12e by BohlanderSnellSherman c 2001 SouthWesternThomson Learning 9 1 Managing Human Resources Bohlander Snell Sherman Chapter 9 Managing Compensation Managing Human Resources ID: 1027412
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1. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-1ManagingHuman Resources Bohlander Snell ShermanChapter 9Managing Compensation
2. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-2Learning ObjectivesExplain employer concerns in developing a strategic compensation program.Identify the various factors that influence the setting of wages.Discuss the mechanics of each of the major job evaluation systems.Explain the purpose of a wage survey.
3. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-3Learning Objectives, cont.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.Discuss the current issues of equal pay for comparable worth, pay compression, and low wage budgets.
4. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-4Presentation Slide 9-1Total CompensationWagesSalariesCommissionsBonusesGainsharingPay for Time Not WorkedVacationsBreaksHolidaysInsurance PlansMedicalDentalLifeSecurity PlansPensionDisability InsuranceEmployee ServicesEducational AssistanceRecreational programs
5. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-5Presentation Slide 9-2Compensation Management and other HRM Functions
6. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-6Goals of Strategic Compensation PoliciesMotivating Value of Compensation Pay-for-PerformanceStandardLinkingCompensationto OrganizationalObjectives
7. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-7Value-Added CompensationEvaluating the individual components of the compensation program to see if they advance the needs of employees and the goals of the organization
8. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-8Pay-for-Performance StandardStandard by which managers tie compensation to employee effort and performance
9. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-9Pay EquityAn employee’s perception that compensation received is equal to the value of the work performed
10. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-10Hourly WorkWork paid on an hourly basis
11. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-11PieceworkWork paid according to the number of units produced
12. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-12Nonexempt EmployeesEmployees covered by the overtime provisions of the Fair Labor Standards Act
13. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-13Exempt EmployeesEmployees not covered by the overtime provisions of the Fair Labor Standards Act
14. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-14Presentation Slide 9-3Components of the Wage MixWAGEMIXConditions ofLabor MarketArea WageRatesCost ofLivingCollectiveBargainingLegalRequirementsCompensationPolicy of OrganizationWorth ofJobEmployee’sRelative WorthEmployer’sAbility to Pay
15. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-15Consumer Price Index (CPI)Measure of the average change in prices over time in a fixed “market basket” of goods and service
16. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-16Escalator ClausesClauses in labor agreements that provide for quarterly cost-of-living adjustments in wages, basing the adjustments on changes in the consumer price index
17. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-17Real WagesWage increases larger than rises in the consumer price index; that is, the real earning power of wages
18. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-18Job RankingJob Evaluation SystemsPoint SystemJob ClassificationFactor ComparisonCommon Methods of Job Comparison
19. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-19Job EvaluationSystematic process of determining the relative worth of jobs in order to establish which jobs should be paid more than others within an organization
20. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-20Job Ranking SystemSimplest and oldest system of job evaluation by which jobs are arrayed on the basis of their relative worth
21. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-21Job Classification SystemSystem of job evaluation by which jobs are classified and grouped according to a series of predetermined wage grades
22. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-22Point SystemQuantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it
23. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-23Factor Comparison SystemJob evaluation system that permits the evaluation process to be accomplished on a factor-by-factor basis by developing a factor comparison scale
24. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-24Presentation Slide 9-4Characteristics of Key JobsHave importance to employees and organizationsVary in terms of job requirementsPossess relatively stable job contentAre used as important jobs in salary surveys
25. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-25Hay Profile MethodJob evaluation technique using three factors – knowledge, mental activity, and accountability – to evaluate executive and managerial positions
26. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-26The Compensation StructureWage and Salary SurveysWage CurveRate RangesPay GradesIssues Involved in Setting Compensation Structures
27. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-27Wage and Salary SurveysSelect key jobs.Determine relevant labor market.Select organizations.Decide on information to collect: wages/benefits/pay policies.Compile data received.Determine wages and benefits to pay.
28. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-28Wage and Salary SurveySurvey of the wages paid to employees of other employers in the surveying organization’s relevant labor market
29. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-29Wage CurveCurve in a scattergram representing the relationship between relative worth of jobs and wage rates
30. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-30Pay GradesGroups of jobs within a particular class that are paid the same rate or rate range
31. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-31Presentation Slide 9-5Components of the Wage Structure
32. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-32Presentation Slide 9-6Elements of the Rate Range
33. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-33Red Circle RatesPayment rates above the maximum of the pay range
34. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-34Skill-Based PayPay based on how many skills employees have or how many jobs they can perform
35. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-35Presentation Slide 9-7Federal Wage LawsDavis-Beacon Act of 1931Walsh-Healy Act of 1936Fair Labor Standards Act of 1938
36. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-36Significant Compensation IssuesEqual PayPay CompressionLow Wage Budgets
37. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-37Comparable WorthThe concept that male and female jobs that are dissimilar, but equal in terms of value or worth to the employer, should be paid the same
38. Managing Human Resources,12e, by Bohlander/Snell/Sherman (c) 2001 South-Western/Thomson Learning9-38Wage-Rate CompressionCompression of differentials between job classes, particularly the differential between hourly workers and their managers