dessler 12ce ppt ch11
DESCRIPTION
Chapter 11 PDFTRANSCRIPT
![Page 1: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/1.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-1
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Dessler, Chhinzer, ColeHuman Resources
Management in CanadaCanadian Twelfth Edition
Chapter 11: Strategic Pay Plans
![Page 2: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/2.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-2
Learning Outcomes
• EXPLAIN the strategic importance of total rewards.
• EXPLAIN in detail each of the three stages in establishing pay rates.
•DISCUSS competency-based pay.
![Page 3: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/3.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-3
Learning Outcomes
•DESCRIBE the five basic elements of compensation for managers.
•DEFINE pay equity and EXPLAIN its importance today.
![Page 4: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/4.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-4
Strategic Importance of Total Rewards
• monetary (extrinsic)• compensation: cash payments and benefits
• non-monetary (intrinsic)• personal growth and interpersonal rewards
• total awards approach• rewards are part of integrated whole• aligns rewards with business strategies
![Page 5: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/5.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-5
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved
Employment Rewards
![Page 6: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/6.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-6
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved
Total Rewards
![Page 7: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/7.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-7
Five Components of Total Rewards
1. Compensation
2. Benefits
3. Work-life programs
4. Performance and recognition
5. Development and career opportunities
![Page 8: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/8.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-8
Basic Considerations in Determining Pay Rates
• legal considerations in compensation• Employment/Labour Standards Act • Pay Equity Acts• Human Rights Acts• Canada/Quebec Pension Plan• other legislation (worker’s comp., EI)
• union influences
• compensation policies
• equity and its impact on pay rates
![Page 9: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/9.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-9
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved
Establishing Pay Rates
Stage 3: Combine job evaluation and salary survey to determine pay
Stage 1: Job evaluation
Stage 2: Conduct wage/salary survey
![Page 10: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/10.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-10
Stage 1: Job Evaluation
A systematic comparison to determine relative worth of jobs within a firm.
• Benchmark job• critical to operations or commonly found in other
organizations
• Compensable factors• fundamental, compensable element of a job
![Page 11: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/11.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-11
Job Evaluation Methods
• Classification/grading method• categorizes jobs into groups• grade/group description: outlines level of
compensable factors required by each job
• Point method• identify compensable factors• determine the degree to which each factor is present
in each job
![Page 12: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/12.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-12
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved
Grade/Group Description Sample
![Page 13: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/13.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-13
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved
Point Method Steps
Step 3: Assign points for each degree of each sub-factor
Step 1: Preliminary steps
Step 2: Determine factor weights and degrees
Step 4: Evaluate the jobs
![Page 14: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/14.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-14
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved
Sub-Factor Sample
![Page 15: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/15.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-15
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved
Point Method Job Evaluation Plan Sample
![Page 16: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/16.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-16
Stage 2: Conduct a Wage/Salary Survey
• aimed at determining prevailing wage rates• determine rates for benchmark jobs• determine market rates for jobs• collect data on benefits, recognition programs, etc.
• avoid upward bias
• informal surveys good for easily recognized jobs
• formal surveys are most comprehensive
![Page 17: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/17.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-17
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved
Earnings Data Sample
![Page 18: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/18.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-18
Stage 3: Combine Job Evaluation and Salary Survey Information
Wage curve
• a graphic description of the relationship between the value of the job and the average wage paid for this job
Pay ranges
• a series of steps or levels within a pay grade, usually based on years of service
![Page 19: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/19.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-19
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved
Wage Curve
![Page 20: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/20.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-20
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved
Pay Ranges Sample
![Page 21: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/21.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-21
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved
Pay Ranges Sample
![Page 22: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/22.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-22
Broadbanding
Reducing the number of salary grades and ranges into just a few wide levels or “bands”, each of which then contains a relatively wide range of jobs and salary levels.
advantage
• greater flexibility in employee compensation
![Page 23: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/23.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-23
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved
Broadbanding
![Page 24: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/24.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-24
Pay for Knowledge
• competency-based pay (managers, professionals)
• skill-based pay (manufacturing employees)
• pay-for-knowledge program should include:• competencies/skills directly important to job
performance• new competencies that replace competencies that
are no longer important• on-the-job training, not “in the classroom.”
![Page 25: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/25.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-25
Compensating Executives and Managers
Five elements:1. Salary
2. Benefits
3. Short-term incentives
4. Long-term incentives
5. Perquisites
![Page 26: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/26.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-26
Compensating Professional Employees
• engineers, scientists, accountants, lawyers, etc.
• compensable factors not easily measured: creativity, problem solving
• difficult to measure economic impact to organization
• market pricing approach commonly used
![Page 27: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/27.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-27
Pay Equity
• wage gap has narrowed but remains at 30%
• gap attributed to systemic discrimination
• aim is to provide equal pay to male and female-dominated job classes of equal value
• must ensure no gender bias in job evaluation
• long-term solution is to eliminate male and female- dominated jobs
![Page 28: Dessler 12Ce PPT Ch11](https://reader033.vdocument.in/reader033/viewer/2022061515/563db950550346aa9a9c2692/html5/thumbnails/28.jpg)
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved.
Strategic Pay Plans | 11-28
Copyri
gh
t ©
201
4 P
ears
on
Canada Inc.
All
righ
ts r
ese
rved
Male-Female Wage Gap