CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Management Chapter 5: Compensation and Benefits and Record Keeping

CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Legal and Ethical Issues  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

CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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