MGT3320EXAM4

MGT3320EXAM4 - Compensation 13:38 Total Rewards Monetary...

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Unformatted text preview: Compensation 13:38 Total Rewards Monetary and non-monetary rewards provided to employees in order to attract, motivate, and retain them Total rewards in organizations, including compensation systems, must be linked to organizational objectives and strategies Critical to an effective total rewards approach is the need to balance the interests and costs of the employers with the needs and expectations of employees Objectives: 1. Legal compliance with all appropriate laws and regulations 2. Cost effectiveness for the organization 3. Internal, external, and individual equity for employees 4. Performance enhancement for the organization 5. Performance recognition and talent management for employees Compensation All forms of pay and rewards received by employees for the performance of their jobs including direct and indirect Intrinsic rewards psychological and social forms of compensation Extrinsic rewards are tangible and take both monetary and non-monetary forms Compensation as we know it today grew out of belief that, if designed appropriately, compensations systems could motivate employees to higher performance Types of Compensation Direct base and variable pay Wages and salaries basic compensation that an employee receives Wages payments directly calculated on the amount of time worked Salaries consistent payments made each period regardless of hours worked Incentives variable pay, which is compensation linked tdirectly to individual, team, or organizational employment Bonuses variable pay Commissions Indirect Benefits indirect reward given to an employee or a group of employees for organizational membership Compensation and Legal Considerations Fair Labor Standards Act (FLSA) passed in 1938 and enforced by the Wage and Hour Division of the U.S. Department of Labor Classifications Exempt professional, administrative, executive, outside sales, computer employees Non-exempt Overtime provisions Time & for non-exempt > 40 hours Minimum wage changed only through congressional action A lower minimum wage is set for tipped employees, but their compensation must equal or exceed the minimum wage when average tips are included If a states minimum wage is higher, employers must meet the state level rather than the federal level Living wage one that is supposed to meet the basic needs of a family of four by one worker Child-labor provisions age 16 (hazardous 18) to work unlimited hours Comp time in leiu of payment for time worked; must be time & Illegal in the private sector...
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This note was uploaded on 09/13/2011 for the course MGMT 3329 taught by Professor Wolfe during the Spring '11 term at LSU.

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MGT3320EXAM4 - Compensation 13:38 Total Rewards Monetary...

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