Compensation - 10753 Words

I NSTRUCTOR’S MANUAL Designing A Pay Structure CASe STUDy AND INTegRATeD APPLICATION exeRCISeS Designing A Pay Structure By Lisa A. Burke, Ph.D., SPHR Instructor’s Manual TOTAL REWARDS  ©2008 SHRM Lisa Burke, Ph.D., SPHR 1 I NSTRUCTOR’S MANUAL Designing A Pay Structure 2  ©2008 SHRM Lisa Burke, Ph.D., SPHR CASe STUDy AND INTegRATeD APPLICATION exeRCISeS Designing A Pay Structure Designing a Pay Structure About this CAse Learning Objectives In this case, upper-level undergraduate or master’s level HR students In this case, students will learn to design a pay structure. To do so, they will: will learn how to design a pay structure using a case scenario and integrated application†¦show more content†¦There are three methods of job-based evaluation: the point method (which is the most commonly used); ranking; and classification. Job evaluation helps to ensure that pay is internally aligned and perceived to be fair by employees. Step 3: Pay Policy Identification Pay policy identification is the process of determining whether the organization wants to lead, lag or meet the market in compensation. The pay policy or strategy will likely influence employee attraction and retention. Pay policies can vary across job families (i.e., groups of similar jobs) and job levels if the top management feels that different strategies can be effective in different areas of the organization. Step 4: Pay Survey Analysis Pay survey analysis is the process of analyzing compensation data gathered from other employers in a survey of the relevant labor market. Gathering external pay data (e.g., base pay, bonuses, stock options and benefits) is essential to keep the organization’s compensation externally competitive within its industry. Employee attraction and retention can be improved by maintaining externally aligned pay structures. Step 5: Pay Structure Creation Pay structure creation is the final step, in which the internal structure (Step 2) is merged with the external market pay rates (Step 4) in a simple regression to develop a market pay line. Depending on whether the organization wants to lead, lag or meet the market, the market pay line can be adjusted up orShow MoreRelatedCompensation1425 Words   |  6 PagesINTERNAL EQUITY (ALIGNMENT) AND EXTERNAL EQUITY (COMPETITIVENESS) After reviewing the Wilson Brothers Case Scenario, as Director of Human Resources for the organization, what conclusions can you draw with respect to the status of the company’s compensation strategies that are currently in place? What would you do to begin to address this situation? (3 Marks) Provide Constructive Feedback to at least two other student’s postings. (2 Marks) HINT:-reference both internal equity (alignment) and externalRead MoreCompensation1324 Words   |  6 PagesCompensation Philosophy Paper Name ________ Professor ______ Introduction Compensation is viewed differently, depending on the individual persons perspective (e.g. employee, manager, stockholders, etc.). An employee may view compensation as what is owed to him or her for work performed, while a manager may view pay as an expense. In order for an organization to have an effective compensation strategy, it must consider the various perspectives when creating the organizations compensationRead MoreCompensation1833 Words   |  8 Pagesdoes the opposite of these things. What is a strategic compensation strategy? Simply stated, it is the compensation of employees in ways that enhance motivation and growth, while at the same time aligning their efforts with the objectives, philosophies, and culture of the organization (Bohlander Snell, 2010. Compensation includes all forms of pay and rewards received by employees for the performance of their job. Employees desire compensation systems that they perceive as being fair and commensurateRead MoreCompensation518 9 Words   |  21 PagesExecutive Summary Now day’s compensation strategies are charged with supporting the company’s mission and objectives through the development and implementation of strategies, which ensure that valuable workers feel secured at their work place and rewarded for their accomplishment. A successful company focused compensation strategy including tuition reimbursement, bonus and paid time off. They are valuable programs and creating attraction process for most common compensation programs. These strategiesRead MoreExecutive Compensation And Compensation Management Essay1793 Words   |  8 Pageswithin executive compensation. This is important because executive compensation is such an integral part of a company or organization’s functions. Executives are the ones tasked with making the decisions within an organization, and their pay can sometimes be linked to how well or how not well their decisions pan out. To look at these opinions, research and high quality analyses from various data sources were used. Some of these sources included the in-class textbook, â€Å"Compensation† by George MilkovichRead MoreCeo Compensation944 Words   |  4 PagesThe Debate over CEO Compensation Analyzing Managerial Decisions: The Debate over CEO Compensation 1. Do you think the fact that most American CEOs are paid so much more than rank-and-file employees suggests CEOs are overpaid? Explain. I do not believe that just because American CEOs are paid much more than rank-and-file employees suggest that they are overpaid. Many CEOs whose salaries and compensation packages are discussed in the news are the CEOs from the largest American corporationsRead MoreCompensation and Benefits1695 Words   |  7 Pages | |Compensation and Benefits | |Human Resource Management Coures | | Employee compensation and benefits are critical factors in the new hire acceptance processRead MoreCeo Compensation1988 Words   |  8 Pages| CEO Compensation | | Introduction Recently CEO compensation packages have high rocketed making many people question the validity of their compensation. Many questions have been risen to find out if CEO compensation if excessive. Through this paper we will discuss why we feel CEOs in America are grossly overpaid. We will start off by talking about the ethics on the matter and then the pay-performance connection within organizations. We will also touch on the real wages of employees and howRead MoreExecutive Compensation2864 Words   |  12 PagesDisney fame received $203 million as executive compensation. Although this award was inflated by Eisner s exercise of stock options, many examples of compensation in millions and tens of millions raise questions on how CEOs should be paid. Critics dispute that CEOs are deserving of their pay. CEOs downsize companies or perform badly, yet continue to draw a substantial salary. Unlike low level managers, it seems there is no formula for executive compensation. The disparity be tween the executive pay inRead MoreCompensation Plan1851 Words   |  8 PagesAssignment 2 – Compensation Plan Outline Ginger Renee Wigglesworth Dr. Anthony Jacob Compensation Management December 2, 2012 Evaluation of Coca Cola s Compensation Plan Introduction Coca Cola uses a market-based compensation plan in which employees receive compensation that is comparable to the market rate. The market-based system is used for hourly employees and for entry level managers that receive a salary. The company also uses a merit pay system for increases, with