© prentice-hall, inc., 2001 chapter one compensation: a component of human resource systems
TRANSCRIPT
© Prentice-Hall, Inc., 2001
Chapter One
Compensation: A Component of Human Resource Systems
© Prentice-Hall, Inc., 2001
Figure 1-1
The Influence of Core Job Characteristics on Intrinsic Compensation and Subsequent
Benefits to Employers
Skill varietyTask identityTask significance
Core JobCore JobCharacteristicsCharacteristics
Autonomy
Feedback
Experienced meaningfulness of the work
Critical PsychologicalCritical PsychologicalStateState
Lower turnover
Lower absenteeism
Enhanced job performance
Greater job satisfaction
Benefit to Benefit to EmployersEmployers
Experienced responsibility for work outcomes
Gained knowledge of results from work activities
© Prentice-Hall, Inc., 2001
Table 1-1
Elements of Core Compensation
Base Pay» Hourly pay» Annual salary
How Base Pay is Adjusted Over Time» Cost-of-living adjustments» Seniority pay» Merit pay» Incentive pay» Pay-for-knowledge and skill-based pay
© Prentice-Hall, Inc., 2001
Table 1-2
Elements of Fringe Compensation (1 of 3)
Social Security Act of 1935» Unemployment insurance» Retirement insurance» Benefits for dependents» Disability benefits» Medicare
State compulsory disability laws (Workers’ Compensation)
Family and Medical Leave Act of 1993 (12 weeks of annual unpaid leave)
© Prentice-Hall, Inc., 2001
Table 1-2
Elements of Fringe Compensation (2 of 3)
Discretionary Benefits» Protection Programs
– Income protection programs– Health protection programs
» Pay for time-not-worked– Holidays– Vacation– Sick leave– Personal leave– Jury duty– Funeral leave– Military leave– Cleanup, preparation, travel time
© Prentice-Hall, Inc., 2001
Table 1-2
Elements of Fringe Compensation (3 of 3)
Discretionary Benefits (cont.)» Services
– Employee assistance programs (EAPs)– Family assistance programs– Tuition reimbursement– Transportation services– Outplacement assistance– Wellness programs
© Prentice-Hall, Inc., 2001
Figure 1-2
Relationship Between Strategic and Tactical Decisions
• Competitive strategy• Human resource strategy• Compensation strategy
StrategicStrategicDecisionsDecisions
• Recruitment• Selection• Performance appraisal
• Compensation• Training
• Seniority pay• Merit pay• Incentive pay• Pay-for-knowledge• Discretionary benefits options
• Skill-based pay• Broadbanding• Two-tier pay
structures
GeneralGeneralTacticalTacticalHRHRDecisionsDecisions
SpecificSpecificTacticalTacticalHRHRDecisionsDecisions(Comp.(Comp.Examples)Examples)
General
Specific
© Prentice-Hall, Inc., 2001
Table 1-4
Laws That Influence Compensation (1 of 3)
Income Continuity, Safety, and Work Hours» Minimum wage laws—Fair Labor Standards Act of 1938
– Minimum wage– Overtime provisions
Portal-to-Portal Act of 1947 Equal Pay Act of 1963
– Child labor provisions
» Work Hours and Safety Standards Act of 1962» McNamara-O’Hara Service Contract Act of 1965
© Prentice-Hall, Inc., 2001
Table 1-4
Laws That Influence Compensation (2 of 3)
Pay Discrimination» Equal Pay Act of 1963» Civil Rights Act of 1964, Title VII» Bennett Amendment (1694)» Executive Order 11246 (1965)» Age Discrimination in Employment Act of 1967
(amended in 1978, 1986 1990)» Executive Order 11141 (1964)» Civil Rights Act of 1991
© Prentice-Hall, Inc., 2001
Table 1-4
Laws That Influence Compensation (3 of 3)
Accommodating Disabilities and Family Needs» Pregnancy Discrimination Act of 1978» Americans with Disabilities Act of 1990» Family and Medical Leave Act of 1993
Prevailing Wage Laws» Davis-Bacon Act of 1931» Walsh-Healey Public Contracts Act of 1936