1、8-1Chapter 8Determining Pay and Benefits8-2HR PlanningJob AnalysisRecruitmentSelectionWorkplace JusticeUnionsSafety & HealthInternationalCompetenceMotivationWork AttitudesOutputRetentionLegal ComplianceCompany ImageCostLeadershipProductDifferentiationTraining/Develop.Performance App.CompensationProd
2、uctivity Imp.HRM and Competitive Advantage8-3Total CompensationBase pay+add-ons+merit pay+incentives+benefits8-4Linking Compensation Practices to Competitive AdvantageEffectiveCompensationPracticesImproveCostEfficiencyAchieveLegal ComplianceCompetitiveAdvantageImprove RecruitmentAnd MoraleReduce Tur
3、nover8-5Equity Theory PredictionsOutputsInputs OutputsInputsUnder-rewardEquityOver-rewardPerson BPerson A8-6Referent OthersPPP1P2P3P4 P5P6Organization A Organization B=focal personP1, P2, etc. =possible referentsP8-7Employee Responses to Under-Reward Decrease their inputs Attempt to increase their o
4、utcomes Distort their perceptions Attempt to change others Choose a new referent other Escape the situation= most likely responses8-8Employee Responses to Over-Reward As satisfying as equity Somewhat dissatisfying Not nearly as dissatisfying as underpayment!8-9Conditions Necessary for Perceptions of
5、 Pay Fairness Internal consistency External competitiveness Employee contributions8-10Different Perspectives on Pay Fairness8-11Achieving Internal Consistency Job evaluation Assigning jobs to pay grades8-12Job Evaluation vs. Performance AppraisalJob EvaluationPerformance AppraisalFocus on jobrequire
6、mentsFocus on performanceof individual job holder8-13Standards for Conducting Job EvaluationsConsistencyFreedom from biasCorrectabilityRepresentativeness8-14How to Conduct Effective Job Evaluations Train evaluators Provide complete, accurate, & up-to-date job descriptions8-15Point Factor Method Step
7、s Select and define compensable factors. Determine number of degrees for each factor. Define each degree level. Weight compensable factors. Assign point values to degrees.8-16Pay Grades$Points1234Point Grade Min MaxRange $ $100-200 1 15 20201-300 2 18 23301-400 3 21 26401-500 4 24 29 8-17Achieving E
8、xternal Competitiveness Collecting salary survey information Establishing a pay policy Establishing pay rates8-18Three Pay PoliciesPay Policy Attract Retain Motivate ControlCostsLead + + ? ?Match = = ? =Lag - ? ? +Source: adapted from Compensation (5th ed.) by G.T. Milkovich & J.M. Newman(1996): Irw
9、in.8-19Pay Policy LinesMarketRateJob Evaluation PointsMarketPayLeadPolicyLagPolicy8-20Recognizing Employee Contributionsmaximum $minimum $midpoint $Pay GradeHigh PerformersCompetent PerformersNew Employees8-21Job-Based vs. Skill-Based PayJob-BasedPay Pay for tasks and KSAs of a single job Pay for jo
10、b, not person Bureaucracy, routine technology, stable conditions8-22Job-Based vs. Skill-Based PaySkill-BasedPay Pay for skills that can be used for many tasks across multiple jobs Pay for skills, not jobs Flatter structure, decentralized, self-managed work teams, workplace flexibility8-23Implementin
11、g a Skill-Based Pay System Identify needed tasks. Determine needed skills. Develop skill tests/measures. Price each skill. Communicate plan to employees.8-24Skill-Based Pay PlansStrengths Incentive to improve skills Improved employee competence Staffing flexibility Employees see “big picture”Weaknes
12、ses Adds to labor costs May lead to inequity perceptions Not cost effective if skills are not used Problems determining skill differences among employees8-25Legal Constraints on Pay Practices Minimum wage and overtime The Equal Pay Act Other EEO laws8-26Exempt vs. Nonexempt EmployeesExecutiveAdminis
13、trativeProfessionalOutside SalesPay and overtimeregulated by FLSA8-27Fair Labor Standards ActMinimum Wage$5.15/hour$4.25/hour training wageOvertime40 hours/week1.5 timesregular rate8-28The Equal Pay ActMales and females must be paid the same if: Work is “substantially equal.” Jobs require equal level of skill, effort, and responsibility, and are performed under similar working conditions.8-29The Equal Pay ActMen and women may be paid differently for the same work if the differences are due to: Seniority. Productivity. Merit. Any factor other than sex.8-30The Gender Pay Gap
