org structure

Ch 41

To develop and operate a compensation system that promotes fair treatment, an organization should consider such compensation strategies as:

Relating job worth to differences in job requirements.

Recognizing the worth and value of employee knowledge and skills.

Organizational StructureOrganizational Structure

Ch 42

Strategic Compensation Strategic Compensation IssuesIssues

Rewarding employee contributions and the results achieved.

Promoting employee continued acquisition and upgrading of knowledge and skills.

Supporting team and work-unit cooperative efforts.

Designing compensation plans that successfully compete within established labor markets.

Ch 43

Strategic Compensation Strategic Compensation IssuesIssues

Aligning compensation of all employees with objectives and goals of the organization.

Providing a compensation package that enhances current lifestyles and provides long-term protection for employees and their dependants.

Ch 44

Organizational Characteristics

Purpose To provide a good or service of value to customers

or clients. Division of Labor

The assignment of different tasks to different people acting individually or in groups.

Hierarchy of Authority

Level-by-level arrangement of managers in order of increasing authority.

Ch 45

Development of an Development of an OrganizationOrganization

Establish a Philosophy

Establishes general guidelines for

decisions and actions to be taken by all members - it describes the values of top management or the leaders of the organization. It provides standards.

Ch 46

Identify the Mission

Describes in broad or general value-laden terms what the organization wishes to accomplish in the long-term ...the kind of product it tends to provide and how it intends to provide it. It identifies desired results.

Develop ContDevelop Cont..

Ch 47

Develop Policy

Broad guidelines for directing the actions of employees. It must be sufficiently broad to relate to different actions and behaviors required of the various work groups and members of the organization, and it must support the mission of the organization.

Develop Develop cont.cont.

Ch 48

Determine Objectives and Goals

Identifies specific output requirements and establishes the levels of performance needed to accomplish the mission.

It is a transition point from strategic to tactical considerations where the organization must determine the most efficient and effective means of accomplishing its mission.

Develop cont.Develop cont.

Ch 49

Define Work Unit Activities

Identifies the principle activities of the work unit - it further assists in integrating the top-down established organizational objectives and goals with the assignment of each work unit.

Develop contDevelop cont

Ch 410

Group Tasks into Jobs

*Work unit activities become segregated and assigned to specific individuals.

*These activities become further identified as the tasks, duties, and responsibilities of a job.

*Specific knowledge and skill requirements are identified along with a variety of environmental conditions that make additional demands on the workers.

Develop cont.Develop cont.

Ch 411

Pay Satisfaction

People make decisions about pay based on comparisons with others.

Job Satisfaction

People want meaningful work, an opportunity for recognition, reward, and advancement.

Satisfaction And Satisfaction And

Individual PerformanceIndividual Performance

Ch 412

Organizational Satisfaction

People want to be secure in their work, treated fairly, and philosophically aligned with the organization

Satisfaction cont.Satisfaction cont.

Ch 413

Organizational Organizational HierarchyHierarchy

Board of Directors

Establish policy...identify organizational and strategic missions...select senior management and monitors their performance.

•Chairman of the Board

• Inside and Outside Members

Ch 414

Senior Management

Responsible for the proper organization and operation of the firm. Responsible for setting organizational objectives, establishing operating polices, and defining operating plans.

President (CEO) (COO)

Executive/Senior Vice Presidents


Ch 415


Operating Managers

Responsible for meeting daily quality, quantity, and timeliness standards in the goods and services produced in their units.

Division Heads (VP’s) (GM’s) Department Heads Plant Managers Professionals and Administrators Intermediate and First Line-Supervisors

Ch 416

Sales Personnel

Responsible for presenting the output of the organization to potential customers.

* Compensation methods for sales personnel vary from salary only, sales commission only, salary and commission, salary and bonus, and a combination of salary, bonus, and commission.


Ch 417


Sales Personnel Direct customer contact

Customer service

Sales support

Indirect sales

Market analysts

Ch 418


Professionals

Their work normally involves the solution of complex technical problems that vary widely and may have a broad range of interpretations.

Normally they hold at minimum an

undergraduate degree and may be required to have a license or certificate to practice.

Ch 419

Professionals

Engineers

Attorneys

Scientists

Accountants


Ch 420


Operative Employees

Make up approximately 75% of the workforce. These employees perform assignments that range from those given by a few specific and easily understood oral instructions to those requiring knowledge of specific skills and trades.

Ch 421


Operative Employees

Paraprofessionals / Technicians

Administrative support

Skilled craft workers

Semi-skilled workers

Unskilled workers

Ch 422

Employee Groupings And Employee Groupings And ClassificationsClassifications

Line and Staff

White * Blue * Pink collar

Union and nonunion

Exempt and nonexempt

Regular and Temporary

Full-time and Part-time

Ch 423

Exempt - Nonexempt Exempt - Nonexempt EmployeesEmployees

Under both state and federal (FSLA)

statute employers are required to

compensate all workers who are not

otherwise exempt, overtime pay for all

hours worked in a given work week or

day that exceeds a specified number of

hours...subject to special exceptions and

conditions.

Ch 424

Exempt - Nonexempt Exempt - Nonexempt EmployeesEmployees

Subject to established standards the law provides exempt status for

EXECUTIVES ADMINISTRATORS

PROFESSIONALS SALES PERSONNEL

FARM WORKERS INTERSTATE TRANS-WORKERS

Ch 425

Regular and Temporary Employees

Regular Employee

any person hired for a specific job who is expected to work on a continuing basis and meet certain minimum performance and time-on-job requirements.

Ch 426

Regular and Temporary Employees

Temporary EmployeeAny person hired for a special project, or on an as-needed basis, or for seasonal work, or for any kind of work of a temporary or casual nature.

Part-time employee

Typically any person working on a continuing basis who works less than a full-time employee.

Ch 427

Pay Relationships

Pay Equity

Are you paid a Fair wage?

Is there pay equity in the workplace among all the members of the workforce?

Pay Ratios

The relationship of executive pay to the pay of lower-level employees in the same organization.

org structure

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