...Team C will use the IRAC method to present a case heard in the Oregon Supreme Court, Antonio Cortez v. NACCO Material Handling Group, Inc and Swanson Group, Inc. This case is currently pending in the Oregon Supreme Court. Facts Plaintiff worked for a lumber mill, Sun Studs, LLC owned by NACCO Material Handling Group. As the plaintiff walked from one area of the mill to another, a forklift hit and severely injured him. After receiving workers’ compensation benefits, the plaintiff brought an action against Swanson Group, Inc., which owns Sun Studs. The plaintiff alleged that Swanson was liable for negligently failing to require Sun Studs to provide a safe workplace and competent safety personnel. Issues Is the providing of worker’s compensation for the injured plaintiff by the defendants an exclusive remedy? Was the defendants’ negligent under the Employers Liability Law by not providing safety measures to the plaintiff? Rule Did the defendants breach the duty to provide a remedy for the injured plaintiff? Did the defendants breach the duty to provide safety measures under the Employers Liability Law? Analysis NACCO Material Handling Group, Inc and Swanson Group, Inc. owed a duty to provide a remedy in the form of worker’s compensation for the injured plaintiff based on business and...
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...worse working conditions by paying an extra bonus. Compensating wage differentials are where people are paid more for dirty, dangerous or difficult work. This perspective on the functioning of labour markets originates from the writings of Adam Smith. The theory of compensating wage differentials stated that workers receive wage premium related to harms and hazards at their workplace. Utilities of workers are therefore equalised between industries and occupations by means of competition in the labour market. In particular, the theory implies that the marginal worker receives a compensated wage just enough to accept the work conditions, whereas those who are not risk averse or do not mind adverse conditions are paid more than is necessary to have them work in jobs that are risky or have bad working conditions. In an ideal market situation where each worker is well informed and everybody shares the same information. The worker is confronted with a schedule of wages and risk in different occupation. The worker has a utility function depending on wages, occupational health and safety (OSH) hazard and leisure of the form u = u (W, OSH, l ).For each level of leisure the worker trades with higher OSH hazard for higher wages according to his/her preferences (Chichilnisky, 1978). The...
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...Chapter 1 1. Introduction Compensation refers to the organizations entire reward package, including not only financial rewards and benefits but also non tangible benefits such as securities. It includes to all forms of pay or rewards going to workers and arising from their employment. Once workers have done their jobs and been appraised, they expect to be paid. Each and every worker in an organization works for money or incentives. So their first and foremost expectation from the organization is to earn money or appropriate compensation. Compensation is the most important part or tool of any organization. Because, human body works for earning something. And this earning policy is combinedly known as compensation package. Typically the human resource department performs this policy. It is the most critical function of human resource management. Because the human resource manager always concerns to have the good environment within the organization by providing appropriate compensation to the workers. The compensation package has two main components: direct financial payments which include wages, salaries, incentives, commissions and bonuses and indirect financial payment which include financial benefits like employer paid insurance and vacations. Every organization has to focus on compensation package because not a single organization exists that does not provide the benefits to the workers. There is not a single person who works without payment in an organization...
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...Workers comp assignment 1) What are the goals of workers compensation? --A. provide prompt adequate definite income and medical benefits to accidents that are related to work. B. Reduce court delays, cost and workloads which are arising from personal injury and provide a single remedy. C. Remove private and public problems of money due to uncompensated industrial accidents. D. Eliminate time consuming trials and appeals in the court. E. Eliminate attorney fees involved. F. accident caused is promoted by frank study and reducing accidents, human sufferings etc. G. Employer must abide the compulsory law that accepts and provides the benefits to workers. 2. Explain how you believe Workers Compensation program has helped workers. Though workers compensation insurance is costly for companies, there are some benefits from managing one’s workers compensation program. Explain. --Workers compensation is the insurance since 1900’s in the United States. From the beginning of 19th century as the growth of industries increased and the workers for the industries also increased, so the injuries’ had become more common in the factories where the workers used to deal with the larger machines and were working in hazardous conditions,. so a system was needed to compensate the workers who had suffered from injuries during working hours,. 1> Workers Compensation program has helped workers in relieving there mental stress. 2> This program has made the workers to...
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...Biaño BSBA – 3 BA1 TTH 5:01-6:31pm CASE STUDY (Semi-final) KOOKABOORA CONTAINER CORPORATION: Maybe Tomorrow When the Clark Special Economic Zone in Pampanga opened its gates for investors in light and medium industries, the Kookaboora Container Corporation (KCC) was among the first ten companies to locate in the zone’s premises. KCC manufactures containers of various shapes and sizes which are used by manufacturers of industrial chemicals, food products, cooking oil, motor oil, and others. The production department of KCC is headed by Engr. Nicolas Aisporna, a licensed mechanical engineer. He is a tickle for discipline. When even small mistakes happen in his department, he personally calls the offending employees and metes the appropriate penalty. As a result, his department was judged best in efficiency. Very minimal wastages in materials and time were recorded by the department. Under the direct supervision of Engr. Aisporna are 10 supervisors who are graduates of engineering courses and with an average of three years work experience. Ten workers report to a supervisor. All of the workers are high school graduates. All employees including the supervisors and the workers are paid on a monthly basis. The workers, however, are required to produce a minimum number of units per day. During the slack seasons, workers are engaged only from 50% to 75% of their normal working hours due to lack of sufficient job orders. No worker is laid off by the company and everyone...
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...1. How do employer priorities affect claim adjudication and management in workers’ compensation systems? The number one priority for all companies is to be successful and that means being profitable. As the global market becomes more competitive, many businesses must cut costs and adopt strategies to ensure that their doors remain open. When an employee injures themselves on the job the potential costs of an injury claim can significantly impact the WCB premiums for a company (Barnetson, 2010). Workers’ Compensation Boards use its experience rating system to adjust an employer’s premiums based on its injury prevention performance compared to the industry average. Performance compared to that average determines if employers are awarded a rebate or presented with a surcharge (Barnetson, 2010). The system is designed to provide an incentive to employers in hopes they will improve safety performance and prevent injuries, but it also can create pressure to minimize claim costs (Barnetson, 2010). Instead of making safety improvements to the operation, employers may attempt to game the system through the adoption of aggressive claim management and adjudication strategies (Barnetson, 2010). These strategies are designed to do three things; get workers back to work as soon as possible; dispute and appeal claims where feasible; and lower premium rates without having to make significant changes to work processes. More and more employers are recognizing that an early return to work...
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...nCOMPENSATION AND BENEFITS OBJECTIVE SNGPL has lots of expectations from its employees, so they provide them with lots of compensations and benefits, which make them more efficient. LIST OF COMPENSATIONS AND BENEFITS PROVIDED BY SNGPL * Group Life insurance * Medical benefits * Profit bonus * Annual increment * Promotion in upper grades * Gratuity Provident fund facility * Pension Facility * Educational scholarships * Loans * Uniform for workers * Leaves GROUP LIFE INSURANCE * INSURANCE POLICY a) The SNGPL provides group life cover to employees. Premium is paid by the organization. The HR department is responsible for coordinating settlement proceedings and providing assistance to an employee in lieu of any claim filed under the scheme. b) This benefit becomes effective from the date of becoming the member of the group insurance scheme. On confirmation, employee is required to nominate names of beneficiaries who would be entitled to receive payments in event of his/her death. c) Payment is made only in case of in-service death of an employee. Death after retirement would not entitle the surviving spouse or family members, as the case may be, to any benefits. One time lump sum payment is made equal to the sum assured. * INSURANCE PROCEDURE Head of HR function * Receive written consent from the employee for becoming member of the life insurance...
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...Management February 11, 2015 INTRODUCTION Executive compensation has been at the forefront of discussion for a long period of time. Analyzed by academics, highlighted by the media, questioned by Congress, and scrutinized by the general public, the topic warrants much debate. In the 1990’s, total executive compensation increased substantially as companies began offering stock option programs; CEO’s of S&P 500 saw an average increase of 150%. While many top U.S. executives continued to receive enormous compensation options throughout the economic downturns of 2001 and 2008, none was more apparent than those in the automotive industry. While the big three, comprising of General Motors, Ford and Chrysler, were facing insurmountable debt and possibly bankruptcy, top executives were receiving some of the highest reparations ever experienced by directors of the companies. The case study presented in Managing Human Resources, Sixteenth Edition by Snell and Bohlander brings to mind the fact that during 2011, Ford CEO, Alan Mulally, received $53.5 million in stock awards. Many discussions can be derived from this statement. However, a basic understanding of modern corporate compensation structures must first be realized. Along with understanding these compensation structures, knowledge of the views on economic rent and optimal contracting must also be developed. Corporate Compensation Structures Corporate compensation structures have changed drastically within the past several...
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...CASE STUDY: The Debate over CEO Compensation The most visible and highly paid person in most corporations is the chief executive officer (CEO). CEO compensation is particularly important to firms for three reasons. First, the compensation package is likely to be important in attracting and retaining good CEOs. Second, the form of the pay contract is likely to help determine whether the CEO focuses on value maximization or some other objective. Third, employees throughout the organization carefully follow their CEO’s pay. Important morale problems can occur when employees think that the CEO is overpaid. For instance, employees complain bitterly when they are asked to take pay cuts because the company is in trouble, yet at the same time the CEO gets a big raise. Controversy over CEO pay has increased substantially in recent years. One charge is that the level of CEO pay is too high. CEO pay is so huge that people don’t believe they deserve it. It is easy to pint to many ECOS who report compensation in the millions of dollars (reported compensation figures typically include salary and bonus payments, as well as gains from the exercise of stock options). Consider the following two examples. Investors were outraged when E Trade Group Inc. disclosed it had paid out a $77 million compensation package for CEO Christos M. Cotsakos in 2001- a year in which the financial-services company lost $242 million. When Cotsakos pledged later to return $21 million, the complaints...
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...Concept of Compensation The literal meaning of compensation is to counter-balance. In the case of human resource management, Compensation is referred to as money and other benefits received by an employee for providing services to his employer. Money and benefit received may be in different forms-base compensation in money form and various benefits, which may be associate with employee, service to the employer receive or benefits, he enjoy lieu of such payment. Cascio has defined compensation as follows: “Compensation includes direct cash payment, indirect payment in the form of employee benefits and incentives to motivate employee to strive higher level of productivity”. Based on above description of compensation, we may identify its various components as follows: 1. Wage and salary. 2. Incentives. 3. Fringe Benefits. 4. Perquisites. COMPENSATION MANAGEMENT: Compensation management, also known as wage and salary administration, remuneration management, or reward management, is concerned with designing and implementing total compensation package. The traditional concept of wage and salary administration emphasized on only determination of wage and salary administration structure in organizational settings. However, over the passage of time, many more forms of compensation, as discussed earlier, entered the business field which necessitate to take wage and salary administration in comprehensive way with suitable change in its nomenclature . Bench has defined...
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...are expected to do their job well in the absence of bonuses? Introduction Nowadays, in many companies, executives receives more and more incentives like bonuses if they do their job well. In these same companies, it’s a rare fact that workers have bonuses. Equality between executives and other employees’ compensation is often not respected, most of workers find the bonus system very unfair. That bring us to the following question: should executives have to be offered bonuses to do their job well when other employees are expected to do their job well in the absence of bonuses? In this paper we will see that executives have to be offered bonuses to do their job well only if others workers are expected to do their job well with the same advantage of bonuses as reward. Through this paper, we will see that bonuses can leads workers to be jealous of executives, we also see that bonuses improve the company performance and finally we will see that bonuses make the workers more devoted to their company. Thesis statement Executives have to be offered bonuses to do their job well only if others workers are expected to do their job well with the same advantage of bonuses as reward. To avoid any jealousy, any unfairness, all workers should have bonuses to do their job well. If executives are reward by...
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...participation, complicity and motivation to support the period of transition, requires some understanding of the basic factors and common methods used for employee motivation. Evidence suggests that improvement in job satisfaction is directly correlated to improvements in employee performance. Employee satisfaction, though, is a complex issue. A number of different types of human resource management systems have been put into place in an effort to improve employee satisfaction, including shorter workdays, shorter workweeks, and improvements in compensation packages. Some theorists have argued, though, that of all of these efforts, compensation improvements have had the greatest impact on performance outcomes of all of the efforts put in place (Lawler and Worley, 2006). This review of literature assesses the impacts of motivational strategies, especially in the presence of workplace dissatisfaction, to provide support for compensation motivators in a transitioning workplace. Literature Summary Since the late 1960s, theorists like Gary Becker have attempted to determine the best ways to retain and motivate a workforce population. Becker (1967) defended the use of the concept of human capital, a concept easily applied to the modernizing and...
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...Journal of Business Ethics (2009) 85:147–156 DOI 10.1007/s10551-008-9934-6 Ó Springer 2008 What’s Wrong with Executive Compensation? Jared D. Harris ABSTRACT. I broadly explore the question by examining several common criticisms of CEO pay through both philosophical and empirical lenses. While some criticisms appear to be unfounded, the analysis shows not only that current compensation practices are problematic both from the standpoint of distributive justice and fairness, but also that incentive pay ultimately exacerbates the very agency problem it is purported to solve. KEY WORDS: executive compensation, distributive justice, pay disparity, incentive alignment Introduction Few academic theories have been adopted as widely as the application of agency theory (Jensen and Meckling, 1976) to the structure of executive pay in modern corporations. After prominent suggestions that the inherent conflict of interest that exists between stockholders and corporate managers – or ‘agency problem’ – could be mitigated through the structure of managerial incentives (e.g., Jensen and Murphy, 1990a), the prevalence and size of stock option grants to senior executives have expanded increasingly and substantially (Hall and Murphy, Jared D. Harris, Assistant Professor teaches both Ethics and Strategy courses in Darden’s MBA program, and a doctoral seminar on corporate governance and ethics. His research centers on the interplay between ethics and strategy, with a particular focus...
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...CEO Compensation: A Display of Obscenity For years, the great debate over whether or not CEOs are overpaid has raged on. Some studies show that the average CEO in the US was paid $10 million to $15 million 2005[1]. Proponents argue that this level of compensation (compensation is the total amount of remuneration received by an employee, including salary, stock options, etc.) is necessary to obtain and retain the world’s greatest leaders, whole opponents argue the exorbitant amounts aren’t justified. However, in a world where economies are hurting, it’s hard to justify why CEO compensation is rising, and fast. While CEOs are hard-working, intelligent leaders who’ve worked up to their position, the rising levels of CEO compensation are unreasonable and almost unethical given the current state of the world economy. To put it simply, CEOs are accountable for the performance of their company, but in the end they are still managers. It is important that as a society, CEO compensation is better controlled and more reasonably determined. The high CEO compensation that exists today outlines the disparity of income between CEOs and their workers. CEOs pulling in millions while their workers struggle to get by is increasingly becoming an issue. A CEO working for a Fortune 50 company makes 213 times the average worker[2]. For instance, the CEO of Walmart pulls in $16,270,000 while the median worker makes just $22,700[3]. One of the worst CEO-to-worker pay ratios is found at UnitedHealth...
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...A PROJECT REPORT ON COMPENSATION MANAGEMENT IN HETERO DRUGS LIMITED SANATHNAGAR, HYDERABAD In partial fulfillment of the requirement for the award of the degree of MASTER OF HUMAN RESOURCE MANAGEMENT Submitted by G.VARALAKSHMI [pic] K.G.R.L.PG COLLEGE, BHIMAVARAM. ANDHRA UNVERISTY VISKAPATANAM (2009-2011) DECLARATION I here by declare that this project report titled a study on “COMPENSATION MANAGEMENT” in HETERO DRUGS LIMITED has been carried out by me Submitted in partial fulfillment of the award of the degree of “ MASTER OF HUMAN RESOURCE MANAGEMENT”, in K.G.R.L .PG COLLEGE BHIMAVARAM. PLACE: DATE: (G.VARALAKSHMI) PREFACE In today’s changing world on should aware of latest trends market demand then only survival can be possible and can compete with others. The concept of “compensation management” plays a significant role in HUMAN RESOURECE MANAGEMENT. COMPENSATION MANAGEMENT is defined as “ systematic approach to provide monetary value to employee in exchange of work performed” A study has been conducted on “COMPANSATION MANAGEMENT” and a Questionnaire is prepared to conduct survey to know how it is working in “HETERO DRUGS LIMITED”. A through analysis is presented in this report on the study conducted with the help of graphical representation. ACKNOWLEDGEMENT I take the opportunity to express...
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