ADM 3337 Chapter Notes - Chapter 13: Intellectual Capital, Analytical Skill, Human Capital

• School: University of Ottawa
• Department: Administration
• Course: ADM 3337
• Professor: Katie Curran

Document Summary

Adm3337 chapter 13 compensation budgets and administration. Creating a compensation budget involves trade-offs: occur over short- and long-term incentives, pay increases, and cash compensation compared to benefits. Financial planning requires understanding the potential returns gained from its allocation. During recessions, organizations reduce their workforce to cut labour costs. Adverse effects such as loss of trained employees and low morale translate into lower financial gains. Close attention to process and employee relations during workforce reductions can help finances. Establishing different relationships with different types of employees can create a buffer: core employees: strong and long-term relationship is desired, contingent workers: employment agreements may only cover short and specific time periods. Can achieve flexibility and control labour costs by expanding and contracting this workforce. Hours of work can be used instead of defining employment in terms of numbers: hours over 40/week are more expensive, three factors aren"t independent. Controlling the average cash compensation includes managing average salary levels and variable compensation payments.