ch 4 1 to develop and operate a compensation system that promotes fair treatment, an organization...
TRANSCRIPT
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Ch 41
To develop and operate a compensation system that promotes fair treatment, an organization should consider such compensation strategies as:
Relating job worth to differences in job requirements.
Recognizing the worth and value of employee knowledge and skills.
Organizational StructureOrganizational Structure
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Ch 42
Strategic Compensation Strategic Compensation IssuesIssues
Rewarding employee contributions and the results achieved.
Promoting employee continued acquisition and upgrading of knowledge and skills.
Supporting team and work-unit cooperative efforts.
Designing compensation plans that successfully compete within established labor markets.
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Ch 43
Strategic Compensation Strategic Compensation IssuesIssues
Aligning compensation of all employees with objectives and goals of the organization.
Providing a compensation package that enhances current lifestyles and provides long-term protection for employees and their dependants.
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Ch 44
Organizational Characteristics
Purpose To provide a good or service of value to customers
or clients. Division of Labor
The assignment of different tasks to different people acting individually or in groups.
Hierarchy of Authority
Level-by-level arrangement of managers in order of increasing authority.
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Ch 45
Development of an Development of an OrganizationOrganization
Establish a Philosophy
Establishes general guidelines for
decisions and actions to be taken by all members - it describes the values of top management or the leaders of the organization. It provides standards.
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Ch 46
Identify the Mission
Describes in broad or general value-laden terms what the organization wishes to accomplish in the long-term ...the kind of product it tends to provide and how it intends to provide it. It identifies desired results.
Develop ContDevelop Cont..
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Ch 47
Develop Policy
Broad guidelines for directing the actions of employees. It must be sufficiently broad to relate to different actions and behaviors required of the various work groups and members of the organization, and it must support the mission of the organization.
Develop Develop cont.cont.
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Ch 48
Determine Objectives and Goals
Identifies specific output requirements and establishes the levels of performance needed to accomplish the mission.
It is a transition point from strategic to tactical considerations where the organization must determine the most efficient and effective means of accomplishing its mission.
Develop cont.Develop cont.
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Ch 49
Define Work Unit Activities
Identifies the principle activities of the work unit - it further assists in integrating the top-down established organizational objectives and goals with the assignment of each work unit.
Develop contDevelop cont
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Ch 410
Group Tasks into Jobs
*Work unit activities become segregated and assigned to specific individuals.
*These activities become further identified as the tasks, duties, and responsibilities of a job.
*Specific knowledge and skill requirements are identified along with a variety of environmental conditions that make additional demands on the workers.
Develop cont.Develop cont.
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Ch 411
Pay Satisfaction
People make decisions about pay based on comparisons with others.
Job Satisfaction
People want meaningful work, an opportunity for recognition, reward, and advancement.
Satisfaction And Satisfaction And
Individual PerformanceIndividual Performance
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Ch 412
Organizational Satisfaction
People want to be secure in their work, treated fairly, and philosophically aligned with the organization
Satisfaction cont.Satisfaction cont.
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Ch 413
Organizational Organizational HierarchyHierarchy
Board of Directors
Establish policy...identify organizational and strategic missions...select senior management and monitors their performance.
•Chairman of the Board
• Inside and Outside Members
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Ch 414
Senior Management
Responsible for the proper organization and operation of the firm. Responsible for setting organizational objectives, establishing operating polices, and defining operating plans.
President (CEO) (COO)
Executive/Senior Vice Presidents
Organizational Organizational HierarchyHierarchy
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Ch 415
Organizational Organizational HierarchyHierarchy
Operating Managers
Responsible for meeting daily quality, quantity, and timeliness standards in the goods and services produced in their units.
Division Heads (VP’s) (GM’s) Department Heads Plant Managers Professionals and Administrators Intermediate and First Line-Supervisors
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Ch 416
Sales Personnel
Responsible for presenting the output of the organization to potential customers.
* Compensation methods for sales personnel vary from salary only, sales commission only, salary and commission, salary and bonus, and a combination of salary, bonus, and commission.
Organizational Organizational HierarchyHierarchy
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Ch 417
Organizational Organizational HierarchyHierarchy
Sales Personnel Direct customer contact
Customer service
Sales support
Indirect sales
Market analysts
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Ch 418
Organizational Organizational HierarchyHierarchy
Professionals
Their work normally involves the solution of complex technical problems that vary widely and may have a broad range of interpretations.
Normally they hold at minimum an
undergraduate degree and may be required to have a license or certificate to practice.
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Ch 419
Professionals
Engineers
Attorneys
Scientists
Accountants
Organizational Organizational HierarchyHierarchy
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Ch 420
Organizational Organizational HierarchyHierarchy
Operative Employees
Make up approximately 75% of the workforce. These employees perform assignments that range from those given by a few specific and easily understood oral instructions to those requiring knowledge of specific skills and trades.
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Ch 421
Organizational Organizational HierarchyHierarchy
Operative Employees
Paraprofessionals / Technicians
Administrative support
Skilled craft workers
Semi-skilled workers
Unskilled workers
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Ch 422
Employee Groupings And Employee Groupings And ClassificationsClassifications
Line and Staff
White * Blue * Pink collar
Union and nonunion
Exempt and nonexempt
Regular and Temporary
Full-time and Part-time
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Ch 423
Exempt - Nonexempt Exempt - Nonexempt EmployeesEmployees
Under both state and federal (FSLA)
statute employers are required to
compensate all workers who are not
otherwise exempt, overtime pay for all
hours worked in a given work week or
day that exceeds a specified number of
hours...subject to special exceptions and
conditions.
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Ch 424
Exempt - Nonexempt Exempt - Nonexempt EmployeesEmployees
Subject to established standards the law provides exempt status for
EXECUTIVES ADMINISTRATORS
PROFESSIONALS SALES PERSONNEL
FARM WORKERS INTERSTATE TRANS-WORKERS
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Ch 425
Regular and Temporary Employees
Regular Employee
any person hired for a specific job who is expected to work on a continuing basis and meet certain minimum performance and time-on-job requirements.
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Ch 426
Regular and Temporary Employees
Temporary EmployeeAny person hired for a special project, or on an as-needed basis, or for seasonal work, or for any kind of work of a temporary or casual nature.
Part-time employee
Typically any person working on a continuing basis who works less than a full-time employee.
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Ch 427
Pay Relationships
Pay Equity
Are you paid a Fair wage?
Is there pay equity in the workplace among all the members of the workforce?
Pay Ratios
The relationship of executive pay to the pay of lower-level employees in the same organization.