intro of cm
DESCRIPTION
compensation managementTRANSCRIPT
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Compensation represents the rewards employees receive for performing their job, are either:
Intrinsic compensation: reflects employees psychological mind-sets that result from performing their jobs.
Organisational development professionals promote intrinsic compensation through effective job design.
Extrinsic compensation: includes monetary and non-monetary rewards.
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Skill variety
Task identity
Task significance
Autonomy
Feedback
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Base PayHourly pay Annual salary
Base pay adjustmentsCOLAs Skill-based
payMerit pay Incentive
payPay-for-knowledge Seniority pay
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An employee’s skill level
An employee’s effort
An employee’s level of responsibility
The severity of the working
conditions
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Federal Legislation Designed to: Promote worker safety and health Maintain family income Assist families in crisis Provide assistance in case of
Disability Unemployment
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Three Broad Categories Protection programs
Pay-for-time-not-worked
Services
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W.C. B.C. ServiceBenefit $ / % $ / % $ / %Total 28.02/100 20.41/100 13.09/100
Base Pay 20.57/73.4 14.14/69.3 9.60/73.3
Dscry 5.37/19.6 4.30/21.0 2.29/17.5
LRBs 1.94/6.9 1.95/9.6 1.19/9.1
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TOTAL BASE PAY
DISCRY BENEFIT
LRB
ALL $25.75 $18.07 $5.61 $2.07
MGMT / PROFL $41.91 $30.11 $9.81 $2.79
SALES/OFFICE $19.39 $13.96 $3.86 $1.57
SERVICE $14.26 $10.23 $2.68 $1.35
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Strategic decisions - Guide the activities of companies in the market
Strategic management - Entails judgments that direct a company toward achieving specific goals
Strategic planning - Supports business objectives
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The planned use of company resources
2+ years time span Choices
Lowest cost strategy Differentiation strategy
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Lowest Cost: Focus on being lowest cost
producer/ seller of goods or services Differentiation: Focus on offering
unique goods or services
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Effective when Jobs
Include predictable behaviors
Have a short-term focus
Require autonomous activity
Focus on quantity of output
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Effective when Jobs: Require highly creative behaviors Have a long-term focus Demand cooperation &
independence Involve risk-taking
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Recruitment
Selection
Performance appraisal Training
Career development Labor- management relations Employment termination
Insuring legal compliance
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Two Types: Involuntary
Terminated Laid - off
Voluntary Quit Retired
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Income continuity, safety work hours
Pay discrimination
Meeting disabled & family needs
Prevailing wage
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Davis – Bacon Act Fair Labor Standards Act Equal Pay Act Civil Rights Act Pregnancy Discrimination Act Americans with Disabilities Act Family and Medical Leave Act
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Internal consistency
Market competitiveness
Recognizing individual efforts
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Achieved when the value of each job is clearly
defined Represents:
Job structure Hierarchy
Achieved using: Job analysis Job evaluation
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Compensation policies that fit with business
objectives Vital in attracting and retaining
employees
Are based on: Strategic analyses Compensation surveys
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Pay Structures: Pay is determined by employee’s credentials, job knowledge,
and job performance Pay Grades: Based on compensable factors and value Pay Ranges: Builds on grades, uses midpoints, minimums, and maximums
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Individuals or entities directly affected bycompensation practices, like Employees Line managers Executives Unions U.S. government
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