...DeVry University HRM-430 Week 3 Assignment Compensation embodies both the intrinsic and extrinsic rewards employees obtain for accomplishing their jobs. Collectively, both intrinsic and extrinsic compensation refer to a company’s total compensation system. Innate compensation replicates employees’ psychological mind-sets that stem from accomplishing their duties. Extrinsic compensation consists of both financial and nonfinancial benefits. Organizational development professionals promote intrinsic compensation through effective job design. (Martocchio 4) Compensation is based on the following: • market study regarding the value of comparable jobs in the marketplace, • employee contributions and achievements, • the accessibility of employees using comparable skills in the marketplace, • the need of the employer to appeal and retain a certain employee for the value they are recognized to add to the employment relationship, and • the profitability of the company or the funds available in a non-profit or public sector setting, and thus, the ability of an employer to pay market-rate compensation. “Compensation moreover comprises payments such as bonuses, profit sharing, overtime pay, recognition rewards and checks, and sales commission. Compensation can also consist of non-monetary perks such as a company-paid car, stock options in certain instances, company-paid housing, and other non-monetary, but taxable, income items.” (Heathfield) Overview of Compensation Philosophy ...
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...time, effort, and perseverance. Choosing a career is an involved process that is based on a number of things, including your interests, skills, work-related values, and personality. And of course salary and bonuses take not the last place in our decision. I am doing my MBA program and I have to choose the field in which I will devote my life. I am interested in marketing, finance and HR, that is why I decided to compare these tree fields. The difference in salaries and bonuses are explained by level of responsibilities, PART 1 The difference in salary between International Marketing Manager; Financial Analysis Manager and Human Resources Manager is not so significant, but the field of activities is totally different. It is not surprising that international marketing manager is paid more than others. The median salary for international marketing manager is $101,484; for financial analysis manager is $98,905; for human resources manager $85,863 (10001, NY). In my opinion, in this case the main factor that can explain the difference in the salaries is your responsibilities. PART 2 Benefit | international marketing manager | financial analysis manager | human resources manager | | Median amount | % of total | Median amount | % of total | Median amount | % of total | Base salary | $101,484 | 67.7% | $98,905 | 67.7% | $85,863 | 68.9% | Bonuses | $8,306 | 5.5% | $7,762 | 5.3% | $4,451 | 3.6% | Social Security | $8,214 | 5.5% | $8,160 | 5.6% | $6,909 | 5.5% | Disability...
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...| CR (Compa-ratio) = AS (actual salary) MP (midpoint of pay range) Calculate the median wage at minimum, midpoint, maximum and actual. For each firm, calculate the compa-ratio expressed to 2 decimals. Calculate the mean salary at minimum, midpoint, maximum and actual. Calculate the weighted mean wage at minimum, midpoint, maximum and actual. For each firm, calculate the compa-ratio expressed to 2 decimals. Below, using the mean actual, show your recommended new salary range with a spread of 15% between min and midpoint and 15% between midpoint and max. Round the salaries to the nearest hundred dollars. ____________ _________ ____________ (Minimum) (Midpoint) (Maximum) MERIT INCREASE RECOMMENDATIONS Assume that all salary ranges in your firm are increasing by 3%. As the Compensation Manager, you have created the following increase guidelines to be used by line managers for determining the appropriate salary increase for each employee. Performance Rating | Compa-Ratio.8 - .89 | Compa-Ratio.9 - .99 | Compa-Ratio1.0 | Compa-Ratio1.01 – 1.09 | Compa-Ratio1.1 – 1.2 | Excellent | 6% - 9% | 5% - 8% | 4% - 7% | 3% - 6% | 2% - 6% | AboveStandard | 5% - 7% | 4% - 6% | 3% - 6% | 2% - 5% | 0% - 2% | Satisfactory | 4% - 6% | 3% - 5% | 0% -2% | 0% - 2% | 0% -2% | Below Standard | 0 - 2% | 0 - 2% | 0 - 2% | 0 - 2% | 0 - 2% | Assume that the midpoint of the salary range is $35,000. Using...
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...non-monetary perks such as a company-paid car, company-paid housing and stock options. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness. Total compensation has three parts: Base compensation The fixed pay an employee receives on a regular basis, either in the form of a salary or as an hourly wage. Pay incentive A program designed to reward employees for good performance Benefits: sometimes called indirect compensation. Benefits encompass a wide variety of programs (for example, health insurance, vacations) Importance of Compensation Management A good compensation is must for every business organization and helps in the following way: * It tries to give proper return to the workers for their contributions to the organization. * It imparts a positive control on the efficiency of employees and encourages them to perform better and achieve the specific standards. * It forms a basis of happiness and satisfaction for the workforce that minimizes the labour turnover and confers a stable organization. * It augments the job evaluation process which in turn helps in setting up the more realistic and achievable standards. * It is designed to comply with the various labour acts and therefore does not result in disputes between the employee union and the management. This builds up a peaceful relationship between the employer and the employees. * It arouses an environment...
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...money and most have to work second jobs. It is imperative to department morale that they receive adequate monetary compensation, without relying on a second job. Furloughs Firefighters do not deserve furloughs. Local firefighters are on 24-hour shifts in an A, B, and C block schedule. There were two furlough days during the year, on specified holidays. This meant whether or not the firefighter was working on that specified holiday he or she would not be paid for it. Morale Furloughs had a detrimental effect on morale in the department. No one wants to work and not be paid for it. The furlough also made the people in the department believe that their hard work was not appreciated, and unneeded. It is unfortunate that short lived fixes, such as layoffs and furloughs are becoming the norm and are negatively affecting morale and the quality of service (Duggan, Lewis, & Milluzzi, 2010). Causes Strain Firefighters often have to work two jobs. People in the emergency service industry do not join this field for money. The majority of firefighters at the City of Charleston work at the fire department full time, and work another job part-time. They work two jobs out of necessity, not from the enjoyment of working two jobs. Most people do not want to work a 24-hour shift to have to go straight to another job without the ability to go home first. The furlough is causing many of the firefighters to work more hours at their part-time jobs, which makes them more tired. Excessive...
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...times increase in tickets almost all the employees did not have a raise in their salary. The zoo is one of the places low-income families can spend a fun day at. However, for most of the employees working there, the Giza zoo is a harsh working environment where they do not get paid enough and receive no benefits. The Giza Zoo was once the most beautiful zoological gardens in Egypt; the Ministry of Agriculture in Egypt runs it. Over the past decade its status has been deteriorating more and more. After the 25th of January movement in Egypt, many workers in the public sectors have been striking all over Egypt; among them were workers in the Giza zoo. Workers in the zoo have been living in inequality for as long as they can remember, they work over hours, six-days-a-week, many of them even sleep over in the zoo gardens because they cannot afford public transportation. Working conditions and Salaries: As you enter the zoo, you realize that by every cage there is a man standing by it wearing a green overall with stains and holes all over it. Abdel Haleem Gomaa is one of them gatekeepers. Gomaa has been working as a gatekeeper for 28 years in the zoo. Unlike many is Gomaa is a satisfied worker, he works six days a week; he has six children and his salary amounts to 480 EGP. Gomaa has been working with many animals over the years; he also started working with a salary of 150 EGP in the beginning. Later, the zoo administration promised to write him...
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...Case Analysis: When Salaries Aren’t Secret Case Summary RightNow!, a retail chain specializing in women’s clothing, led by ◦ Hank Adamson as CEO. ◦ Charlie Herald as the VP of HR and ◦ Harriet Duval as the CFO. Someone exposes the salaries of all 165 employees via email. Since RightNow! Was exapanding fast, they hired people at a wide range of salaries; making the new salaries disparate from existing ones. Immediate reaction of employees - comparing each other on the basis of pay. Several started contacting HR to discuss disparity in pay. Charlie and Harriet come up with two opposing views on how to handle the situation. Hank must decide what to do. Charlie’s View Opened Pandora’s box and facing possible resignations and lawsuits. Need to turn this into a positive result. Keep salaries public henceforth. ◦ No need to have extra security and secrecy built around salaries. It might happen again anyway ◦ Most people share what companies pay online anyway ◦ Employees will self-correct pay disparities ◦ Fame to RightNow! Because of this policy Harriet’s View Short-lived gossip and furor which will pass soon. Disparities in income are present in all companies. Cant spend time explaining to each employee why they earn more/less than someone else Since the cat’s out of the bag, the company should revisit pay disparities and conduct review. Beef up computer security to avoid future incidents like this Commentator’s Advice - Victor Sim Exposing incomes would lead...
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...for their job performance. Corporate executive employees are the higher echelon company employees and may include the chief financial officers, chief executive officer, upper level managers and the company president. Executive compensation mostly consists of base salary, bonuses, long-term incentives benefits, and prerequisites whose main purpose is to motivate the executives to steer the company to profitability and make decisions with the best interest of the organization. Executive compensation has been on an upward rise especially within the last few decades reaching to unprecedented levels. Worse still, executive employees’ salaries and benefits have increased at a significantly higher rate as compared to other employee’s compensation consequently raising controversy not only of the ethical issues but on issues of equity and efficacy of the high compensation in motivating the executive’s performance. The paper thus posits that the increased executive salaries are not only unethical but are not a reflection of executive performance nor are they correlated to executives performance and as such other options of motivating executive employees should be explored. Other employee motivations such as through psychological contract, organization motivation and employee development should be sought especially with the increased use of teams in management in volatile environment. Types of executive compensation Executive compensation consists of the base salary, bonuses...
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...individuals on the Board of Directors that agree with the salary of Mr. James. Some may argue that he is in fact worth every penny that he is paid and it is a salary well earned. Fallacies There were a number of fallacies identified by HR in the communication to the Board of Directors. The three fallacies were Mr. James’ personal wealth, the family relation to the PDQ founder and the negative attitude towards the town and other employees that were expressed by M. James. The mentioning of Mr. James own personal wealth was used to distract the Board from the issues at hand. The HR Department used an article published by two Wharton professors as a way to sway the argument. The memo notes that Mr. James is the only grandson of the PDQ founder and that he himself stands to inherit the company one day. This ties in closely with the personal wealth fallacy, in that Mr. James does not need this job because he is already quite wealthy, and will be even more so one day in the future. Finally, Mr. James exemplified a negative attitude towards the...
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...Total Rewards System Proposal Lakeya Lyle HRM 533 Dr. Lorna Thomas August 9, 2015 Create a brief overview of the company requirements for a total rewards system. The Allstate Corporation is the largest publicly held personal lines property and casualty insurer in America. Allstate was founded in 1931 and became a publicly traded company in 1993. They are listed on the New York Stock Exchange under the trading symbol ALL. Allstate is widely known through the "You're In Good Hands With Allstate" slogan. As of year-end 2014, Allstate had $108.5 billion in total assets. In 2014, Allstate was number 92 on the Fortune 500 list of largest companies in America. The Allstate Corporation encompasses more than 75,000 professionals made up of employees, agency owners and staff. Among Allstate's employees, 56 percent are women, and 33 percent are minorities. More than 42 percent of officers and managers are women and 22 percent are minorities. As a company with a diverse population of employees, agents and customers, Allstate embraces diversity in everything they do, not only the customers they serve and the communities in which they invest, but also the people they hire and the businesses they use as suppliers. It's a testament to the company's corporate citizenship and a sound business strategy. Allstate is reinventing protection and retirement to help approximately 16 million households insure what they have today and better prepare for tomorrow. There high performance work environment...
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...| | | | | | | | | | | | | | | Dr. Mitchell Fields HRM: 71-243 (03, 04) Fall 2014 ------------------------------------------------- Schukra Assignment Due Date: Wednesday, October 29th (at the very beginning of class, no later than 5 minutes after the start of class) Length: No more than six pages double-spaced with one inch margins excluding title page, references and exhibits. The final report must be submitted on the due date simultaneously in TWO WAYS: Submit as follows: 1) A traditional paper report (stapled, etc.) to be turned in at the very beginning of class on the due date, and 2) As an email to me in a single PDF file at mfields@uwindsor.ca. The papers should be in APA format and use at least five appropriate references (not Wikipedia or ask.com, etc.). Because some of the reports will be forwarded to Schukra, your student numbers should not be included on the electronic versions. You must submit your report using both methods in order to receive a grade for this assignment (electronic only submissions will not be accepted). Late assignments, at the instructor’s discretion, will either not be accepted or will be severely penalized. A selection of the best or most interesting reports will be submitted to Schukra for discussion at the workshop. The teams with the very best submissions may be invited to briefly (no more than 3 - 5 minutes) present a summary of their suggestions to the Schukra Team during their session. Workshop Date: Saturday...
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...FASTCAT PHASE II MNGT 433-Compensation & Benefits 4/22/2014 Logical Thinkers Consulting Company Damian Malagari Kerry Ahearn Melissa Hekl NgoanPhan Chau Tran Table of Contents EXECUTIVE SUMMARY 3 RECOMMENDED STRATEGY FOR EXTERNAL COMPETITIVENESS 4 Best Alternatives for FastCat 4 Pay Level and Mix of Forms 4 Integrating the External and Internal Structure 5 Preliminary Ideas 5 SURVEY DESIGN OF TOTAL COMPENSATION OF FASTCAT’S COMPETITORS 6 Selecting Benchmarks and Matching With FastCat Jobs 6 Selecting Competitors in FastCat’s External Market 6 Analyzing the Data: Deciding What Forms to Compare 7 Analyzing the Data: Adjusting for Aging 11 Evaluating the Regression Line and the Fit Between FastCat and the Market 15 FASTCAT’S PAY POLICY LINE 19 INTEGRATING INTERNAL AND EXTERNAL STRUCTURES 20 Bands and Zones 20 Overlapping 21 EVALUATING THE RESULTS 21 Description of Analysis 24 FastCats’ Strategy and Rationale to Lag Pay Levels 25 EXECUTIVE SUMMARY Our Proposal for FastCat’s compensation system in Phase II focuses on the base pay as well as providing incentives. In order to maintain its competitiveness in the industry, FastCat should lag the market. They must ensure their pay structure is strategically differentiated within the marketplace. The appropriate pay structure and compensation plan will help FastCat strengthen employee retention and increase productivity through incentives, rewarding performance, and employee engagement...
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...ALTERNATIVES We had come out two alternatives in order to help Sindy solve the dilemma she faced. The first alternative is expanding her business into middle and senior level segment after 2 years. By expanding the business, Sindy will able to get more profit. This is because the revenue that she will get from senior staff positions is higher compare to junior staff positions. The second alternative that we suggest is doing nothing. Doing nothing means that Sindy have to continue on what she do now and just focusing on the blue collar and junior staff positions. Alternative 1: Expand the business into middle and senior level segment after 2 years. Since on the first year of operation, Sindy are able to get an amazing profit as well as recovered all her investment in the business, there will be no problem for her to expand her business widely after two years. The reason we want Sindy to expand her business after 2 years, not after 1 year is because we want Sindy to gain more business knowledge and on the same time, save some money so that she will able to hire more sales people, HR professional and pay for leasehold improvement. In two years before expanding her business, it is important for Sindy to learn more on the recruiting agency business since she have to face a very competitive environment once she enters the middle and senior level segment. She will have to compete with various competitors which some of them may be a big company and have more experience in doing...
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... Compensation Issues 17.3 Compensation Function 17.4 Compensation Policies and Objectives 17.5 Compensation Administration 17.6 Compensation Determinants 17.7 Compensation Survey 17.8 Compensation Structure 17.9 Job Evaluation System 17.10 Pay Equity 17.11 Executive Compensation 17.12 Compensation Trends 17.13 Wage Structure in India 17.14 Case Study 17.15 Summary 17.16 Self-Assessment Questions 17.17 Further Readings 17.1 22 INTRODUCTION One of the most difficult functions of human resource management is that of determining the rates of monetary compensation. It is not only complex, but significant both to the organisation and employees. Employee compensation decisions are crucial for the success of an organisation. From a cost perspective alone, effective management of employee compensation is critical because of the total operating costs. Another reason for studying compensation from the organisation’s perspective is to assess its impact on a wide range of employee attitudes and behaviours and, ultimately the effectiveness of the organisation and its units. Compensation may directly influence key outcomes like job satisfaction, attraction, retention, performance, skill acquisition, cooperation, and flexibility. 17.2...
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...non-monetary rewards, for the execution of their jobs. Together, intrinsic and extrinsic compensation, expresses a company’s total compensation system. (Martocchio, 2013) A company’s compensation philosophy suggests a set of directorial principles that are bound by acceptable employment practices and employee rights that have lead companies to decision-making about compensation. The compensation philosophy will compose a statement of purpose that will explain how its compensation plan will meet the needs of the company, shareholders, employees, and customers. Some compensation philosophies will list where its salaries fall in relationship to the regional/national wage markets, depending on size of the company, as well as use of explicit salary figures for an entry level employee with no experience. Other companies choose not to provide fixed figures meanwhile focusing on furthering its beliefs, attitudes, and principles that will structure the compensation plan and the company’s endeavor towards excellence, inspiration and encouragement of its employees through compensation (smallbusiness.chron.com). An effective compensation plan should include the following components: Objective, Importance of compensation, performance measures, reference (Benchmarking) points, competitive positioning, Internal equity and consistency, and governance program. This will include job analysis, market research about value of comparable job in marketplace, staff contributions and achievements...
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