Compensation Methods and Policies.pptVIP免费

McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.11-1McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.11-2Compensation:MethodsCompensation:MethodsandPoliciesandPoliciesCompensation:MethodsCompensation:MethodsandPoliciesandPolicieschapterchapter11McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.11-3ACompensationsystemshouldbe:(*focusofthischapter)AdequateEquitableBalanced*Cost-effective*Secure*Incentive-providingAcceptabletotheemployee*McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.11-4Totheindividualemployee,themostimportantcompensationdecisionishowmuchheorshewillearn.McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.11-5DeterminationofIndividualPayDeterminationofIndividualPayThreequestionsneedtobeaddressed:1.Howshouldoneemployeebepaidrelativetoanotherwhentheybothholdthesamejobintheorganization?2.Shouldwepayallemployeesdoingthesameworkatthesamelevelthesame?3.Ifnot,onwhatbasisshouldwemakethedistinction?McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.11-6Paydifferentialsarebasedon:Paydifferentialsarebasedon:1.Individualdifferencesinexperience,skills,andperformance2.Expectationsthatseniority,higherperformance(orboth)deservehigherpayMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.11-7ReasonsforchoosingtopayemployeesatReasonsforchoosingtopayemployeesatdifferentratesforthesamejob:differentratesforthesamejob:(1of3)(1of3)PaydifferentialsallowfirmstorecognizethatdifferentemployeesperformingthesamejobmakesubstantiallydifferentcontributionstomeetingorganizationalgoalsDifferentialsallowemployerstocommunicateachangedemphasisonimportantjobroles,skills,knowledge,etc.McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.11-8ReasonsforchoosingtopayemployeesatReasonsforchoosingtopayemployeesatdifferentratesforthesamejob:differentratesforthesamejob:(2of3)(2of3)Differentialsprovideorganizationswithanimportanttoolforemphasizingnormsofenterprisewithouthavingemployeeschangejobs(i.e.,promotion)PaydifferentialsallowfirmstorecognizemarketchangesbetweenjobsinthesamegradewithoutrequiringamajoroverhaulofthewholecompensationsystemMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.11-9ReasonsforchoosingtopayemployeesatReasonsforchoosingtopayemployeesatdifferentratesforthesamejob:differentratesforthesamejob:(3of3)(3of3)Withoutdifferentials,thepaysystemviolatestheinternalequitynormsofmostemployees,reducingsatisfactionwithpay,andmakingattractionandretentionofemployeesmoredifficultMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.11-10MethodsofPaymentMethodsofPaymentFlatRatesPaymentforTimeWorkedVariablePay:IncentiveCompensationMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.11-11PaymentforTimeWorkedPaymentforTimeWorkedGeneral,across-the-boardincreaseforallemployeesMeritincreasespaidtosomeemployeesbasedonsomeindicatorofjobperformanceCost-of-livingadjustment(COLA)basedontheconsumerpriceindex(CPI)SeniorityMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.11-12VariablePayVariablePayPercentageofanemployee’spaycheckisputatriskIfbusinessgoalsarenotmet,thepayratewillnotriseabovethelowerbasesalaryAnnualraisesarenotguaranteedHelpsmanagelaborcosts...