BUS 381 Chapter Notes - Chapter 8: Procedural Justice, Merit Pay, Distributive Justice
Document Summary
All forms of pay and benefits given to employees arising from their employment. A strategic tool to improve performance, reward performance, and contribute to the achievement of strategic goals. Two traditional components: direct financial payments (pay) and indirect payments (benefits) Work experience is now being considered as a third component of total compensation. When the policies and procedures for determining how pay is calculated are perceived as fair. When the rate of pay for a given job is perceived as unfair. Legal: employment/labor standards, pay equity, human rights, canada/quebec pension plan, employment insurance, workers" compensation. Compensation policies: leader or follower regarding pay. A systematic comparison to determine the relative work of jobs within a firm. A job commonly found in other organization and/or critical to a firm"s operations that is used to anchor the employer"s pay scale and act as a reference point. Fundamental, compensable elements of a job, such as skill, effort, responsibility, and working conditions.