SCLT 2362 Lecture Notes - Lecture 9: Scatter Plot, Civil Rights Act Of 1964, Fair Labor Standards Act

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Direct compensation: employee wages, bonuses
Indirect compensation: benefits given by employers
Nonfinancial compensation: employee recognition programs
3 components
What Is Compensation?
Tool to secure competitive advantage
Gain employee acceptance
Pay level recruited at
Intervals pay raises are granted
Pay levels facilitate achievement
Formal statements of policies
Linking Compensation to Organizational Objectives
A standard by which managers tie compensation to employee effort and performance
Pay equal to contributions
Motivating Employees through Compensation
Distributive fairness: motivation theory that explains how people respond to
situations in which they feel they have received less/more than they deserve
External equity: what others making in different org
Internal equity: compare to peers in different jobs in same org
Individual equity: compare to in org with same job
Pay equity: an employee's perception that compensation received is equal to
the value of the work performed
Pay Equity
Instrumentability
Expectancy Theory and Pay
Accepted practice
Paid less than men
Ledbetter v. Goodyer Tire & Rubber Co.
Pay Secrecy
The Pay-for-Performance Standard
Hourly work
Piecework: work paid to # units produced
Nonexempt employees: covered by the overtime provisions of Fair Labor Standards
Act
Managers, supervisors, white collar employees
Exempt employees: not covered by FLSA
The Bases for Compensation
Strategic Compensation
Internal wage relationship among jobs and skill levels
External competition
Policy of rewarding performance
Admin decisions
Set policies reflecting:
Compensation Strategy
Job evaluation: done by org with formal compensation programs
Worth of a Job
Internal Factors
Compensation Design-The Pay Mix
Chapter 9
Monday, March 20, 2017
7:02 PM
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Document Summary

A standard by which managers tie compensation to employee effort and performance. Distributive fairness: motivation theory that explains how people respond to situations in which they feel they have received less/more than they deserve. Pay equity: an employee"s perception that compensation received is equal to the value of the work performed. External equity: what others making in different org. Internal equity: compare to peers in different jobs in same org. Individual equity: compare to in org with same job. Nonexempt employees: covered by the overtime provisions of fair labor standards. Internal wage relationship among jobs and skill levels. Job evaluation: done by org with formal compensation programs. Job"s value based on total value to org. Employees tend to be rewarded just for being present. Unions can prevent employers from lowering rates. Can be obtained from local wage surveys. Provide external pay equity between surveying org and others competing for labor.

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