6. Compensation Management and Other HRM Functions Pay rates affect selectivity Selection Selection standards affect level of pay required Pay can motivate training Training and Development Increased knowledge leads to higher pay Training and development may lead to higher pay Compensation Management A basis for determining employee’s rate of pay Aid or impair recruitment Recruitment Supply of applicants affects wage rates Low pay encourages unionization Labor Relations Pay rates determined through negotiation
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25. Different Job Evaluation Systems JOB AS JOB PARTS BASIS FOR A WHOLE OR FACTORS COMPARISON (NONQUANTITATIVE ) (QUANTITATIVE) Job vs. job Job ranking Factor comparison system system Job vs. scale Job classification Point system system SCOPE OF COMPARISON
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37. Government Regulation of Compensation (Federal Wage Laws) Davis-Bacon Act 1931 Required minimum wage, prevailing wage rates, 1 ½ overtime premium payments by federal contractors. Walsh-Healy Act 1936 Required overtime payments after 8 daily or 40 regular work hours for workers on federal contracts. Fair Labor Standards Act (FLSA) 1938 (as Amended) Interstate commerce clause used to cover workers except agricultural and exempted (managerial) employees, child labor (under 16) is prohibited.
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