chapter 13 rewards and compensation copyright © 1999 john wiley & sons canada, ltd. all rights...

Chapter 13Chapter 13

Rewards and Compensation

Copyright © 1999 John Wiley & Sons Canada, Ltd. All rights reserved.

HUMAN RESOURCES MANAGEMENTTempler • Cattaneo • De Cenzo • RobbinsTempler • Cattaneo • De Cenzo • Robbins

John Wiley & Sons Canada, Ltd

Rewards and Rewards and the Link to Motivationthe Link to Motivation



Types of Types of Organizational IncentivesOrganizational Incentives

• Intrinsic vs. extrinsic

• Financial vs. non-financial

• Performance-based vs. membership-based



Structure of RewardsStructure of Rewards



Compensation ManagementCompensation Management

• Process of managing compensation program to attract, motivate, and retain talented employees

• Job evaluationJob evaluation determines relative value of jobs in organization



Government Influence Government Influence on Compensationon Compensation

• Overtime pay

• Minimum wage

• Equal pay legislation



Job Evaluation Job Evaluation and the Pay Structureand the Pay Structure

Sample job evaluation criteria:

• Mental requirements

• Level of supervision

• Complexity

• Physical demands



Methods of Job EvaluationMethods of Job Evaluation

• Ranking method

• Classification method

• Factor comparison method

• Point method



Excerpts from a Point MethodExcerpts from a Point Method



Establishing a Pay StructureEstablishing a Pay Structure

• Wage and salary surveys

• Wage curves

• Wage structure



A Wage CurveA Wage Curve



A Wage StructureA Wage Structure



Incentive Compensation Plans: Incentive Compensation Plans: Individual IncentivesIndividual Incentives

• Merit pay

• Piecework plans

• Time-saving bonuses

• Commissions



• Gainsharing

• Scanlon Plan

• IMPROSHARE

Incentive Compensation Plans: Incentive Compensation Plans: Group IncentivesGroup Incentives



Competency-Based CompensationCompetency-Based Compensation

• Individuals are rewarded for skills, knowledge and behaviours

• Broad-banding:Broad-banding: ties pay to competencies and contribution to the organization



Team-Based CompensationTeam-Based Compensation

• Encourage work teams to exceed established goals

• Success depends on clarity of purpose and goals, availability of resources, effective communication and trust



Executive Compensation ProgramsExecutive Compensation Programs

• Salaries

• Supplemental financial compensation (bonuses, stock options)

• Supplemental non-financial compensation (perquisites)



International CompensationInternational Compensation

• Base pay

• Differentials

• Incentives

• Assistance programs

chapter 13 rewards and compensation copyright © 1999 john wiley & sons canada, ltd. all rights...

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