ADMINISTRATIVE OFFICE MANAGEMENT Chapter 8 Employee Compensation, Recognition, and Company Policies Chapter 8 Administrative Office Management, 13th Ed

Compensation Legislation Fair Labor Standards Act (FLSA) Components of FLSA Exempt vs. Nonexempt “Comp” Time Equal Pay Act of 1963 Chapter 8 Administrative Office Management, 13th Ed Pages 184-185

Administrative Office Management, 13th Ed Page 184 The two principal…Act of 1963 Exempt employees…an hourly wage Page 185 The first step…a wage survey Chapter 8 Administrative Office Management, 13th Ed

Direct Employee Compensation Base Pay Wages or Salary Incentives Bonus Commission Gain sharing Merit Raises Profit Sharing Stock Options Stock Ownership Chapter 8 Administrative Office Management, 13th Ed Page 186

Administrative Office Management, 13th Ed Page 186 An employee’s total…by the company Direct compensation…by the employer As an example…performance appraisal Chapter 8 Administrative Office Management, 13th Ed

Indirect Employee Compensation Benefits Required by Law Pay for Time Not Worked Vacations, Breaks, Holidays, Sick Pay Insurance Plans Medical, Hospital, Dental, Life, Surgical Security and Retirement Plans Pension, Social Security Work/life Benefits and Services Educational Assistance, Recreational Programs Chapter 8 Administrative Office Management, 13th Ed Pages 187-190

Administrative Office Management, 13th Ed Page 187 Indirect compensation…cost of employment Although there are…benefits and services State: Unemployment…imposed on employers Page 188 Worker’s compensation…death on the job Pay for time not…bereavement leaves Chapter 8 Administrative Office Management, 13th Ed

Administrative Office Management, 13th Ed Page 188 Faced with rising…by the employee Pension plans…and employees Page 190 With so many…cafeteria benefit plan Chapter 8 Administrative Office Management, 13th Ed

Policies, Procedures, and Rules Policy: A plan or course of action adopted by a business Procedure: Outlines the steps to be performed when taking a particular course of action Rule: An authoritative directive for conduct; a habit of behavior De facto: What really happens in practice (in the absence of a policy or rule) Chapter 8 Administrative Office Management, 13th Ed Pages 192-195

Administrative Office Management, 13th Ed Page 193 Policy…and other matters Procedure…course of action Page 195 Employee handbooks…to drug testing Chapter 8 Administrative Office Management, 13th Ed

Promoting and Terminating Employees Promotions from within through job postings Terminations and Layoffs Personal Aspects of Terminations Legal Aspects of Terminations At Will Employment; Wrongful Termination; WARN Act Exit Interviews Chapter 8 Administrative Office Management, 13th Ed Pages 196-198

Administrative Office Management, 13th Ed Page 197 In organizations,…and survivor shock Page 198 Exit Interviews…of their employment Page 199 The following questionnaire…Services Chapter 8 Administrative Office Management, 13th Ed

Administrative Office Management, 13th Ed Labor Unions Unions represent the employees They negotiate contracts with employers about wages, benefits, work rules, etc. They help to establish a formalized grievance procedure with agreed-on steps that management and employee must follow Chapter 8 Administrative Office Management, 13th Ed Pages 201-202

Administrative Office Management, 13th Ed Page 201 Labor Unions…working conditions The administrative manager…upon steps Unions are able…patronizing the employer Chapter 8 Administrative Office Management, 13th Ed

Now You Know Everything There is to Know About: Employee Compensation, Recognition, and Company Policies Chapter 8 Administrative Office Management, 13th Ed