1. Managing Human Resources
Part 2

2. Learning Goals Describe compensation and benefit plans
Recognize the goals of performance management

3. Compensation
Compensation is the amount of money paid to an employee for work performed
Must be attractive enough to ensure position being filled
Salary and wages are direct payment of money to an employee for work performed
Benefits is compensation in forms other than direct payment
Ex: Insurance, vacations, health and fitness programs

4. Compensation Methods
Time wage: pays the employee a specific amount of money for each hour worked
Straight salary: pays a specific amount of money
Simple systems, based on time not amount or quality of work done
Incentive systems connect the amount of compensation to the quality or quantity of an employee’s performance.

5. Incentive Systems
Commission: Employee is paid percentage of sales/objectives.
Piece rate: an employee receives a specific amount for each unit of work produced
Base plus incentive: combines a wage or salary with an additional amount based on the employee’s performance.
Profit sharing: regular compensation plus a share of the profits earned by a company.

6. Employee Benefits Federal laws require: Full Time Overtime pay
Social Security
Medicare
Contributions to funds for injured employees and for unemployed workers
Full Time
Insurance plans

7. Employee Benefits cont.
Other benefits offered:
Retirement programs
Employee savings programs
Personal or sick days off
Flexible work schedules
Cafeteria plan allocates a certain amount of money to each employee that can be spent on benefits. (HSA, FSA)

8. Employee Evaluation Managers complete evaluation forms
Some companies will ask co-workers to provide feedback that is considered in the evaluation process
Some companies ask employees to complete a self- evaluation.
After the evaluation is completed than a conference is scheduled to review and discuss performance.

9. Promotions, Transfers, and Terminations
Promotion: advancement of an employee to a position with greater responsibility
Transfer: assignment of an employee to another job in the company with a similar level of responsibility.
New challenge or a better match of skills
Termination: ends the relationship with the employee and the company
Discharge or a layoff

10. Great places to work Team #1 – Gorilla Glue Team #2 – Medpace
Team #3 – Alliance Data
Team #4– Fidelity Investments
Team #5 – gyro
Team #6 – Total Quality Logistics