Compensation:
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Book |
| Language: | English |
| Published: |
Boston [u.a.]
McGraw-Hill/Irwin
2008
|
| Edition: | 9. ed. |
| Subjects: | |
| Online Access: | Inhaltsverzeichnis |
| Physical Description: | XVII, 652 S. graph. Darst. |
| ISBN: | 9780072969412 |
Staff View
MARC
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Record in the Search Index
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| adam_text | Table of Con
Preface xiii
Chapter 1
The Pay Model 1
Compensation: Definition, Please? 2
Society 2
Stockholders 4
Managers 6
Employees 7
Global Views—Vive la difference 8
Forms of Pay 9
Cash Compensation: Base 10
Cash Compensation: Merit Pay/Cost-of-Living
Adjustments 10
Cash Compensation: Incentives 11
Long-Term Incentives 11
Benefits: Income Protection 12
Benefits: Work/Life Balance 12
Benefits: Allowances 13
Total Earnings Opportunities: Present Value
of a Stream of Earnings 13
Relational Returns from Work 13
A Pay Model 15
Compensation Objectives 16
Four Policy Choices 19
Pay Techniques 21
Book Plan 22
Caveat Emptor—Be an Informed
Consumer 23
1. Is the Research Useful? 24
2. Does the Study Separate Correlation from
Causation? 24
3. Are There Alternative Explanations? 25
Your Turn: Glamorous Internships? Or House
Elves? 25
tents
Chapter 2
Strategy: The Totality of Decisions 28
Similarities and Differences in Strategies 28
Different Strategies within the Same Industry 30
Different Strategies within the Same Company 31
Strategic Choices 31
Support Business Strategy 33
The Pay Model Guides Strategic Pay
Decisions 35
Stated versus Unstated Strategies 36
Developing a Total Compensation Strategy:
Four Steps 36
Step 1: Assess Total Compensation
Implications 36
Step 2: Map a Total Compensation Strategy 43
Steps 3 and 4: Implement and Reassess 45
Source of Competitive Advantage: Three
Tests 45
Align 45
Differentiate 46
Add Value 47
Best Practices versus Best Fit ? 48
Guidance from the Evidence 49
Virtuous and Vicious Circles 51
Your Turn: Pay Matters (Productivity Does,
Too) 53
Your Turn: Mapping Compensation Strategies 54
PART ONE
INTERNAL ALIGNMENT:
DETERMINING THE STRUCTURE
Chapter 3
Defining Internal Alignment 58
Compensation Strategy: Internal Alignment 59
Supports Organization Strategy 60
v
vi Table of Contents
Supports Work Flow 60
Motivates Behavior 61
Structures Vary among Organizations 62
Levels 62
Differentials 63
Criteria: Content and Value 63
What Shapes Internal Structures? 65
Economic Pressures 65
Government Policies, Laws, and Regulations 67
External Stakeholders 67
Cultures and Customs 68
Organization Strategy 69
Organization s Human Capital 69
Organization Work Design 69
Overall HR Policies 70
Internal Labor Markets: Combining External
and Organization Factors 70
Employee Acceptance: A Key Factor 71
Pay Structures Change 72
Strategic Choices in Designing Internal
Structures 73
Tailored versus Loosely Coupled 73
Egalitarian versus Hierarchical 74
Guidance from the Evidence 75
Equity Theory: Fairness 75
Tournament Theory: Motivation and
Performance 76
Institutional Model: Copy Others 78
(More) Guidance from the Evidence 79
Consequences of Structures 80
Efficiency 80
Fairness 81
Compliance 81
Your Turn: So You Want to Lead the
Orchestra! 82
Chapter 4
Job Analysis 84
Structures Based on Jobs, People, or Both 85
Job-Based Approach: Most Common 87
Why Perform Job Analysis ? 87
Job Analysis Procedures 88
What Information Should Be Collected? 89
Job Data: Identification 89
Job Data: Content 92
Employee Data 92
Essential Elements and the Americans
with Disabilities Act 95
Level of Analysis 96
How Can the Information Be Collected? 97
Conventional Methods 97
Quantitative Methods 99
Who Collects the Information ? 100
Who Provides the Information? 101
What about Discrepancies? 102
Job Descriptions Summarize the Data 103
Describing Managerial/Professional Jobs 103
Verify the Description 103
Job Analysis: Bedrock or Bureaucracy? 105
Judging Job Analysis 106
Reliability 106
Validity 107
Acceptability 107
Usefulness 107
A Judgment Call 108
Your Turn: The Customer-Service Agent 108
Chapter 5
Evaluating Work: Job Evaluation 114
Job-Based Structures: Job Evaluation 115
Defining Job Evaluation: Content, Value,
and External Market Links 115
Content and Value 115
Linking Content with the External Market 116
Measure for Measure versus Much Ado about
Nothing 117
How-to : Major Decisions 118
Establish the Purpose 118
Single versus Multiple Plans 119
Choose among Methods 121
Ranking 121
Classification 122
Point Method 125
/. Conduct Job Analysis 126
2. Determine Compensable Factors 126
3. Scale the Factors 132
4. Weight the Factors According to
Importance 134
5. Communicate the Plan and Train Users 136
6. Apply to Nonbenchmark Jobs 136
7. Develop Online Software Support 136
Who Should Be Involved? 136
The Design Process Matters 137
Appeals/Review Procedures 138
I Know I Speak for All of Us When I Say I Speak
for All of Us 138
The Final Result: Structure 138
Balancing Chaos and Control 139
Your Turn: Job Evaluation at Whole Foods 140
Chapter 6
Person-Based Structures 147
Person-Based Structures: Skill Plans 148
Types of Skill Plans 149
Purpose of the Skill-Based Structure 151
How-to : Skill Analysis 152
What Information to Collect? 153
Whom to involve? 153
Establish Certification Methods 153
Guidance from the Research on Skill-Based
Plans 155
Person-Based Structures: Competencies 156
Defining Competencies 158
Purpose of the Competency-Based Structure 160
How-to : Competency Analysis 161
Objective 162
What Information to Collect? 162
Whom to Involve ? 165
Establish Certification Methods 165
Resulting Structure 165
Guidance from the Research on Competencies 165
One More Time: Internal Alignment Reflected
in Structures 167
Administering the Plan 168
Evidence of Usefulness of Results 168
Reliability of Job Evaluation Techniques 168
Validity 169
Acceptability 170
Bias in Internal Structures 170
Wages Criteria Bias 171
The Perfect Structure 172
Your Turn: Climb the Legal Ladder 174
Table of Contents vii
PART TWO
EXTERNAL COMPETITIVENESS:
DETERMINING THE PAY LEVEL
Chapter 7
Defining Competitiveness 180
Compensation Strategy: External
Competitiveness 181
Control Costs 181
Attract and Retain Employees 182
What Shapes External Competitiveness? 185
Labor Market Factors 185
How Labor Markets Work 186
Labor Demand 187
Marginal Product 187
Marginal Revenue 188
Labor Supply 189
Modifications to the Demand Side 189
Compensating Differentials 190
Efficiency Wage 190
Signaling 192
Modifications to the Supply Side (Only Two More
Theories to Go) 193
Reservation Wage 193
Human Capital 193
Product Market Factors and Ability to Pay 194
A Dose of Reality: What Managers Say 195
More Reality: Segmented Supplies of Labor 195
Organization Factors 197
Industry and Technology 197
Employer Size 198
People s Preferences 198
Organization Strategy 199
Relevant Markets 199
Defining the Relevant Market 200
Competitive Pay Policy Alternatives 200
Pay with Competition (Match) 201
Lead Policy 202
Lag Policy 203
Flexible Policies 203
Pitfalls of Pies 205
Consequences of Pay-Level and Mix Decisions:
Guidance from the Research 207
Efficiency 207
Fairness 208
viii Table of Contents
Compliance 208
Your Turn: Sled Dog Software 209
Still Your Turn: Fit the Pay-Mix Policy
to the Compensation Strategy 209
Chapter 8
Designing Pay Levels, Mix, and Pay
Structures 211
Major Decisions 212
Specify Competitive Pay Policy 212
The Purpose of a Survey 213
Adjust Pay Level—How Much to Pay? 213
Adjust Pay Mix—What Forms ? 213
Adjust Pay Structure? 213
Study Special Situations 214
Estimate Competitors Labor Costs 214
Select Relevant Market Competitors 215
Fuzzy Markets 219
Design the Survey 220
Who Should Be Involved? 220
How Many Employers ? 220
Which Jobs to Include ? 223
What Information to Collect? 225
Interpret Survey Results and Construct a Market
Line 228
Verify Data 229
Statistical Analysis 233
Update the Survey Data 236
Construct a Market Pay Line 236
Combine Internal Structure and External Market
Rates 240
From Policy to Practice: The Pay-Policy
Line 241
Policy Line as Percent of Market Line 241
From Policy to Practice: Grades and Ranges 241
Why Bother with Grades and Ranges? 241
Develop Grades 242
Establish Range Midpoints, Minimums, and
Maximums 242
Overlap 243
From Policy to Practice: Broad Banding 244
Balancing Internal and External Pressures:
Adjusting the Pay Structure 247
Reconciling Differences 247
Market Pricing 248
Review 249
Your Turn: Word-of-Mouse: Dot-Com
Comparisons 250
PART THREE
EMPLOYEE CONTRIBUTIONS:
DETERMINING INDIVIDUAL PAY
Chapter 9
Pay for Performance: The Evidence 255
What Behaviors Do Employers Care About?
Linking Organization Strategy to Compensation
and Performance Management 256
What Does It Take to Get These Behaviors? What
Theory and Research Say 261
What Does It Take to Get These Behaviors? What
Compensation People Say 266
Total Reward System: Besides Money, Other
Rewards Influence Behavior! 267
Does Compensation Motivate Behavior? General
Comments 271
Does Compensation Motivate Behavior? Specific
Comments 272
Do People Join a Firm because of Pay? 272
Do People Stay in a Firm (or Leave) because of
Pay? 273
Do Employees More Readily Agree to Develop Job
Skills because of Pay? 275
Do Employees Perform Better on Their Jobs
because of Pay? 276
Designing a Pay-for-Performance Plan 280
Efficiency 280
Equity/Fairness 282
Compliance 283
Your Turn: Burger Boy 284
Chapter 10
Pay-for-Performance Plans 287
What Is a Pay-for-Performance Plan? 287
Does Variable Pay Improve Performance Results?
The General Evidence 289
Specific Pay-for-Performance Plans: Short
Term 289
Merit Pay 289
Lump-Sum Bonuses 291
Individual Spot Awards 292
Individual Incentive Plans: Types 292
Individual Incentive Plans: Advantages
and Disadvantages 296
Individual Incentive Plans: Examples 297
Team Incentive Plans: Types 297
Comparing Group and Individual Incentive
Plans 299
Team Compensation 302
Gain-Sharing Plans 304
Profit-Sharing Plans 310
Earnings-at-Risk Plans 311
Group Incentive Plans: Advantages and
Disadvantages 312
Group Incentive Plans: Examples 313
Explosive Interest in Long-Term Incentive
Plans 313
Employee Stock Ownership Plans (ESOPs) 315
Performance Plans (Performance Share and
Performance Unit) 316
Broad-Based Option Plans (BBOPs) 316
Your Turn: Incentives in the Clubhouse 317
Appendix
10-A: Gain-Sharing Plan at Dresser
Rand 319
10-B: Profit-Sharing Plan at 3M 323
Chapter 11
Performance Appraisals 330
The Role of Performance Appraisals in
Compensation Decisions 330
Common Errors in Appraising Performance 333
Strategies for Better Understanding and Measuring
Job Performance 334
Strategy 1: Improve Appraisal Formats 335
Strategy 2: Select the Right Raters 344
Strategy 3: Understand How Raters Process
Information 347
Table of Contents ix
Strategy 4: Training Raters to Rate More
Accurately 351
Putting It All Together: The Performance
Evaluation Process 352
Equal Employment Opportunity and Performance
Evaluation 354
Tying Pay to Subjectively Appraised
Performance 358
Performance- and Position-Based Guidelines 360
Designing Merit Guidelines 360
Promotional Increases as a Pay-for-Performance
Tool 362
Your Turn: Merit Pay: Making Policies and
Practices that Work! 362
Appendix
11: Sample Appraisal Form: Pfizer
Pharmaceutical 365
PART FOUR
EMPLOYEE BENEFITS
Chapter 12
The Benefit Determination Process 402
Why the Growth in Employee Benefits? 406
Wage and Price Controls 406
Unions 406
Employer Impetus 406
Cost Effectiveness of Benefits 406
Government Impetus 407
The Value of Employee Benefits 407
Key Issues in Benefit Planning, Design,
and Administration 409
Benefit Planning and Design Issues 409
Benefit Administration Issues 410
Components of a Benefit Plan 414
Employer Preferences 415
Employee Preferences 419
Administering the Benefit Program 421
Employee Benefit Communication 421
Claims Processing 425
Cost Containment 425
Your Turn: Lightning Industries 426
x Table of Contents
Chapter 13
Benefit Options 431
Legally Required Benefits 433
Workers Compensation 434
Social Security 437
Unemployment Insurance 440
Family and Medical Leave Act (FMLA) 441
Consolidated Omnibus Budget Reconciliation Act
(COBRA) 442
Health Insurance Portability and Accountability Act
(HIPAA) 442
Retirement and Savings Plan Payments 442
Defined Benefit Plans 444
Defined Contribution Plans 444
Individual Retirement Accounts (IRAs) 446
Employee Retirement Income Security Act
(ERISA) 447
How Much Retirement Income to Provide 448
Life Insurance 450
Medical and Medically Related Payments 450
General Health Care 450
Health Care: Cost Control Strategies 453
Short-and Long-Term Disability 456
Dental Insurance 457
Vision Care 457
Miscellaneous Benefits 457
Paid Time Off during Working Hours 457
Payment for Time Not Worked 458
Child Care 459
Elder Care 459
Domestic Partner Benefits 459
Legal Insurance 459
Benefits for Contingent Workers 460
Your Turn: Love Inc. 461
PART FIVE
EXTENDING THE SYSTEM
Chapter 14
Compensation of Special Groups 467
Who Are Special Groups? 468
Compensation Strategy for Special Groups 469
Supervisors 469
Corporate Directors 470
Executives 471
Scientists and Engineers in High-Technology
Industries 482
Sales Forces 486
Contingent Workers 489
Your Turn: Compensation of Special Groups 490
Chapter 15
Union Role in Wage and Salary
Administration 493
The Impact of Unions in Wage
Determination 494
Union Impact on General Wage Levels 495
The Structure of Wage Packages 497
Union Impact: The Spillover Effect 499
Role of Unions in Wage and Salary Policies
and Practices 499
Unions and Alternative Reward Systems 504
Lump-Sum Awards 504
Employee Stock Ownership Plans (ESOPs) 505
Pay-for-Knowledge Plans 505
Gain-Sharing Plans 505
Profit-sharing Plans 506
Your Turn: General Technology 507
Chapter 16
International Pay Systems 509
Managing Variations: The Global Guide 511
The Social Contract 514
Centralized or Localized Decision Making 515
Culture 515
Culture Matters, but So Does Cultural
Diversity 517
Trade Unions and Employee Involvement 518
Ownership and Financial Markets 519
Managerial Autonomy 520
Comparing Costs 521
Standard of Living: Basket of Goods versus Big
Mac 521
Comparing Systems 523
The Total Pay Model: Strategic Choices 523
National Systems: Comparative Mind-Set 523
Japanese National System 524
German National System 528
Strategic Comparisons: Japan, Germany,
United States 529
Strategic Market Mind-Set 532
Localizes Think Global, Act Local 532
Exporter: Headquarters Knows Best 532
Globalizer: Think and Act Globally and
Locally 532
Expatriate Pay 533
Elements of Expatriate Compensation 535
The Balance Sheet Approach 537
Expatriate Systems — Objectives? Quel
dommage! 538
Borderless World -» Borderless Pay?
Globalists 541
Your Turn: Coke and IBM 541
PART SIX
MANAGING THE SYSTEM
Chapter 17
Government and Legal Issues in
Compensation 547
Government as Part of the Employment
Relationship 548
Demand 549
Supply 549
Fair Labor Standards Act of 1938 550
Minimum Wage 551
Living Wage 553
Hours of Work 554
Child Labor 557
Prevailing Wage Laws 558
Pay Discrimination: What Is It? 559
The Equal Pay Act 560
Definition of Equal 560
Definitions of Skill, Effort, Responsibility, Working
Conditions 561
Factors Other than Sex 561
Reverse Discrimination 562
Title VII of the Civil Rights Act of 1964 563
Disparate Treatment 563
Disparate Impact 563
Pay Discrimination and Dissimilar Jobs 564
Table of Contents xi
Proof of Discrimination: Use of Market Data 564
Proof of Discrimination: Jobs of Comparable
Worth 565
Earnings Gaps 566
Sources of the Earnings Gaps 568
Differences in Occupations and Qualifications 569
Differences in Industries and Firms 571
Union Membership 572
Presence of Discrimination 572
Gaps Are Global 573
Comparable Worth 573
The Mechanics 574
Union Developments 576
A Proactive Approach 577
Your Turn: Self-Evaluation and Pay
Discrimination 577
Still Your Turn: Celebrity Sweatshops? 578
Chapter 18
Management: Making It Work 581
Managing Labor Costs 582
Controlling Employment: Staffing Levels
and Hours 583
Controlling Average Cash Compensation 587
Control Salary Level: Top Down 587
Current Year s Rise 587
Ability to Pay 587
Competitive Market Pressures 588
Turnover Effects 588
Cost of Living 588
Rolling It All Together 590
Control Salary Level: Bottom Up 590
Ethics: Managing or Manipulating? 593
Where Is the Compensation Professional? 594
Embedded Controls 595
Range Maximums and Minimums 595
Compa-Ratios 596
Variable Pay 596
Analyzing Costs 597
Analyzing Value Added 597
Communication: Managing the Message 600
Say What? 603
Pay as Change Agent 605
Structuring the Compensation Function 606
xii Table of Contents
Centralization-Decentralization 606
Flexibility within Corporatewide Principles 606
Reengineering and Outsourcing 607
Controls as Guidelines: Let (Thoughtful)
Managers Manage 607
Your Turn: Communication by Copier 608
Still Your Turn: Ethics in Compensation
Decisions 609
Glossary 610
Name Index 631
Subject Index 640
|
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| dewey-full | 658.3/2 |
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| dewey-ones | 658 - General management |
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| id | DE-604.BV035212324 |
| illustrated | Illustrated |
| indexdate | 2024-07-09T21:28:43Z |
| institution | BVB |
| isbn | 9780072969412 |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-017018533 |
| oclc_num | 76961338 |
| open_access_boolean | |
| owner | DE-N2 |
| owner_facet | DE-N2 |
| physical | XVII, 652 S. graph. Darst. |
| publishDate | 2008 |
| publishDateSearch | 2008 |
| publishDateSort | 2008 |
| publisher | McGraw-Hill/Irwin |
| record_format | marc |
| spelling | Milkovich, George T. Verfasser aut Compensation George T. Milkovich ; Jerry M. Newman 9. ed. Boston [u.a.] McGraw-Hill/Irwin 2008 XVII, 652 S. graph. Darst. txt rdacontent n rdamedia nc rdacarrier Compensation management Unternehmen (DE-588)4061963-1 gnd rswk-swf Lohnpolitik (DE-588)4036241-3 gnd rswk-swf Lohn (DE-588)4036229-2 gnd rswk-swf Lohn (DE-588)4036229-2 s DE-604 Lohnpolitik (DE-588)4036241-3 s Unternehmen (DE-588)4061963-1 s 1\p DE-604 Newman, Jerry M. Verfasser aut HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=017018533&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis 1\p cgwrk 20201028 DE-101 https://d-nb.info/provenance/plan#cgwrk |
| spellingShingle | Milkovich, George T. Newman, Jerry M. Compensation Compensation management Unternehmen (DE-588)4061963-1 gnd Lohnpolitik (DE-588)4036241-3 gnd Lohn (DE-588)4036229-2 gnd |
| subject_GND | (DE-588)4061963-1 (DE-588)4036241-3 (DE-588)4036229-2 |
| title | Compensation |
| title_auth | Compensation |
| title_exact_search | Compensation |
| title_full | Compensation George T. Milkovich ; Jerry M. Newman |
| title_fullStr | Compensation George T. Milkovich ; Jerry M. Newman |
| title_full_unstemmed | Compensation George T. Milkovich ; Jerry M. Newman |
| title_short | Compensation |
| title_sort | compensation |
| topic | Compensation management Unternehmen (DE-588)4061963-1 gnd Lohnpolitik (DE-588)4036241-3 gnd Lohn (DE-588)4036229-2 gnd |
| topic_facet | Compensation management Unternehmen Lohnpolitik Lohn |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=017018533&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
| work_keys_str_mv | AT milkovichgeorget compensation AT newmanjerrym compensation |