Compensation Management in a Knowledge-Based World

by Henderson, Richard I.

• ISBN13: 9780130081155
• ISBN10: 0130081159
• Edition: 9th
• Format: Hardcover
• Copyright: 2003-01-01
• Publisher: PRENTICE HALL

Summary

For undergraduate courses in Compensation Management and Wage and Salary Administration. With the recession of 2001-2002 and the dramatic bankruptcies of ENRON and other large corporations, the need to return to BASICS in Human Resources Administration is more critical than ever. As the leading text in its field Compensation Management offers a practical exploration of the systems, methods, and procedures involved in establishing and administering a compensation system within any organization.

Table of Contents

Preface	ix
PART I: MACROECONOMIC COMPENSATION CONCEPTS	1	(128)
Compensation in a Knowledge-Based Global Economy	3	(13)
Capitalism and Knowledge in a Global Economy	4	(1)
Compensation and Organizational Strategy	5	(1)
Integrating Knowledge and Skill Requirements, Organization Compensation, and Employee Income	6	(1)
Lifestyle and Compensation	6	(1)
Pay and Social Class	7	(8)
Summary	15	(1)
Review Questions	15	(1)
The Reward System: Compensation and Noncompensation Dimensions	16	(12)
The Reward System	17	(1)
Compensation System	17	(2)
Compensation Dimensions	19	(4)
Noncompensation System	23	(4)
Summary	27	(1)
Review Questions	27	(1)
The World of Pay and Compensation	28	(29)
The Compensation Program	29	(1)
Determining Rates of Pay	30	(8)
Jobs and Pay in the United States	38	(4)
A World in Transition	42	(1)
Summary	43	(1)
Review Questions	43	(1)
Appendix 3A: Economic Theories	44	(13)
Organizational Structure: Strategic and Tactical Compensation Issues	57	(36)
Development of an Organization	58	(3)
Employees--A Critical Resource	61	(1)
Division of Labor	62	(1)
Creating an Organizational Hierarchy	63	(2)
Board of Directors	65	(3)
Senior Management	68	(4)
Operating Managers	72	(2)
Sales Personnel	74	(2)
Professionals	76	(2)
Operative Employees	78	(8)
Pay Relationships: A Fairness Issue	86	(5)
Summary	91	(1)
Review Questions	91	(2)
Legislation and Compensation	93	(36)
The Legislative Process	95	(1)
Wage and Hour Legislation	96	(6)
Employee Pension and Welfare (Benefits) Legislation	102	(9)
Tax Treatment Legislation	111	(5)
Antidiscrimination in Employment Legislation	116	(8)
Wage and Price Control Legislation	124	(1)
Legislation Affecting Public Employees	125	(1)
Summary	126	(1)
Review Questions	127	(2)
PART II: MICROECONOMIC COMPENSATION CONCEPTS	129	(256)
Job Analysis	131	(40)
Preliminary Considerations	133	(1)
Planning a Job Analysis Program	133	(8)
Gaining Employee Acceptance and Cooperation	141	(1)
Collecting and Describing Job Data	142	(15)
Reviewing and Revising Job Facts	157	(1)
Designing a Custom-Made Job Analysis Questionnaire	157	(3)
Guidelines for Conducting a Job Analysis Interview	160	(2)
Other Job Analysis Methodologies	162	(1)
Summary	163	(1)
Review Questions	164	(1)
Appendix 6A: Other Job Analysis Methodologies	164	(7)
Job Description	171	(37)
Broad, Generic Job (Class) Descriptions Versus Narrow, Specific Job (Position) Descriptions	172	(1)
A Job Contract	173	(1)
Planning, Operations, and Control	174	(2)
Elements of the Job Description	176	(17)
Other Kinds of Information Used in Describing Jobs	193	(3)
Other Ways of Describing Job Facts	196	(4)
Revising Job Descriptions	200	(1)
Using the Computer	201	(5)
Summary	206	(1)
Review Questions	207	(1)
Job Evaluation	208	(47)
Job Requirements and Pay	209	(1)
Job Evaluation Issues	210	(1)
The Intraoccupational and Interoccupational Method of Job Classification	211	(2)
Whole Job Ranking	213	(1)
Position (Job) Classification---Predetermined Grading Approach	214	(2)
A Market Pricing Approach	216	(2)
The Maturity Curve Method	218	(2)
The Development and Use of Compensable Factors	220	(11)
Weighting and Rating of Compensable Factors	231	(5)
Job Evaluation and Comparable Worth	236	(4)
Summary	240	(1)
Review Questions	240	(1)
Appendix 8A: Paired-Comparison Procedures	241	(3)
Appendix 8B: Other Job Evaluation Methods	244	(6)
Appendix 8C: Using Multiple Regression Analysis in Questionnaire-Based Job Evaluation	250	(5)
A Point-Factor Method of Job Evaluation	255	(30)
Combining Point-Factor and Factor-Comparison Methods	256	(1)
Job Evaluation Committee	257	(5)
Using FES to Determine Job Worth	262	(20)
Summary	282	(2)
Review Questions	284	(1)
Surveying Market Pay and Compensation Practices	285	(39)
Critical Pay Survey Problems	286	(3)
Determining the Need for a Survey	289	(4)
Preparing for the Survey	293	(5)
Identifying Survey Methods	298	(3)
Designing the Survey	301	(13)
Performing a Statistical Analysis of the Data	314	(4)
Using Third-Party Surveys	318	(1)
Sources of Third-Party Data	319	(4)
Summary	323	(1)
Review Questions	323	(1)
Designing a Base Pay Structure	324	(37)
Pay Structure Architecture	325	(25)
Interlocking Multiple Pay Structures	350	(1)
The Expanding or Fan-Type Pay Structure: An Optional Approach	351	(3)
Architectural Design Hints	354	(1)
Pay Sectors and Levels of Education, Experience, and Training	355	(1)
Spreadsheet Software	356	(1)
Summary	356	(1)
Review Questions	357	(1)
Appendix 11A: The Least-Squares Method for Determining Line of Best Fit (Trend Line)	357	(4)
Team-Based Pay in a Knowledge-Based World	361	(24)
Kinds of Teams	362	(5)
Use of Skill-, Knowledge-, and Competency-Based Pay	367	(16)
Summary	383	(1)
Review Questions	383	(1)
References	384	(1)
PART III: MICRO- AND MACROECONOMIC COMPENSATION CONCEPTS	385	(239)
Measuring and Paying for Performance	387	(40)
Pay for Performance in a Knowledge-Oriented, Service-Sector Economy	388	(1)
Application of Motivation Theories	389	(9)
Merit Pay	398	(2)
Performance Appraisal: Issues and Opportunities	400	(7)
Performance Appraisal: A Cost-Effectiveness Analysis	407	(3)
Designing a Job Content-Based Performance Appraisal Program	410	(7)
Other Critical Performance Appraisal-Related Issues	417	(3)
Summary	420	(1)
Review Questions	421	(1)
Appendix 13A: Ranking and Rating Instruments and Formats	421	(2)
Appendix 13B: Validity and Reliability	423	(4)
Short-Term Incentives	427	(38)
Premiums and Differentials	428	(4)
Pay for Units Produced	432	(1)
Individual-Based Bonuses and Awards	433	(7)
Aggregating Employees for Incentive Opportunities	440	(3)
Organization-Wide Short-Term Incentives	443	(11)
Summary	454	(1)
Review Questions	455	(1)
Appendix 14A: Setting Standards and Designing Incentives for an Industrial Economy	455	(5)
Appendix 14B: Two Other Kinds of Gainsharing Plans	460	(5)
Long-Term Incentives and Wealth Building	465	(21)
Wealth and Work in the United States	466	(1)
Tax Legislation	467	(1)
Designing a Long-Term Incentive and Deferred Compensation Plan	468	(3)
Qualified Deferred Compensation Arrangements	471	(14)
Summary	485	(1)
Review Questions	485	(1)
Executive and International Compensation	486	(39)
Executive Compensation	487	(8)
Capital Accumulation	495	(3)
Maximizing Executive Compensation Opportunities	498	(4)
International Compensation	502	(4)
Summary	506	(1)
Review Questions	507	(1)
Appendix 16A: Tax Legislation-Related Terms	507	(6)
Appendix 16B: Stock and Stock Equivalent Acquisition Plans	513	(9)
Appendix 16C: Special Corporate Insurance Programs	522	(3)
Benefits and Services	525	(56)
Benefits Administration	531	(2)
Employee Benefits	533	(24)
Employee Services	557	(11)
Funding Benefits Through a VEBA	568	(1)
Costing Benefits	569	(1)
Flexible Compensation/Benefits Plan (Cafeteria Plans)	570	(10)
Summary	580	(1)
Review Questions	580	(1)
Pay Delivery Administration	581	(43)
Tying It All Together	582	(2)
The Budget Process	584	(2)
Administration of Pay	586	(22)
Quality of Work Life and Pay Administration	608	(2)
Other Compensation Administration Issues	610	(8)
Due Process	618	(4)
Summary	622	(1)
Review Questions	623	(1)
Action Words	624	(9)
Glossary of Terms	633	(30)
Name Index	663	(3)
Subject Index	666