Chapt' 1

1
Chapt. 1

• Compensation Organizational Strategy
• Support the strategic plans/actions of
  organization
• Accomplishing organizational strategy begins with
  determining
• Work that must be performed
• Kinds and levels of knowledge/skill required
• Quality of people needed
• Rewards the organization can offer

2
Social Structure and Income

• Upper
• Ultra rich gt 1,000,000 lt .05 of 1
• Wealthy 250,000-1,000,000 lt 2
• Middle
• Upper Middle 100,000-250,000 6
• Middle Middle 60,000-100,000 25
• Lower Middle 35,000-60,000 37
• Lower
• Working Poor 19,000-35,000 17
• Poverty to 19,000 13
• Family of Four

3
Chapt. 2

• Page 16 Compensation System
• Page 18 Compensation Dimensions/Components
• Page 21 Noncompensation System

4
Chapt. 3

• Major parts of compensation program
• Base wages and salaries
• Wage and salary add-ons
• Incentive programs
• Benefits services

5
Determining Rates of Pay

• Kinds/levels of KSAs
• Kind of business
• Page 28 29
• Union-nonunion status
• Capital intensive vs. labor intensive
• Size of business
• Philosophy of management

6

• Total compensation package
• Geographic location
• Page 31
• Supply demand of labor
• Profitability of firm
• Employment stability
• Gender difference
• Employee tenure performance

7
Jobs Pay in U.S.

• Global environment
• Page 35
• Deregulation takeovers
• Airlines
• Trucking
• Communications

8
Major Economic Theories

• Page 39
• Classical wage theories
• Wage control theories
• Justification theories
• Behavioral economics theories
• Organizational economics theories

9

• Wage supply/demand theory
• Page 42