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MANAGING COMPENSATION (Rabiatul, Fazira, Noramiza, Farriz,Farhanah) (Job…

- - - - to reward employees' past performance
      - to remain competitive in the labor market
      - to maintain salary equity among employees
      - to mesh employees' future performance align with organizational goals
      - to control the compensation budget
      - to attract new employees
      - to reduce unnecessary turnover
    - - the ability of the pay program to gain employee acceptance while motivating employees to perform to the best of their abilitie
      - the rate of pay whether it is to be above, below, or at the prevailing market rate
      - the pay level at which employees may be recruited and the pay differ between new and senior employees
      - the intervals at which pay raises are to be granted and the extent to which merit and/or seniority will influence the raises
      - the pay levels needed to facilitate the achievement of a sound financial position in relation to the products or services offered
    - - hourly work= work paid on an hourly basis
      - piecework = work paid according to the number of units produced
      - nonexempt employees = employees covered by FAIR LABOR STANDARDS ACT
      - exempt employees = employees are not covered by the FAIR LABOR STANDARDS ACT
  - - - external equity
      - internal equity
      - individual equity
    - - high effort will lead to high performance.
      - high performance should result in valued
    - - secrecy can generate distrust , reduce employee motivation, inhibit organizational effectiveness
      - managers may be unwilling to admit is that it gives them greater freedom in compensation management
      - to cover up inequities existing within the internal pay structure.
      - may alos caused problems with Internet salary survey data
- - - - rank the value of job from highest to lowest
      - classify jobs so they can be benchmarked internally and externally
      - Award points to each job based on how much they are linked to organizational objectives
  - - - how it can be done ?
        
        can be done by single individual knowledgeable about all jobs
        
        by a committee comprising management and employee representatives
      - disadvantage
        
        does not provide a very precise measure of each job's worth
        
        the final ranking of jobs indicates the relative importance of the job, not the differences in the degree of importance that may exist between jobs
        
        can be used only with a small number of jobs
  - - - The point manual.
        
        a handbook that contains a description of the compensable factors and the degrees to which these factors may exist within the jobs
      - using the Point Manual
        
        accomplished by comparing the job descriptions and job specifications, factor by factor, against the various factor-degree description contained in the manual.
  - - - knowledge (or know-how)
      - mental activity (or problem-solving)
      - accountability
- - - - Compensation objective affect the pay of employee
    - - The job covered most frequently by job evaluation
    - - Provide a visibleand credible relationship between performance and any raises receive
    - - Ability to provide higher pay for the employee perform their work
  - - - Government regulation prevent an employer from paying at market less than established minimum .
    - - Provide rates that in line with those being paid by other employer for comparable jobs with the area.
    - - Compensation rate adjusted upward periodically to help employee maintaince their purchasing power.
    - - Establish rate patterns within the labor market
    - - Follow the requirement standard that has decide by goverment