Mgmt 494, Compensation Management 01/27/2016 ° Compensation: represents the rewards employees receive for performing their job. Intrinsic: represents employees critical psychological states that result from performing their jobs Extrinsic: includes both monetary and nonmonetary rewards o Core: hourly WAGE, annual SALARY o Adjustments to core: cost-of-living, seniority, merit, incentives, person-focused o Legally-required: social security act, workers comp, family and medical leave act o Discretionary employee benefits: health insurance, disability insurance, life insurance, retirement plans, paid time off, accommodation and enhancement ° ° Base Pay Employees skill level Employees effort Employees level od responsibility Severity of the working conditions Example: trash man making 80,000/yr ° ° Base Pay Adjustments COLAs: periodic base pay increases that are founded on changes in prices as indexed by the consumer price index (CPI) Seniority Pay: reward employees with periodic additions to base pay according to the employees length of service in performing their jobs Merit Pay: programs assume that employees compensation over time should be determined, at least in part, by difference in job performance. Incentive Pay: rewards employees for partially or completely attainting a predetermined work objective.
Pay for Knowledge plans: reward managerial, service, or professional workers, for successfully learning specific curricula o Knowing stuff Skill-based Pay: used mostly for employees who perform physical work and increases these workers pay as they master new skills. o Doing stuff (carpenter) ° ° Discretionary Benefits Protection programs: provide family benefits, promote health, and guard against income loss caused by such catastrophic factors as unemployment, disability, or serious illness Paid time-off: provides employees with pay for time when they are not working Services: provides such enhancements as tuition reimbursement and day care assistance to employees with families ° ° Legally Required Benefits ° ° Federal legislation designed to: Promote worker safety and health Maintain family income Assist families in crisis Provide assistance in case o Disability o Unemployment ° ° Historical Perspective on Compensation
Many employees instituted so-called scientific management practices to control labor costs, as well as welfare practices to maintain control over labor Time and motion studies analyzed the time it took employees to complete their jobs. These studies literally focused Welfare practices: were generous endeavors undertaken by some employees, motivated in part to minimize employees desire for union representation, to promote good management and to enhance worker productivity.
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- Fall '12
- Management, Employment compensation, FLSA, ADEA, Traditional Pay