Employee Compensation

3762 WordsAug 30, 201216 Pages
EMPLOYEE COMPENSATION According to Gary Dessler compensation refers to all forms of pay going to employees and arising from their employment. The phrase 'all forms of pay' in the definition does not include non-financial benefits, but all the direct and indirect financial compensations. Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction. Compensation systems are basically developed to reward employees behavior so that they are lead to accomplish organizations overall goals and objectives. How is compensation used? Compensation is a tool used by management for a variety of…show more content…
Conduct a job analysis of all positions. • Conduct a general task analysis by major departments. What tasks must be accomplished by whom? • Get input from senior vice presidents of marketing, finance, sales, administration, production, and other appropriate departments to determine the organizational structure and primary functions of each. • Interview department managers and key employees, as necessary, to determine their specific job functions. • Decide which job classifications should be exempt and which should be nonexempt. • Develop model job descriptions for exempt and nonexempt positions and distribute the models to incumbents for review and comment; adjust job descriptions if necessary. • Develop a final draft of job descriptions. • Meet with department managers, as necessary, to review job descriptions. • Finalize and document all job descriptions. Evaluate jobs. • Rank the jobs within each senior vice presidents and manager's department, and then rank jobs between and among departments. • Verify ranking by comparing it to industry market data concerning the ranking, and adjust if necessary. • Prepare a matrix organizational review. • On the basis of required tasks and forecasted business plans, develop a matrix of jobs crossing lines and departments. • Compare the matrix with data from both the company structure and the industrywide market. • Prepare flow charts of all ranks for each department for ease of interpretation and assessment. • Present data
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