1 course objective l develop an understanding of »concepts »principles »procedures »processes...
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COURSE OBJECTIVECOURSE OBJECTIVE
DEVELOP AN UNDERSTANDING OF» CONCEPTS» PRINCIPLES» PROCEDURES» PROCESSES» PROGRAMS
AS THEY RELATE TO THE DESIGN AND ADMINISTRATION OF AN EFFECTIVE
COMPENSATION SYSTEM
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COURSE OVERVIEWCOURSE OVERVIEW
The Text Assignment for this Course is:
"COMPENSATION MANAGEMENT" 7th edition
BY R. HENDERSON
And it will be augmented by an “Exercise Book”
"COMPENSATION MANAGEMENT” 7th edition
By R. HENDERSON
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Principle Areas Of Principle Areas Of StudyStudy
Macro View (Chapter 1 - 5)
Provides a broad view of
compensation management and
identifies some of the major factors
that influence compensation
opportunities.
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Principle Areas Of Principle Areas Of StudyStudy
Micro View (Chapter 6 - 12)
Contains the "nuts and bolts" or detailed
analysis of compensation in
organizations and deals with how job
requirements are identified, defined,
and valued.
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Principle Areas Of Principle Areas Of StudyStudy
Micro - Macro View (Chapters 13 - 17)
Combines the micro - macro analysis by
explaining how a base pay program is
expanded into a total compensation
system that includes various short and
long-term incentives.
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Seven Classes Of Seven Classes Of Society In The USSociety In The US
CLASS ANNUAL INCOME $ (000) % POPULATION
UPPER
RICH > $1,000 < 0.5 OF 1 WEALTHY 250, TO 1,000 < 2.0
MIDDLE
UPPER 85 TO 250 6MIDDLE 45 TO 85 25LOWER 25 TO 45 37
LOWER
WK POOR 15 TO 25 17POVERTY TO 15 13
* ANNUAL INCOME IS FOR A FAMILY OF FOUR
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Work Force Work Force DemographicsDemographics
(JAN 1996)
Population Of The US 262.8
Non-institutionalized - 16 Yrs And Up 198.6
Civilian Employment 132.3
Unemployed Persons 7.4
Labor Force In Non-ag Industries 121.5
Full-time Employees 102.1
Part-time Employees 22.9
Employed Husbands 42.0
Employed Wife 32.0
Union Members 16.4
Employed Mgrs And Professionals 35.6
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Reward SystemReward System
Focuses worker attention on the specific behaviors the organization considers necessary to achieve it desired objectives and goals.
Includes anything that an employee may value and desire and that the employer is able and willing to offer in exchange for employee contributions.
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Reward System Reward System ComponentsComponents
Compensation System» Monetary Claims» In-Kind Claims
Non-Compensation System» All Other Rewards
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Compensation System Compensation System ComponentsComponents
Monetary Claims
Wages and salaries paid in the form of money, or in a form that is quickly and easily transferable to money at the discretion of the employee.
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Compensation System Compensation System ComponentsComponents
In-Kind Claims
Goods and services made available and paid for either totally or in part by the employer. The value of any in-kind payment depends directly on the employee's perception of its worth.
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The Total The Total Compensation PackageCompensation Package
Pay For Work Performed
» Base Pay
» Premiums
» Short Term Bonuses
Pay For Time Not Worked
» Vacations
» Holidays
» Funeral Leave
» Jury Duty
An Eight Dimensional Classification Scheme
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The Total The Total Compensation PackageCompensation Package
Loss-of-job Income Continuance
» Unemployment Compensation
» Severance Pay
» Supplemental Unemployment
Disability Income Continuation
» Social Security
» Workers Compensation
» Sick Leave
» Disability Pay Plans
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The Total The Total Compensation PackageCompensation Package
Deferred Income
» Social Security
» Pension Plans
» Savings Plans
» 401-k Plans
» Supplemental Retirement Income
Spouse (Family) Income Continuation» Social Security
» Life Insurance
» Pension Plans
» Workers Compensation
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The Total The Total Compensation PackageCompensation Package
Health, Accident, And Liability Protection
» Medical Insurance
» Dental Insurance
» Workers Compensation
Income Equivalent Payments (Perks)» Company Car
» Subsidized Food Service
» Child Care Services
» Legal Services
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Non-Compensation Non-Compensation System DimensionsSystem Dimensions
Enhances dignity and satisfaction from work performed.
Enhances physiological health, intellectual growth, and emotional maturity.
Promotes constructive social relationships with co-workers.
Designs jobs that require adequate attention and effort.
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Non-Compensation Non-Compensation System DimensionsSystem Dimensions
Allocates sufficient resources to perform work assignments.
Grants sufficient control over the job to meet personal demands.
Offers supportive leadership and management.