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BU121 week 11.docx

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Laura Allan

BU121 March 26 and 28 2013 Determining Compensation - Objectives o Attract, retain, and motivate (want to gain employee commitment)  Comparative to competitors, should be attractive  Employees should feel that they’re being paid according to their value o External and internal equity, and incentives  External Equity- Must be comparable or competitive against other firms (you’re competing against these firms for resources)  Internal Equity- Once someone starts working for you, they’ll know what the different jobs get paid within the company; must have equity inside the company from job to job; how do we compare different jobs? Job evaluation  Incentives go inside the compensation package that motivate people - Internal equity - Job Evaluation (evaluates the job to determine pay; NOT the person doing the job) o Develop rating system o Use job analysis to rate jobs o Assign pay based on relative value - “Price the Pay Structure”  If two different jobs have a similar value to the company, they should be paid similarly - “Point Method” – commonly used, but is expensive and complicated o Workers see this method as fair; more likely to stay there o Universal factors: 4 criteria used for every job  Skill, Effort, Responsibility, Job Conditions o Sub-factors – Degrees – Point values – Pay grades  Specific to your company  Degrees: varying amounts of the factor; what the minimal or highest amount of the factor would look like  Put a point value on each- must involve employees so they see it as fair  Pay grades- group jobs into categories based on points (under this range of point we will pay them this range); range of points and pay gives flexibility for different people and different circumstances 1 BU121 March 26 and 28 2013th - Universal factors in green: Skill, Effort, Responsibility, Job Conditions - Sub-factors include: knowledge, experience, initiative and ingenuity - Define the degrees and point values - Range of scores and different pay grades (rankings of pay) - Take out the job analysis for each job; what does this job need (circled on red) o Add up all the points and it will fall into one of the pay ranges - The trend line can be used to compare jobs - Some jobs may lie outside the trend line, their jobs will be valued the same as other jobs but they won’t receive as much pay; if they’re below the trend line, you’ll have to raise the pay 2 BU121 March 26 and 28 2013 - If they’re above the trend line you can’t lower the pay but you can freeze it (so the other jobs’ pay will eventually catch up) - Totally different jobs that have the same value to the company must get paid in the same range Pay Equity Legislation - NOT “Equal Pay for Equal Work” – this legislation occurred when women entered the workforce - Pay equity legislation prohibits paying different wages to employees who work for the same firm in jobs that are different but of comparable worth to company o Jobs of equal value paid the same regardless of gender o Attempts to end “systemic wage discrimination” o And eliminate portion of wage gap that can’t be explained by differences in education, labour market experience, or seniority o Meant to eliminate the gender bias - Federal Government, Ontario & Quebec – both public and private sector o Required to develop and implement plans BUT complaint based system o In federal law for over 30 years (’77) but wage gap still exists Labour Relations: Negotiating Structure of the Labour Movement - In between the Union and Management is the Government - Ontario labour relations act – provincial responsibility - OLRB- Ontario labour relations board body that implements this legislation - CLC- Canada labour code o Workers cross provincial borders for work (example: pilots, trucking, etc.) you would use the federal code Union Structure 3 BU121 March 26 and 28 2013 - Parent is the company; head office who runs things (example steel workers and autoworkers) - Each parent union represents workers in different regions - Local unions belong to the parent; bargaining and grievances take place at the local level but parent can step in to help - Parents set policies; help support strikes by supplementing the strike fund - Parents belong to labour congress that makes sure laws are in favour of unions in general; mediate disputes between parent unions; main role is lobbying for unions Power Struggle Union: - Control labour resources; represent employees - Threat of a strike o Timing - Ability to carry it out o Strike fund (dues that are paid go into this fund so workers can still get paid when they’re on strike; size of the fund is important) Management - Ability to withstand a strike o Stockpiling – stockpile inventories so during a strike you’ll still have products to sell o Subcontracting – outsource o Skeleton staff – less staff o Strikebreakers – hire people to fill the place of strikers 4 BU121 March 26 and 28 2013th  Scabs – union places this word on workers who want to end the strike and go back to work (people who cross the line and go back to work; union doesn’t like these people)  Replacement workers o Strike insurance – only when the other options aren’t available; covers losses; very expensive - Industry-wide lockout (lockout means that workers aren’t allowed to work); occur in instances when workers on strike get jobs with different firms - Employer association bargaining Types of Unions Craft/Trade – skilled workers; united by their skillset - Try to get everyone with that skill into that union- monopoly around that skill - Control access into the skill/trade to create scarcity - Ex when you’re learning a skill and want to get certified you have to have an apprenticeship - Apprenticeships are through the union – create scarcity - Smaller supply puts them in a better position relative to demand; gives them a great deal of power - Electricians, plumbers, etc. usually work in construction - Their jobs are sequential (ex. Foundation then framing then electrical, etc.) - If one of them leaves, the whole thing shuts down - Greater power during a strike b/c they’re in high demand, there isn’t a lot of them, and their skills can’t be found anywhere else (you can’t replace them if they leave) 5 BU121 March 26 and 28 2013 th - Their tactic is just to leave and find a job elsewhere (because they are in high demand) - Information picket – just tell them you’re on strike - They have the balance of power - Management cannot stockpile inventory (buildings), can’t easily replace the skilled workers - The only thing managers have i
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