15 - Commerce 392 Managing the Employment Relationship...

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Unformatted text preview: Commerce 392 Managing the Employment Relationship Professor Tom Knight Spring 2011 PLEASE SIT WITH YOUR TEAM!!! March 2, 2011 AGENDA: Compensation: Pay for Performance Benefits 2 Managing the Employment Relationship March 2, 2011 HRM Simulation Period 3 Special Decision: Selection of Employees: A = Female, 30, B.Comm. B = Male, 35, 2 yr. Tech. Degree C = Male, 55, minority, military D = Male, 30, Tech in dep’t. 2 years 3 Managing the Employment Relationship March 2, 2011 HRM Simulation Period 4 Decision: Compensation Planning: Decide among 8 possible directions for compensation strategy. Basic: Do job evaluation Incentive/bonus/merit plans Profit or Gainsharing Employee stock ownership Cost of Living protection Or: Leave well enough alone – do nothing 4 Managing the Employment Relationship March 2, 2011 Pay for Performance “Variable Pay” “Pay at Risk” Incentives, Bonuses etc. Some Key Forms: Profit Sharing Gain Sharing Employee Stock Ownership Pay for Knowledge or Competencies 5 Managing the Employment Relationship March 2, 2011 Profit Sharing Bonus Incentives Based Upon Overall Financial Performance of Firm Employees Receive a Set Percentage of Net Profits May Be Limited to Executive/Managerial Ranks 6 Managing the Employment Relationship March 2, 2011 Gainsharing Committee or Management Sets Goals for Improvement: Quality Attendance Safety Customer Service Unit Costs Progress Is Measured Continuously Portion of Savings on Goals Reached Is Distributed to Employees 7 Managing the Employment Relationship March 2, 2011 Employee Share Ownership Make Employees Owners! Question: How Does This Work? WestJet: Why Do We Care So Much? Because We’re Owners! What Other HRM Practices Necessary to Make This Effective? 8 Managing the Employment Relationship March 2, 2011 Pay for Performance Which would be the greatest performance incentive for you, given what motivates you? A = Profit Sharing B = Gain Sharing C = Share Ownership D = Training Bonus 9 Managing the Employment Relationship March 2, 2011 Problems with Performance-Based Pay Distrust – What Behaviours Actually Rewarded? Who Sets Framework, Goals, Rewards? How Are These Changed over Time? How Are Non-Employee Impediments to Performance Handled? Do Employees Have What They Need to Succeed? What Is Impact of Inequities? 10 Managing the Employment Relationship March 2, 2011 Employee Benefits Voluntary Employer-Sponsored Benefits: Pay for Time Not Worked Vacations & Holidays Sick Leave Long-Term Disability Leaves of Absence 11 Managing the Employment Relationship March 2, 2011 Employee Benefits Insurance Benefits Life Supplemental Health/Dental Retirement Benefits Pensions Post-Retirement Medical Benefits Employee Assistance Programs 12 Managing the Employment Relationship March 2, 2011 Employee Benefits Benefits Cost Issues: Pensions (Defined Benefit vs. Defined Contribution) Workers’ Compensation Costs Long Term Disability Costs Costs of Stress 13 Managing the Employment Relationship March 2, 2011 Employee Benefits Current Trends in Benefits: Same-Sex Benefits Family-Oriented Benefits Wellness Programs Flexible Benefit Programs Benefits Viewed as Part of Attraction – Retention Strategy 14 Managing the Employment Relationship March 2, 2011 What Benefits to Choose? If you had a cafeteria benefits plan, where would you put your fund: A = Better Medical/Dental Insurance B = Better Pension C = Better Life Insurance D = Better Vacation E = More Beer 15 Managing the Employment Relationship March 2, 2011 Dead Peasants http://www.youtube.com/watch?v=cLrXYmUurE 16 Managing the Employment Relationship March 2, 2011 Can They Do This? Should They? Should employers be able to benefit from their employee’s death? A = Yes (Why Not?) B = Yes, with Permission C = Yes, if Employee’s Families also Benefit D = NO! 17 Managing the Employment Relationship March 2, 2011 ...
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