dessler_ch11 - PARTFOURCOMPENSATION CHAPTER TEleven...

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PART FOUR                                                              COMPENSATION C H A P T E R   E l e v e n Establishing  Strategic Pay Plans 11 Lecture Outline 150
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Strategic Overview Basic Factors in Determining Pay Rates       Legal Considerations in Compensation      Union Influences on Compensation Decisions Competitive Strategy, Corporate Policies and  Compensation  Equity and Its Impact on Pay Rates Establishing Pay Rates Step 1. The Salary Survey Step 2. Job Evaluation Step 3. Group Similar Jobs into Pay Grades Step 4. Price Each Pay Grade—Wage Curves Step 5. Fine-Tune Pay Rates Pricing Managerial and Professional Jobs  Compensating Executives and  Managers Compensating Professional Employees Competency-Based Pay What is Competency-Based Pay? Why Use Competency-Based Pay? Competency-Based Pay in Practice Competency-Based Pay: Pros, Cons, and  Results Other Compensation Trends Broadbanding Comparable Worth Board Oversight of Executive pay Improving Productivity Through HRIS:  Automating Compensation Administration APPENDIX FOR CHAPTER 11 Quantitative Job Evaluation Methods The Factor Comparison Job Evaluation Method The Point Method of Job Evaluation In Brief: This chapter covers the basics of compensation. Included are basic considerations in determining pay rates, establishing pay rates, current trends in compensation, pricing managerial and professional jobs, and current issues in compensation management. Interesting Issues: Employees are guided to do what they are paid to do. Compensation plans are evolving from more generic, impersonal methods to programs which recognize and reward the specific competencies an organization needs in order to accomplish its strategic objectives. ANNOTATED OUTLINE I. Basic Factors in Determining Pay Rates Employee compensation – refers to all forms of pay or rewards going to employees, which include direct financial payments and indirect payments. Direct financial payments include wages, salaries, incentives, commissions, and bonuses. Indirect payments include financial benefits, like employer-paid insurance and vacations. A. Legal Considerations in Compensation – There are many laws which govern compensation. For example, the Fair Labor Standards Act (FLSA) regulates the minimum wage and requires that overtime be paid at a rate of one and one half times the normal rate of pay for hours worked over 40 in a workweek. Employees are categorized as exempt from the act, or not exempt (non-exempt) from its provisions. Figure 11-1 summarizes important issues governing white collar 151
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exemptions. Other compensation laws include the Equal Pay Act, the Employee Retirement Income Security Act (ERISA) the Age Discrimination in Employment Act (ADEA,) the Americans with Disabilities Act (ADA,) and the Family Medical Leave Act (FMLA.) Know Your Employment Law
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This note was uploaded on 07/17/2011 for the course MBA 522 taught by Professor None during the Spring '11 term at Missouri (Mizzou).

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dessler_ch11 - PARTFOURCOMPENSATION CHAPTER TEleven...

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