COMM 410 Lecture Notes - Merit Pay, Performance Appraisal, Unintended Consequences
Document Summary
Objectives: identify factors that influence pay rates, understand key steps involved in designing compensation systems, how to recognize employee contributions. Compensation: all forms of financial returns and tangible services and benefits employees receive as a part of employment relationship. Equity considerations: person compares the ratio of their inputs to outcomes with comparison others" ratio. External equity across organizations (e. g. , those holding similar jobs in other firms: think university. Levels: conduct a wage/salary survey how? (p. 250-259, use network, government statistics, review ads, professional association reports, etc. Determine the relative worth of each job ( job evaluation ) Benchmark key positions and compare jobs to one another based on content. Evaluate according to compensable factors such as skill, effort, responsibility, working conditions. Use job evaluation techniques such as ranking method (simplest), grading method, or point method (most widely used) Group similar jobs into pay grades-jobs of approximate equal value. Merit pay: annual pay increases linked to performance appraisals.
