Management

1. Management Chapter 5: Compensation and Benefits and Record Keeping

2. Compensation • Means of rewarding employees for their labor • Employee dissatisfaction with plans is common • Wage and salary administration is the most complex and difficult challenge in management

3. Wage and Salary Administration • Wage and salary levels and structures • Individual wage determination • Method of payment • Indirect compensation, fringe benefits • Exempt employees • Management control • Compensation equity

4. Compensation Plans • Objectives should include goals related to controlling costs, minimizing discontent, easy administration, incentives, minimum income and payments, and benefits • Types of compensation plans • Direct compensation plans pay employees for their work in straight salary or output-based (or combination) • Indirect compensation plans are also known as fringe benefits, like social security, worker’s comp, and unemployment • Benefits for executives can present special problems

5. Legal Restraints • Fair Labor Standards Act (Wage and Hour Law) sets minimum wage, includes most all businesses • Equal Pay Act (1963) says discrimination based on gender is illegal • Compensation and union-management relations • Compensation (pay) equity relates to fairness • Compensation trends have moved to skill-based or competency-based pay systems to reward employees for good work

6. Required Benefits • Federal Social Security Act sets withholding amounts and distribution • Worker’s compensation laws are provided for those (and dependents) hurt on the job • Unemployment insurance provides partial wages during involuntary unemployment • Family and Medical Leave Act provides up to 12 weeks of unpaid leave in a year for specified situations

7. Growth in Benefits • Emphasis on meeting personal needs related to insurance • Indirect benefit options may include • Heath, dental, life insurance • Paid vacations • Profit sharing, stock options • Retirement • Birthdays off with pay • Employee discounts • Company services • Bonuses • Educational assistance, tuition • Maternity, family leave • Flexible scheduling • Day care • Transportation • Outplacement assistance • Wellness programs • Company car, cell phone

8. Trends in Benefit Administration • Cafeteria style plans allow employees choices of salary and benefit options • Salary reduction plan or 401(k) plan to reduce taxes paid • Income protection programs set guidelines for disability insurance • Medical savings accounts save for medical expenses, tax benefit

9. Rewards for Employee Involvement • Emphasis on employee participation for improved productivity, encouraging involvement in decision-making • Monetary rewards may include cash payments, stocks, vacation days, and trips • Nonmonetary incentives may be in the form of recognition

10. Effective Records Management • Better service of customers • Increased productivity • Centralized access to records • Elimination of duplication • Reduced storage space • Compliance with applicable laws and regulations

11. Records Life Cycle • Creation of new forms and records when they are justified • Utilization of records, retrieving and delivering as needed • Storage in a protected location accessible to users • Disposition of records when no longer required

12. Retention Schedule (Steps) • Authorization to develop the schedule • Conduct a records inventory • Classify each record • Set up the retention schedule • Obtain management approval Be sure to consult The Guide to Records Retention Requirements

13. Methods of Disposition • Protection from fire in safes and vaults • Transfer from active to inactive status depending on frequency of use (perpetual, periodic) • Microrecording to produce duplicates and reduce space needed • Destruction (burn, shred, recycle) as necessary, may require a Certificate of Destruction

14. Managing Records • Necessary because of the large number of records • System should allow access in an efficient manner • Bar coding is used to trace the location of a record • Indexing allows a record to be located with a key word search • Electronic storage can be used to save storage space and for easy locating

15. Legal and Ethical Issues • E-mail messages are subject to the same legal requirements as other records • Personnel records may have to be produced for legal matters • New technologies create issues regarding safe management of records • Reliability, authenticity, integrity, and usability of electronic documents must be considered • Ethical principles are protected under laws like the Freedom of Information Act

16. Trends in Records Management • Paper-based to paperless recordkeeping • Perceived value and importance of e-files vs. paper records • Data processing to document processing • Documents to virtual documents • Records management from an administrative to information system function

17. Federal Requirements • Age Discrimination in Employment Act • Americans with Disabilities Act • Employee Polygraph Protection Act • Equal Pay Act • Fair Labor Standards Act • Family and Medical Leave Act • Federal Unemployment Tax Act • Immigration Reform and Control Act • Occupational Safety and Health Act • Title VII of the Civil Rights Act • Employee access to personnel files