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978-1259532726 Chapter 1 Lecture Note
CHAPTER ONE THE PAY MODEL Overview Part One, Introducing the Pay Model and Pay Strategy, contains chapters one and two. This part of the text talks about what “pay” means and how paying them in different ways can influence them […]
978-1259532726 Chapter 1 Solution Manual
VII. Your Turn: The Role of Labor Costs in Retail Electronics Summary of Case The case discusses Circuit City’s decision in 1997, to replace some of its highest-paid employees with lower-paid workers. Some commentators attributed the loss it suffered in […]
978-1259532726 Chapter 10 Lecture Note Part 1
CHAPTER 10 PAY-FOR-PERFORMANCE PLANS Overview This chapter focuses on pay-for-performance plans. There are a wide variety of pay-for-performance plans—incentive plans, variable-pay plans, compensation at risk, earnings at risk, success sharing, etc. Sometimes these names are used interchangeably, but they should […]
978-1259532726 Chapter 10 Lecture Note Part 2
IV. Team Incentive Plans: Types When we move away from the individual incentive systems and start focusing on people working together, we shift to group incentive plans. A standard is established against which worker performance (in this case, team performance) […]
978-1259532726 Chapter 10 Solution Manual
VI. Your Turn: Comparing Airlines Summary of Case Mistakes and heroic good decisions are likely to be attributed to the pilot in most circumstances. Learning Objective Most of the Your Turns in earlier chapters asked students to apply their knowledge […]
978-1259532726 Chapter 11 Lecture Note Part 1
CHAPTER ELEVEN PERFORMANCE APPRAISALS Overview This chapter discusses the difficulties associated with measuring performance, particularly when using subjective procedures. Performance reviews are used for a wide variety of organizational decisions, one of which is to guide the allocation of merit […]
978-1259532726 Chapter 11 Lecture Note Part 2
C. Strategy 2: Select the Right Raters A second way that firms have tried to improve the accuracy of performance ratings is by focusing on who might conduct the ratings and which of these sources is more likely to be […]
978-1259532726 Chapter 11 Solution Manual
VI. Your Turn: Performance Appraisal at American Energy Development Summary of Case John was a Wall Street broker, he believes in tough performance appraisals and an incentive system that richly rewards success stories and quickly discards poor performers. The case […]
978-1259532726 Chapter 12 Lecture Note Part 1
CHAPTER TWELVE THE BENEFIT DETERMINATION PROCESS Overview Part Five of the text discusses the key issues associated with employee benefits. Given the rapid escalation in the cost of employee benefits, organizations are advised to evaluate the effectiveness of their benefit […]
978-1259532726 Chapter 12 Lecture Note Part 2
IV. Components of a Benefit Plan Exhibit 12.5 outlines a model of the factors influencing benefit choice, from both the employer’s and the employee’s perspective. A. Employer Factors As Exhibit 12.5 indicates, a number of factors affect employer preference […]
978-1259532726 Chapter 12 Solution Manual
VI. Your Turn: World Measurement Summary of Case with the cost of employee benefits. While he is ready to offer a competitive wage increase (maximum of 3%), he wants the total compensation package to cost 3% less. Data is provided […]
978-1259532726 Chapter 13 Lecture Note Part 1
CHAPTER THIRTEEN BENEFIT OPTIONS Overview Since the 1940s, employee benefits have been the most volatile area in the compensation field. From 1940 to 1980, dramatic changes came in the form of more and better types of employee benefits. The result […]
978-1259532726 Chapter 13 Lecture Note Part 2
C. Individual Retirement Accounts (IRAs) An individual retirement account (IRA) is a tax-favored retirement savings plan that individuals can establish themselves. Unlike the other pension options, IRAs don’t require an employer to set them up. Even people not in the […]
978-1259532726 Chapter 13 Solution Manual
VIII.Your Turn: Adapting Benefits to a Changing Strategy Summary of Case made a number of major changes. It is reducing the size of its menu to reduce the amount of preparation time. They have introduced a new kiosk where customers […]
978-1259532726 Chapter 14 Lecture Note Part 1
CHAPTER FOURTEEN COMPENSATION OF SPECIAL GROUPS Overview This begins the three chapter Part Six – Extending the System. In the prior chapters, the authors described compensation programs as if they were fairly uniform across all jobs in an organization. However, […]
978-1259532726 Chapter 14 Lecture Note Part 2
E. What’s All the Furor Over Executive Compensation? What Academics Say One explanation for the extreme pay of executives involves social comparisons. oIn this view, executive salaries bear a consistent relative relationship to compensation of lower–level employees. When salaries of […]
978-1259532726 Chapter 14 Solution Manual
III. Your Turn: A Sports Sales Plan Summary of Case become more difficult. The Bisons had a weak team last year, and the projections are that it will be difficult to exceed an average of 14,000, moreover the stadium architecture […]
978-1259532726 Chapter 15 Lecture Note
CHAPTER FIFTEEN UNION ROLE IN WAGE AND SALARY ADMINISTRATION Overview Many experts believe that unions are facing their most critical challenge of the last 50 years. From 1983 to 2014, union membership fell from 20.1 percent to 11.1 percent among […]
978-1259532726 Chapter 15 Solution Manual
III. Your Turn: Predicting a Contract’s Clauses Summary of Case It introduced technologies that reduced the number of workers needed, both in the assembly line operations and in the skilled trades. It introduced a two-tier wage plan in which new […]
978-1259532726 Chapter 16 Lecture Note Part 1
CHAPTER SIXTEEN INTERNATIONAL PAY SYSTEMS Overview Around the world, global competitive forces have changed the way people work and how they get paid. The globalization of businesses, financial markets, trade agreements, and even labor markets is affecting every workplace and […]
978-1259532726 Chapter 16 Lecture Note Part 2
VII. Comparing Costs Comparisons of total compensation among nations can be very misleading. Even if wage rates appear the same, expenses for health care, living costs, and other employer-provided allowances complicate the picture. oFor example, outside the U.S., many nations […]
978-1259532726 Chapter 16 Lecture Note Part 3
XI. Expatriate Pay Multinationals operate, by definition, in many nations and segment their workforces into subgroups based on home country. Employees temporarily working and living in a foreign country are called expatriates (or “expats”). oExpatriates who are citizens of the […]
978-1259532726 Chapter 16 Solution Manual
XIII.Your Turn: IBM’s Worldwide Business and Employment Strategies and Compensation Summary of Case integrated enterprise’, which he claims IBM now is, fashions its strategy, management and operations to integrate production—and deliver value to clients—worldwide. This has been made possible by […]
978-1259532726 Chapter 17 Lecture Note Part 1
CHAPTER SEVENTEEN GOVERNMENT AND LEGAL ISSUES IN COMPENSATION Overview The last part of the total pay model is management. This means ensuring the right people get the right pay for achieving the right objectives in the right way. While the […]
978-1259532726 Chapter 17 Lecture Note Part 2
III. Living Wage Rather than push for changes in the FLSA, an alternative approach in recent years has been to push for a “living wage” at local levels that provides a minimum wage tailored to living costs in an area. […]
978-1259532726 Chapter 17 Lecture Note Part 3
XI. Pay Discrimination and Dissimilar Jobs In 1981, the Supreme Court, in Gunther v. County of Washington, determined that pay differences for dissimilar jobs may reflect discrimination. oThe Court stated that a Title VII pay case was not bound by […]
978-1259532726 Chapter 17 Solution Manual
XIV. Your Turn: From Barista to Manager Summary of Case a barista as well, at times. A comparison with your friends working in other industries has resulted in a sense of inequity, since they get paid one and a half […]
978-1259532726 Chapter 18 Lecture Note Part 1
CHAPTER EIGHTEEN MANAGEMENT: MAKING IT WORK Overview The financial conditions of an organization, the competitive pressures it faces, and budgeting are integral to managing compensation. The cost implications such as updating the pay structure, increasing merit pay, or instituting gain […]
978-1259532726 Chapter 18 Lecture Note Part 2
E. Budget Controls: Top Down Top-down budgeting begins with an estimate from top management of the pay increase budget for the entire organization. Once the total budget is determined, it is then allocated to each manager, who plans how to […]
978-1259532726 Chapter 18 Lecture Note Part 3
IV. Managing Pay to Support Strategy and Change Alignment issues must be managed successfully to drive future revenues. Compensation often plays a singular role when organizations restructure. Strategic changes in the business strategy means the compensation strategy must be realigned […]
978-1259532726 Chapter 18 Solution Manual
VII. Your Turn: Communication by Copier Summary of Case The case is concerned with an employee discovering that a noted screw-up was making Learning Objective Analyze the importance of communicating the pay structure to employees within an organization and understanding […]
978-1259532726 Chapter 2 Lecture Note
CHAPTER TWO STRATEGY: THE TOTALITY OF DECISIONS Overview This chapter examines the key aspects of decisions taken during the creation of compensation strategy. The key premise is that the way employees are compensated can be a source of sustainable competitive […]
978-1259532726 Chapter 2 Solution Manual
XI. Your Turn: Merrill Lynch Summary of Case The case profiles the financial crisis at Merrill Lynch at the end of the last decade, which was acquired by Bank of America for $50 billion. B of A received government assistance […]
978-1259532726 Chapter 3 Lecture Note Part 1
CHAPTER THREE DEFINING INTERNAL ALIGNMENT Overview Chapter Three is the first of four chapters in Part Two, Internal Alignment: Determining the Structure. This chapter discusses internal alignment and how it affects employees, managers, and employers. Internal alignment refers to the […]
978-1259532726 Chapter 3 Lecture Note Part 2
V. Strategic Choices in Designing Internal Structures Aligned pay structures support the way the work gets done, fit the organization’s business strategy, and are fair to employees. Greater internal alignment—fit—is more likely to lead to success. Misaligned structures become obstacles. […]
978-1259532726 Chapter 3 Solution Manual
VIII. Your Turn: So You Want To Lead The Orchestra! Summary of Case Students are provided an actual salary structure for a regional orchestra and are expected to Learning Objective Explain how various concepts that affect internal alignment are applied […]
978-1259532726 Chapter 4 Lecture Note Part 1
CHAPTER FOUR JOB ANALYSIS Overview This chapter describes a key component of the pay model—job analysis. Job analysis is a systematic method that focuses on describing the differences and similarities among jobs within an organization. An equitable internal pay structure […]
978-1259532726 Chapter 4 Solution Manual
X. Your Turn: The Customer-Service Agent Summary of Case Students are provided with information on a day in the work life of Bill Ryan, a customer-service Learning Objective Demonstrate how to apply some of the key techniques of job analysis […]
978-1259532726 Chapter 5 Lecture Note Part 1
CHAPTER FIVE JOB-BASED STRUCTURES AND JOB EVALUATION Overview This chapter and the next one discuss techniques used to value work. All these techniques are used to design pay structures that will influence employee behavior and help the organization sustain its […]
978-1259532726 Chapter 5 Lecture Note Part 2
C. Point Method Point methods have three common characteristics: 1. Compensable factors 2. Factor degrees numerically scaled 3. Weights reflect the relative importance of each factor Each job’s relative value is determined by the total points assigned to it. Point […]
978-1259532726 Chapter 5 Solution Manual
VIII.Your Turn: Job Evaluation at Whole Foods Summary of Case Students are expected to design a job structure using information available through job analysis Learning Objective Understand the importance of working productively within a team, analyze the processes involved with […]
978-1259532726 Chapter 6 Lecture Note Part 1
CHAPTER SIX PERSON-BASED STRUCTURES Overview This is the final chapter of Part Two: Internal Alignment: Determining the Structure. This section of the book examined pay structures within an organization. The premise underlying internal alignment is that internal pay structures need […]
978-1259532726 Chapter 6 Lecture Note Part 2
IV. “How-To”: Competency Analysis The bottom part of Exhibit 6.6 shows the basic decisions in creating a competency based structure. The first decision, and by the far the most important, is to clarify the objective of the plan. A. Objective […]
978-1259532726 Chapter 6 Solution Manual
IX. Your Turn: Climb the Legal Ladder Summary of Case Students are provided with an example of a typical pay schedule for law school graduates, the current economic downturn. The current scenario in the legal profession is that many elite […]
978-1259532726 Chapter 7 Lecture Note Part 1
CHAPTER SEVEN DEFINING COMPETITIVENESS Overview This begins Part Three – External Competitiveness: Determining the Pay Level, which contains two chapters. In Part Two, the focus was on the internal structure or relative value organizations and markets assigned to different jobs. […]
978-1259532726 Chapter 7 Lecture Note Part 2
VI. Product Market Factors and Ability to Pay The supply and demand for labor are major determinants of an employer’s pay level. However, any organization must, over time, generate enough revenue to cover expenses, including compensation. It follows that […]
978-1259532726 Chapter 7 Solution Manual
XI. Your Turn: Two-Tiers Wages Summary of Case are also some automobile plants that have employees of an outside supplier as their workers, to whom they pay even lower wages, which has in turn helped them reduce their cost per […]
978-1259532726 Chapter 8 Lecture Note Part 1
CHAPTER EIGHT DESIGNING PAY LEVELS, MIX, AND PAY STRUCTURES Overview This chapter focuses on the major decisions and techniques involved in determining an organization’s external competitiveness policy—establishing pay levels and pay mix forms and designing pay structures. Most organizations survey […]
978-1259532726 Chapter 8 Solution Manual
XIV. Still Your Turn: Word-of-Mouse: Dot-Com Comparisons Summary of Case Compensation data for numerous jobs are more available due to the existence of various alignment and external competitiveness to actual pay rates for specific jobs. Learning Objective Understand and apply […]
978-1259532726 Chapter 9 Lecture Note Part 1
CHAPTER NINE PAY-FOR-PERFORMANCE: THE EVIDENCE Overview This chapter is the first of three chapters comprising Part Four – Employee Contributions: Determining Individual Pay. The primary focus of Part Three was on determining the worth of jobs, independent of who performed […]
978-1259532726 Chapter 9 Lecture Note Part 2
IV. Does Compensation Motivate Behavior? Now let’s look at the role of compensation in motivating the four types of behavior outline earlier: the decision to join, to stay, to develop skills, and to perform well. A. Do People Join a […]
978-1259532726 Chapter 9 Solution Manual
VI. Your Turn: Burger Boy Summary of Case Burger Boy is a fast food restaurant. The case explains the scenario at the restaurant on a excess crowd, some of them have volunteered to double up on the absentees’ duties. Learning […]
Chapter 8 The Size Of Pay Differentials Between Grades Should
D. Construct a Market Pay Line Market pay line involves making decisions about which salary survey jobs to include that are judged to closely match internal benchmark jobs, which companies to include, and which measures of pay to use. Definition: […]