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Management - PowerPoint PPT Presentation

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

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Chapter 5: Compensation and Benefits and Record Keeping

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  • 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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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