This document discusses various considerations for designing a base pay structure, including establishing pay policy guidelines, designing pay grades, determining pay rates across grades, and displaying internal and external job data. Key decisions include setting minimum and maximum pay levels, progression between grades, whether to use one or multiple pay structures, and how to account for different occupational groups. The goal is to develop a pay structure that attracts, retains, and motivates employees based on competitive market rates and internal equity.
This document discusses strategies for effectively managing base pay. It outlines three primary approaches to determining pay: merit pay, person-based pay, and results-based pay. Merit pay bases pay on an employee's role and performance, while person-based pay considers an employee's knowledge, skills, and abilities. The document focuses on merit pay and person-based pay approaches. It provides guidelines and considerations for implementing merit pay and combining it with performance-based cash awards. Person-based pay can tie pay to an employee's skills, knowledge, or credentials. Effective base pay strategies must consider internal equity, external competitiveness, and link pay clearly to performance.
Chapter EighteenManagement Making It WorkChapter OutlineMan.docxchristinemaritza
Chapter Eighteen
Management: Making It Work
Chapter Outline
Managing Labor Costs and Revenues
Managing Labor Costs
Number of Employees (a.k.a.: Staffing Levels or Headcount)
Hours
Benefits
Average Cash Compensation (Fixed and Variable Components)
Budget Controls: Top Down
Budget Controls: Bottom Up
Embedded (Design) Controls
Managing Revenues
Using Compensation to Retain (and Recruit) Top Employees
Managing Pay to Support Strategy and Change
Communication: Managing the Message
Say What? (Or, What to Say?)
Opening the Books
Structuring the Compensation Function and Its Roles
Centralization–Decentralization (and/or Outsourcing)
Ethics: Managing or Manipulating?
Your Turn: Communication by Copier
Still Your Turn: Managing Compensation Costs, Headcount, and Participation/Communication Issues
This chapter is about making it work: ensuring that the right people get the right pay for achieving the right objectives in the right way. The greatest pay system design in the world is useless without competent management. So why bother with a formal system at all? If management is that important, why not simply let every manager pay whatever works best? Such total decentralization of decision making could create a chaotic array of rates. Managers could use pay to motivate behaviors that achieved their own immediate objectives, not necessarily those of the organization. Employees could be treated inconsistently and unfairly.
This was the situation in the United States in the early 1900s. The “contract system” made highly skilled workers managers as well as workers. The employer agreed to provide the “contractor” with floor space, light, power, and the necessary
666
raw or semifinished materials. The contractor hired and paid labor.1 Pay inconsistencies for the same work were common. Some contractors demanded kickbacks from employees’ paychecks; many hired their relatives and friends. Dissatisfaction and grievances were widespread, eventually resulting in legislation that outlawed the arrangement.
Corruption and financial malfeasance were also part of decentralized decision making in the early 1900s. Some see parallels today. To help avoid history repeating itself and to redeem HR (and compensation) vice presidents from the image of unindicted coconspirators, the compensation system should be managed to achieve the objectives in the pay model: efficiency, fairness, and compliance.
Any discussion of managing pay must again raise the basic questions: So what is the impact of the decision or technique? Does it help the organization achieve its objectives? How?
Although many pay management issues have been discussed throughout the book, a few remain to be called out explicitly. These include (1) managing labor costs, (2) managing revenues, (3) communication, and (4) designing the compensation department.
MANAGING LABOR COSTS AND REVENUES
Financial planning is integral to managing compensation. As we noted in Chapter 1, compensation decisions influence organizati ...
certified compensation and benefits manager sample-materialVskills
The sample course material covers the following topics as under.
Introduction
Objectives of compensation management
Principles of compensation formulation
Types of wages and wage policies
Procedure and practices for wage determination
Compensation decisions
Compensation benchmarking
Compensation trends and practices in India
Get the complete material. Check more details on the below link.
http://www.vskills.in/certification/Human-Resources/Certified-Compensation-and-Benefits-Manager
Strategic Remuneration - Using remuneration to enhance performanceGeorge Vorster
This document discusses different remuneration strategies used by organizations, including market-based remuneration and merit pay. Market-based remuneration focuses on internal parity and paying employees based on their job grade, but does not link pay to individual performance. Merit pay determines base salary based on job ranking and gives merit increases based on performance judgments, but research shows employees often do not believe their pay is truly linked to performance due to difficulties in objective measurement and potential for favoritism. Neither strategy fully achieves the goals of being perceived as fair by employees and motivating high performance.
The document discusses compensation and benefits in organizations. It defines compensation as financial returns and tangible benefits employees receive as part of employment. Compensation includes base salary, short-term incentives, and benefits like insurance and paid time off. The document outlines factors in determining compensation structures, rational pay levels, achieving equity in pay, and developing compensation plans.
111021, 137 PM Commentary - HRMN 395 7381 The Total RewardsBenitoSumpter862
11/10/21, 1:37 PM Commentary - HRMN 395 7381 The Total Rewards Approach to Compensation Management (2218)
https://learn.umgc.edu/d2l/le/content/615465/viewContent/22667815/View 1/19
Module 2: Core Elements of Monetary Rewards
Topics
Topic 1: What are Monetary Rewards?
Topic 2: Key Elements of Analysis and Documentation
Topic 3: Assessing and Rewarding Performance
Topic 4: Regulatory Aspects of Monetary Rewards
Topic 5: Philosophy of Market Positioning and Link to Total Rewards
Topic 6: Conclusions
Topic 1: What are Monetary Rewards?
The total rewards approach to compensation management is strategically planning a
targeted reward package to successfully attract, retain, and motivate segmented
populations of employees who possess the requisite knowledge, skills, and abilities (KSAs)
needed to achieve the organization's objectives. Table 1.2 in module 1 illustrates the
interdependent relationship of the components of the total rewards approach to
compensation. The table shares the three major components of total rewards, including
the monetary, non-monetary, and other elements of the work experience, which combine
strategically for the total rewards philosophy for the organization. Column 1 in Table 2.1
below shares many of the monetary rewards organizations offer today and will be
described in this module.
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#I
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#II
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#III
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#IV
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#V
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#VI
11/10/21, 1:37 PM Commentary - HRMN 395 7381 The Total Rewards Approach to Compensation Management (2218)
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Table 2.1 Three Elements of the Total Rewards Model
Monetary Rewards
Non-monetary
Rewards
Work Experience
Base Pay
Income Protection
Benefits
Values of the Organization
Variable Pay Medical Insurance
Community (Individual
and Organizational)
Merit and Cost of
Living Increases
Vision and Dental Recognition
Retirement Savings Disability Training and Development
Performance
Feedback
Life Insurance Promotions
Deferred
Compensation
Paid Time Off Sense of Accomplishment
Day Care
Employee
Assistance
Program
Health Related
Programs
Tuition Assistance
Monetary Rewards
Monetary rewards are, unmistakably, a vital element of total rewards. Christofferson &
King (2006, p. 27) describe mometary rewards as "the pay provided by an employer to an
employee for services rendered ...
111021, 137 PM Commentary - HRMN 395 7381 The Total RewardsSantosConleyha
11/10/21, 1:37 PM Commentary - HRMN 395 7381 The Total Rewards Approach to Compensation Management (2218)
https://learn.umgc.edu/d2l/le/content/615465/viewContent/22667815/View 1/19
Module 2: Core Elements of Monetary Rewards
Topics
Topic 1: What are Monetary Rewards?
Topic 2: Key Elements of Analysis and Documentation
Topic 3: Assessing and Rewarding Performance
Topic 4: Regulatory Aspects of Monetary Rewards
Topic 5: Philosophy of Market Positioning and Link to Total Rewards
Topic 6: Conclusions
Topic 1: What are Monetary Rewards?
The total rewards approach to compensation management is strategically planning a
targeted reward package to successfully attract, retain, and motivate segmented
populations of employees who possess the requisite knowledge, skills, and abilities (KSAs)
needed to achieve the organization's objectives. Table 1.2 in module 1 illustrates the
interdependent relationship of the components of the total rewards approach to
compensation. The table shares the three major components of total rewards, including
the monetary, non-monetary, and other elements of the work experience, which combine
strategically for the total rewards philosophy for the organization. Column 1 in Table 2.1
below shares many of the monetary rewards organizations offer today and will be
described in this module.
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#I
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#II
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#III
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#IV
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#V
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#VI
11/10/21, 1:37 PM Commentary - HRMN 395 7381 The Total Rewards Approach to Compensation Management (2218)
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Table 2.1 Three Elements of the Total Rewards Model
Monetary Rewards
Non-monetary
Rewards
Work Experience
Base Pay
Income Protection
Benefits
Values of the Organization
Variable Pay Medical Insurance
Community (Individual
and Organizational)
Merit and Cost of
Living Increases
Vision and Dental Recognition
Retirement Savings Disability Training and Development
Performance
Feedback
Life Insurance Promotions
Deferred
Compensation
Paid Time Off Sense of Accomplishment
Day Care
Employee
Assistance
Program
Health Related
Programs
Tuition Assistance
Monetary Rewards
Monetary rewards are, unmistakably, a vital element of total rewards. Christofferson &
King (2006, p. 27) describe mometary rewards as "the pay provided by an employer to an
employee for services rendered ...
This document discusses various considerations for designing a base pay structure, including establishing pay policy guidelines, designing pay grades, determining pay rates across grades, and displaying internal and external job data. Key decisions include setting minimum and maximum pay levels, progression between grades, whether to use one or multiple pay structures, and how to account for different occupational groups. The goal is to develop a pay structure that attracts, retains, and motivates employees based on competitive market rates and internal equity.
This document discusses strategies for effectively managing base pay. It outlines three primary approaches to determining pay: merit pay, person-based pay, and results-based pay. Merit pay bases pay on an employee's role and performance, while person-based pay considers an employee's knowledge, skills, and abilities. The document focuses on merit pay and person-based pay approaches. It provides guidelines and considerations for implementing merit pay and combining it with performance-based cash awards. Person-based pay can tie pay to an employee's skills, knowledge, or credentials. Effective base pay strategies must consider internal equity, external competitiveness, and link pay clearly to performance.
Chapter EighteenManagement Making It WorkChapter OutlineMan.docxchristinemaritza
Chapter Eighteen
Management: Making It Work
Chapter Outline
Managing Labor Costs and Revenues
Managing Labor Costs
Number of Employees (a.k.a.: Staffing Levels or Headcount)
Hours
Benefits
Average Cash Compensation (Fixed and Variable Components)
Budget Controls: Top Down
Budget Controls: Bottom Up
Embedded (Design) Controls
Managing Revenues
Using Compensation to Retain (and Recruit) Top Employees
Managing Pay to Support Strategy and Change
Communication: Managing the Message
Say What? (Or, What to Say?)
Opening the Books
Structuring the Compensation Function and Its Roles
Centralization–Decentralization (and/or Outsourcing)
Ethics: Managing or Manipulating?
Your Turn: Communication by Copier
Still Your Turn: Managing Compensation Costs, Headcount, and Participation/Communication Issues
This chapter is about making it work: ensuring that the right people get the right pay for achieving the right objectives in the right way. The greatest pay system design in the world is useless without competent management. So why bother with a formal system at all? If management is that important, why not simply let every manager pay whatever works best? Such total decentralization of decision making could create a chaotic array of rates. Managers could use pay to motivate behaviors that achieved their own immediate objectives, not necessarily those of the organization. Employees could be treated inconsistently and unfairly.
This was the situation in the United States in the early 1900s. The “contract system” made highly skilled workers managers as well as workers. The employer agreed to provide the “contractor” with floor space, light, power, and the necessary
666
raw or semifinished materials. The contractor hired and paid labor.1 Pay inconsistencies for the same work were common. Some contractors demanded kickbacks from employees’ paychecks; many hired their relatives and friends. Dissatisfaction and grievances were widespread, eventually resulting in legislation that outlawed the arrangement.
Corruption and financial malfeasance were also part of decentralized decision making in the early 1900s. Some see parallels today. To help avoid history repeating itself and to redeem HR (and compensation) vice presidents from the image of unindicted coconspirators, the compensation system should be managed to achieve the objectives in the pay model: efficiency, fairness, and compliance.
Any discussion of managing pay must again raise the basic questions: So what is the impact of the decision or technique? Does it help the organization achieve its objectives? How?
Although many pay management issues have been discussed throughout the book, a few remain to be called out explicitly. These include (1) managing labor costs, (2) managing revenues, (3) communication, and (4) designing the compensation department.
MANAGING LABOR COSTS AND REVENUES
Financial planning is integral to managing compensation. As we noted in Chapter 1, compensation decisions influence organizati ...
certified compensation and benefits manager sample-materialVskills
The sample course material covers the following topics as under.
Introduction
Objectives of compensation management
Principles of compensation formulation
Types of wages and wage policies
Procedure and practices for wage determination
Compensation decisions
Compensation benchmarking
Compensation trends and practices in India
Get the complete material. Check more details on the below link.
http://www.vskills.in/certification/Human-Resources/Certified-Compensation-and-Benefits-Manager
Strategic Remuneration - Using remuneration to enhance performanceGeorge Vorster
This document discusses different remuneration strategies used by organizations, including market-based remuneration and merit pay. Market-based remuneration focuses on internal parity and paying employees based on their job grade, but does not link pay to individual performance. Merit pay determines base salary based on job ranking and gives merit increases based on performance judgments, but research shows employees often do not believe their pay is truly linked to performance due to difficulties in objective measurement and potential for favoritism. Neither strategy fully achieves the goals of being perceived as fair by employees and motivating high performance.
The document discusses compensation and benefits in organizations. It defines compensation as financial returns and tangible benefits employees receive as part of employment. Compensation includes base salary, short-term incentives, and benefits like insurance and paid time off. The document outlines factors in determining compensation structures, rational pay levels, achieving equity in pay, and developing compensation plans.
111021, 137 PM Commentary - HRMN 395 7381 The Total RewardsBenitoSumpter862
11/10/21, 1:37 PM Commentary - HRMN 395 7381 The Total Rewards Approach to Compensation Management (2218)
https://learn.umgc.edu/d2l/le/content/615465/viewContent/22667815/View 1/19
Module 2: Core Elements of Monetary Rewards
Topics
Topic 1: What are Monetary Rewards?
Topic 2: Key Elements of Analysis and Documentation
Topic 3: Assessing and Rewarding Performance
Topic 4: Regulatory Aspects of Monetary Rewards
Topic 5: Philosophy of Market Positioning and Link to Total Rewards
Topic 6: Conclusions
Topic 1: What are Monetary Rewards?
The total rewards approach to compensation management is strategically planning a
targeted reward package to successfully attract, retain, and motivate segmented
populations of employees who possess the requisite knowledge, skills, and abilities (KSAs)
needed to achieve the organization's objectives. Table 1.2 in module 1 illustrates the
interdependent relationship of the components of the total rewards approach to
compensation. The table shares the three major components of total rewards, including
the monetary, non-monetary, and other elements of the work experience, which combine
strategically for the total rewards philosophy for the organization. Column 1 in Table 2.1
below shares many of the monetary rewards organizations offer today and will be
described in this module.
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#I
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#II
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#III
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#IV
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#V
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#VI
11/10/21, 1:37 PM Commentary - HRMN 395 7381 The Total Rewards Approach to Compensation Management (2218)
https://learn.umgc.edu/d2l/le/content/615465/viewContent/22667815/View 2/19
Table 2.1 Three Elements of the Total Rewards Model
Monetary Rewards
Non-monetary
Rewards
Work Experience
Base Pay
Income Protection
Benefits
Values of the Organization
Variable Pay Medical Insurance
Community (Individual
and Organizational)
Merit and Cost of
Living Increases
Vision and Dental Recognition
Retirement Savings Disability Training and Development
Performance
Feedback
Life Insurance Promotions
Deferred
Compensation
Paid Time Off Sense of Accomplishment
Day Care
Employee
Assistance
Program
Health Related
Programs
Tuition Assistance
Monetary Rewards
Monetary rewards are, unmistakably, a vital element of total rewards. Christofferson &
King (2006, p. 27) describe mometary rewards as "the pay provided by an employer to an
employee for services rendered ...
111021, 137 PM Commentary - HRMN 395 7381 The Total RewardsSantosConleyha
11/10/21, 1:37 PM Commentary - HRMN 395 7381 The Total Rewards Approach to Compensation Management (2218)
https://learn.umgc.edu/d2l/le/content/615465/viewContent/22667815/View 1/19
Module 2: Core Elements of Monetary Rewards
Topics
Topic 1: What are Monetary Rewards?
Topic 2: Key Elements of Analysis and Documentation
Topic 3: Assessing and Rewarding Performance
Topic 4: Regulatory Aspects of Monetary Rewards
Topic 5: Philosophy of Market Positioning and Link to Total Rewards
Topic 6: Conclusions
Topic 1: What are Monetary Rewards?
The total rewards approach to compensation management is strategically planning a
targeted reward package to successfully attract, retain, and motivate segmented
populations of employees who possess the requisite knowledge, skills, and abilities (KSAs)
needed to achieve the organization's objectives. Table 1.2 in module 1 illustrates the
interdependent relationship of the components of the total rewards approach to
compensation. The table shares the three major components of total rewards, including
the monetary, non-monetary, and other elements of the work experience, which combine
strategically for the total rewards philosophy for the organization. Column 1 in Table 2.1
below shares many of the monetary rewards organizations offer today and will be
described in this module.
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#I
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#II
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#III
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#IV
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#V
https://leocontent.umgc.edu/content/umuc/tus/hrmn/hrmn395/2218/modules/m2-module-2/s3-commentary.html?ou=615465#VI
11/10/21, 1:37 PM Commentary - HRMN 395 7381 The Total Rewards Approach to Compensation Management (2218)
https://learn.umgc.edu/d2l/le/content/615465/viewContent/22667815/View 2/19
Table 2.1 Three Elements of the Total Rewards Model
Monetary Rewards
Non-monetary
Rewards
Work Experience
Base Pay
Income Protection
Benefits
Values of the Organization
Variable Pay Medical Insurance
Community (Individual
and Organizational)
Merit and Cost of
Living Increases
Vision and Dental Recognition
Retirement Savings Disability Training and Development
Performance
Feedback
Life Insurance Promotions
Deferred
Compensation
Paid Time Off Sense of Accomplishment
Day Care
Employee
Assistance
Program
Health Related
Programs
Tuition Assistance
Monetary Rewards
Monetary rewards are, unmistakably, a vital element of total rewards. Christofferson &
King (2006, p. 27) describe mometary rewards as "the pay provided by an employer to an
employee for services rendered ...
The document discusses traditional and modern pay systems, as well as the process for establishing pay plans.
1. Traditional pay systems are based on cost of living, seniority, and evenly distributed wages. Modern pay systems emphasize variable pay based on business, individual, team and organizational performance.
2. Establishing effective pay plans involves analyzing factors like the job market, designing compensation to attract and retain talent, and linking pay to performance to optimize costs.
3. Regular evaluation and review of pay plans is needed to ensure plans stay aligned with business strategy and changing internal and external conditions.
A pay structure sets pay rates or ranges for jobs based on their internal value determined through job evaluation and external market rates. It aims to maintain competitive and equitable pay levels. A pay structure has elements like pay schedules, grades, and ranges. Designing a pay structure involves job analysis, evaluation, setting a pay policy, budgeting payroll, researching average salaries, and establishing a pay grade system to group positions by compensation level based on qualifications.
This document defines and describes different types of pay structures that organizations can use as part of their compensation strategies. It discusses spot salaries, individual pay ranges, narrow-graded structures, broad-graded structures, broadbanding, pay spines, job families, and career-grade structures. The objectives of establishing a pay structure are to align compensation with business strategy, ensure fairness and equity, develop clear pay processes, and help employees understand how pay is managed. Different structures suit organizations depending on factors like size, job types, and business objectives.
Foundations of a Compensation StrategyThe most effective compens.docxlianaalbee2qly
Foundations of a Compensation Strategy
The most effective compensation strategy is one that develops a clear link between the following components:
Job Description (i.e., work that an employee is expected to perform).
Performance Evaluation (i.e., work that the employee has performed).
External Salary Survey and Internal Salary Comparison (i.e., pay provided to each employee).
Examine the interrelationship between these three components by describing the purpose of each component and how it affects the others. Then explain how all three components would be used to determine the compensation for an employee. Your examination should include a salary evaluation for a position you are familiar with (Administrative Assistant, Human Resource Manager, Maintenance Worker, etc). The salary evaluation should give results for each of the three components and detail how pay is finally determined for this position based on the three components.
Example of the salary evaluation portion of your analysis:
Purchasing Manager.
Primary functions from the Job Description:
To plan, direct, and coordinate the activities of buyers, purchasing officers, and related workers involved in purchasing materials, products and services.
Organizational performance evaluation system:
Outstanding – 6% Increase
Exceeds expectations – 4% Increase
Meets expectations – 2% Increase
Does not meet expectations – No Increase
External Salary Survey:
(salary survey, which you can typically obtain online) Monthly salary range at $4,300 - $5,200.
Internal Salary Comparison:
(the relationship of this position to similar positions in your organization) Position is similar to Accounting Manager, and should be paid within the same monthly salary range of $4,400 - $4,900.
Submit your analysis in a two- to three-page paper formatted to proper APA 6th Edition specifications. Include a minimum of two scholarly references to support your analysis.
INFORMATION---------
Designing, implementing, and managing effective and appropriate pay structure architecture allows an organization to attract and retain key talent and control costs regardless of business strategy. How does one know which structure is right for the organization? The answer to this question is not an easy one but can be answered with a series of questions: What is the mission of the organization? What does the organization expect to accomplish through the pay structure? What are the compensable factors associated with the work being done? What are the internal equity factors? What is the competitive environment (that is what is the competition doing and paying)? What is the organization’s size? What is its structure? How many different jobs (classifications)? What is the nature of the work done? Is a union involved? (I can hear you already: So many questions to answer and so little time to answer them.) But you can see these and many more questions needs to be answered before you can get to work on a structure. .
9 Salary Surveys A Snapshot Market data obtained from salary surv.docxsleeperharwell
Here is a 4-page response to the questions in APA format with citations:
Intellectual Property, Counterfeiting, and National Security Concerns
Intellectual property (IP) refers to creations of the mind such as inventions, literary and artistic works, designs, and symbols, names and images used in commerce (World Intellectual Property Organization, n.d.). Counterfeit merchandise negatively impacts the U.S. economy by undermining innovation, threatening jobs, and depriving governments of tax revenue (U.S. Department of Homeland Security, 2022). According to the U.S. Government Accountability Office (2013), counterfeit goods cost the U.S. economy up to
Project report on compensation and benefitssukesh gowda
This document provides an overview of compensation and benefits. It discusses compensation as an exchange between employees and employers, with employees receiving financial and non-financial rewards in return for their work. It also discusses the objectives of compensation systems, including attracting, retaining, and motivating employees, as well as ensuring fairness and equity. Key factors that influence compensation levels and structures are then outlined, including labor market conditions, legislation, collective bargaining agreements, management attitudes, and an organization's ability to pay.
The document discusses the objectives and principles of compensation. It aims to acquire qualified personnel, retain current employees, reward desired behaviors, control costs, and comply with legal regulations. There are several classifications of compensation objectives including equity, efficiency, macroeconomic stability, and optimal labor allocation. Compensation is formulated based on external market rates, individual worth, and salary. Reward programs are designed to motivate employees and support business goals, while recognition programs provide psychological benefits. Merit pay increases should be separated from reward programs to avoid entitlement and emphasize excellence over competency. Effective reward programs clearly define goals, desired behaviors, measurements, appropriate rewards, and ensure communication to employees. Common types of reward programs include variable pay, bonuses, profit sharing, and gain
The document discusses pay compression, which occurs when there is little difference in pay between employees regardless of skills or experience. It identifies several root causes, including new hires being paid more than long-term employees and inefficient merit programs. The consequences of compression include low morale and potential legal issues. Solutions proposed include revising grade structures, making equity adjustments, improving pay administration, and careful consideration of new hire pay rates. An example case study outlines Astron Solutions' process for auditing a company and developing a plan to address identified compression issues.
Broadbanding involves collapsing many salary grades into fewer broad pay bands with wider salary ranges. It aims to increase workforce skills, support career development, and reduce administration costs. Broadbanding appeals to organizations undergoing rapid change seeking increased speed and flexibility. It provides less formal structure by removing career ladder rungs and encouraging employees to earn more through developing new skills or competencies. However, broadbanding may not fit all organizational cultures and requires attention to support mechanisms to succeed.
This document discusses key aspects of developing an organizational pay structure, including:
1) Pay structures determine the relative pay of jobs and pay levels, which are attached to jobs not individuals.
2) Developing pay levels involves considering both product market and labor market competition.
3) Developing a job structure involves job evaluation and compensable factors, while a pay structure groups jobs into pay grades.
4) Current challenges include problems with job-based structures and a shift toward competency-based pay.
This document discusses key aspects of developing an organizational pay structure, including:
1) Pay structures determine the relative pay of jobs and pay levels, which are attached to jobs not individuals.
2) Developing pay levels involves considering both product market and labor market competition.
3) Developing a job structure involves job evaluation and compensable factors, while a pay structure groups jobs into pay grades.
4) Current challenges include problems with job-based structures and a shift toward competency-based pay.
Compensation management is an integral part of managing an organization and involves designing total compensation packages for employees. It aims to assist with recruitment, job performance, and satisfaction through monetary and non-monetary benefits. Compensation includes basic wages or salaries as well as other components like dearness allowance, incentives, bonuses, commissions, benefits, and profit sharing. Effective compensation management contributes to an organization's success by attracting and retaining quality employees while managing costs. It is important for managers to appreciate the value of competitive pay and investing in human resources.
Jack Welch believed that if you pick the right people and give them opportunities to grow, while also tying compensation and rewards to performance, you don't need to closely manage employees. The document discusses compensation management and how paying employees the right compensation is motivating and leads to better performance. It also covers factors that determine compensation from both the employer and employee perspective.
Journal of Economic Perspectives—Volume 32, Number 3—Summer 20.docxcroysierkathey
Journal of Economic Perspectives—Volume 32, Number 3—Summer 2018—Pages 195–214
L abor is supplied because most of us must work to live. Indeed, it is called “work” in part because without compensation, the overwhelming majority of workers would not otherwise perform the tasks. Of course, work can be
rewarding and empowering, which adds to work’s compensation. However, absent
compensation, work would be much rarer and confined to those activities that are
enjoyable, but not necessarily most needed by society.
The evidence that compensation affects worker behavior is overwhelming.
At the most basic level, almost all of the labor component of GDP that is derived
from work is paid rather than voluntary. Beyond that, the literature is full of exam-
ples where manipulating the pay structure alters worker behavior, by affecting
either hours of work or output associated with it. Incentives are a necessary part
of inducing the work that makes an economy go, even when those incentives
must be self-imposed. Economists have understood the importance of incentives
for decades; for example, they discussed it in the context of Soviet-style work
environments.1 The theory developed further during the 1970s and 1980s with
modern agency theory, with early examples being Ross (1973), Lazear (1979, 1986),
and Hölmstrom (1979).
1 See Bergson (1944, 1978) and Weitzman (1984). Bergson discusses the importance of incentives within
command economies towards the close of The Structure of Soviet Wages: A Study in Socialist Economics
(1944, p. 204):
Compensation and Incentives in the
Workplace
■ Edward P. Lazear is the Davies Family Professor of Economics at the Graduate School of
Business, and the Morris A. and Nona Jean Cox Senior Fellow at the Hoover Institution,
Stanford University, Stanford, California.
† For supplementary materials such as appendices, datasets, and author disclosure statements, see the
article page at
https://doi.org/10.1257/jep.32.3.195 doi=10.1257/jep.32.3.195
Edward P. Lazear
196 Journal of Economic Perspectives
Providing incentives can be important, indeed game-changing. In the study of
Safelite Auto Glass installers discussed later (Lazear 2000b), a switch from hourly
wage pay to a piece rate structure had an almost immediate and enormous effect
of increasing productivity by 44 percent. The study showed both that changing a
compensation scheme could have large effects and that economic theory does well
in predicting these outcomes.
Personnel economics in general and the theory of incentives in particular has
made its way into business. The combination of the academic literature, the popular
press, and cohorts of students who have been schooled in the new approaches and
who now are managers has influenced the way in which business is practiced. Some
Silicon Valley companies like Success Factors and Merced Systems use these methods
explicitly in providing expertise to other companies. Others, like ...
Pressures on margins are relentless. The need to reduce costs is constant. No business can afford to take its eyes off these fundamentals. For most companies the costs of employing people are greater than for any other single
resource. Effective management demands that managers strive for optimum performance at least cost.
Our approach to reward is based on this essential proposition. We focus on making certain that strategies for the pay and benefits of all employees are directed at adding value and are concentrated on the bottom line. This means the design and implementation of robust systems for pay that aim to reduce costs and achieve better returns from firms’ investment in people.
This document discusses factors that influence wage and salary structures and administration. It identifies six main factors: productivity, an organization's capacity to pay, managerial attitudes, going wages and salaries paid by other companies, supply and demand of labor, and cost of living. It notes that productivity, capacity to pay, and cost of living are particularly important determinants. The document also lists some additional influencing factors such as labor costs, job requirements, union pressures, an organization's desire to build goodwill, and government policies and legislation.
This chapter discusses strategic compensation planning and management. It explains how employers can link compensation to organizational objectives and motivate employees through various compensation approaches like pay-for-performance. The document also covers compensation structures, methods for evaluating jobs, factors that influence wages, and government regulations related to compensation.
Lecture 2. 3 P concept of compensation.pptFeminaSyed1
Pay structure at Google includes competitive base pay, health insurance covering hospitalization costs, life insurance, and retirement benefits like provident fund. Employees also receive paid time off for vacation, holidays, and sick leave. Overall, working at Google offers Indian engineers an outstanding work environment, challenging projects, and a strong total compensation and benefits package.
This document discusses compensation and benefits for employees. It begins by outlining the core values of the merging company which focused on customer service, flexibility in work location, and continuing education. It then discusses the goals of developing a compensation plan which are to attract, engage, and retain employees through competitive plans. The document outlines various types of compensation such as salary, hourly wages, piece work, and incentives like commissions, bonuses, and profit sharing. It also discusses developing compensation packages and policies based on both internal and external factors. Mandated benefits like social security, Medicare, unemployment insurance and workers compensation are also summarized.
For many businesses, attracting, retaining, motivating and rewarding employees are key issues that can be the difference between success and failure. It is also a vital issue for any potential buyer (internal or external) and has a direct impact on business risk, and also value.
As part of our strategic advisory work with clients, we are able to offer a range of solutions to manage these issues and provide easy to implement solutions for business owners to encourage employees to think and act like business owners.
5 to 8 sentence each 1. Declining marriage rates have led many .docxdomenicacullison
5 to 8 sentence each
1. Declining marriage rates have led many to conclude that Americans no longer place a high value on marriage. Use data and arguments to advocate for and against this conclusion.
2. Discuss the varied causes and ramifications of cohabitation among couples who choose it as a living arrangement before marriage, instead of marriage, or after divorce.
.
5-7 PagesYou will craft individual essays in response to the pro.docxdomenicacullison
5-7 Pages
You will craft individual essays in response to the provided prompts. You must use the current Turabian style with default margins and 12-pt Times New Roman font. For each essay, include a title page and reference page, also in current Turabian format. You must include citations to a sufficient number of appropriate scholarly sources to fully support your assertions and conclusions (which will likely require more than the minimum number of citations). Each paper must contain at least 5 7 scholarly sources
original to this paper
,
The UN— “A More Perfect Union?”
Considering the readings, video presentations, and your own research, draft a quality 6–7-page research paper on the role, legitimacy, and authority of the UN according to the following prompts, answering in a separate or integrated manner as you wish.
Identify at least 3reasons that states might defend the intrinsic legitimacy of the UN as a governing authority. In reverse, identify at least 3reasons that states might criticize its legitimacy and authority.
In short, make an argument for the limits and possibilities of the UN as a legitimate governing authority in a world of sovereign states.
What is the relationship of the UN to the current international system of states?
Considering the reasons for the creation of the UN after WWII, does it seem driven by political necessity or the political utility? In plainer English, do states need the UN more than the UN needs the states? Or do states both large and small find the UN a useful tool for improving their relative power and legitimacy vis-à-vis other states and global institutions? Is there some position in-between?
Using other sources and extra-Scholar sources (The commentaries, teachings, other writings, etc.) to inform your own reasoning, comment on the compatibility with the idea of
World Government
. [
Attention
: The Instructor does not view the question as rhetorical, nor the answer self-evident. So, reason carefully.] For example, if the logic of collective action under the
Articles of Confederation
—the logic of state sovereignty—failed to secure American liberties as well as the ‘more perfect union’, the new Constitution established by the Framers in 1787 to replace it, effectively requiring states to cede sovereignty to a larger collective authority, why would the same logic of collective action not justify the UN as a ‘more perfect union’ to replace an anarchic system of sovereign states putting the world at risk in a nuclear age?
.
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The document discusses traditional and modern pay systems, as well as the process for establishing pay plans.
1. Traditional pay systems are based on cost of living, seniority, and evenly distributed wages. Modern pay systems emphasize variable pay based on business, individual, team and organizational performance.
2. Establishing effective pay plans involves analyzing factors like the job market, designing compensation to attract and retain talent, and linking pay to performance to optimize costs.
3. Regular evaluation and review of pay plans is needed to ensure plans stay aligned with business strategy and changing internal and external conditions.
A pay structure sets pay rates or ranges for jobs based on their internal value determined through job evaluation and external market rates. It aims to maintain competitive and equitable pay levels. A pay structure has elements like pay schedules, grades, and ranges. Designing a pay structure involves job analysis, evaluation, setting a pay policy, budgeting payroll, researching average salaries, and establishing a pay grade system to group positions by compensation level based on qualifications.
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Foundations of a Compensation Strategy
The most effective compensation strategy is one that develops a clear link between the following components:
Job Description (i.e., work that an employee is expected to perform).
Performance Evaluation (i.e., work that the employee has performed).
External Salary Survey and Internal Salary Comparison (i.e., pay provided to each employee).
Examine the interrelationship between these three components by describing the purpose of each component and how it affects the others. Then explain how all three components would be used to determine the compensation for an employee. Your examination should include a salary evaluation for a position you are familiar with (Administrative Assistant, Human Resource Manager, Maintenance Worker, etc). The salary evaluation should give results for each of the three components and detail how pay is finally determined for this position based on the three components.
Example of the salary evaluation portion of your analysis:
Purchasing Manager.
Primary functions from the Job Description:
To plan, direct, and coordinate the activities of buyers, purchasing officers, and related workers involved in purchasing materials, products and services.
Organizational performance evaluation system:
Outstanding – 6% Increase
Exceeds expectations – 4% Increase
Meets expectations – 2% Increase
Does not meet expectations – No Increase
External Salary Survey:
(salary survey, which you can typically obtain online) Monthly salary range at $4,300 - $5,200.
Internal Salary Comparison:
(the relationship of this position to similar positions in your organization) Position is similar to Accounting Manager, and should be paid within the same monthly salary range of $4,400 - $4,900.
Submit your analysis in a two- to three-page paper formatted to proper APA 6th Edition specifications. Include a minimum of two scholarly references to support your analysis.
INFORMATION---------
Designing, implementing, and managing effective and appropriate pay structure architecture allows an organization to attract and retain key talent and control costs regardless of business strategy. How does one know which structure is right for the organization? The answer to this question is not an easy one but can be answered with a series of questions: What is the mission of the organization? What does the organization expect to accomplish through the pay structure? What are the compensable factors associated with the work being done? What are the internal equity factors? What is the competitive environment (that is what is the competition doing and paying)? What is the organization’s size? What is its structure? How many different jobs (classifications)? What is the nature of the work done? Is a union involved? (I can hear you already: So many questions to answer and so little time to answer them.) But you can see these and many more questions needs to be answered before you can get to work on a structure. .
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This document provides an overview of compensation and benefits. It discusses compensation as an exchange between employees and employers, with employees receiving financial and non-financial rewards in return for their work. It also discusses the objectives of compensation systems, including attracting, retaining, and motivating employees, as well as ensuring fairness and equity. Key factors that influence compensation levels and structures are then outlined, including labor market conditions, legislation, collective bargaining agreements, management attitudes, and an organization's ability to pay.
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This document discusses key aspects of developing an organizational pay structure, including:
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2) Developing pay levels involves considering both product market and labor market competition.
3) Developing a job structure involves job evaluation and compensable factors, while a pay structure groups jobs into pay grades.
4) Current challenges include problems with job-based structures and a shift toward competency-based pay.
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Jack Welch believed that if you pick the right people and give them opportunities to grow, while also tying compensation and rewards to performance, you don't need to closely manage employees. The document discusses compensation management and how paying employees the right compensation is motivating and leads to better performance. It also covers factors that determine compensation from both the employer and employee perspective.
Journal of Economic Perspectives—Volume 32, Number 3—Summer 20.docxcroysierkathey
Journal of Economic Perspectives—Volume 32, Number 3—Summer 2018—Pages 195–214
L abor is supplied because most of us must work to live. Indeed, it is called “work” in part because without compensation, the overwhelming majority of workers would not otherwise perform the tasks. Of course, work can be
rewarding and empowering, which adds to work’s compensation. However, absent
compensation, work would be much rarer and confined to those activities that are
enjoyable, but not necessarily most needed by society.
The evidence that compensation affects worker behavior is overwhelming.
At the most basic level, almost all of the labor component of GDP that is derived
from work is paid rather than voluntary. Beyond that, the literature is full of exam-
ples where manipulating the pay structure alters worker behavior, by affecting
either hours of work or output associated with it. Incentives are a necessary part
of inducing the work that makes an economy go, even when those incentives
must be self-imposed. Economists have understood the importance of incentives
for decades; for example, they discussed it in the context of Soviet-style work
environments.1 The theory developed further during the 1970s and 1980s with
modern agency theory, with early examples being Ross (1973), Lazear (1979, 1986),
and Hölmstrom (1979).
1 See Bergson (1944, 1978) and Weitzman (1984). Bergson discusses the importance of incentives within
command economies towards the close of The Structure of Soviet Wages: A Study in Socialist Economics
(1944, p. 204):
Compensation and Incentives in the
Workplace
■ Edward P. Lazear is the Davies Family Professor of Economics at the Graduate School of
Business, and the Morris A. and Nona Jean Cox Senior Fellow at the Hoover Institution,
Stanford University, Stanford, California.
† For supplementary materials such as appendices, datasets, and author disclosure statements, see the
article page at
https://doi.org/10.1257/jep.32.3.195 doi=10.1257/jep.32.3.195
Edward P. Lazear
196 Journal of Economic Perspectives
Providing incentives can be important, indeed game-changing. In the study of
Safelite Auto Glass installers discussed later (Lazear 2000b), a switch from hourly
wage pay to a piece rate structure had an almost immediate and enormous effect
of increasing productivity by 44 percent. The study showed both that changing a
compensation scheme could have large effects and that economic theory does well
in predicting these outcomes.
Personnel economics in general and the theory of incentives in particular has
made its way into business. The combination of the academic literature, the popular
press, and cohorts of students who have been schooled in the new approaches and
who now are managers has influenced the way in which business is practiced. Some
Silicon Valley companies like Success Factors and Merced Systems use these methods
explicitly in providing expertise to other companies. Others, like ...
Pressures on margins are relentless. The need to reduce costs is constant. No business can afford to take its eyes off these fundamentals. For most companies the costs of employing people are greater than for any other single
resource. Effective management demands that managers strive for optimum performance at least cost.
Our approach to reward is based on this essential proposition. We focus on making certain that strategies for the pay and benefits of all employees are directed at adding value and are concentrated on the bottom line. This means the design and implementation of robust systems for pay that aim to reduce costs and achieve better returns from firms’ investment in people.
This document discusses factors that influence wage and salary structures and administration. It identifies six main factors: productivity, an organization's capacity to pay, managerial attitudes, going wages and salaries paid by other companies, supply and demand of labor, and cost of living. It notes that productivity, capacity to pay, and cost of living are particularly important determinants. The document also lists some additional influencing factors such as labor costs, job requirements, union pressures, an organization's desire to build goodwill, and government policies and legislation.
This chapter discusses strategic compensation planning and management. It explains how employers can link compensation to organizational objectives and motivate employees through various compensation approaches like pay-for-performance. The document also covers compensation structures, methods for evaluating jobs, factors that influence wages, and government regulations related to compensation.
Lecture 2. 3 P concept of compensation.pptFeminaSyed1
Pay structure at Google includes competitive base pay, health insurance covering hospitalization costs, life insurance, and retirement benefits like provident fund. Employees also receive paid time off for vacation, holidays, and sick leave. Overall, working at Google offers Indian engineers an outstanding work environment, challenging projects, and a strong total compensation and benefits package.
This document discusses compensation and benefits for employees. It begins by outlining the core values of the merging company which focused on customer service, flexibility in work location, and continuing education. It then discusses the goals of developing a compensation plan which are to attract, engage, and retain employees through competitive plans. The document outlines various types of compensation such as salary, hourly wages, piece work, and incentives like commissions, bonuses, and profit sharing. It also discusses developing compensation packages and policies based on both internal and external factors. Mandated benefits like social security, Medicare, unemployment insurance and workers compensation are also summarized.
For many businesses, attracting, retaining, motivating and rewarding employees are key issues that can be the difference between success and failure. It is also a vital issue for any potential buyer (internal or external) and has a direct impact on business risk, and also value.
As part of our strategic advisory work with clients, we are able to offer a range of solutions to manage these issues and provide easy to implement solutions for business owners to encourage employees to think and act like business owners.
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5 to 8 sentence each
1. Declining marriage rates have led many to conclude that Americans no longer place a high value on marriage. Use data and arguments to advocate for and against this conclusion.
2. Discuss the varied causes and ramifications of cohabitation among couples who choose it as a living arrangement before marriage, instead of marriage, or after divorce.
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The UN— “A More Perfect Union?”
Considering the readings, video presentations, and your own research, draft a quality 6–7-page research paper on the role, legitimacy, and authority of the UN according to the following prompts, answering in a separate or integrated manner as you wish.
Identify at least 3reasons that states might defend the intrinsic legitimacy of the UN as a governing authority. In reverse, identify at least 3reasons that states might criticize its legitimacy and authority.
In short, make an argument for the limits and possibilities of the UN as a legitimate governing authority in a world of sovereign states.
What is the relationship of the UN to the current international system of states?
Considering the reasons for the creation of the UN after WWII, does it seem driven by political necessity or the political utility? In plainer English, do states need the UN more than the UN needs the states? Or do states both large and small find the UN a useful tool for improving their relative power and legitimacy vis-à-vis other states and global institutions? Is there some position in-between?
Using other sources and extra-Scholar sources (The commentaries, teachings, other writings, etc.) to inform your own reasoning, comment on the compatibility with the idea of
World Government
. [
Attention
: The Instructor does not view the question as rhetorical, nor the answer self-evident. So, reason carefully.] For example, if the logic of collective action under the
Articles of Confederation
—the logic of state sovereignty—failed to secure American liberties as well as the ‘more perfect union’, the new Constitution established by the Framers in 1787 to replace it, effectively requiring states to cede sovereignty to a larger collective authority, why would the same logic of collective action not justify the UN as a ‘more perfect union’ to replace an anarchic system of sovereign states putting the world at risk in a nuclear age?
.
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5.1 Assignment: Reading and Remediation
Getting Started
Viewing the videos and practicing using the practice Excel file with its video can prepare you for the work needed on the research report.
In order to successfully complete this exercise, you should be able to:
Review videos about statistics fundamentals.
Practice with the Excel file provided.
Resources
File: WS5Practice
File: WS5Homework
Video: Chi-Square
Video: Chi-Square Testing
Textbook:
OpenIntro Statistics
File: Chi-Square_10by10.xlsx
Background Information
Providing background and descriptive statistics is like a literature review section of a dissertation. You review and communicate the analysis on the raw data. You present visual representations of the data to give meaning to the raw data.
Instructions
Watch the following video on chi-square:
Watch the Excel remediation videos on chi-square testing:
Chi-Square Testing
using the
Chi-Square_10by10.xlsx
file.
An optional supplementary textbook is
OpenIntro Statistics
, and you can read the concepts there.
Use the lab file
WS5Practice
to practice the Excel skills (includes an Excel hands-on video inside the spreadsheet as a link).
Use the file
WS5Homework
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When you have completed your assignment, save a copy for yourself and submit a copy to your instructor by the end of the workshop.
=================================================
5.2 Assignment: Summarizing Raw Data
Getting Started
Being able to summarize data using pivot tables is a crucial skill to develop in business and research. Excel provides a powerful pivot table tool that is heavily used in finance, accounting, information technology, and other business areas. In this course, the skill is used to support a chi-square analysis.
In order to successfully complete this assignment, you should be able to:
Summarize data into a contingency table from raw data using pivot tables.
Resources
File: WS5-2_PivotTables
File: WS5-2_PivotAssignment
Instructions
Review the rubric to make sure you understand the criteria for earning your grade.
Read the file
WS5-2_PivotTables
.
After reading the Word document, open the file
WS5-2_PivotAssignment
.
Create the appropriate summary tables called contingency tables.
Turn in an Excel file showing the pivot table you have created.
When you have completed your assignment, save a copy for yourself and submit a copy to your instructor by the end of the workshop.
===============================================
5.4 Assignment: Create Categorical Hypothesis
Getting Started
After the prior activities, the analysis section can be written for the research report. Since there are three analyses to perform, this is a partial assignment for the analysis section.
In order to successfully complete this assignment, you should be able to:
Wri.
4TH EDITIONManaging and UsingInformation Systems.docxdomenicacullison
4TH EDITION
Managing and Using
Information Systems
A Strategic Approach
KERI E. PEARLSON
KP Partners
CAROL S. SAUNDERS
University of Central Florida
JOHN WILEY & SONS, INC.
To Yale & Hana
To Rusty, Russell &Kristin
VICE PRESIDENT & EXECUTIVE PUBLISHER Don Fowley
EXECUTIVE EDITOR Beth Lang Golub
EDITORIAL ASSISTANT Lyle Curry
MARKETING MANAGER Carly DeCandia
DESIGN DIRECTOR Harry Nolan
SENIOR DESIGNER Kevin Murphy
SENIOR PRODUCTION EDITOR Patricia McFadden
SENIOR MEDIA EDITOR Lauren Sapira
PRODUCTION MANAGEMENT SERVICES Pine Tree Composition
This book is printed on acid-free paper.
Copyright ! 2010 John Wiley & Sons, Inc. All rights reserved. No part of this publication
may be reproduced, stored in a retrieval system or transmitted in any form or by any
means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as
permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without
either the prior written permission of the Publisher, or authorization through payment of
the appropriate per-copy fee to the Copyright Clearance Center, Inc. 222 Rosewood
Drive, Danvers, MA 01923, website www.copyright.com. Requests to the Publisher for
permission should be addressed to the Permissions Department, John Wiley & Sons, Inc.,
111 River Street, Hoboken, NJ 07030-5774, (201) 748-6011, fax (201) 748-6008, website
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To order books or for customer service please, call 1-800-CALL WILEY (225-5945).
ISBN 978-0-470-34381-4
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
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http://www.wiley.com/go/permissions
!Preface
Information technology and business are becoming inextricably interwoven. I
don’t think anybody can talk meaningfully about one without the talking about the
other.1
Bill Gates
Microsoft
I’m not hiring MBA students for the technology you learn while in school, but for
your ability to learn about, use and subsequently manage new technologies when
you get out.
IT Executive
Federal Express
Give me a fish and I eat for a day; teach me to fish and I eat for a lifetime.
Proverb
Managers do not have the luxury of abdicating participation in information
systems decisions. Managers who choose to do so risk limiting their future business
options. Information systems are at the heart of virtually every business interaction,
process, and decision, especially when one considers the vast penetration of the
Web in the last few years. Managers who let someone else make decisions about
their information systems are letting someone else make decisions about the
very foundation of their business. This is a textbook about managing and using
information, written for current and future managers as a way of introducing the
broader implications of the impact of information systems.
The goal of this book is to assist managers in becoming knowledgeable par-
ticipants in information systems decisions. Becoming a knowledgeable participant
means lear.
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5. The Holy Trinity is central to Catholic beliefs about God. We accept it as both a reality and a great mystery. Throughout history there have been many artists who have tried to represent this belief in their artworks. Choose one of the images from the following pages and explain, in the space that follows, why it best symbolises our central Catholic belief about the relationship between God, Jesus and the Holy Spirit.
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5.1 Provide a brief definition of network access control.
5.2 What is an EAP?
5.3 List and briefly define four EAP authentication methods.
5.4 What is EAPOL?
5.5 What is the function of IEEE 802.1X?
5.6 Define cloud computing.
5.7 List and briefly define three cloud service models.
5.8 What is the cloud computing reference architecture?
5.9 Describe some of the main cloud-specific security threats.
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4
Discussion 6: Review of Four Indiana State Policies
Author’s Name
Institutional Affiliation
Course Name
Instructor
Due Date
Discussion 6: Review of Four Indiana State Policies
In Chapter 9, St. John, Daun-Barnett, and Moronski-Chapman (2013) discuss four state policies in Indiana, which ensure low-income students have better chances of getting higher education opportunities. These state policies are the 21st Century Scholars (TFCS) program, Core 40, Indiana Project on Academic Success (IPAS), and the DREAM Act Bill. The State of Indiana and tuition facilitates the financing of these policies. Specifically, funding is attained through need-based student aid and public tuition charges. This coordination ensures that neither the parents nor the state is overwhelmed with funding the learners. Higher education institutions play a limited role in supporting these four state policies. These policies rely on financial incentives for students, colleges, and schools. Higher education systems play a tiny part in offering support services to students in this regard. Nevertheless, they have tried to implement retention projects through policies such as IPAS.
Regarding the outcome of these policies, for starters, they have improved academic preparation among students in high school. These students are better prepared to succeed in higher learning institutions. However, despite the academic preparation facilitated by the policies, there have been no notable improvements in high school graduation rates among the different racial/ethnic groups. Nevertheless, the SAT scores in Indiana have been considerably better compared to other states in the country (St. John, Daun-Barnett, & Moronski-Chapman, 2013). Also, degree completion, college access, and diversity have been remarkably good in Indiana due to these policies. Out of the four policies, the one that I feel has had the greatest success in eradicating inequalities, supporting students’ progress, and enhancing learners’ access to higher education is the TFCS program. This program not only funds needy students but also prepares them from an early age to be model citizens who do not engage in vices such as drug abuse. It guides both parents and students to take practices that will facilitate good learning outcomes.
Reference
St. John, E. P. S., Daun-Barnett, N., & Moronski-Chapman, K. M. (2013). Public policy and higher education: Reframing strategies for preparation, access, and college success. Routledge.
Vera Discussion:
Hello all,
In higher education financing a student’s tuition is a critical part of enrollment and admissions. The principal component of the funding for state colleges and universities comes from the state government, and ultimately tax dollars. Federal money is available through loans and grants to students, but the schools are primarily depending on state support. Our textbook presented four different higher education plans from California, Indiana, M.
4pagesone is assginmentthe other 3 essays are related wo.docxdomenicacullison
4pages
one is assginment
the other 3 essays are related work for this English class.
The main themes of the course are the ethics of land (proposed by Leopold), the climate crisis, the ecological crisis, the carbon footprint, and the path of sustainable development.
.
4To Replace with name Comment by Sharon Rose Use down ar.docxdomenicacullison
4
To: Replace with name Comment by Sharon Rose: Use down arrow to expand all comments below.
Remove all comments in paper before submitting to earn a better grade. One way to do this, right click on each comment, select ‘Delete Comment’.
All Papers will be checked using SafeAssign. Please focus on keeping the SafeAssign percentage to approximately 20%. Comment by James Manning: From: Replace with nameDate: Replace with dateSubject: Replace with subject of memo Introduction Comment by Sharon Rose: The CEO challenge is for an internal employee provide recommendation of new IT system to remove or bring the Shadow IT projects under the IT department.
Include how this assignment will communicate how your project proposal satisfied the CEO's concern.
Remember Shadow IT from the Week 1 Discussion. The Shadow IT has to either be adopted by the organization, or it has to be removed by the organization. Comment by James Manning:
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vestibulum et nisl ante. Etiam pulvinar fringilla ipsum facilisis efficitur. Maecenas volutpat risus dignissim dui euismod auctor. Nulla facilisi. Mauris euismod tellus malesuada dolor egestas, ac vulputate odio suscipit. Comment by Sharon Rose: Replace Latin text with your writing for this assignment. Enter your content where the Latin text appears.
The Introduction is a short overview of your memo.
Comment by James Manning:
Sed pellentesque sagittis diam, sit amet faucibus diam lobortis quis. Sed mattis turpis ligula, in accumsan ante pellentesque eu. Quisque ut nisl leo. Nullam ipsum odio, eleifend non orcinon, volutpat sollicitudin lacus. (Beetle Baily Cartoon) Proposed Information System Comment by Sharon Rose: Identify the main functions of your proposed information system and why they are important to the business.
To earn an ‘A’ in this section you must (From Grading Rubric):
Proposed an original information system. Identified the main functions of the system. Explained the importance of each function to the business.
Explained the stylistic choices for architecture of information system. Connected main functions of system to business needs and shadow IT.
Donec tincidunt ligula eget sollicitudin vehicula. Proin pharetra tellus id lectus mollis sollicitudin. Etiam auctor ligula a nulla posuere, consequat feugiat ex lobortis. Duis eu cursus arcu, congue luctus turpis. Sed dapibus turpis ac diam viverra consectetur. Aliquam placerat molestie eros vel posuere.
Comment by Sharon Rose: Add diagrams when applicable.
If a diagram is added, it should show the proposed information system. Comment by James Manning:
This Photo by Unknown Author is licensed under CC BY-SA
Figure 1. Title (Source: www.source-of-graphic.edu ) Comment by Sharon Rose: Include source if applicable, remove when diagram is original) Comment by James Manning: Functions Important to Business Comment by James Manning:
To earn an “A” in this section (From Grading Rubric):
Exp.
5 pages in length (not including title page or references)This.docxdomenicacullison
5 pages in length (not including title page or references)
This week’s journal article focuses on attribution theory and how it influences the implementation of innovation technologies. Two types of employee attributions are noted in the article (intentionality and deceptive intentionality), please review these concepts and answer the following questions:
1. Provide a high-level overview/ summary of the case study
2. Note how constructive intentionality impacts innovation implementations
3. Find another article that adds to the overall findings of the case and note how attribution-based perspective enhances successful innovation implementations. Please be explicit and detailed in answering this question.
4. Discuss what ethical leadership is and how it impacts the organizational culture.
5. What are the various dimensions of ethical leadership?
6. Note some failures in ethical leadership, please find an example, explain the failure and note possible solutions to fix the issue with leadership.
(Question 1, 2 and 3 below Journals):
Journal Article 3.1: Lucas, J.W. and Baxter, A.R. (2012) ‘Power, influence, and diversity in organizations’, The ANNALS of the American Academy of Political and Social Science, 639(1): 49–70.
Journal Article 3.2: Martinez, A.D., Kane, R.E., Ferris, G.R. and Brooks, C.D. (2012) ‘Power in leader–follower work relationships’, Journal of Leadership & Organizational Studies, 19(2): 142–151.
Journal Article 4.1: Petty, M.M., Beadles, N.A., Chapman, D.F., Lowery, C.M. and Connell, D.W. (1995) ‘Relationships between organizational culture and organizational performance,’ Psychological Reports, 76(2): 483–492.
Journal Article 4.2: Bonavia, T. (2006) ‘Preliminary organizational culture scale focused on artifacts’, Psychological Reports, 99(3): 671–674.
Journal Article 4.3: Walker, R.C. and Aritz, J. (2015) ‘Women doing leadership: leadership styles and organizational culture,’ International Journal of Business Communication, 52(4): 452–478.
(Question 4, 5 and 6 below Journals):
Journal Article 5.1:Bormann, K.C. and Rowold, J. (2016) ‘Ethical leadership’s potential and boundaries in organizational change: a moderated mediation model of employee silence,’ German Journal of Human Resource Management, 30(3–4): 225–245.
Journal Article 5.2:Haney, A.B., Pope, J. and Arden, Z. (2018) ‘Making it personal: developing sustainability leaders in business,’ Organization & Environment. DOI: 10.1177/1086026618806201
Please be sure that journal articles are peer-reviewed and are published within the last five years.
The paper should meet the following requirements:
• 5 pages in length (not including title page or references)
• APA guidelines must be followed. The paper must include a cover page, an introduction, a body with fully developed content, and a conclusion.
.
5 to 7 DAY EXERCISE LOG Exercise Log Name___Hejin Lin__.docxdomenicacullison
5 to 7 DAY EXERCISE LOG
Exercise Log
Name___Hejin Lin__________________________ Section # __2____ Start Date _4/7_________ End Date _4/12_______
I. Cardio Respiratory Endurance
Day
Type of Exercise
Duration
(Time)
Intensity (Peak Target Heart rate or Rate of Perceived Exertion)
Cardio Comments for the week- a short descriptive comment for each workout or one long comment summarizing the week on how you felt after each workout
1
Running
25 mins
175
I felt tired, and end up fast walking
2
Running
25 mins
170
kind of tired
3
Running
30 mins
168
Feeling better, also gain more times
4
Running
30 mins
172
much better
5
Swimming
25 mins
176
I felt tired at first, and then gets better
II. Muscular Strength/Endurance
Number of Sets ___2__
Rest Period __3 mins___
Exercise
Sunday Wt/Reps
Monday Wt/Reps
Tuesday Wt/Reps
Wednesday Wt/Reps
Thursday Wt/Reps
Friday Wt/Reps
Saturday Wt/Reps
Push up
/20
/
/
/25
/25
/
/30
Arm curl
25/10
/
/
25/12
30/8
/
30/10
Crunches
/25
/
/
/30
/30
/
/30
Heel raise
/
/
95/12
/
/
100/15
/
/
/
/
/
/
/
/
/
/
/
/
/
/
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/
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/
/
/
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/
/
/
Descriptive Strength Comments for the week (Mandatory) on how you felt after each workout
I felt my stomach muscles working when I am doing the exercise, and my muscles were sore, I think I am going get used to it.
III. Flexibility
Number of Sets ___1_____
Reps ____10____
Duration ___35 sec_____
Check each exercise performed
Exercise
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
Shoulder rolls
10
10
10
10
Lateral abdominal
10
10
10
10
Hamstring stretch
10
10
Descriptive Flexibility Comments for the week: (Mandatory) on how you felt after each workout
Feels great that after stretching, my muscles still felt a little bit sore, but much better.
5 to 7 DAY EXERCISE LOG
Exercise Log
Name________Hejin Lin__________________Section # __3____ Start Date ____4/15_______ End Date ____4/20____
I. Cardio Respiratory Endurance
Day
Type of Exercise
Duration
(Time)
Intensity (Peak Target Heart rate or Rate of Perceived Exertion)
Cardio Comments for the week- a short descriptive comment for each workout or one long comment summarizing the week on how you felt after each workout
1
Running
30 mins
Not very tired, almost get used to it
2
Running
35 mins
Gains 5 more mins, feels good
3
Running
35 mins
Woke up in the morning, had more energy
4
Running
40 mins
Gains 5 more mins to 40 mins, felt a little bit tired
5
Running
40 mins
Much better
II. Muscular Strength/Endurance
Number of Sets ___2 to 3_
Rest Period __2 mins___
Exercise
Sunday Wt/Reps
Monday Wt/Reps
Tuesday Wt/Reps
Wednesday Wt/Reps
Thursday Wt/Reps
Friday Wt/Reps
Saturday Wt/Reps
Crunches
/35
/35
/
/35
/
/35
/
Push up
/25
/25
/
/25
/
/25
/
Triceps
30/10
30/10
/
30/10
/
30/10
/
/
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5 Pages 1. Should nonprofit organizations be viewed principally .docxdomenicacullison
5 Pages
1. Should nonprofit organizations be viewed principally as businesses with a social purpose or are they inherently different from for-profit companies? Compare and contrast in your explanation.
2. What are the five general and complementary approaches to judging the effectiveness of nonprofit organizations?
Identify which of these you might find more challenging as a nonprofit leader and explain why.
3. Provide a brief summary of the legal accountability, roles, and responsibilities of nonprofit leadership.
.
5 pagesResearch either a wildfire and mass movement (one tha.docxdomenicacullison
5 pages
Research either a wildfire and mass movement (one that has actually occurred and been reported on).
Instructions:
essay between 1,250 and 1,750 words (5 pages in length) identifying:
· the type and origin of the natural disaster,
· the magnitude of the damage, including structural damage and harm to humans and the environment,
· agency response (governmental or private agencies) and ethical dimension,
· lessons learned and any resulting changes in regulations related to building code modifications, siting requirements, procedural changes, etc.,
· your opinion as to the effectiveness of any corrective actions taken to minimize the chance of recurrence.
· APA Format, place citations for work in the body and provide reference page
.
5 Establishing Organizational Objectives
iStock/Thinkstock
Ah, but a man’s reach should exceed his grasp,
Or what’s a heaven for?
—Robert Browning
Learning Objectives
After reading this chapter, you should be able to do the following:
• Describe the nature of objectives and the important role of—and management by—objectives in an HCO.
• Discuss the characteristics of good objectives.
• Delineate the types of objectives that are included in a strategic plan, and include examples of objectives for
key result areas.
• Provide an example of how to use data from an internal and external environmental analysis to set good
objectives.
• Explain how to perform a periodic review of objectives for measuring progress and making updates
as needed.
Section 5.1The Nature and Role of Objectives
Introduction
An HCO cannot achieve goals if none exist for the organization. Although this idea is quite
simple, many people overlook it. To accomplish anything, an organization must have a clear
understanding of what is to be accomplished. Strategic objectives are the tool by which
organizations define their goals and sketch out a specific road map for achieving them. If we
fail to set specific objectives, we simply waste our time and energy by going in circles. Later,
we look back at what we accomplished and wonder where the time went. Just being busy and
involved in activities does not mean that we are accomplishing what we need to accomplish.
This chapter focuses on the need to establish objectives, the characteristics of good objec-
tives, and the process of writing objectives. After the vision and mission of the HCO have been
defined, and the internal and external analyses completed, relevant objectives are developed
for the strategic plan.
5.1 The Nature and Role of Objectives
Objectives can be defined as clear, concise written statements outlining what is to be accom-
plished in key result areas in a certain time period, in measurable terms. Peter Drucker argues
that “objectives are not fate; they are direction. They are not commands, but they are com-
mitments. They do not determine the future, but they are the means by which the resources
and energies of the operation can be mobilized for the making of the future” (Drucker, 1954,
p. 102).
As noted in Chapter 2, the words key results, goals, and targets often are used synonymously
when talking about short- and long-term objectives. Whatever the label used, the idea is to
focus on a specific set of target activities and outcomes to be accomplished. Think of the anal-
ogy of the archer used in Chapter 2. An HCO administrator wants the whole organization
aimed at a single target, just as an archer wants every arrow aimed at the bull’s-eye. People
get confused and disorganized if they do not know where they are going. In large measure,
the success or failure of an HCO is based on its ability to set goals, as well as on tools with
which to measure progress toward those.
450+ WordsDiscussion Questions What are the main tenants of.docxdomenicacullison
U.S. cyber policy aims to secure both civilian and military networks from cyber threats. The policy has strengths in establishing guidelines for protecting critical infrastructure and coordinating defensive efforts across government agencies. However, the policy could be improved by more clearly defining international norms of behavior in cyberspace and implementing a long-term strategy for deterring sophisticated state actors.
459- Provide a substantive response to at least two of your pe.docxdomenicacullison
459-
Provide a substantive response to at least two of your peers who presented an example that was not in your response. What did you learn from the examples they presented? Are you now more aware of the challenge of change in health care?
Peer 1.Keneisha
- In health care, the consistency of handling change is constant. Change is an effect of snowball within a healthcare facility. Improvement in one area may or may not impact another establishment area irrespective of the correlations. Eventually, change affects the whole organization.
Electronic health records (EHR) and the Health Insurance Probability and Accountability Act (HIPPA) are two indicators of the healthcare industry. Although many resisted the change within the medical records and implemented EHR, the change made life much easier to navigate through with medical records. The move saved money and didn't have to use as many paper products. EHR made chart access and legibility much faster and easier to navigate through.
Within the change, HIPAA was a little more complex. HIPPA has been introduced to allow an individual to change jobs and not to complicate the coverage of the modified work transaction. HIPAA is meant to protect the protection of patient information and not to be widely distributed. This also included training in patient privacy and security issues for each health care staff members.
Reflecting on these two improvements show that once change is introduced, it can result in substantial change for the better and development of both staff and patients. Both need an open attitude and training, but implement a productive workflow.
Peer 2. Qiana
- Change is not always easy for anyone, and those in the healthcare field. Though change can be good because it can change or make the healthcare delivery systems better and meet those needs of their area. The healthcare environment continues to change and can be a challenge. With changing trends and concerns within healthcare settings, they can show the stages of life cycles within the organization and survival strategies. When rends change, there are changes that occur in case of patients and administrative support. (Liebler & McConnell, 2017). To ensure the survival of any organization change is essential to have a competitive edge in the healthcare environment. Often, for staff managers must be leaders during this process and try to make these changes go smoothly, because it can be difficult for employees.
Healthcare managers must be able to manage change, even though it may be complicated. Being able to manage change can be difficult but all involved must be able to adapt, and it is the job of the manager to inform employees as well as constituents and help them to understand why the change is a necessity and their roles even though it may be difficult.
The two examples of successful change I have chosen are Change as Opportunity: Y2K and A Study in Proactive Change: Electronic Health Records. The trn of the year 2.
4th Grade Science-A Discussion of how Students Learn to Self Assess.docxdomenicacullison
4th Grade Science-A Discussion of how Students' Learn to Self Assess Science
For this assignment, candidate will work alone to research and observe selected videos in their discipline (area of study). Candidate will observe a total of 5 hours of videos.
Candidates will provide a written analysis and/or reflection that responds to the video and selected writing prompt.
.
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
Executive Directors Chat Leveraging AI for Diversity, Equity, and InclusionTechSoup
Let’s explore the intersection of technology and equity in the final session of our DEI series. Discover how AI tools, like ChatGPT, can be used to support and enhance your nonprofit's DEI initiatives. Participants will gain insights into practical AI applications and get tips for leveraging technology to advance their DEI goals.
How to Add Chatter in the odoo 17 ERP ModuleCeline George
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
Assessment and Planning in Educational technology.pptxKavitha Krishnan
In an education system, it is understood that assessment is only for the students, but on the other hand, the Assessment of teachers is also an important aspect of the education system that ensures teachers are providing high-quality instruction to students. The assessment process can be used to provide feedback and support for professional development, to inform decisions about teacher retention or promotion, or to evaluate teacher effectiveness for accountability purposes.
223Base Pay Structures11Compensation deals with establ.docx
1. 223
Base Pay Structures11
Compensation deals with establishing a meaningful and
acceptable relationship
between work and rewards. Work performed by employees
should help organiza-
tions achieve their objectives. These objectives are derived from
the organization’s
overall business strategy, which supports the company’s mission
statement.
When designed and administered appropriately, a company’s
compensation
program is an effective management tool for supporting the
organization’s overall
business strategy. A series of steps is used in the process of
designing sound compen-
sation programs. (See Figure 11.1.) This process is not a one-
time event. It involves
constant review and refinement in light of changing business
needs.
Pay StructureS
A pay structure consists of a series of pay ranges, or “grades,”
each with a minimum
and maximum pay rate. Jobs are grouped together in ranges that
represent similar
internal and external worth. (See Figure 11.2.)
5. t
la
w.
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224 Base Pay Structures
General and SPecific factorS affectinG
Pay StructureS
Pay structures are influenced by the following general factors:
• Corporate culture and values. An organization’s pay structure
usually reflects the
way employees’ work is valued. For example, does an
organization always look
for the best and brightest employees? If so, the pay line may be
positioned
to lead the market. If the organization encourages and values
prudent risk-
taking, the total pay line may have an additional risk/reward
component.
• Management philosophy. Narrow pay ranges and more grades
allow for more fre-
quent promotions—and a greater perception of “growth and
advancement”—
than wider ranges and fewer grades. However, if management
9. Comprehensive Guide for HR Professionals
Account: strayer
• External economic environment. Varied supply and demand
for certain skills may
necessitate a multistructured pay program. Technical
professionals such as en-
gineers may have special pay structures when there is a high
demand for their
skills. However, these special structures may be merged into the
general struc-
ture when there is an increase in the supply of engineers in the
market. Other
external factors that may be reflected in pay structures include
inflationary fluc-
tuations and cost-of-living indices such as the Consumer Price
Index (CPI).
• External sociopolitical and legal environments. The steps in
the pay structure are
likely to be more narrow and rigidly administered in a union
environment
than in a nonunion environment. Pay structures also are affected
by regula-
tions such as the FLSA, which mandates the minimum wage for
most jobs and
thereby determines the lowest possible pay scale.
Several other factors that influence pay structures relate directly
to the opera-
tions and culture of a specific organization:
• Centralized compensation policy. A corporate compensation
policy may call for the
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226 Base Pay Structures
a rate always higher than the market but over time to bring them
in line with the
market. This would mean steadily fine-tuning the pay ranges at
different levels.
• Decentralized compensation policy. An organization’s goal
may be to compete
within the top quartile of its competitors in a particular
functional segment
(e.g., sales/marketing) or product segment (e.g., jet engines or
disability in-
come insurance). In this case, the pay structure may be different
for those
particular functional and product segments within the
organization.
• Short-term vs. long-term orientation. A company with long-
term orientation is most
likely to have well-designed pay structures with career-path
capabilities and
smooth transitions from range to range. The ranges themselves
will be devel-
oped after much thought and research. Short-term or temporary
problems need
14. to be taken care of with temporary solutions. Solving temporary
problems with
long-term solutions should be avoided. Employees generally
have an entitlement
mind-set with respect to compensation, and it may be difficult
to “undo” prior
actions, even though the original reasons for such actions no
longer exist.
anatomy of a Pay Structure
A pay structure has multiple pay or salary ranges. Every pay
structure has key com-
ponents that are critical to its overall design. The following
section defines and
describes these basic elements.
Pay ranGeS and ranGe SPreadS
A “pay range” has a minimum pay value, a maximum pay value,
and a midpoint or
central value. The difference between the maximum and the
minimum is the “range
spread,” or the “width” of the range. Range width usually is
expressed as a percentage
of the difference between the minimum and maximum divided
by the minimum. For
example, in Figure 11.3, the range spread in dollars for Grade
10 (from Figure 11.2),
where the maximum is $120,360 and the minimum is $80,160, is
$120,360 – $80,160
= $40,200. The percentage is about 50 percent, or $40,200
divided by $80,160.
Figure 11.3 illustration of a pay range and a
range spread.
18. To calculate the spread on either side of the midpoint, use the
formulas shown in
the Formula 11.1 box (where $100,260 is the Grade 10 midpoint
in Figure 11.2).
A pay range with a 50-percent range spread will have a 20-
percent spread on
either side of the midpoint. (See Figure 11.3.) That is, $80,160
is 80 percent of
$100,260, and $120,360 is 120 percent of $100,260.
While all the ranges in Figure 11.2 have a range spread of 50
percent, the spread
does not have to be uniform throughout the pay structure.
Figure 11.4 lists common
range spreads and their corresponding spreads on either side of
the midpoint.
Example 11.1 shows how to calculate the spread on either side
of the midpoint.
To perform the calculation, one of the three points (minimum,
midpoint, or maxi-
mum) on the pay range needs to be specified along with the
range width.
Using a range spread of about 50 percent and a minimum of
$66,800, the maxi-
mum and midpoint are calculated as in Example 11.1.
Some Practical Considerations
Range spreads vary based on the level and sophistication of
skills required for a
given position. Entry-level positions that require skills that are
quickly mastered usu-
ally have narrower pay ranges than supervisory, managerial, or
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228 Base Pay Structures
promoted to higher-level positions. Senior-level positions
require a longer learning
curve and often have limited opportunities for advancement.
The following are
typical range spreads for different kinds of positions:
• 20–25 percent: lower-level service, production, and
maintenance.
• 30–40 percent: clerical, technical, paraprofessional.
• 40–50 percent: higher-level professional, administrative,
middle management.
• 50 percent and above: higher-level managerial, executive,
technical.
Care should be taken when deciding pay-range width. Assuming
a constant mid-
point, changing range spreads also changes the minimum and
maximum. Notice in
Example 11.2 that as the ranges get wider, the maximums
increase, the minimums
decrease, and the midpoints are constant.
Ranges should be designed to provide midpoints that reflect the
“going rate” and
are reasonably close to what the market establishes as the
26. an employee higher in the range in order to pay competitively.
This narrows the
position’s long-term earning potential. In turn, a high maximum
may provide long-
term earnings opportunities that are higher and more costly than
what are needed
to be competitive.
midPointS
The midpoint is a key element in pay administration. It is often
used as a reference
point in salary administration decisions as a point or “target.”
The midpoint is usu-
ally the reference used because it is typically set to equal the
market average or me-
dian. It should not be an organization’s only market reference
point.
Related to the midpoint is the compa-ratio, a statistic that
expresses the relation-
ship between base salary and the midpoint, or between the
midpoint and market av-
erage. Figure 11.5 illustrates the calculation of compa-ratio for
the same job as well
as for the market average. Compa-ratios can be calculated for
individuals, groups of
individuals, and the company as a whole.
Most companies strive to have the overall workforce paid at or
around a compa-
ratio of 100 percent. Individual compa-ratios vary according to
how long the in-
dividual has been in the job, previous work experience, and job
performance.
A mature, long-service workforce will tend to have a higher
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230 Base Pay Structures
ranGe Penetration
Another way of tracking an organization’s compensation is to
view employee pay
in relationship to the total pay range. This is known as range
penetration. Unlike
compa-ratios, which are calculated using a grade’s midpoint,
range penetration is
calculated using the minimum and maximum of a salary range.
Range penetration
is shown in Example 11.3.
Often range penetration is a preferred tool because it does not
focus on one
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midPoint ProGreSSion
Midpoint progression refers to the percentage difference
between pay-grade mid-
points. The larger the midpoint progression, the fewer the
number of grades within
a pay structure. Conversely, the smaller the midpoint
progression, the larger the
number of pay grades within the pay structure.
Three Approaches to Developing Midpoints
One approach to developing midpoints is the present value–
future value formula,
35. which may be used to determine the percentage between
midpoints, assuming the
highest and lowest midpoints and the number of grades are
known. Formula 11.2
may be used, or the calculations may be performed on a
business calculator.
Suppose a company wishes to develop a pay structure with six
grades that has
a highest midpoint of $77,820 and a lowest midpoint of
$46,620. What is the mid-
point progression?
Using Formula 11.2, the midpoint progression is calculated to
be 12.5 percent.
The resulting pay structure looks like Figure 11.7.
There are two other approaches to developing midpoints and the
resulting mid-
point progression. The first is to use the average of the market
pay rate for different
jobs within benchmark-job groupings. The resulting midpoint
progression would
have varying percentage differences between midpoints, which
reflect the market
more closely than constant differences. An organization’s pay
structure need not have
a constant percentage progression—it may remain uneven
without being smoothed.
In such instances, it should be recognized that promotional
increases may be uneven
and sometimes difficult to administer because of the following
reasons:
• If the percentage difference between midpoints is too high,
the result could
39. 232 Base Pay Structures
• If the percentage difference is relatively low, the result could
be salary com-
pression problems between supervisory and subordinate
positions and diffi-
culty in matching promotions with appropriate compensatory
rewards.
The other approach to developing midpoints in a pay structure
is the use of re-
gression analysis. The advantage of this approach is it helps
align market rates more
closely with company policy. Regression analysis works well
when job-evaluation
points are used to develop pay structures. With the advent of
more sophisticated
technology, much of the statistical work can be done with the
use of computers or
powerful calculators.
Pay GradeS
The purpose of grades is to be able to refer to a compensation
range that groups
together multiple jobs with similar value based on internal
comparisons and exter-
nal market data. Grades need not always be numerical; alpha
grades can serve the
purpose just as well. Pay grades can be established by a number
of methods.
There are many grades or levels within a pay structure. The
number of grades
used by a particular organization will vary based on findings
from market research
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Using segments within a pay grade instead of only midpoints
provides more
flexibility to managers in pay-related decisions. These
segments serve as miniranges
within the main range. Exercising salary judgments within a
segment often is easier
and more practical than focusing rigidly on a single point within
the salary range,
such as the midpoint.
Pay-grade Overlap
Pay grades usually overlap. Except for the minimum of the
lowest grade and the
maximum of the highest grade, minimums and maximums
usually fall within ad-
44. joining ranges. The width of the pay grade and the midpoint
differentials determine
the amount of overlap between adjoining grades. Grade overlap
is minimal when
midpoint differentials are large and range widths are small. (See
Figure 11.8A.)
Grade overlap is significant when midpoint differentials are
small and range spread
is large. (See Figure 11.8B.) Figures 11.8C and 11.8D are
illustrations of moderate
grade overlap.
In a pay-for-performance or merit system, grade overlap allows
high performers
in lower pay ranges with longer time-in-grade to be paid more
than a relatively new
(and/or lower) performer in a higher pay range. However,
overlapping more than
three or four pay grades generally should be avoided. Too much
overlap limits the
difference between midpoints, which in turn places limits on
potential earning ability
and can cause differentiation problems between supervisor and
subordinate pay.
Multiple Pay Structures
An organization may have many pay structures within its
overall structure. The num-
ber of structures is primarily a function of the market and the
company’s com-
pensation philosophy. For instance, the ranges for certain
professionals such as
information systems and technology and investment
management may call for a
separate structure that cannot be force-fit into atypical
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234 Base Pay Structures
11.8B illustration of a significant grade overlap.
in this illustration, the
differential between grades is 5 percent and the
range width is
60 percent. There is a five-grade overlap. (example:
$20,000
falls within the five grades shown.)
Figure 11.8 illustrations of grade overlap.
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236 Base Pay Structures
among comparable jobs throughout the organization. Internal
equity can be
examined horizontally and vertically, as shown in Figure 11.9.
In this example,
Departments A and B demonstrate horizontal internal equity in
all three jobs
because the salaries are fairly close. These departments also
demonstrate vertical
internal equity because there is a similar progression within the
job hierarchy.
Department C, however, demonstrates neither horizontal nor
vertical internal
equity.
56. Although horizontal and vertical internal equity are presented as
two separate
concepts, in reality they are interrelated. While it is appropriate
to pay Secretary
Level III more than Levels I and II, how much more is
determined by what is being
done in the other two departments. (There are other factors that
also must be fac-
tored in, such as performance and time-in-grade.)
The purpose of this illustration is to emphasize the importance
of equity in salary
administration and also to point out the different perspectives
from which equity
needs to be viewed. Internal equity is a key consideration in
developing pay struc-
tures not only within a job family, as shown in the illustration
of secretarial positions,
but also among various job families that have common job
grades. The first step in
establishing internal equity is job evaluation.
external Competitiveness
The other basic consideration in the design and development of
pay structures is
external competitiveness, or external equity. Businesses
compete in a free market
for products and services. The costs of these products and
services include labor,
which is never constant. Companies need to closely monitor
labor costs to make
sure that they neither overpay (leading to a higher cost than
necessary in providing
a product or service) nor underpay (possibly leading to higher
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Defining Competition
In researching a company’s competitive posture, the first step is
the definition of
“competition.” During times of low turnover, it may be more
difficult to identify
organizations that compete for labor. Low turnover should not
lead to the false con-
clusion that there are no competitors for labor or that the
compensation program
is working perfectly for a given organization.
Turnover statistics may show which skills are in demand—and,
in turn, which
special pay structures may be necessary. However, turnover
statistics by them-
selves may not reveal much about competitiveness.
Terminations may be taking
place for many reasons, both personal and professional. If
employees are leaving
particular companies for reasons other than increased pay—for
example, to start
their own businesses—these companies should be excluded from
the defined list
of competitors.
Once it is established that employees are moving to other
61. companies, it is time to
gather data on these businesses. In the final analysis, a
company’s human resources
strategic plan must tie directly to the data gathered on any
defined competition.
In general, companies tend to survey other businesses similar to
themselves in all
or some of the following characteristics: size (usually reflected
by total assets), in-
dustry type (products, services), geographical location,
revenue/income size, and
required job skills. Here are three ways to obtain data:
• Refer to published surveys. Before using published surveys,
carefully review their
usefulness and applicability to the organization. It may be
possible to examine
the survey input documents as well as an extract of survey
output.
• Participate in customized surveys. When possible, participate
in customized sur-
veys conducted by other companies of similar size or industry
type.
• Conduct a survey. If data are required in a hurry, a telephone
survey may be
conducted. However, telephone surveys are not recommended
for multiple
jobs because the amount of phone time required may not be
convenient for
all participants.
Before a company decides to conduct its own survey, there are
obvious consid-
erations such as time, costs, usefulness of data, and survey
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238 Base Pay Structures
equity. The last five steps relate to external competitiveness. In
general, as the job
level increases, the reliance on external market data—as
opposed to internal con-
siderations—also increases. (See Figure 11.11.)
Step 1: review Overall Point Differentials
This step is often referred to as “sore thumbing” because it
66. involves reviewing all
of the job-evaluation points to see if any evaluations stand out
from the group. If
necessary, points are changed to better reflect the internal value
of the job before
proceeding to the second step.
Review overall point differentials
Rank order jobs by total evaluation
points
Develop job groupings
Develop preliminary point bands
Check intrafamily and supervisory
relationships
Incorporate market data
Review market inconsistencies
Smooth out grade averages
Review differences between midpoints
and market averages
Resolve inconsistencies between
internal and external equity
Internal Equity External Competitiveness
Figure 11.10 internal equity vs. external
competitiveness.
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Key issue: Do any job evaluations appear to be “out of place,”
either with their peers
across functions or with their superiors or subordinates?
Key questions to ask: Do the evaluators fully understand the
jobs? Is the job descrip-
tion or questionnaire complete? Is the job being compared to the
correct peer
group? Is the rater evaluating the job or the person?
Step 2: rank Order Jobs by Total evaluation Points
Rank all jobs in ascending or descending order as shown in
Example 11.4.
Key issue: Does the hierarchy of positions make intuitive sense?
Key questions to ask: Does the hierarchy reflect the differences
in the functions of the
various positions? Has any position been overrated or
underrated? Do the dif-
ferences in points reflect the degree of differences between
positions?
Key Steps in Designing an Effective Pay Structure 239
Co
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240 Base Pay Structures
Step 3: Develop Job groupings
While developing groupings, look for point breaks. Make sure
that the number of
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of the broader range of skills represented within higher salary
grades. Table 11.2
is an example.
An alternate approach is to develop point bands with
percentage-based point
spreads between point-band maximums. The percentage spread
can remain con-
stant or vary. Tables 11.3 and 11.4 are examples.
TABle 11.1 Constant Absolute Points
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242 Base Pay Structures
Key issue: Determining the width of each point band.
Key questions to ask: Wider point bands will require fewer
grades, and they will group a
larger number of jobs together. Is this in line with the
company’s corporate pol-
icy? Are jobs with similar skill, effort, and responsibility being
grouped together?
For the purposes of this example, a salary structure will be
constructed with
11 grades. It is important to remember that this decision is not
purely objective. It
takes into account an organization’s internal values and other
practical consider-
ations such as the desired number of grades or a set policy
regarding the number
of grades between supervisor and employee. Most important, the
structure should
work for the company.
The point bands in Example 11.6 were developed using job
evaluations and the
natural breaks between jobs. A minimum of 137 points was set
for the lowest grade,
which is occupied by the Mail Clerk job (evaluated at 140
points). Each grade’s
point-band width is a constant 39 points between point-band
maximums. The
11 grades, shown in Example 11.6, are designed to
82. accommodate the lowest-level
job—Mail Clerk—to the highest-level job—Claims Officer.
Step 5: Check intrafamily and Supervisory
relationships
The last step in the internal equity process is to check the
evaluations to ensure they
represent all the levels and reporting relationships within the
organization. It is im-
portant to determine whether jobs of similar skill, effort,
responsibility, and working
conditions are within the same salary level. The structure
should be reviewed to en-
sure that dissimilar jobs are not placed within the same level,
and that subordinate
and supervisor positions are not placed within the same grade.
Key issue: Peer and subordinate/superior relationships.
Key questions to ask: Are there enough levels between
supervisor and subordinate
positions? Do the set levels accurately reflect levels within job
families?
Step 6: incorporate Market Data
Based on the preliminary ranking performed in Steps 4 and 5,
market data are
added to identify differences in how your company and the
market value a particu-
lar set of jobs. Table 11.5 is an example.
TABle 11.4 Absolute Points and Percentage Spread
Vary
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TABle 11.5 use of Market Data
Key Steps in Designing an Effective Pay Structure 243
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244 Base Pay Structures
Key issue: How to obtain the best fit between internal
evaluation and market
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positions? Are there enough positions within a job family to
justify establishing a
separate salary structure to address these problems?
Once any inconsistencies between the internal and external
markets have been
resolved, “raw” averages for jobs in each of the salary grades
are calculated. These
averages are simple means calculated from the market data. (See
Table 11.6.)
Key issue: The company must decide whether it can accept a
salary structure with
93. varying percentages between its midpoints.
Key questions to ask: Is the number of grades selected (11) still
acceptable? Can the
differences between midpoints be smoothed out without
affecting the integrity
of the market competitiveness? How important is it to be close
to the market?
Step 8: Smooth Out grade Averages
While smoothing out grade averages, a decision has to be made
on where it is most
important to be competitive and where the most payroll dollars
are at stake. Then
test to see which midpoint-to-midpoint percentage increment is
the most logical
to use.
Example 11.8 has made use of 13.229-percent increments,
which allow for use of
the 11 grades proposed earlier. (These increments may be
derived using the “pres-
ent value” formula discussed in Formula 11.2.)
Key issue: The company must decide whether there is an “ideal”
midpoint-to-
midpoint percentage spread.
Key questions to ask: Is smoothing out always necessary or
desirable? Because the
smoothing-out process is one of trial and error, at what point is
it advisable to
stop so that the salaries generated by the structure are
competitive and at the
same time payroll dollars are not used ineffectively or
97. 246 Base Pay Structures
Step 9: review Differences between Midpoints and
Market Averages
The key to this step is to identify any large differences between
proposed midpoints
and individual job-market averages. (See Table 11.7.)
Key issue: The company must determine the percentage factor
that should be used
to smooth out the midpoints.
Key questions to ask: Which jobs have the greater need to be
competitively paid? Can
any jobs be underpaid without affecting the company’s ability
to attract and
retain employees? Can the company afford to overpay some
jobs?
Step 10: resolve inconsistencies between internal and
external equity
The proposed salary structure shows how each of the evaluated
positions relates to
one another internally as well as how each job relates to the
market. Most compa-
nies are comfortable if the proposed midpoints are within 10
percent of the com-
petitive market. Using this as a rule of thumb, the following
positions are most out
of line with the market:
• Reconciliation Technician: 24 percent.
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With these proposed midpoints, the company will pay above the
101. going rate in
the market. If internal equity is a greater concern, then the
additional money spent
may not be a significant issue. However, another possibility to
consider is pulling
these jobs out of the proposed pay structure and paying them
separately. The grade
level would stay the same to provide internal job level equity,
but the pay midpoints
would represent the market more closely.
Decisions of this nature must be made after reviewing the
inconsistencies. Each
company must take into account its corporate culture and ability
to pay when de-
ciding what adjustments to make in the balance between internal
values and ex-
ternal competitiveness. The key goal, as always, is to develop
an acceptable pay
structure that will aid the company in attracting, retaining, and
motivating qualified
employees.
Key issue: Determining what is more important—internal or
external equity.
Key questions to ask: What is the company culture? What is its
stance on the consistent
treatment of its employees? Is there high turnover in the
company? Is it in a
low-level job family or a high-level job family?
PitfallS and PrecautionS
A pay structure is not an end in itself. In fact, it is possible for
a company to pay its
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248 Base Pay Structures
• Decision making. Who will make the critical decisions
underlying the pay
structure? (For most companies, senior management tends to
make these
decisions.)
• Monitoring. How frequently will the pay structure be
monitored and assessed
for currency and appropriateness?
• Flexibility. Is the pay structure flexible enough to handle
dynamic situations?
This is critical in this age of constant change in corporations
and in the eco-
nomic environment, particularly the labor market.
• Resources. Can the company afford to allocate sufficient
resources (including
technology) to build and maintain current and relevant pay
106. structures related
to data?
• Communication. Is the company willing to allocate the
required effort and re-
sources to communicate the pay structures to employees and
educate manage-
ment in the proper use of pay structures?
Many companies currently are considering the broadbanding of
salary ranges
where applicable and appropriate. Broadbanding is the
combining of existing
ranges by expanding range width and reducing the number of
grades. This usu-
ally is done for many reasons to benefit the organization and its
employees. These
reasons include the following:
• Paying for performance and allowing managers greater
flexibility in salary
administration.
• Ease of moving people within the company.
• Reduction of the demands of job evaluation as well as the
time and effort re-
quired to make organizational changes.
Broadbanding is only one approach to pay administration in
general and pay struc-
tures in particular.
Pay structures should be developed from the organization’s
mission and business strat-
egy. Strategy should always precede structure development.
107. Many internal and external
environmental factors determine a company’s pay structure. The
pay structure has to
adopt the same positive characteristics of a company’s overall
compensation program.
While designing a pay structure, a balance between internal and
external equity
must be maintained. Constant fine-tuning should take place.
Developing pay struc-
tures is more an art than a science, although many mathematical
techniques and
processes may be used. While it is important to be specific
about structural features
such as the range spread, midpoint progression, and so on, the
key element of an
effective pay structure is its value in functioning as a tool for
managing pay.
BroadBandinG
Broadbanding has been a part of the HR field since the late
1980s and early 1990s
and was developed to compress many salary grades into fewer,
wide pay “bands.”
Those organizations that implemented such a system were
driven by the need to
adapt salary administration systems and procedures to meet a
new business climate
and create a flatter organization.
Broadbanding can be defined as a pay structure that
consolidates a large number
of pay grades and salary ranges into much fewer broadbands
with relatively wide
salary ranges, typically with 100 percent (or more) differences
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and maximum. Simply stated, broadbanding refers to the
collapsing of job clusters
111. or tiers of positions into a few wide bands to manage career
growth and deliver pay.
Broadbanding was created to help achieve several objectives,
namely:
• Develop broader workforce skills.
• Encourage career development among employees.
• Reduce administration with job evaluation, salary structure,
and merit pay.
Broadbanding usually appeals to fast-moving organizations that
are undergoing
persistent change. Such organizations that want to be quicker
and more flexible in
the marketplace have implemented broadbanding. They have
found that broad-
bands complement processes designed to increase company
speed, flexibility, and
risk taking.
Some or most of the career ladder rungs were removed and
employees were
encouraged to earn more by adding value to the company. This
could be accom-
plished by developing new skills or competencies and/or
participating in a variable
pay system with a line of sight to the company’s performance.
Broadbands support this evolving organizational dynamic by
providing less for-
mal structure. The traditional compensation approach
emphasizes internal equity,
focused employees’ attention on the world inside the firm, and
helps them ex-
perience an internal culture that more closely reflects the
112. external, competitive
marketplace. It helps make it easier for them to reorient
themselves to the mar-
ketplace.
In broadbanding, there is no automatic progression to the
midpoint because
there is no midpoint. The marketplace for talent is no longer
represented by highly
defined salary structures, but rather mirrored by loosely
defined, ambiguous broad-
bands that do not apply directly to an employee’s position. (See
Sidebar 11.1.)
StartinG rateS of Pay
When pay ranges have been formally established, it is the policy
of most employers
to pay new hires, who appear to have only the minimum
qualifications for their
jobs, at or near the range minimum. The objective is to avoid
paying them at rates
that are too close to those paid to more experienced employees
in the same job.
Occasionally, supply and demand conditions are such that new
hires with relatively
little experience must be paid substantially above the range
minimums. Addition-
ally, individuals with substantial experience (or otherwise
superior qualifications)
frequently are hired at higher levels in the rate ranges.
increaSeS to BaSe rateS of Pay
Today’s employees typically are eligible for several types of
base pay increases, such
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250 Base Pay Structures
(e.g., those who exceed the maximums of their rate ranges or
those whose perfor-
mance is unacceptable) are to be excluded from receiving such
increases. General
increases are not conceptually compatible with pay-for-
performance programs,
and the use of general increases has diminished as performance-
based programs
have expanded.
A cost of living increase is a specific type of general increase
that is typically awarded
in equal cents per hour or percentage terms to all employees in
a pay program
or structure. Cost-of-living allowance (COLA) increases,
however, are intended to
protect employees’ purchasing power against erosion caused by
inflation. These
increases typically relate to increases in the Consumer Price
Index (CPI). Thus, all
cost-of-living increases are general increases, but not all
general increases are cost-
of-living increases.
117. Promotion increases are increases granted to employees who are
promoted from
one job to another job with a higher pay grade and range. The
size of increase
is usually influenced by the magnitude of the promotion (as
measured by the
difference between the pay ranges assigned to the promotee’s
old and new jobs)
and the pay relationships among the promotee’s peers,
superiors, and subordi-
nates.
Within-range increases are types of base pay increases that
move employees forward
in the pay ranges assigned to their jobs. Within-range pay
increases are virtually
Sidebar 11.1: Broadbanding is not for everyone
Broadbanding is not a panacea for all organizations. One
potential disadvan-
tage is that broadbanding’s delayered approach to salary
administration may
not fit the culture of heavily level-oriented companies. The need
to manage
salaries also does not go away. Market pricing becomes even
more important
because it is used extensively to identify salary targets.
When broadbanding is implemented, an organization may also
have to re-
examine such things as management incentives, perquisites, and
other items
tied to the conventional salary grade. Line managers also may
need to be
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always determined by some combination of the employees’
length of service and
performance. The two principal types of within-range increases
are:
1. Increases based primarily on length of service (though
differences in performance
may also be reflected). These may be step increases, whereby
the pay ranges are
divided into a number of pay rates with increases related to
length of service.
The step increase concept is used most commonly for
nonexempt employees,
and there are several different approaches to this concept:
122. a. The first is for length of service only. Here the employee
receives single-step
increases up to the range maximum, which is usually at or just
above the
competitive market rate. If performance is unsatisfactory, the
increase is de-
nied and probation, demotion, or dismissal may result.
b. The second reflects both length of service and performance.
One approach is
illustrated in the following chart:
Performance Rating Pay Action
Outstanding 2-step increase
Exceeds standards 1-step increase; may accelerate timing of
next review
Meets standards 1-step increase
Does not meet standards No increase
c. Another approach involves two or three performance tracks
through which the
employee progresses to a performance zone maximum. The
number of
steps can be increased to allow for smaller percentage steps.
d. Finally, it is possible to add timing differences. This further
accentuates dif-
ferences in pay level based upon differences in performance.
2. Increases based on merit usually are administered in the
form of a range of per-
centages for varying levels of performance. As mentioned
earlier, they also may
be used in combination with step progression increases.
123. Inherent in most merit increase programs are the notions that:
• The speed with which employees move through pay ranges
will be deter-
mined principally, if not solely, on the basis of their job
performance.
• Performance will also determine how far employees are
allowed to progress
in their pay ranges.
Thus in determining merit increases, many organizations
consider the perfor-
mance of the individual and his or her current rate in the pay
range. As a result, the
merit increase may vary in size and timing.
Many organizations use a fixed frequency and vary the
increase’s size. The fixed fre-
quency may vary by job level, but the most typical frequency at
all levels is 12 months.
Timing of increases is sometimes based on the pay policy year
(focal point) or the
anniversary (anniversary date) of the employee’s service or last
increase date.
A smaller but significant percentage of organizations vary the
size of the increase
and the frequency. A minority of organizations fix the size of
the increase, but vary
the frequency.
The size of the increase (typically measured as a percent
increase) generally varies
directly with the individual’s performance (the better the
127. 252 Base Pay Structures
position in the range, the bigger the increase as a percent of
current pay). It is com-
mon practice to provide supervisors and managers with increase
planning guidelines.
These guideline charts include a range of options, to allow
managerial flexibility.
A final variation on the previous methods involves either step
progression or per-
cent merit guideline increases to the range midpoint, with a
lump sum bonus given
that varies in amount, depending upon performance.
There are, of course, many variations of these pay increase
approaches. Basically,
however, all known variations of in-range pay increases are
some combination of
these two basic approaches—step increases or merit increases.
merit Pay conSiderationS
Compensation professionals believe certain conditions generally
must exist for
performance-based pay increase programs to be successful:
• Individual differences in job performance should be
measurable.
• Individual differences in job performance must be significant
enough to war-
rant the time and effort required to measure them and relate pay
to them.
128. • The pay range should be sufficiently broad (35 percent to 50
percent) to allow
for adequate differentiation of pay based upon performance,
and/or level of
experience and skill.
• Supervisors and managers must be trained in employee
performance plan-
ning and appraisal.
• Management must be committed, and employees must be
receptive to making
distinctions in pay based upon performance.
• Managers must be adequately skilled in managing pay.
• Sufficient control systems must be implemented to ensure that
merit increase
guidelines are followed.
There are potential productivity and incentive benefits to be
derived from the
implementation of a performance-based pay increase program.
However, this type
of program is more complex to administer and requires more
difficult management
decisions. Compensation professionals must ensure that their
merit pay programs
measure performance as objectively as possible. Management
must carefully evalu-
ate performance and make judgments regarding pay
differentials. Significant com-
mitments of time and effort are required by all involved in this
process.
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• Objective performance standards are established for various
levels of em-
ployee performance when practical.
• The relative importance (weight) of each of the performance
criteria is
established.
• When practical, employees are involved in the determination
of perfor-
mance criteria, standards, and weights to ensure greater
acceptance of the
program.
133. • Performance criteria, standards, and weights are
communicated to the em-
ployee at the beginning of the appraisal period, and periodically
reviewed and
updated for timeliness, relevance, and utility.
• The appraisal is written, and discussed by the employee and
supervisor. The
employee is involved in the process prior to finalizing the
written appraisal.
(Many organizations make a copy of the written appraisal
available to the em-
ployee and provide an appeals mechanism for reconciling
differences between
employee and supervisor.)
• Finally, the appraisal process is audited routinely and
frequently, to identify
and eliminate potential problems.
maintaininG and auditinG the Pay ProGram
Maintenance of pay programs is one of the most critical
elements of sound base
pay administration. Unless programs are properly maintained,
errors occur and in-
equities will eventually undermine program effectiveness. The
maintenance of pay
programs is inherently difficult, because of:
• Continual changes in the content of the various jobs in an
organization.
• Continual changes in the going market rates for jobs.
• Frequent changes in organizational structure and staffing
levels.
• The ever-evolving and expanding regulatory framework
134. governing pay
programs.
• The inevitable turnover within the compensation function
itself.
KeyS to SucceSSful Pay ProGram maintenance
There are five keys to the proper maintenance of pay programs:
• Clearly stated objectives, policies, and procedures are
established and
communicated.
• Proper controls are operative to ensure policies and
procedures are being
consistently applied.
• There is adequate support for the compensation function
itself—including
provision of sufficient staff and other resources, as well as the
top manage-
ment support necessary to ensure that the pay program is
administered with
fairness and integrity.
• The compensation staff properly performs administrative
activities.
• The pay program is routinely audited for effectiveness and
efficiency.
The next sections focus on the ongoing administrative activities
necessary for
maintaining pay programs and the types of audits that can be
conducted to ensure
that the programs are functioning properly.
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254 Base Pay Structures
138. onGoinG adminiStrative activitieS
The proper maintenance of base pay programs requires
continual analysis of the con-
tent and requirements for the various jobs in an organization.
The information collected
in the course of these ongoing analyses requires careful
documentation by job descrip-
tions, completed position analysis questionnaires, or some
combination thereof.
Changes in organizational structure and staffing levels also
affect the content of
jobs and their relative worth to the organization. Unless job
documentation is prop-
erly maintained and jobs are properly evaluated, employees may
be assigned incor-
rect job titles, pay grades, and/or pay ranges. To ensure ongoing
program success,
some organizations undertake regular reviews or “desk audits”
of various organiza-
tional components. Others attempt to verify job-content
information throughout
the process of performance planning and appraisal.
Compensation professionals also continually monitor the
position of the orga-
nization’s pay levels vis-à-vis those of the competition. Thus,
compensation profes-
sionals participate in, purchase, and extract data from pay
surveys. This compiled
data, plus the organization’s pay philosophy and ability to pay,
combine to produce
decisions regarding changes in pay structures and budgets. If
the monitoring of the
139. market is neglected or poorly performed, an organization’s pay
rates and/or rate
ranges may be too high (causing excessive financial costs) or
too low (causing exces-
sive employee relations costs) when compared with those of
competitors.
In addition to pay structure maintenance activities,
compensation professionals
create pay increase budgets, planning documents, authorization
procedures, and
guidelines that combine to support the organization’s pay
philosophy. They also pre-
pare periodic reports for top management regarding pay
program results and costs.
Pay ProGram auditS
Systematic pay program audits can be invaluable for ensuring
an organization’s
compensation program is being properly administered and
maintained. Observers
of human behavior have noted “people do what is inspected, not
necessarily what is
expected.” In the absence of audits, policies may become wishes
and pay programs
may be rendered ineffective because of inconsistent practices
and resultant inequi-
ties, charges of illegal discrimination, employee dissatisfaction,
or excessive costs.
Five Steps to Prepare for and Conduct Pay Program
Audits
Step 1: Decide What to Audit
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• Job evaluation.
• Survey data.
• Amount of management time required for pay program
administration.
• Cost of data processing/consulting support.
• Error rates in databases.
• Backlog of requests for evaluations/re-evaluations.
• Timeliness of pay increase planning and processing.
• Timeliness and quality of performance appraisal data.
• Policy compliance measures are used to determine if the pay
program is being
administered in accordance with policy. Several examples
would be:
• Actual rates and ranges versus market position specified by
policy.
• Pay position in range.
• Percent of employees outside pay ranges.
• Green circle.
• Red circle.
• Extent of compliance with salary increase policies.
144. • Extent of compliance with starting rate policies.
• Job title congruence with actual job content.
• Validity of job evaluation data.
• Consistency of pay grade and range assignments with job
evaluation results.
• Compliance with performance appraisal policies and
procedures.
• Quality of performance appraisal information.
• Documentation adequacy measures are used to determine the
extent to which the
program is committed to putting it in writing. For example:
• Percent of jobs for which accurate and up-to-date
documentation exists.
• Percent of jobs with accurate job evaluation documentation.
• Percent of jobs with valid pay grade assignments.
• Percent of employees’ files containing current performance
appraisal
documents.
• Compliance with Fair Labor Standards Act (FLSA)/Equal Pay
Act (EPA)
recordkeeping requirements.
• Existence of written policies regarding:
• The design and operation of the job evaluation procedures.
• The operation of performance appraisal procedures.
• Pay increases.
• Structure adjustment procedures.
• Re-evaluation procedures.
• Overall results measures are used to assess how well pay
programs achieve the
established goals, such as:
• Attraction and retention of qualified employees.
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256 Base Pay Structures
• Percent of payroll allocated in a performance dependent
manner.
• Correlation between pay and performance levels.
• Protection of the organization’s financial resources.
• Pay as a percent of operating budget.
• Historical.
• Product competitors.
• Organization rates versus market rates.
• Employee perceptions of
• Internal equity.
• In the same job.
• In different jobs.
• External equity.
Step 2: Select the Participants
Participants should understand audit principles and processes
and possess well-
149. developed analytical, writing, and interpersonal skills. In
addition, they should be
disinterested parties that have no stake in a particular audit
outcome.
Step 3: Develop a Data Collection and Analysis Plan
Interviews or opinion surveys can be used to determine how
various parties view the
pay program. Auditors also can examine a wide variety of
internal and external rec-
ords and reports, including human resource records, payroll
data, pay survey data,
accounting records, and compensation databases.
Step 4: Assemble the Necessary Data to Support the Analysis
Step 5: Analyze the Collected Data and Develop Findings and
Recommendations
The audit report should present findings in an objective manner
and provide ad-
equate information to give readers the proper perspective.
Management’s role is to:
• Review audit results and recommendations.
• Prioritize the improvements that are required.
• Allocate the necessary resources.
• Follow up to ensure that the work is completed.
Organizations often find that audits are useful tools for
educating management
groups about the intricacies of pay program administration, thus
increasing their
understanding and support for the pay program.
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223
Base Pay Structures11
Compensation deals with establishing a meaningful and
acceptable relationship
between work and rewards. Work performed by employees
should help organiza-
tions achieve their objectives. These objectives are derived from
the organization’s
overall business strategy, which supports the company’s mission
statement.
When designed and administered appropriately, a company’s
compensation
program is an effective management tool for supporting the
organization’s overall
business strategy. A series of steps is used in the process of
designing sound compen-
sation programs. (See Figure 11.1.) This process is not a one-
time event. It involves
constant review and refinement in light of changing business
needs.
Pay StructureS
A pay structure consists of a series of pay ranges, or “grades,”
each with a minimum
and maximum pay rate. Jobs are grouped together in ranges that
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224 Base Pay Structures
General and SPecific factorS affectinG
Pay StructureS
Pay structures are influenced by the following general factors:
• Corporate culture and values. An organization’s pay structure
usually reflects the
way employees’ work is valued. For example, does an
organization always look
for the best and brightest employees? If so, the pay line may be
positioned
to lead the market. If the organization encourages and values
prudent risk-
taking, the total pay line may have an additional risk/reward
component.
• Management philosophy. Narrow pay ranges and more grades
allow for more fre-
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• External economic environment. Varied supply and demand
for certain skills may
necessitate a multistructured pay program. Technical
professionals such as en-
gineers may have special pay structures when there is a high
demand for their
skills. However, these special structures may be merged into the
general struc-
ture when there is an increase in the supply of engineers in the
market. Other
external factors that may be reflected in pay structures include
inflationary fluc-
tuations and cost-of-living indices such as the Consumer Price
Index (CPI).
• External sociopolitical and legal environments. The steps in
the pay structure are
likely to be more narrow and rigidly administered in a union
environment
than in a nonunion environment. Pay structures also are affected
by regula-
tions such as the FLSA, which mandates the minimum wage for
most jobs and
thereby determines the lowest possible pay scale.
Several other factors that influence pay structures relate directly
to the opera-
tions and culture of a specific organization:
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226 Base Pay Structures
a rate always higher than the market but over time to bring them
in line with the
market. This would mean steadily fine-tuning the pay ranges at
different levels.
• Decentralized compensation policy. An organization’s goal
may be to compete
within the top quartile of its competitors in a particular
functional segment
(e.g., sales/marketing) or product segment (e.g., jet engines or
disability in-
come insurance). In this case, the pay structure may be different
for those
particular functional and product segments within the
organization.
• Short-term vs. long-term orientation. A company with long-
term orientation is most
likely to have well-designed pay structures with career-path
capabilities and
smooth transitions from range to range. The ranges themselves
166. will be devel-
oped after much thought and research. Short-term or temporary
problems need
to be taken care of with temporary solutions. Solving temporary
problems with
long-term solutions should be avoided. Employees generally
have an entitlement
mind-set with respect to compensation, and it may be difficult
to “undo” prior
actions, even though the original reasons for such actions no
longer exist.
anatomy of a Pay Structure
A pay structure has multiple pay or salary ranges. Every pay
structure has key com-
ponents that are critical to its overall design. The following
section defines and
describes these basic elements.
Pay ranGeS and ranGe SPreadS
A “pay range” has a minimum pay value, a maximum pay value,
and a midpoint or
central value. The difference between the maximum and the
minimum is the “range
spread,” or the “width” of the range. Range width usually is
expressed as a percentage
of the difference between the minimum and maximum divided
by the minimum. For
example, in Figure 11.3, the range spread in dollars for Grade
10 (from Figure 11.2),
where the maximum is $120,360 and the minimum is $80,160, is
$120,360 – $80,160
= $40,200. The percentage is about 50 percent, or $40,200
divided by $80,160.
170. To calculate the spread on either side of the midpoint, use the
formulas shown in
the Formula 11.1 box (where $100,260 is the Grade 10 midpoint
in Figure 11.2).
A pay range with a 50-percent range spread will have a 20-
percent spread on
either side of the midpoint. (See Figure 11.3.) That is, $80,160
is 80 percent of
$100,260, and $120,360 is 120 percent of $100,260.
While all the ranges in Figure 11.2 have a range spread of 50
percent, the spread
does not have to be uniform throughout the pay structure.
Figure 11.4 lists common
range spreads and their corresponding spreads on either side of
the midpoint.
Example 11.1 shows how to calculate the spread on either side
of the midpoint.
To perform the calculation, one of the three points (minimum,
midpoint, or maxi-
mum) on the pay range needs to be specified along with the
range width.
Using a range spread of about 50 percent and a minimum of
$66,800, the maxi-
mum and midpoint are calculated as in Example 11.1.
Some Practical Considerations
Range spreads vary based on the level and sophistication of
skills required for a
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228 Base Pay Structures
promoted to higher-level positions. Senior-level positions
require a longer learning
curve and often have limited opportunities for advancement.
The following are
typical range spreads for different kinds of positions:
• 20–25 percent: lower-level service, production, and
maintenance.
• 30–40 percent: clerical, technical, paraprofessional.
• 40–50 percent: higher-level professional, administrative,
middle management.
• 50 percent and above: higher-level managerial, executive,
technical.
Care should be taken when deciding pay-range width. Assuming
a constant mid-
point, changing range spreads also changes the minimum and
maximum. Notice in
Example 11.2 that as the ranges get wider, the maximums
increase, the minimums
decrease, and the midpoints are constant.
178. an employee higher in the range in order to pay competitively.
This narrows the
position’s long-term earning potential. In turn, a high maximum
may provide long-
term earnings opportunities that are higher and more costly than
what are needed
to be competitive.
midPointS
The midpoint is a key element in pay administration. It is often
used as a reference
point in salary administration decisions as a point or “target.”
The midpoint is usu-
ally the reference used because it is typically set to equal the
market average or me-
dian. It should not be an organization’s only market reference
point.
Related to the midpoint is the compa-ratio, a statistic that
expresses the relation-
ship between base salary and the midpoint, or between the
midpoint and market av-
erage. Figure 11.5 illustrates the calculation of compa-ratio for
the same job as well
as for the market average. Compa-ratios can be calculated for
individuals, groups of
individuals, and the company as a whole.
Most companies strive to have the overall workforce paid at or
around a compa-
ratio of 100 percent. Individual compa-ratios vary according to
how long the in-
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230 Base Pay Structures
ranGe Penetration
Another way of tracking an organization’s compensation is to
view employee pay
in relationship to the total pay range. This is known as range
penetration. Unlike
compa-ratios, which are calculated using a grade’s midpoint,
range penetration is
calculated using the minimum and maximum of a salary range.
Range penetration
is shown in Example 11.3.