Week 11 notes
Week 11 notes mgmt 3311
Popular in Introduction to human resource management
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This 0 page Class Notes was uploaded by Laura Notetaker on Sunday November 8, 2015. The Class Notes belongs to mgmt 3311 at University of Texas at El Paso taught by Dr. Laura Guerrero in Summer 2015. Since its upload, it has received 30 views. For similar materials see Introduction to human resource management in Business at University of Texas at El Paso.
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Date Created: 11/08/15
Week 1 1 Notes Why is compensation important What is included in compensation besides pay Employee compensation all forms of pay or rewards going to employees Direct nancial payments wages salaries incentives commission and bonuses Indirect payments nancial bene ts like employerpaid insurance and vaca ons Why should compensation be aligned with strategy Aliened reward strategy Creating compensating package that produces the employee behaviors the rm needs to achieve its competitive strategy 0 Total rewards encompass the traditional pay incentives and bene ts but also things such as more challenging jobs career development and recognition programs What is likely to happen when there is no External equity how a job39s pay rate in one company compares to the job39s pay rate in other companies Internal equity How fair the job39s pay rate is when compared to otherjobs within the same company Individual equity Fairness of an individual39s pay when compared to what hisher coworker make for the same or similar jobs within the company and considering each person39s performance Procedural equity Perceived fairness of procedures to make decisions about allocation of pay 1938 Fair labor standards act lncludes minimum wage maximum hours overtime pay and child labor provisions Covers the majority of US workers What is an exempt employee 0 When a person makes some at least 455 per week What are exempt employees exempt from 0 They are the exempt from the Fair Labor Standards Act The equal 1963 equal pay act Designed to require equal pay for women doing the same works as men 1974 employee retirement income security act Provides government protection of pensions for all employees with company pension plans and it also regulates Week 1 1 Notes vesting rights employees who leave before retirement may claim compensation from the pension plan Age discrimination in employment act Prohibits age discrimination against employees who are 40 years of ages and older in all aspects of employment including compensation Americans with disabilities act Prohibits discrimination against quali ed persons with disabilities in all aspects of employment Family and medical leave act FMLA Aim to entitle eligible employees both men and women to take up to 12 weeks of unpaid job protected leave for the birth of a child or for the care of a child spouse or parent Worker39s compensation laws aim to provide prompt sure and reasonable income to victims of workrelated accidents Social security act of 1935 provides for unemployment compensation for workers unemployed through no fault of their own for up to 26 weeks and for retirement bene ts Garnishment law limits it limits the amount of an employee39s earnings that employers can withhold per week and protects the workers from discharge due to garnishment Impact of unions on compensation decisions They negotiate the wage rate Time off with pay Income security Cost of living adjustments Health care bene ts Pay policies it is an employer39s compensation strategy They can in uence the employer39s performance and pro tability Emphasize seniority or performance Job evaluation a systematic comparison done in order to determine the worth of one job relative to another Compensable factors a fundamental compensable element of a job such as skis effort responsibility and working conditions Preparing for the job evaluation 0 Identify the need forjob evaluation 0 Employees may fear that a systematic evaluation of their jobs may reduce their pay rates 0 Choose a job evaluation committee Benchmark job a job that is used to anchor the employer s pay scale and around which other jobs are arranged in order of relative worth Week 1 1 Notes Job evaluation method ranking the simplest method ofjob evaluation that involves ranking each job relative to all otherjobs usually based on overall dif culty 1 Obtain information 2 Select and group jobs 3 Select compensable factors 4 Rankjobs 5 Combine ratings Job evaluation job classi cation A method for categorizing jobs into groups 0 Classes grouping jobs based on a set of rules for each group or class They contain similar job but different dif culty 0 Grades contains dissimilarjobs but similar on dif culty Grade de nition is a written description of the level of responsibility and knowledge required by jobs in each grade Job evaluation methods point method in which a number of compensable factors are identi ed and then the degree to which each of these factors is present on the job is determined What determines executive pay 0 Job complexity Ability to pay 0 Human capital Compensating executives and managers 0 Base pay Shortterm incentives stock bonuses Longterm incentives stock options 0 Executive bene ts and perks retirement pension plans Compensating professional employees 0 Job evaluation Compensable factors tend to focus on problem solving and creativity 0 Market pricing approach price professional jobs in the marketplace as best as possible Competencybased pay where the company pays for the employee39s range depth and types of skills and knowledge rather than for the job title he or she holds Broadbandling Consolidating salary grades and ranges into just a few wide levels or quotbandsquot each of which contains a relatively wide range ofjobs and salary eves Talen management and actively managing compensation allocations It should be based on more than seniority and merit But rather on the employee39s importance to the company39s mission Week 1 1 Notes Comparable worth the concept by which women who are usually paid less than men can claim that men in comparable rather than in strictly equal jobs are paid more Steps in creating a marketcompetitive pay plan Choose benchmarkjobs Select compensable factors Assign weights to compensable factors Convert percentages to points for each factor De ne each factor s degrees Determine for each factor its factor degrees39 points Review job descriptions and job speci cations Evaluate the jobs Draw the current internal wage curve 10Conduct salary survey 11Draw the market external wage curve 12Compare and adjust current and market wage rates for jobs 13Develop pay grades 14Establish rate ranges 15Address remaining jobs 16Correct outofline rates FP P PP N
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