MT 203 Unit 5 Chapter 09.pdf.zip

MT 203 Unit 5 Chapter 09.pdf.zip - PHOTODISC BLUE/GETTY...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
© PHOTODISC BLUE/GETTY IMAGES
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
PART 4 Implementing Compensation and Security chapter 395 Managing Compensation 9 Explain employer concerns in developing a strategic compensation program. After studying this chapter, you should be able to Indicate the various factors that influence the setting of wages. Differentiate the mechanics of each of the major job evaluation systems. Explain the purpose of a wage survey. Define the wage curve, pay grades, and rate ranges as parts of the compensation structure. Identify the major provisions of the federal laws affecting compensation. objective 1 2 3 4 5 6 7 Discuss the current issues of equal pay for comparable worth, pay compression, and low wage budgets.
Background image of page 2
n extensive review of the literature indicates that important work- related variables leading to job satisfaction include challenging work, interesting job assignments, equitable rewards, competent supervi- sion, and rewarding careers. 1 It is doubtful, however, whether many employees would continue working were it not for the money they earn. Employees desire compensation systems that they perceive as being fair and commensurate with their skills and expectations. Pay, therefore, is a major consideration in HRM because it provides employees with a tangible reward for their services, as well as a source of recognition and livelihood. Employee compensation includes all forms of pay and rewards received by employees for the performance of their jobs. Direct compensation encom- passes employee wages and salaries, incentives, bonuses, and commissions. Indirect compensation comprises the many benefits supplied by employers, and nonfinancial compensation includes employee recognition programs, rewarding jobs, organizational support, work environment, and flexible work hours to accommodate personal needs. Both managers and scholars agree that the way compensation is allocated among employees sends a message about what management believes is important and the types of activities it encourages. 2 Furthermore, for an employer, the payroll constitutes a sizable operating cost. In manufacturing firms compensation is seldom as low as 20 percent of total expenditures, and in service enterprises it often exceeds 80 percent. A strategic compensation program, therefore, is essential so that pay can serve to moti- vate employee production sufficiently to keep labor costs at an acceptable level. This chapter will be concerned with the management of a compensation program, job evaluation systems, and pay structures for determining compensation payments. Included will be a discussion of federal regulations that affect wage and salary rates. Chapter 10 will review financial incentive plans for employees. Employee benefits that are part of the total compensation package are then discussed in Chapter 11.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/18/2010 for the course MT Marketing taught by Professor Jgh during the Spring '10 term at Kaplan University.

Page1 / 40

MT 203 Unit 5 Chapter 09.pdf.zip - PHOTODISC BLUE/GETTY...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online