COMPENSATION - MILKOVICH, GEORGE T; NEWMAN, JERRY M (MCGRAW- HILL)
Keywords: INTRODUCING THE PAY MODEL AND PAY STRATEGY .Strategy: The Totality of Decisions.INTERNAL ALIGNMENT: DETERMINING THE STRUCTURE.Defining Internal Alignment . Job Analysis. Job-Based Structures and Job Evaluation.Person-Based Structures. EXTERNAL COMPETITIVENESS: DETERMINING THE PAY LEVEL. Defining Competitiveness. Designing Pay Levels, Mix, and Pay Structures. EMPLOYEE CONTRIBUTIONS: DETERMINING INDIVIDUAL PAY. Pay-for-Performance: The Evidence. Pay-for-Performance Plans. Performance Appraisals . EMPLOYEE BENEFITS . The Benefit Determination Process. Benefit Options . Compensation of Special Groups. EXTENDING THE SYSTEM. Union Role in Wage and Salary Administration. Government and Legal Issues in Compensation. Management: Making It Work. -- Compensation: Definition, Please. Society Stockholders. Book Plan. Caveat Emptor $1 (BBe an Informed Consumer.Supports Work Flow Motivates Behavior Structures Vary among Organizations. Criteria: Content and Value,Government Policies, Laws, and Regulations. External Stakeholders Cultures and Customs Organization Strategy Organization Human Capital Organization Work Design Overall HR Policies Internal Labor Markets: Combining External and Organization Factors Employee Acceptance: A Key Factor Pay Structures Change Strategic Choices in Designing Internal Structures Tailored versus Loosely Coupled Hierarchical versus Egalitarian Guidance from the Evidence Equity Theory: Fairness Tournament Theory: Motivation and Performance Institutional Model: Copy Others (More) Guidance from the Evidence Consequences of Structures Efficiency Fairness Compliance Your Turn: So You Want to Lead an Orchestra! Still Your Turn: (If You Don$1 (Bt Want to Lead the Orchestra Job Analysis Structures Based on Jobs, People, or Both Job-Based Approach: Most Common Why Perform Job Analysis? Job Analysis Procedures What Information Should Be Collected? Job Data: Identification Job Data: Content Employee Data (3z(BEssential Elements(3y (Band the Americans With Disabilities Act Level of Analysis How Can the Information Be Collected? Conventional Methods Quantitative Methods Who Collects the Information? Who Provides the Information? What about Discrepancies? Job Descriptions Summarize the Data Using Generic Job Descriptions Describing Managerial/Professional Jobs Verify the Description Job Analysis: Bedrock or Bureaucracy? Job Analysis and Globalization Job Analysis and Susceptibility to Offshoring Job Analysis Information and Comparability across Borders Judging Job Analysis Reliability Validity Acceptability Currency Usefulness A Judgment Call Your Turn: The Customer-Service Agent Job-Based Structures and Job Evaluation Job-Based Structures: Job Evaluation Defining Job Evaluation: Content, Value, and External Market Links Content and Value Linking Content with the External Market Technical and Process Dimensions (3z(BHow-To(3y(B: Major Decisions Establish the Purpose Single versus Multiple Plans iv Table of Contents Choose among Job Evaluation Methods Job Evaluation Methods Ranking Classification Point Method Who Should Be Involved? The Design Process Matters The Final Result: Structure Balancing Chaos and Control Your Turn: Job Evaluation at Whole Foods Person-Based Structures. Person-Based Structures: Skill Plans Types of Skill Plans Purpose of the Skill-Based Structure (3z(BHow-To(3y(B: Skill Analysis What Information to Collect? Whom to Involve? Establish Certification Methods Outcomes of Skill-Based Pay Plans: Guidance from Research and Experience Person-Based Structures: Competencies Defining Competencies Purpose of the Competency-Based Structure (3z(BHow-To(3y(B: Competency Analysis Objective What Information to Collect? Whom to Involve? Establish Certification Methods Resulting Structure Competencies and Employee Selection and Training/Development Guidance from the Research on Competencies One More Time: Internal Alignment Reflected in Structures (Person-Based or Job-Based) Administering and Evaluating the Plan Reliability of Job Evaluation Techniques Validity Acceptability Bias in Internal Structures Wages Criteria Bias The Perfect Structure Your Turn: Climb the Legal Ladder PART THREE EXTERNAL COMPETITIVENESS: DETERMINING THE PAY LEVEL Chapter 7 Defining Competitiveness Compensation Strategy: External Competitiveness Control Costs and Increase Revenues Attract and Retain the Right Employees What Shapes External Competitiveness? Labor Market Factors How Labor Markets Work Labor Demand Marginal Product Marginal Revenue Labor Supply Modifications to the Demand Side Compensating Differentials Efficiency Wage Sorting and Signaling Modifications to the Supply Side (Only Two More Theories to Go) Reservation Wage Human Capital Product Market Factors and Ability to Pay Product Demand Degree of Competition A Different View: What Managers Say Segmented Supplies of Labor and (Different) Going Rates Organization Factors Industry and Technology Employer Size People$1 (Bs Preferences , Organization Strategy, Relevant Markets , Defining the Relevant Market , Globalization of Relevant Labor Markets: Offshoring and Outsourcing, Table of Contents Major Decisions , Specify Competitive Pay Policy, The Purpose of a Survey , Adjust Pay Level$1 (BHow Much to Pay? , Adjust Pay Mix$1 (BWhat Forms? , Adjust Pay Structure? , Study Special Situations , Estimate Competitors$1 (BLabor Costs , Select Relevant Market Competitors , Fuzzy Markets , Design the Survey, Who Should Be Involved? , How Many Employers? , Which Jobs to Include?, What Information to Collect? , Interpret Survey Results and Construct a Market Line , Verify Data , Statistical Analysis, Update the Survey Data , Construct a Market Pay Line, Setting Pay for Benchmark and Non-Benchmark Jobs , Combine Internal Structure and External Market Choice of Measure , Updating , Policy Line as Percent of Market Line , From Policy to Practice: Grades and Ranges , Why Bother with Grades and Ranges? , Develop Grades , Establish Range Midpoints, Minimums, and Maximums , Overlap , From Policy to Practice: Broad Banding, Flexibility-Control , Balancing Internal and External Pressures: Adjusting the Pay Structure, Reconciling Differences , Market Pricing and Performance Management , What Does It Take to Get These Behaviors? What Theory Says , What Does It Take to Get These Behaviors? What Practitioners Say , Does Compensation Motivate Behavior?, What Is a Pay-for-Performance Plan? , Does Variable Pay Improve Performance Results? The General Evidence , Specific Pay-for-Performance Plans: Short Term , Merit Pay , Lump-Sum Bonuses , Individual Spot Awards , Individual Incentive Plans, Individual Incentive Plans: Advantages and Disadvantages , Individual Incentive Plans: Examples , Team Incentive Plans: Types , Comparing Group and Individual Incentive Plans , Large Group Incentive Plans , Gain-Sharing Plans, Profit-Sharing Plans , Earnings-at-Risk Plans , Group Incentive Plans: Advantages and Disadvantages, Group Incentive Plans: Examples , Explosive Interest in Long-Term Incentive Plans , Employee Stock Ownership Plans (ESOPs) , Performance Plans (Performance Share and Performance Unit) , Broad-Based Option Plans (BBOPs) , Combination Plans: Mixing Individual and Group , Your Turn: Incentives Can Be too Powerful, Legally Required Benefits , Workers$1 (BCompensation , Social Security , Unemployment Insurance, Family and Medical Leave Act (FMLA) , Consolidated Omnibus Budget Reconciliation Act (COBRA) , Health Insurance Portability and Accountability Act (HIPAA) , Retirement and Savings Plan Payments , Defined Benefit Plans , Defined Contribution Plans , Individual Retirement Accounts (IRAs) , Employee Retirement Income Security Act (ERISA), How Much Retirement Income to Provide? , Life Insurance, Me Supervisors , Corporate Directors, Executives , What$1 (Bs All the Furor over Executive Compensation? Medical and Medically Related Payments The Global Context , The Social Contract, Centralized or Decentralized Pay-Setting , Regulation , Culture , Culture Matters, but So Does Cultural Diversity, Trade Unions and Employee Involvement, Ownership and Financial Markets , Managerial Autonomy , Comparing Costs , Labor Costs and Productivity , Cost of Living and Purchasing Power , Comparing Systems , The Total Pay Model: Strategic Choices , National Systems: Comparative Mind-Set , Japanese Traditional National System, German Traditional National System , Strategic Comparisons: Traditional Systems in Japan, Germany, United States , Evolution and Change in the Traditional Japanese and German Models, Strategic Market Mind-Set , Living Wage , Employee or Independent Contractor ? , Prevailing Wage Laws , Pay Discrimination: What Is It?, The Equal Pay Act , Definition of Equal , Definitions of Skill, Effort, Managing, Controlling (and Sometimes Reducing) Labor Costs, Number of Employees (a.k.a.: Staffing Levels or Headcount), Hours , Controlling Benefits , Controlling Average Cash Compensation , Control Salary Level: Top Down , Current Year$1 (Bs Rise, Analyzing Value Added , Communication: Managing the Message , Say What? (Or, What to Say?) , Pay as Change Agent , Structuring the Compensation Function, Centralization$1 (BDecentralization , Flexibility within Corporatewide Principles , Reengineering and Outsourcing , Balancing Flexibility and Controls