MHR 311 Lecture Notes - Lecture 12: Fair Labor Standards Act, Merit Pay, Expectancy Theory

• School: Cal Poly Pomona
• Department: Management and Human Resources
• Course: MHR 311
• Professor: Xuguang Guo

Document Summary

Pa(cid:455) is a state(cid:373)e(cid:374)t of a(cid:374) e(cid:373)plo(cid:455)ee"s (cid:449)o(cid:396)th (cid:271)(cid:455) a(cid:374) e(cid:373)plo(cid:455)e(cid:396) Pay is a perception of worth by an employee. Direct compensation: includes wages/salaries, commissions, bonuses, and gainsharing. Indirect compensation: includes time not worked (holidays, vacations, breaks), Links the compensation of employees to the mission, objectives, philosophies, and culture of the organization. Serves to mesh the monetary payments made to employees with specific functions of the hr program in establishing a pay-for-performance standard. The standard by which managers tie compensation to employee effort and performance. Includes merit-based pay, bonuses, salary commissions, job and pay banding. Pay equity (also distributive fairness: a(cid:374) e(cid:373)ployee"s pe(cid:396)ceptio(cid:374) that co(cid:373)pe(cid:374)satio(cid:374) (cid:396)eceived is e(cid:395)ual to the value of the work performed. Expectancy theory: a theory of motivation that holds that employees should exert greater work effort if they have reason to expect that it will result in a reward that they value. Pay secrecy: an organizational policy prohibiting employees from revealing their compensation information to anyone.