Human Resource Management 13th Edition

Topics: Employment, Wage, Minimum wage Pages: 5 (901 words) Published: December 7, 2014
Human Resource Management 13th Edition
Gary Dessler

Chapter 11 – Establishing Strategic Pay Plans

Employee Termination is includes all forms of pay or rewards going to employees and arising from their employment.

2 Main Components Of Employee Termination:
Direct Financial Payments – pay in the form of wages, salaries, incentives, commissions, and bonuses. Indirect Financial Payments – pay in the form of financial benefits like employee-paid insurance and vacations.

There are 4 forms that managers should address The Equity Theory Of Motivation: External Equity – how a job’s pay rate in 1 company compares to the job’s pay rate in other companies. Internal Equity – how fair the job’s pay rate is when compared to other jobs within the same company. Individual Equity – fairness of an individual’s pay as compared with what his or her coworkers are earning for the same or very similar jobs within the company, based on each individual’s performance. Procedural Equity – perceived fairness of the processes and procedures used to make decisions regarding the allocation of pay.

Davis-Bacon Act (1931) is a law that sets wage rates for laborers employed by contractors working for the federal government.

Walsh-Healey Public Contract Act (1936) is a law that requires minimum wage and working conditions for employees working on any government contract amounting to more than $10.000.

Title VII Of The 1964 Civil Rights Act is this act makes it unlawful for employers to discriminate against any individual with respect to hiring, compensation, terms, conditions, or privileges of employment because of race, color, religion, sex, or national origin.

Fair Labor Standards Act (1938) is this act provides for minimum wages, maximum hours, overtime pay, and child labor protection. The law, amended many times, covers most employees.

Equal Pay Act (1963) is an amendment to the Fair Labor Standards Act, designed to require equal pay for women doing the same work as men.

Some Typical Exempt and Non-Exempt Job Titles
Medical Doctors
Accounting Clerks
Engineers (Degree Programs)
Clerical Employees
Lab Technicians
Licensed Practical Nurses
Service Managers
Most Secretaries

Employee Retirement Income Security Act (ERISA) is the law the provides government protection of pensions for all employees with company pensions plans. It also regulates vesting rights (employees who leave before retirement may claim compensation from the pension plain).

Job Evaluation is a systematic comparison done in order to determine the worth of 1 job relative to another.

Compensable Factors is a fundamental, compensable element of a job, such as skills, effort, responsibility, and working conditions.

Benchmark Job is a job that is used to anchor the employer’s pay scale and around which other jobs are arranged in order of relative worth.

Ranking Method is the simplest method of job evaluation that involves ranking each relative to all other jobs, usually based on overall difficulty.

There are several steps in the job ranking method:
Obtain Job Information
Select and Group Jobs
Select Compensable Factors
Rank Jobs
Combine Ratings

Job Classification (Job Grading) is a method for categorizing jobs into groups.

Classes are grouping jobs based on a set of rules for each group or class, such as amount of independent judgment, skill, physical effort, and so forth, required.

Grades are a job classification system like the class system, although grades often contain dissimilar jobs, such as secretaries, mechanics, and firefighters. Grade descriptions are written based on compensable factors listed in classification systems.

Grade Definition is written descriptions of the level of, say; responsibility and knowledge required by jobs in each grade. Similar jobs can then be combined into grades or...
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