total value of the skills and competencies an employee has acquired |
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Term
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Definition
| pay that is based on the characteristics rather than the performance of individual employees, usually applied to managerial or professional employees |
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Term
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Definition
| pay that is based on the specific skills and capabilities of individual employees, rather than on the specific tasks they are carrying out, usually applied ot operational level employees |
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Term
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Definition
| the basic component of a skill based pay system containing a bundle of skills or knowledge necessary to carry out a specific production or service delivery task |
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Term
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Definition
| determines entry level and skill block pay amounts by pricing comparable entry level and top level jobs in the market and allocating the difference to the various skill blocks |
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Term
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Definition
| the testing process that determines whether an individual has mastered a given skill block and should be granted the pay raise associated with that skill block |
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Term
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Definition
| a pay system under which individuals receive a specified sum of money for each unit of output they produce or process |
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Term
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Definition
| the same specified sum of money is paid for each piece produced or processed regardless of how many pieces are produced or processed |
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Term
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Definition
| a lower sum of money per piece is paid if employee production does not meet the production standard and then a higher sum per piece is paid once the production standard is met |
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Term
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Definition
| pay that is geared to the dollar volume of sales or transactions conducted |
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Term
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Definition
| pay that is geared only to the volume of sales or transactions with no base pay component |
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Term
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Definition
| selling established products to existing customers |
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Term
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Definition
| selling established products to new customers |
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Term
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Definition
| selling new products to existing cx |
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Term
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Definition
| selling new products to new cx |
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Term
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Definition
| an increase to an employee's base pay in recognition of good job performance |
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Term
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Definition
| a cash payment provided to recognize good employee performance that does not increase base pay |
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Term
| special purpose incentive |
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Definition
| an incentive designed to motivate a specific type of employee behaviour |
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Term
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Definition
| an incentive plan through which employees receive cash bonuses for submitting money saving suggestions |
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Term
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Definition
| a group performance pay plan that shares cost savings or productivity gains generated by a work group with all members of that group |
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Term
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Definition
| a group performance pay plan in which a work group receives a bonus when it meets prespecified performance goals |
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Term
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Definition
| a group pay plan that rewards work group s for outperforming other work groups |
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Term
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Definition
| a pay plan in which the performance results of a group are pooled and group members share equally in the performance bonus |
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Term
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Definition
| a performance pay plan in which the commissions of a group of sales workers are pooled and then shared out equally among members of the group |
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Term
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Definition
| a performance pay plan in which group members get paid based on the number of completed products produced by the group |
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Term
| current distribution profit sharing plan |
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Definition
| a profit sharing plan that distributes the profit sharing bonus to employees in the form of cash or shares at least annually |
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Term
| deferred profit sharing plan |
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Definition
| a profit sharing plan in which the profit sharing bonuses are allocated to employee accounts but not actually paid out until a later date, usually on termination or retirement |
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Term
| combination profit sharing plan |
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Definition
| a plan that combines the current distribution and deferred profit shareing plans by paying some of the profit sharing bonus on a current basis and deferring the remainder |
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Term
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Definition
| any type of plan through which employees acquire shares in the firm that employes them |
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Term
| employee stock bonus plan |
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Definition
| a plan through which employees receive shares in their employer firm at no cost to the employee |
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Term
| employee stock purchase plan |
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Definition
| a plan through which employees may purchase shares in their employer firm |
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Term
| employee stock option plan |
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Definition
| a plan through which employees are provided with options to purchase shares in their employer at a fixed price within a limited time period |
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Term
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Definition
| a type of performance pay in which the incentives are tied to an organization performance horizon that ranges beyond one year often three to five years |
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Term
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Definition
| a long term incentive in which the bonus amounts are expressed in units which the monetary value will fluctuate depending on degree of goal accomplishment |
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Term
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Definition
| a long term incentive in which the bonus amounts are expressed in company shares |
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Term
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Definition
| the process of collecting information on which job descriptions are based |
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Term
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Definition
| a summary of the duties responsibilities and reporting relationships pertaining to a particular job |
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Term
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Definition
| the employee qualifications deemed necessary to successfully perform the duties for a given job |
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Term
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Definition
| the relative values of different jobs are determined by knowledgeable individuals |
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Term
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Definition
| every job is compared with every other job, providing a basis for a ranking of jobs |
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Term
| classification grading method |
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Definition
| the use of generic grade descriptions for various classes of jobs to assign pay grades to specific jobs |
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Term
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Definition
| assigns pay levels to jobs based on the extent to which they embody various job factors |
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Term
| statistical/policy capturing method |
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Definition
| combines use of statistical methods and job questionnaires to derive job values based on prevailing external or internal pay rates |
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Term
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Definition
| establishes job values by the application of points to each job based on compensable factors |
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Term
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Definition
| establishes pay equity by comparing a female job class to a male class that is comparable in term of job evaluation criteria |
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Term
| proportional value method |
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Definition
| establishes pay equity where no comparator male job class exists by extrapolating a hypothetical male comparator job class based on other male job classes |
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Term
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Definition
| establishes pay equity in public sector organizations where neither the job to job method nor the proportional value method can be used |
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Term
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Definition
| pay differences between female and ale job classes that are not considered inequitable because the stem from certain specified allowable circumstances such as seniority |
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Term
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Definition
| a gain sharing plan that creates mechanisms for employee participation in developing productivity improvements and shares the financial benefits of those improvements with the employee group that generated them |
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Term
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Definition
| a gain sharing plan similar to the scanlong plan but that expresses labour costs as a percentage of value added |
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Term
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Definition
| a gain sharing plan that focuses on labour hours per unit of output and that does not usually include worker participation |
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Term
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Definition
| a gain sharing plan that uses a variety of measures to determine the extent to which a bonus payout is justified |
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Term
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Definition
| a plan through which employees participate in the appreciation of company shares and any associated dividends, without ever owning any company stock |
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Term
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Definition
| a plan that helps retain key employees by providing rewards based on the stock performance of a portfolio of promising new high tech firms |
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Term
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Definition
| government provided employee benefits, such as pensions and employment insurance to which employers must contribute on behalf of their employees |
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Term
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Definition
| pension plans that provide retirement income based on a proportion of the employees pay at the time of retirement |
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Term
| defined contribution plans |
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Definition
| pension plans that provide retirement income based on the accrued value of employer and employee contributions to the plan |
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Term
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Definition
| pension plans that combine features of the defined benefit pension plan and the defined contribution pension plan |
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Term
| health care spending account |
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Definition
| a tax favoured employee benefit that allows employees to use employer provided health care spending credits to purchase a wide array of health care services |
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Term
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Definition
| an employee benefit that covers a wide array of different types of employee absences from work |
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Term
| supplemental unemployment benefits |
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Definition
| an employer provided benefit that extends government provided unemployment benefits |
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Term
| Employee Assistance Programs |
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Definition
| employer provided programs to help employees deal with a variety of personal problems |
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Term
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Definition
| an employee benefit plan that provides a standard set of benefits to all those covered by the plan |
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Term
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Definition
| the employee benefit plan that allows employees to allocate employer provided credits to purchase the benefits of most value to them |
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