Exercise 1. Match the words with their corresponding definitions.
pay wages incentive
salary compensation standard of living
to earn base wage remuneration
range base salary performance
a. the way that someone does their job, and how well they do it;
b. the limits within which amounts, qualities etc. can vary;
c. assessment of the specific tasks involved in the various jobs in an organization for the purpose of establishing a scale on which their relative worth may be measured;
d. money that you receive as payment from organization you work for, usually paid to you every month;
e. the money someone receives for the job they do;
f. your salary before extra money such as bonuses and commissions is added to;
g. the amount of wealth or comfort that a person, group or country has;
h. money that someone earns according to the number of hours, days, or weeks that they work, especially money that is paid each week;
i. payment for work, especially in the form of a salary and additional benefits such as car;
j. the amount of money that workers are paid for each normal hour, week, etc. that they work, not including any extra payments;
k. the total amount of money and other advantages that someone receives as an employee;
l. to be paid money for the work you do;
m. something which is used to encourage people to make them to work harder, produce more or spend more money.
Exercise 2. Read and translate the text.
Wages and salaries.
Base wages and salaries are the hourly, weekly, or monthly pay that employees receive in exchange for their work. In most situations, base wages or salaries make up the largest portion of an individual's total compensation. In light of the facts that many organizations do not pay incentives and that many employees discount or take for granted the value of benefits, base wages and salaries are the focus of the compensation system in the eyes of employees.
Base wages and salaries form the foundation for most employees' perceptions as to the fairness or equity of the pay system. If employees do not perceive that they are being fairly paid, there are many possible negative effects (tardiness, absenteeism, turnover, strikes, etc.). There is also something to be said for the fact that the base wage and salary system often reflects the tone or atmosphere of the entire organization. If the base wage and salary system is perceived as being fair and equitable, then the organization is usually viewed in the same light. Of course, the reverse of this is also true. Because of its significance to the entire organization, it is critical that an organization develop and maintain a sound base wage and salary system.
Objective of the Base Wage and Salary System.
The primary objective of any base wage and salary system is to establish a structure and system for the equitable payment of employees, depending on their job and their level of performance in their job. While this objective is straightforward and clear, successfully attaining it is not an easy matter. Table 1represents some of the basic policy questions that need to be addressed as a first step in establishing a base wage and salary system.
Most base wage and salary systems establish pay ranges for certain jobs, based on the relative worth of the job to the organization. An individual's performanceon the job should then determine where that individual's pay falls within the job's range. The key to a sound base wage and salary system is the establishment of different pay ranges for the different jobs within the organization. A pay range for a given job establishes a range of permissible pay, with a minimum and maximum. Establishing pay ranges involves two basic phases: (1) determining the relative worth of the different jobs to the organization (ensuring internal equity) and (2) pricing the different jobs (ensuring external equity). Job evaluation is the primary method used to determine the relative worth of jobs to the organization. Wage surveys represent one of the most commonly used tools for pricing jobs.
Table 1.Specific policy issues in developing and implementing a base wage and salary structure.
1. What is the lowest rate of pay that can be offered for a job that will entice the quality of employees the organization desires to have as its members?
2. What is the rate of pay that must be offered to incumbents to ensure that they remain with the organization?
3. Does the organization desire to recognize seniority and meritorious performance through the base pay schedule?
4. Is it wise or necessary to offer more than one rate of pay to employees performing either identical or similar work?
5. What is considered to be a sufficient difference in base rates of pay among jobs requiring varying levels of knowledge and skills and of responsibilities and duties?
6. Does the organization wish to recognize dangerous and distressing working conditions within the base pay schedule?
7. Should there be a difference in base pay progression opportunities among jobs of varying worth?
8. Do employees have a significant opportunity to higher-level jobs? If so, what should be the relationship between promotion to a higher job and changes in base pay?
9. Will policies and regulations permit incumbents to earn rates of pay higher than established maximums and lower than established minimums? What would be the reasons for allowing such deviations?
10. How will the pay structure accommodate across-the-board cost-of-living, or other adjustments not related to employee tenure, performance, or responsibility and duty changes?
Job evaluation is a systematic determination of the value of each job in relation to other jobs in the organization. This process is used for designing a pay structure, not for appraising the performance of individuals holding the jobs. The general idea of job evaluation is to enumerate the requirements of a job and the job's contribution to the organization and then to classify it according to importance. For instance, a design engineer's job would involve more complex requirements and a potentially greater contribution to an organization than that of an assembler of the designed product. Although both jobs are important, a determination must be made concerning the relative worth of each. While the overriding purpose of job evaluation is to establish the relative worth of jobs, it can serve several other purposes.
The first step in a job evaluation program is to gather information on the jobs being evaluated. Normally, information is obtained from current job descriptions. If current job descriptions do not exist, then it is usually necessary to analyze the jobs and create up-to-date descriptions.
The job evaluation process then identifies the factor or factors that are to be used in determining the worth of different jobs to the organization. Some frequently used factors are skill, responsibility, and working conditions.
The job evaluation process also involves developing and implementing a plan that uses the chosen factors for evaluating the relative worth of the different jobs to the organization. Such a plan should consistently place jobs requiring more of the factors at a higher level in the job hierarchy than jobs requiring fewer of the factors. Most job evaluation plans are variations or combinations of four basic methods: point, factor comparison, job classification, and job ranking.
Exercise 3. Give the definitions to the words in italics.
1. It is clearly in the organization’s best interests to design an effective compensation system.
2. The managing director’s personal assistant earned £35,000 last year.
3. Greyhound proposed a package of incentive-based pay raises.
4. New business have created higher-paying jobs, lifting tens of millions of Chinese to a far higher standard of living.
5. Compensation is the financial remuneration given by the organization to its employees in exchange for their work.
6. Workers were demanding a 10% wage increase.
7. This is my first increase in salary.
8. All I want is a full day’s work for a full day’s pay.
9. The key to a sound base wage and salary system is the establishment of different pay ranges for different jobs within the organization.
10. The last step in most performance appraisal system is giving feedback to subordinates about their performance.
11. The general idea of job evaluation is to enumerate the requirements of a job and the job’s contribution to the organization and then to classify it according to importance.
Exercise 4. Complete the passage using the following words and phases:
to pay, wage, labor, policy, performance, wage structure, compensation system, the level of unemployment, high-quality employees.
A good 1... ... can help attract qualified applicants, retain present employees, and stimulate high 2... at a cost that is reasonable for one’s industry and geographic area. To set up a successful system, decisions must be made about wage levels, 3... ..., and the individual 4... determination system.
The wage-level decision is a management 5... decision about whether the firm wants 6... above, at, or below the going rate for 7... in the industry or the geographic area. Most firms choose to pay near the average. Those that cannot afford more pay below average. Large, successful firms may like to cultivate the image of being «wage leaders» by internationally paying more than average and thus attracting and keeping 8... ... . IBM, for example, pays top dollar to get the new employees it want. 9... ... in the labor force also affects wage levels. Pay declines when labor is plentiful (high unemployment) and increases when labor is scarce (low unemployment).
Exercise 5. Match the words and phrases with their corresponding definitions.
1. to earn a living
2. to take a drop in salary
3. top salary earners
4. wage differentials
5. to receive
8. wage packet
a. to get
b. to accept a lower salary
c. payment for work
d. people with high salaries
e. to be paid enough money to live
f. the difference between high wages and low wages
g. income, often contained in an envelope
h. the way in which the parts of a system are arranged or organized
Exercise 6. Complete the sentences using the phrases (1-8) from Exercise 5. Change the form of the words where necessary.
1. He ... ... in salary in order to help the firm.
2. Members of Parliament ... a 4,2% pay increase this year.
3. They demanded adequate ... for their work.
4. For skilled and unskilled workers ... ... have increased.
5. You can’t expect to ... ... from your painting.
6. Once you take out rent, food and bills from your ... ... you are not left with much.
7. With such an old-fashioned management …, it’s not surprising they’re having problems.
8. ... ... ... will in future face a much heftier tax bill.
Exercise 7. Translate into English.
A. 1. Она зарабатывает на жизнь, работая официанткой в ресторане.
2. Он согласился на понижение заработной платы, чтобы не потерять работу.
3. Всего несколько человек в нашей фирме получают очень высокую зарплату.
4. разница в зарплате у руководителей компании и рядовых служащих составляет десятки тысяч долларов.
5. Он получает ежемесячное жалование.
6. Прежде всего, вам необходимо описать организационную структуру компании.
7. Автор статьи отказался от каких бы то ни было денег.
8. Он получил компенсацию за неиспользованный отпуск.
B. 1. Плата – это денежное возмещение или вознаграждение за что-либо.
2. Оклад – преобладающая форма заработной платы. В силу традиции работники, получавшие жалование ежемесячно, зачастую на банковский счет, не имели права на оплату сверхурочных.
3. Таким образом получали оплату в основном так называемые «белые воротнички» в отличие от «синих воротничков» - работников, которым заработная плата выплачивалась в виде наличных.
4. Заработная плата – платежи за работу, выполненную наемным рабочим.
5. Заработная плата и оклад ранее различались. Заработная плата выплачивалась наличными еженедельно, в то время как оклад переводился ежемесячно на банковский счет.
6. Компенсация – это возмещение потерь, понесенных убытков, расходов, возврат долга.
7. Компенсационные выплаты представляют денежное возмещение неиспользованного отпуска, затрат на переезд в другой город или регион ит.д.
8. Стимулы, в качестве поощрений за хорошие результаты, могут включать повышенную оплату, улучшение условий труда и перспективу продвижения по службе или просто повышение престижа.
9. Стимулы могут применяться в связи с реальными результатами, например в связи с увеличением выпуска продукции, либо в связи с оценкой руководителями таких форм трудового вклада, как присутствие на работе и соблюдение трудовой дисциплины.
10. Уровень жизни – экономическая составляющая благосостояния людей, которая измеряется величиной потребления на душу населения.
11. Уровень жизни – это совокупность условий жизни населения страны, соответствующих достигнутому уровню ее экономического развития.
12. Денежное вознаграждение – это денежная оплата труда работников в виде заработной платы и премиальных.