Fundamentals of Human Resource Management Eighth Edition De
- Slides: 37
Fundamentals of Human Resource Management Eighth Edition De. Cenzo and Robbins Chapter 11 Establishing Rewards and Pay Plans Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Introduction • People do what they do to satisfy some need and they look for a payoff or reward. • The most obvious reward is pay, but there are many others, including: – – promotions desirable work assignments peer recognition work freedom Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Introduction Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Types of Reward Plans Intrinsic versus Extrinsic Rewards • Intrinsic rewards (personal satisfactions) come from the job itself, such as: – pride in one’s work – feelings of accomplishment – being part of a work team Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Types of Reward Plans Intrinsic versus Extrinsic Rewards • Extrinsic rewards come from a source outside the job – include rewards offered mainly by management – Money – Promotions – Benefits Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Types of Reward Plans Financial versus Nonfinancial Rewards • Financial rewards include: – – – wages bonuses profit sharing pension plans paid leaves purchase discounts • Nonfinancial rewards emphasize making life on the job more attractive; employees vary greatly on what types they find desirable. Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Types of Reward Plans Performance-based versus Membership. Based Rewards • Performance-based rewards are tied to specific job performance criteria. – – – commissions piecework pay plans incentive systems group bonuses merit pay • Membership-based rewards such as cost-ofliving increases, benefits, and salary increases are offered to all employees. Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Compensation Administration • The process of managing a compensation program so that the organization can attract, motivate and retain competent employees who perceive that the program is fair. Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Compensation Administration • Job evaluation – the process used to determine each job’s appropriate worth within the organization. • Based on job analysis information. Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Compensation Administration Government Influence on Compensation Administration • Fair Labor Standards Act: 1938 act which requires – minimum wage – overtime pay – record-keeping – child labor restrictions Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Compensation Administration Government Influence on Compensation Administration Fair Labor Standards Act • Exempt employees – include professional and managerial employees – not covered under FLSA overtime provisions • Nonexempt employees – eligible for premium pay (time and one-half) – when they work more than 40 hours in a week Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Compensation Administration Government Influence on Compensation Administration • Equal Pay Act of 1963 act requires that men and women hired for the same job be paid the same. Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Compensation Administration Government Influence on Compensation Administration • Civil Rights Act: – broader than Equal Pay Act – prohibits discrimination on the basis of gender – used to support comparable worth concept • Salaries should be established on the basis of skill, responsibility, effort, and working conditions. Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Job Evaluation and the Pay Structure Job Evaluation • Use of job analysis information to determine the relative value of each job in relation to all jobs within the organization. – The ranking of jobs – Labor market conditions – Collective bargaining – Individual skill differences Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Job Evaluation and the Pay Structure Isolating Job Evaluation Criteria • Judgment is involved in defining what factors should be used to compare jobs. • Typical criteria: – mental requirements – supervisory control – complexity – physical demands – personal contacts Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Job Evaluation and the Pay Structure Isolating Job Evaluation Criteria • Typically jobs are grouped according to type and compared within their group – clerical jobs – sales jobs – professional jobs Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Job Evaluation and the Pay Structure Job Evaluation Methods • Ordering method: A committee places jobs in a simple rank order from highest (worth highest pay) to lowest. Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Job Evaluation and the Pay Structure Job Evaluation Methods • Classification method: – Jobs are placed in classification grades – Compare their descriptions to the classification description and benchmarked jobs – Look for a common denominator such as skills, knowledge, or responsibility Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Job Evaluation and the Pay Structure Job Evaluation Methods • Point method: – Jobs are rated and allocated points on several identifiable criteria, using clearly defined rating scales. – Jobs with similar point totals are placed in similar pay grades. – Offers the greatest stability. Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Job Evaluation and the Pay Structure Establishing the Pay Structure • Compensation surveys – Used to gather factual data on pay rates for other organizations – Information is often collected on associated employee benefits as well Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Job Evaluation and the Pay Structure Establishing the Pay Structure • Wage curves – Drawn by plotting job evaluation data (such as job points or grades) against pay rates (actual or from survey data). – Indicate whether the pay structure is logical Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Job Evaluation and the Pay Structure Establishing the Pay Structure • Wage structure – Designates pay ranges for groups of jobs which are • similar in value to the organization • grouped by their classifications, grades or points. – Results in a logical hierarchy of wages, consisting of ranges that overlap. Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Special Cases of Compensation Incentive Compensation Plans Incentives can be added to the basic pay structure to provide rewards for performance. Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Special Cases of Compensation Incentive Compensation Plans • Individual Incentives include – merit pay plans (annual increase, based on performance) – piecework plans (pay based on number of units produced typically in a specified time period. ) – time-savings bonuses and commissions Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Special Cases of Compensation Incentive Compensation Plans Individual Incentives: – Work best where clear objectives can be set and tasks are independent. – Many organizations today require employees to place a percentage of their salary “at risk” so that merit pay does not become a substitute for automatic cost-ofliving raises. Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Special Cases of Compensation Incentive Compensation Plans • Group Incentives – Incentives can be offered to groups, rather than individuals, when employees' tasks are interdependent and require cooperation. Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Special Cases of Compensation Incentive Compensation Plans: • Plant-wide Incentives: • Direct employee efforts toward organizational goals (such as cost reduction) – Scanlon Plan - supervisor and employee committees suggest labor-saving improvements – IMPROSHARE - formula is used to determine bonuses based on labor cost savings Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Special Cases of Compensation Paying for Performance • Pay is based on some measure of performance. • Common performance measures are: – piece-rate plans – gainsharing – wage incentive plans – profit sharing – lump sum bonuses Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Special Cases of Compensation Paying for Performance • Competency-based compensation – Rewarded for skills, knowledge and behaviors • • leadership problem solving decision making strategic planning – Broad-banding - pre-set pay levels that determine what people are paid based upon the type and level of competencies they possess. Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Special Cases of Compensation Team-Based Compensation – Incentives for empowered work teams to exceed established goals and share equally in rewards. – Depends on: • clarity of team purpose and goals • ability of the team to obtain needed resources • effective team communication skills and trust Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Executive Compensation Programs Salaries of Top Managers – Executive salaries, bonuses and stock options may seem high. – Top twenty CEOs average more than $100 million in total compensation. – Competition for executive talent raises the price of hiring an executive. – High salaries can be a motivator for executives and lower-level managers Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Executive Compensation Programs Supplemental Financial Compensation – Deferred bonuses – paid to executives over extended time periods, to encourage them to stay with the company. – Stock options – allow executives to purchase stock in the future at a fixed price. – Hiring bonuses – compensate for the deferred compensation lost when leaving a former company. Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Executive Compensation Programs Supplemental Nonfinancial Compensation: Perquisites • Perks may include: – – – – paid life insurance club memberships company cars expense accounts interest-free loans free financial legal and tax counseling mortgage assistance Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
Executive Compensation Programs • Supplemental Nonfinancial Compensation: Perquisites – Golden parachutes protect executives when a merger or hostile takeover occurs by providing severance pay or a guaranteed position. Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
International Compensation • Important to understand the statutory requirements of each country. • International compensation packages generally utilize the “balance-sheet approach, ” using the four factors below: – Base Pay – Differentials – Incentives – Assistance Programs Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
International Compensation • Base Pay: The pay of employees in comparable jobs at home. • Differentials: Compensation given to offset higher costs of living abroad. Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
International Compensation • Incentives: Inducements given to encourage employees to accept overseas assignments. • Assistance Programs: Payment for expenses involved in moving a family abroad and in providing some services overseas. Fundamentals of Human Resource Management 8 e, De. Cenzo and Robbins
- Operations management eighth edition
- Psychology eighth edition david g myers
- David g myers psychology 8th edition
- Human resource management 15th edition
- Human resource management by gary dessler
- International human resource management dowling 6th edition
- Management fifteenth edition
- Globalization and competition trends in hrm
- Time management human resources
- Organized retail
- Hrm vs hrd
- Management fundamentals 8th edition
- Anagram of eighth
- Eighth planet from the sun
- Nearest eighth of an inch
- The fifth, sixth, seventh, and eighth amendments protect *
- 8th commandment catholic
- Taj mahal 8th wonder of the world
- Reverse partial veneer crown
- Eighth amendment excessive bail
- Eighth letter of the alphabet
- Criminal justice lesson
- What's the 5th amendment
- Project human resource management pmbok ppt
- Pmbok human resource management
- Important of hrm
- Recruitment process of max's restaurant
- Definition of induction in hrm
- Human resource management chapter 2
- Chapter 9 human resource management
- Hrms shanker group
- Mbo performance appraisal method
- Current issues in human resource management
- Ba human resource management
- Employer employee relationship in hrm
- Human resource management gaining a competitive advantage
- Human resource management gaining a competitive advantage
- Human resource management gaining a competitive advantage