...Organizational Objectives and Total Compensation in Different Markets NAME September 8, 2014 HRM 324 INSTRUCTOR Organizational Objectives and Total Compensation in Different Markets Total compensation is an important piece of the human resource puzzle. It is the thread that can tie valuable employees to the company and its overall success. The laws and regulations are significant in knowing and understanding in an attempt to apply that knowledge to the overall design of the total compensation package a company offers. Working as a federally contracted employer for more than 200 employees, certain laws and regulations will affect the total compensation package within the organization. One in particular is the Affordable Healthcare Act. Two biotech organizations and their total compensation package will be discussed. The Affordable Health Care Act The Affordable Health Care Act was designed to help all people obtain and maintain their healthcare coverage even in the event of loss of employment. The creation of the Afforadble Health Care Act allows insurance companies “from discriminating against anyone with a pre-existing condition, dropping your coverage if you get sick, billing you into bankruptcy because of an illness or injury, and limiting your annual or lifetime benefits” (www.whitehouse.gov, 2013). The Affordable Health Care Act was not received well from some of the population. It seemed to be not quite so affordable...
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...Organizational Objectives and Total Compensation in Different Markets Sheila E. O'Kane HRM/324 March 25, 2013 Ken Zula Organizational Objectives and Total Compensation in Different Markets An analysis of current laws and regulations on organizational objectives and total compensation is the purpose of this paper. As a Human Resource consultant the primary objective is to provide the client’s organization with the information knowledge of the laws and regulations that impact compensation. Armed with this knowledge the organization is able to develop a total compensation plan that is in alignment with the firm’s strategic plan. The laws that influence compensation practices are designed to help “ensure that pursuit of goals by any one group does not undermine others’ goals” (Martocchio, 2009, p. 49). These laws make sure that the employees who have the “least amount of power” (Martocchio, 2009, p. 49), are protected. The client organization has 200 employees and provides goods and services to the federal government under contract. There are several laws that the organization must adhere to as a federal contractor that affect total compensation. The most prevalent affect comes from laws surrounding wages. These laws fall under the heading of Prevailing Wage Laws. One such law that applies to the client organization is the McNamara-O’Hara Service Contract Act of 1965. Contractors who employ service workers such as plumbers and electricians must pay “at least the...
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...Organizational Objectives and Total Compensation in Different Markets Lynette Gill HRM/324 December 10, 2012 Jocelyn Freimark Organizational Objectives and Total Compensation in Different Markets One of the fastest growing fields in Human Resources is compensation. The main motivator for employees is compensation; potential employees are searching for jobs that fit their area of specialty. A company’s human resources team is constantly looking for ways to compensate employees for job performance. When analyzing organizational objectives and total compensation packages in the various markets, it is important for small companies to know the differences in wages and salaries. Wages are paid to hourly employees based on the number of hours worked in a week while salaries are paid to exempt employees, executives, and those defined by the Fair Labor Standards Act of 1938. Deciding an employee’s level of monetary compensation depends on various factors. The wage should be high enough to attract qualified potential employees; the wage should in competitive with similar jobs performed in similar companies. Other considerations include: * The number of other employees capable of fulfilling the job responsibilities * The demand within the community and/or industry * Cost of living There are laws which have an impact on compensation that small companies should be aware of. The Fair Labor Standards Act (FLSA) has been amended over the years and now includes five major...
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...Organizational Objectives and Total Compensation in Different Markets Keith Hammond HRM/324 December 09, 2013 Professor Sharon Fletcher Organizational Objectives and Total Compensation in Different Markets There are a number of applicable Federal and State laws that have an effect on compensation within an organization, along with taxes paid on income. The way an organization determines the benefit plans and salaries of its employees are directly related to the guidelines that are produced from certain Federal and State laws. A well known law and one that is at the top of the priority list for organizations to adhere to is the Fair Labor Standard Act. Business organizations should be very familiar with this law. The law deals with the five major laws of compensation. They include minimum wage levels overtime pay, record keeping responsibility and the child labor act (Martocchio, Joseph J (2009). Through the years there have been adjustments made to the laws. Another law closely related to the Fair Labor Standard Act is the Equal Pay Act of 1963. This act restricts the difference in the salaries given to make and also female employees in the same position (Martocchio, Joseph J (2009). The act does not however restrict the system of seniority, the system merit and the system that rewards for performance. The act also does not pay attention to the exempt and non-exempt status of the employees. The laws that exist to protect employee is known as the consumer credit...
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...Organizational objective and total compensation in different markets Yolanda Merritt HRM 324 Organizational objective and total compensation in different markets While compensation laws are characterized in order to create non-discrimination in the compensation provided to employees in the organizations. However, depending on the industry that the company is working in the way employees are compensated may be different. Nevertheless, compensation laws and regulations are just about the same regardless to the industry However, if employees are working the area of biotechnology the employer would be required take special care concerning the compensation plan. It is believed that employees that work in the biotechnology industry are exposed regularly to health and security hazards. The biotechnology industry is also believed to involve in world shattering implications that may consist of moral and ethical issues. I have listed some of the laws relating to the compensation plan in the Biotechnology Industry that will assist with the identifying the different The following are some of the laws relating to compensation plan in the industry that helps in identifying the different aspects of pay; For example the Fair Labor Standards Act (FLSA) consist of five major compensation laws that regulates minimum wage, overtime pay, equal pay, recordkeeping requirement, and child labor. For the most part the FLSA regulations impact non-exempt employees. There’s...
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...Organizational Objectives and Total Compensation in Different Markets HRM/324 Haleigh Phillips Organizational Objectives and Total Compensation in Different Markets Most employees do not realize that their salary in not the only means of compensation from their employer. Companies utilize intrinsic and extrinsic compensation to offer their employees the total package and encourage them to be hardworking, dedicated, and loyal staff. Extrinsic compensation is rewards such as pay raises, paid vacation, paid sick leave, and insurance benefits. Intrinsic compensation is non-monetary rewards such as a promotion without pay as a team leader, or giving the employee a new job that puts trust in them to make the decisions without the help of a superior. Intrinsic is designed to help make the employee feel they are needed and encourage them. Human resource managers use compensation as means to get hard working staff that will remain with the company long term. Unfortunately, we have had to legislate laws and regulations because of how employees once were treated. (Martocchio, 2015,). Workers were underpaid, overworked, and were given reduced benefits if offered any at all. Luckily, we have come far in regards to this type of treatment. Employees now are rewarded with total compensation packages that promote employee loyalty to the organization they are employed. Laws and Regulations The Fair Labor Standards Act was established to set what minimum wage would be and other aspects...
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...Organizational Objectives and Total Compensation in Different markets Sergio Herrera HRM/324 July 3, 2013 Dr. Donald Duvall Organizational Objectives and Total Compensation in Different markets In an attempt to attract and retain good employees, companies may offer the benefit of retirement savings options. Employers have the option of sponsoring benefit and contribution plans to eligible employees. It will also discuss how beneficial the plans may be for participants. Some Federal and State laws are valid and do have an impact on compensation inside an establishment and taxes that are applicable on income. The method which an organization uses to fix the salaries and benefit plan of employees depends on the outline that is provided by some federal and state laws. The Equal Pay Act of 1963 is directly linked with The Fair Labor Standards Act and it forbids dissimilarity between salaries of male and female employees employed at an identical position (U.S. Equal Employment). Employee Retirement Income Security Act of 1974 is another law which controls issues like pension benefits, retirement plans, disability, and health insurance schemes (U.S. Department of Labor). Defined benefit plans is a fixed amount set up for eligible employees for retirement. This plan consists of employer contributions either quarterly or annually. With these plans the employer decides to pay a secure quantity to the worker's pension account every year “When markets rise, the employer will reap...
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...global competitor in the plastics market with over 550 employees. Projected earnings exceed $46 million with a heavy focus in plastic beverage bottles, custom plastic parts, and plastic fan parts. The following review will analyze various issues impacting the organizations operations. Identified issues will be used to determine business opportunities while connecting improvements to key human resource management concepts. Key stakeholders in the organization will be identified along with the establishment of strategic end-state goals that will help guide improvements at Riordan Manufacturing. Major gaps in Riordan Manufacturing’s process will be analyzed using a standard gap analysis approach with accompanied alternative solutions that have a long-term focus. An optimal solution will be identified along with an implementation plan with meaningful end-state goals that support the vision of the organization. Situation Analysis Issue and Opportunity Identification Riordan Manufacturing has developed various processes and procedures to manage the business. The organization maintains a heavy focus on research and development with a strong sales force to help distribute the various products. Manufacturing plants are situated in Pontiac, Michigan; Albany, Georgia; and Hangzhou, China with the corporate headquarters in San Jose, California. With rapid growth and expansion Riordan Manufacturing has begun to experience issues that will impact organizational goals and strategic plans. The...
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...Organizational Objectives and Total Compensation in Different Markets Compensation laws are created to protect employees within an organization. Unsure of legal obligations in designing a total compensation plan, a client needs an explanation on how certain laws and regulations affect total compensation in their organization. The client’s organization employs 200 people, is a federal contractor, and operates in the biotech industry. Laws and Regulations The compensation laws and regulations are almost the same in all industries. In the case of a company that works in the biotech industry, special care concerning the compensation plan is required. This is because of the fact that this industry is believed to be involved in special hazards to health and security and is also inclusive of some revolutionary implications, moral, and ethical issues. The following are some of the laws relating to compensation plan in the industry that helps in identifying the different aspects of pay: A) The Fair Labor Standards Act (FLSA): It is one of the most important legislations concerning the total compensation plan for the small business owners and companies. It involves five major compensation laws that administer minimum wage, equal pay, overtime pay, child labor, and record keeping requirements (Martocchio, 2009). B) The Equal Pay Act (1963): This law is an amendment to the FLSA and restricts any kind of discrimination based on sex for men and women working at similar jobs and in...
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...important elements of any organization. It is what compensates, drives, motivates, and rewards employees for the work they do. Or it does the opposite of these things. What is a strategic compensation strategy? Simply stated, it is the compensation of employees in ways that enhance motivation and growth, while at the same time aligning their efforts with the objectives, philosophies, and culture of the organization (Bohlander &Snell, 2010. Compensation includes all forms of pay and rewards received by employees for the performance of their job. Employees desire compensation systems that they perceive as being fair and commensurate with their skills and expectations. An effective compensation and benefit system will contribute to organizational effectiveness. Holland Enterprises is one of the city’s largest employers. Your firm currently employs 3,500 employees. However, since 2007 the firm has lost 25% of its staff. From the research that has been presented, it is because your firm lacks an effective compensation and benefit system. In order for Holland to remain an effective organization, your compensation and benefit system needs a long overdue makeover. The current compensation system is being perceived as unfair and uncompetitive in the marketplace. An effective compensation and benefit system will contribute to the effectiveness of your organization. To survive and be successful in a global economy, an organization must be competitive (Henderson, 2006). In...
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...Muhammed Mughni Atique B.sc (Hons), Business Administration Gift University Gujranwala IMPACT OF HUMAN RESOURCE PRACTICES ONORGANIZATIONAL PERFORMANCE: A STUDY OF BANKING SECTOR OF GUJRANWALA Keywords: Organizational Performance, Employee Satisfaction, Recruitment &Selection, Training & Development, Performance Appraisal and Compensation Abstract: The purpose of this study is to evaluate HRM practices and their impact on organizational performance in banking sector. People believe that HR is not important it’s just a sunk cost and have no significant positive effect on org. performance. The aim of this study was to check the impact between Human resource management and organizational performance. The research was conducted in banking sector of Gujranwala .We have evaluated the impact of functions of HR like Selection, Training, Appraisal and Compensation (as Independent Variables) on Organizational Performance (Dependent Variables). We have done research with the help of questionnaires. The conclusion and results are presented at the end of this paper. The analysis showed the positive relation between the dependent and independent variables. Introduction: Our financial sector evolved very differently from banks in the developed world. For nearly a year after partition, Pakistan had no central bank. Habib Bank – established in 1941 – filled this gap initially, until the State Bank of Pakistan (SBP) was set up in 1948 under quasi-government ownership. Commercial...
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...International Human Resource Management: Chapter – 6: COMPENSATION MANAGEMENT Introduction: One of the key components of IHRM is the compensation administration in MNCs. Today, compensation and employee benefits contribute to 40-50% of the total costs. Compensation is strategically reported and monitored at the broad – levels and with the investors to assess the health of the organization. What is compensation management? Effective and efficient process of managing the earnings – financial and non financial rewards of the employees in an organization based on their performance towards organizational goal is called compensation management. International Compensation is an internal rate of return (monetary or non monetary rewards / package) including base salary, benefits, perquisites and long term & short term incentives that valued by employee’s in accordance with their relative contributions to performance towards achieving the desired goal of an organization. It influences: • • • Organizational culture Recruitment and selection of competent employees Motivation and performance Objectives of compensation: Compensation decisions are strategic decisions and play a key role in achieving performance and sustainable competitive advantages for national as well as international firms. Therefore the key objectives are: • • • • • Attract employees who are qualified , experienced and interested in international assignments. Facilitate the movement of expatriate’s from one...
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...Summary---------------------------------------------------------------0404. Introduction------------------------------------------------------------------------0505. Methodology-----------------------------------------------------------------------0506. Limitations of the study-------------------------------------------------------0507. Objective--------------------------------------------------------------------------- 0608. Overview of Long Beach Hotel-----------------------------------------------------0709. Features & Benefits of Long beach hotel ---------------------------------------0710. Vision-----------------------------------------------------------------------------------0811. Mission---------------------------------------------------------------------------------0812. Corporate Objective ----------------------------------------------------------------0813. Organizational Structure--------------------------------------------------------------0914. COMPENSATION FOR TOP MID AND OPERATING LEVEL-----------------1015. Compensation---------------------------------------------------------------------------1516 Employee Benefit------------------------------------------------------------------------1617. COMPENSATION DIMENSION----------------------------------------------18 * Leave & Holiday pay------------------------------------------18 * Disability income continuation----------------------------19 * Health and accident protection----------------------------20 * Income equivalent payments--------------------------------21...
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...So the organizations needs best employees’ performance for continuously competition with other organizations. After independence from British in 1947, and the emergence of Pakistan as a country in the globe, the scope of banking in Pakistan is rapidly increases and expanding continuously. As the banking sector of Pakistan is reliable but due to lack of employees banking sectors in Pakistan so many difficulties in the last few years. About Only 8% of the population in our country uses the banks. In this competitive environment organizations are continuously improving their employees’ performance by improving their human resources practices. Researcher and scholars proved that HRM practices are necessary for organizations success. The objective of this research is to analyze the Effects of Human Resources Management Practices on Employee Performance.in this research three HRM practices consumption, selection, and recruitment is studied. Literature review Selection Once you have identified the technical skills and job attributes you are seeking in a new employee, you should consider the most effective way to identify and assess these in candidates.Selection is the process of picking up individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organization. Selection in HRM is very sensitive issue because it is directly related with the progress for all organizations. Recruitment refers to select right people, at...
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...Part 4: Compensating Human Resources Chapter 11: Variable Pay and Executive Compensation Prepared by Linda Eligh, University of Western Ontario Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 11–1 Learning Objectives After you have read this chapter, you should be able to: 1. 2. 3. 4. 5. 6. Define variable pay and identify three elements of successful pay-for-performance plans. Discuss three types of individual incentives. Explain three ways that sales employees are typically compensated. Identify key concerns that must be addressed when designing group/team variable pay plans. Discuss why profit sharing and employee stock ownership are common organizational incentive plans. Identify the components of executive compensation and discuss criticisms of executive compensation levels. Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 11–2 Variable Pay: Incentives for Performance • Variable Pay Compensation linked to individual, group/team, and/or organizational performance. • Basic assumptions: Some jobs contribute more to organizational success than others. Some people perform better and are more productive than others. Employees who perform better should receive more compensation. Some of employees’ total compensation should be tied directly to performance. Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 11–3 Developing Successful Pay-for-Performance Plans • Reasons for Adopting...
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