HRA831 - Design and Administration of Compensation Plans
Design and Administration of Compensation Plans
The student will explore the nature of compensation plans, their relationship to performance in the workplace as well as the legislative framework affecting them.
Upon successful completion of this subject the student will be able to:
1. Outline strategic compensation issues and describe the pay model.
a) Explain how perceptions of compensation differ between society, employees and managers.
b) Discuss the difference between direct and indirect compensation and define each of the forms of compensation described.
c) Explain the three main objectives of a pay model.
d) Define and discuss the importance of each of the four major policy decisions of the pay model.
e) Illustrate the relationship between the pay system and each of the strategic issues discussed.
2. Define consistency as it applies to employee compensation.
a) Explain why internal consistency is an important pay policy issue.
b) Discuss the dimensions that comprise a pay structure and factors that influence it.
c) Explain what an internal labour market is and how it operates.
d) Discuss the impact of internal pay structures on efficiency, equity and compliance in the pay system.
3. Outline methods for describing and assessing work using job analysis.
a) Explain the importance of job analysis and its relationship to internal consistency.
b) Discuss the difference between job-based and knowledge-based pay structures.
c) Describe the job analysis process.
d) Discuss the difference between quantitative and conventional job analysis approaches.
4. Outline various methods for evaluating work: job evaluation, knowledge-based plans and market pricing.
a) Explain the difference between job evaluation, knowledge based plans and market pricing.
b) Discuss the relationship between job evaluation, knowledge based plans, market pricing and internal consistency.
c) Explain the advantages and disadvantages of using multiple job evaluation plans in an organization.
d) Explain how to conduct a job evaluation using each of the major methods discussed.
5. Discuss the administrative processes associated with the evaluation of work.
a) Discuss the advantages and disadvantages of employee involvement in the evaluation or work.
b) Explain the procedures necessary in order to administer a job evaluation or skill based plan.
c) Discuss the criteria used to evaluate the usefulness of the job evaluation or skill-based plan.
d) Explain sources of possible gender bias in job evaluation and how to eliminate bias.
6. Define competitiveness as applied to employee compensation.
a) Explain the importance of external competitiveness to the pay model.
b) Discuss the factors that influence external competitiveness.
c) Discuss the difference between labour market, product market, and organization factors in determining external competitiveness.
d) Explain the different pay policy positions and consequences of using each.
7. Design a basic pay structure.
a) Explain all the steps involved in designing a pay survey.
b) Discuss the importance of defining the relevant market in a pay survey.
c) Explain how the market pay line combines internal structure with external wages rates.
d) Discuss the use of pay ranges and their relationship to internal consistency and external competitiveness.
8. Outline how employee performance and contributions can be effectively recognized in pay practices.
a) Discuss the relation of the content theories of motivation to compensation.
b) Explain how theories could be used to show that linking pay to performance would increase performance.
c) Discuss the important design issues in creating a pay for performance program.
d) Discuss why a pay for performance program might not work in an organization.
9. Describe performance evaluation and merit pay systems.
a) Discuss when each of the six types of performance appraisal formats would be appropriate to use.
b) Discuss the relevant factors to consider when deciding who should conduct performance appraisals.
c) Discuss strategies that can be used to improve the accuracy of performance appraisals.
d) Explain the issues involved in designing merit pay guidelines.
10. Describe alternatives to traditional reward systems.
a) Discuss reasons for the popularity of alternative reward systems.
b) Explain why an organization might choose a group rather than an individual incentive system.
c) Explain how profit sharing plans differ from Scanlon or Rucker type plans.
d) Discuss the difficulties of adopting alternative reward system and how they can be overcome.
11. Describe Benefits Determination Process.
a) Discuss the growth in employee benefits.
b) Describe the key issues in benefits planning, designing and administration.
c) Identify the components of a benefits plan.
12.Explain the government`s role in compensation.
a) Outline the Ontario pay legislation and its relevance to compensation.
b) Describe how trying to achieve the objective of compliance with laws and regulations could conflict with other objectives in the pay model.
c) Discuss the impact of wage and price controls on compensation decisions.
13.Outline the process of implementing a pay equity plan in the Province of Ontario.
a) Discuss the provision and importance of the laws relating of pay equity in Ontario.
b) Describe the rationale behind the legislation and the social implications of earning differentials.
c) Discuss the concept of comparable worth and its pay implications for the organization.
14.Outline key compensation budgeting and administration issues.
a) Explain how the administration of the pay system affects the pay objectives.
b) Discuss the importance
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