UNIT FIVE MT203 HR Mgt. Management Seminar

1. UNIT FIVEMT203 HR Mgt. Management Seminar Sheri Bias Human Resources Management

2. Agenda/Overview • Enhanced interactive Seminar Format • Compensation • Benefits and Incentives • Cost Control • Motivation • Executive Compensation • Abuse and Legislation • Questions

3. Compensation • Strategic Compensation • Pay for Performance Standard • Incentive Pay • Skill-Based Pay • Expectancy Theory

4. Compensation Plans: • Pay-for-Performance • Managers tie pay to effort and performance • Link pay to performance to maximize productivity • Studies prove out increased output • Incentive Plans • Focus on specific performance targets • Compensation is directly related to Operating Performance • Rewards and attracts top performers • Most systems are viewed as fair by employees • Sales Professionals • Salary, Commission, or Combo • Group Incentives • Team, Gainsharing, Profit Sharing • Skill-Based Plans • Link to strategy, organizational values, motivation and reward • Common in Manufacturing • Benefits include increased productivity, a willingness to learn, and, flexible scheduling • Expectancy Theory • Predicts motivation to rewards

5. Incentives • Professional Employees • Profit Sharing, Stock Ownership, Hiring bonus • Sales Professionals • Salary, Commission, Combo • Group Incentive Plans • Team Compensation • Gainsharing • Hourly • Means to reduce managerial levels • Align compensation plans with organizational strategies • Reward systems

6. Compensation Strategies • Employer’s Strategy • Criteria • Union Environment • Wage and Salary Surveys • Ability

7. Job Evaluation Techniques • Job Ranking System • Job Classification System • Point System • Work Valuation System

8. Benefits • Why Organizations offer Benefits • Common Benefits • Strategic Benefit Planning • Flex Plans • Discretionary Benefits • Other Compensation and Benefits • Work Life Benefits • Misc. • Benefits Required by Law

9. Cost Control • Healthcare costs are a threat to many organizations • Employees pay more out of pocket • Wage compression • Motivation • Corporate Culture is at stake • Pay Equity • Compensation • Living Wage

10. Compensation Issues • Equal Pay for Comparable Worth • Wage-Rate Compression • Low Salary Budgets

11. Executive Compensation • Salary, bonus, pension, perks • Perceptions • Gap between hourly and executive pay • Investors Feelings

12. Outrageous Perks • Country Club Bill, including $200,000 initiation fee (Countrywide Financial CFO) • Upgrade of $365,916 to TXU CEO’s Dallas home • $1,000,000 donation in the name of Lockheed Martin’s CEO Robert Stevens • $894,014 cost to sell CFO Tom Horton’s New Jersey home (AMR) • $1,000,000 bonus to reward acquisition of Knight Ridder (CEO Gary Pruitt) • $10,000,000 pay package for J.C. Penny CEO Catherine West (who only lasted six months)

13. Legislation and trends governing pay and Perks • Corporate Boards no longer “Rubber Stamp” recommendations of managers following Enron • Investors are opposing compensation packages • New Federal mandates require large companies to disclose executive pay (more straightforward) • Companies replacing traditional stock options with rewards linked to specific targets • Securities and Exchange Commission (SEC) approved an overhaul of executive pay disclosure

14. Questions • What other questions do you have at this time?

15. Have a great term!