Chapter 1 Compensation
-
Upload
glenda-olan-austria -
Category
Documents
-
view
225 -
download
0
Transcript of Chapter 1 Compensation
-
8/3/2019 Chapter 1 Compensation
1/18
1-1
A Human Resource Management Approach
STRATEGIC
COMPENSATION
Chapter 1
Strategic Compensation: A Component of Human
Resource Systems
-
8/3/2019 Chapter 1 Compensation
2/18
1-2
What Is Compensation?
Compensation represents the rewardsemployees receive for performing their
job. They are either:
Intrinsic
Extrinsic
-
8/3/2019 Chapter 1 Compensation
3/18
1-3
5 Core Job DimensionsIntrinsic Factors
Skill variety
Task identity
Task significance
Autonomy
Feedback
-
8/3/2019 Chapter 1 Compensation
4/18
1-4
Elements of Core Compensation
Base Pay
Hourly pay Annual salary
Base pay adjustments
COLAs Seniority pay
Merit pay Incentive pay
Pay-for-knowledge/Skill-based pay
-
8/3/2019 Chapter 1 Compensation
5/18
1-5
Four Compensable Factors
An employees skill level
An employees effort
An employees level of responsibility
The severity of the working conditions
Courts will use these factors!
-
8/3/2019 Chapter 1 Compensation
6/18
1-6
Discretionary Benefits
Three Broad Categories
Protection programs
Pay-for-time-not-worked
Services
-
8/3/2019 Chapter 1 Compensation
7/18
Compensation Benefits Costs
Review the table on pages 9-10
What is the Total Compensation for aRegistered Nurse on an hourly basis?
Per hour, how much does an employerpay for Insurance in the constructionindustry?
What would you estimate MY Paid Leavecosts LTC on an hourly basis?
1-7
-
8/3/2019 Chapter 1 Compensation
8/18
1-8
Legally-Required Benefits
Federal Legislation Designed to:
Promote worker safety and health
Maintain family income
Assist families in crisis
Provide assistance in case of Disability
Unemployment
-
8/3/2019 Chapter 1 Compensation
9/18
1-9
Competitive Strategy
The planned use of company resources
Technology
Capital
Human Resources
2+ years time span
Choices
Lowest cost strategy
Differentiation strategy
-
8/3/2019 Chapter 1 Compensation
10/18
1-10
Competitive Strategy Choices
Lowest Cost: Focus on being lowest cost
producer/seller of goods or services
Differentiation: Focus on offering unique
goods or services
-
8/3/2019 Chapter 1 Compensation
11/18
1-11
Lowest-Cost Strategy
Effective when Jobs:
Include predictable behaviors
Have a short-term focus Require autonomous activity
Focus on quantity of output
-
8/3/2019 Chapter 1 Compensation
12/18
1-12
Differentiation Strategy
Effective when Jobs:
Require highly creative behaviors
Have a long-term focus
Demand cooperation and independence
Involve risk-taking
-
8/3/2019 Chapter 1 Compensation
13/18
1-13
Human ResourcesResponsibilities
Recruitment
Selection
Performanceappraisal
Training
Career development
Labor- management
relations
Employment termination
Ensuring legal compliance
-
8/3/2019 Chapter 1 Compensation
14/18
1-14
Employment Termination
TwoTypes:
Involuntary
Terminated
Laid-off
Voluntary
Quit
Retired
-
8/3/2019 Chapter 1 Compensation
15/18
1-15
Employment Legislation
Davis Bacon Act 1931 prevailing wage
Fair Labor Standards Act of 1938
Equal Pay Act of 1963
Civil Rights Act of 1964
Pregnancy Discrimination Act of 1978
Americans with Disabilities Act of 1990
Family and Medical Leave Act of 1993 Recent amendments to both the ADA and the FMLA
-
8/3/2019 Chapter 1 Compensation
16/18
1-16
Compensation Goals
Internal consistency
Market competitiveness
Recognizing individual efforts
-
8/3/2019 Chapter 1 Compensation
17/18
1-17
Internal Consistency
Achieved when the value (qualifications, duties,responsibilities) of each job is clearly
defined
Represents: Job structure
Hierarchy
Achieved using: Job analysis
Job evaluation
-
8/3/2019 Chapter 1 Compensation
18/18
1-18
Market Competitiveness
Compensation policies that fit with business
objectives
Vital in attracting and retaining employees
Arebasedon: Strategic analyses
Compensation surveys