mgmt 473 ch.11

What are the concepts of total rewards and total compensation? What are the components and considerations behind those concepts?

Total rewards-monetary and nonmonetary rewards provided by companies to attract, motivate, and retain employees.

What are the two compensation philosophies discussed in the book and lecture. What do they involve? **Performance philosophy-(pay for performance philosophy)-

assumes that compensatio decisions reflect performance differences. Pay performance differences (quality, quantity, speed of work) amoung employees.

Advantages-

closely ties organization pay levels to what is actually occuring in the market without being distorted by internal job evaluation. Allows employees to see that the compensation market is truly joint by the market linked.

Factor-comparison method-

combines the ranking and point factor methods. When organization uses this they must do their own key jobs and factors.

Disadvantages-

data might be limited. Critical to undestand the compensation mix that is common in the market. Tying pay levels to market data can lead to wide fluctuation on the basis of market conditions.

Be able to explain the overtime requirements and exceptions. (FOR NONEXEMPT EMPLOYERS) **Donning and doffing time

depending on the job would require you to wear diff. Work clothes so the article might defer from diff. Companies.

Internal equity-

employees are been measure the same based on their knowledge, skills, and abilities. They use at the job,

Market competitive Compensation Lag-the-market-strategy

employer uses a fisrt quartile strategy by paying below market levels for several reasons.

Compensation fairness and equity External equity-

if the employee do not see their reward similar to other companies they might see their experience as higher turnover

Point factor method-

most likely to be used. Compensable factors in a group of similar jobs and assigns weights or points to them.

Be able to explain the overtime requirements and exceptions. (FOR NONEXEMPT EMPLOYERS) **Incentives for nonexempt employees-

must add the amount of direct work related incentives to an employees base pay and then calculate overtime pay as 1 and ½ times the higher rate of pay.

Be able to explain the overtime requirements and exceptions. (FOR NONEXEMPT EMPLOYERS) **Training time

must be counted as time worked by nonexempt employees unless it is voluntary or not directly job related.

Be able to explain the overtime requirements and exceptions. (FOR NONEXEMPT EMPLOYERS) **Travel time

occurs during normal work hrs. For the benefit of the employer. travel/travel work is not considered compensable trable time.

What are the two compensation philosophies discussed in the book and lecture. What do they involve? **Entitlement philosophy-

organization giving automatic increases to their employees every year, they are using the entitlement philosophy. Is more prevalent in unionized settings and public-sector employment.

Competency based pay-

rewards individuals for the capabilities they demonstrate and acquire. Knowledge based pay- employees get more pay as they learn more from the company Skill base-pay- employees get more pay as they obtain skills from the company.

Match the market strategy-

second quartile. This is the one that meets the market. You retain but not really and balance employer cost.

Pay secrecy-

some companies do not allow employees to discuss about their pay wage which in this case is wrong by the NLRA. this creates conflicts between the employees and the employeer.

Ranking method-

symple method that places jobs in order from highest to lowest.

What are the general concepts around compensation design issues? (section 11-4) Motivation theories and or compensation philosophies ***Introduce by Victor Vroom= :Expectancy theory-

the ones that the employee is motivated with a reward, but after the employee finish their contribution. Company says that they dont have the money/reward after all. So next time the employee will not put that much effort after all.

Classification method-

used in the public sector. Description of jobs classes are written and then each job is put into a grade according to the class it best matches.

Market pricing-

uses the market pay data to identify the relative value of jobs based on what other employers pay for similar jobs.

Selecting a quartile-

you select with quartile to choose.

Be able to explain the overtime requirements and exceptions. (FOR NONEXEMPT EMPLOYERS) **Public sector-compensatory time off-

"comp" hours are earned for nonexempt employees in lieu of payment for extra time worked at the rate of one and one half times the number of hours over 40 worked in a week. Private sector- "comp" is prohibited, is ilegal to offer to employees

What are the concepts behind exempt v. non-exempt employees and how do regulations apply differently for each?

(under FLSA) Exempt employees- hold position for which employers are not required to pay (under FLSA) nonexempt employees- must be paid overtime. Regulations- Employers are required to pay overtime for hourly jobs to comply with the FLSA. employers in positions classified as salaried nonexempt are also entitled to overtime pay. FLSA DOES NOT REQUIRE EMPLOYERS TO PAY OVERTIME FOR SALARIED EXEMPT JOBS.

Lead the market strategy:

3rd quartile strategy. Enables a company to attract and retain sufficient workers with the required capabilities and be more selected when hiring.

Introduce by john stacey: Equity theory-

Equity theory- employees judge fairness (equility) in compensation by omparing their inputs and outcomes against the inputs and outcoems of referent others.

Individual vs. team reward

For individual employers measured it differently, for the team reward they used that to top up with the one they just gave to the employees.

What are the minimum wage laws and what are the responsibilities they dictate? (Be sure to review slides for California laws, but don't memorize the minutiae. Instead, learn how and where the differences occur.)

The Fair Labor Standards Act (FLSA)- they are responsible to have every business pay at least the minimum wage or have a lower minimum wage but have a "tipped" make up for the dollars missing. Aka. waiter