Chapter 13 Rewards and Compensation Copyright © 1999 John Wiley & Sons Canada, Ltd. All rights reserved.

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Rewards and the Link to Motivation

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Types of Organizational Incentives Intrinsic vs. extrinsic Financial vs. non-financial Performance-based vs. membership- based

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Structure of Rewards

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Compensation Management Process of managing compensation program to attract, motivate, and retain talented employees Job evaluationJob evaluation determines relative value of jobs in organization

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Government Influence on Compensation Overtime pay Minimum wage Equal pay legislation

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Job Evaluation and the Pay Structure Sample job evaluation criteria: Mental requirements Level of supervision Complexity Physical demands

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Methods of Job Evaluation Ranking method Classification method Factor comparison method Point method

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Excerpts from a Point Method

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Establishing a Pay Structure Wage and salary surveys Wage curves Wage structure

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd A Wage Curve

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd A Wage Structure

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Incentive Compensation Plans: Individual Incentives Merit pay Piecework plans Time-saving bonuses Commissions

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Gainsharing Scanlon Plan IMPROSHARE Incentive Compensation Plans: Group Incentives

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Competency-Based Compensation Individuals are rewarded for skills, knowledge and behaviours Broad-banding:Broad-banding: ties pay to competencies and contribution to the organization

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Team-Based Compensation Encourage work teams to exceed established goals Success depends on clarity of purpose and goals, availability of resources, effective communication and trust

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Executive Compensation Programs Salaries Supplemental financial compensation (bonuses, stock options) Supplemental non-financial compensation (perquisites)

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd International Compensation Base pay Differentials Incentives Assistance programs