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Vocabulary terms and definitions covering job evaluation methods, compensation survey types, and major motivation theories such as Maslow, Herzberg, and Vroom.
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Conventional
A personality type characterized by a preference for data and rules, commonly found in roles like business training and web developing.
Job evaluation
The process traditionally used to determine the value of jobs relative to each other within an organization.
Compensable factors
Characteristics that define and distinguish jobs from one another.
Ranking method
A job evaluation method that requires evaluators to compare the value of jobs to one another.
Classification method
A job evaluation method that involves identifying key benchmark positions.
Benchmark positions
Jobs that are common to organizations regardless of size or industry, such as accountants or administrative assistants.
Job pricing
A common practice in compensation administration that occurs when a new job is created or an existing job undergoes changes.
Job benchmarking
The process of comparing internal jobs with similar jobs in the relevant labor market to create an anchor point for pay rates.
Job ranking
A process that compares jobs to each other based on their importance to the organization.
Job classification
An arrangement of different types of employment or grades within an organization according to skills, experience, or training.
Job-content-based job evaluation
A method used to estimate how much a person should be paid based on the specific tasks they perform.
Employee Surveys
A method used to poll the internal workforce to gauge satisfaction with pay structures, measure perceptions of pay equity, and identify compensation needs.
Bureau of Labor Statistics (BLS)
An independent national statistical agency and resource for the Department of Labor (DOL) whose mission is to collect, analyze, and distribute statistical data.
Industry Surveys
Salary surveys specific to sectors, such as high-tech or hospitality, used to provide greater validity for certain jobs.
Commissioned Surveys
Surveys conducted by a third party to collect and aggregate data on specific competitors or unique skill requirements, which can be costly and time-consuming.
Maslow’s Hierarchy of Needs
A theory proposing that individuals are motivated by a hierarchy of needs: basic physiological, safety, social belonging, esteem, and self-actualization.
Herzberg’s Two-Factor Theory
Also known as Motivation-Hygiene Theory, it suggests that job satisfaction is influenced by hygiene factors and motivators.
Hygiene factors
Factors such as salary, company policies, and working conditions that can prevent dissatisfaction but do not provide motivation according to Herzberg.
Motivators
Factors such as achievement, recognition, and responsibility that drive job satisfaction and performance according to Herzberg.
Vroom’s Expectancy Theory
A theory stating that motivation is based on the expectation that effort will lead to effective performance and desirable rewards.
McClelland’s Theory of Needs
A theory focusing on three specific drivers of motivation: the need for achievement, the need for affiliation, and the need for power.
Self-Determination Theory (SDT)
A theory suggesting that people are motivated by intrinsic factors when their psychological needs for autonomy, competence, and relatedness are met.
Equity Theory
A theory arguing that employees are motivated by fairness and compare their inputs and outcomes with those of others to ensure balance.
High-Involvement Organization (HIO) elements
The four components identified by Lawler as necessary for an HIO: power, information, knowledge, and rewards.