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

2. 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
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3. Administrative Office Management, 13th Ed
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The two principal…Act of 1963
Exempt employees…an hourly wage
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The first step…a wage survey
Chapter 8
Administrative Office Management, 13th Ed

4. Direct Employee Compensation
Base Pay
Wages or Salary
Incentives
Bonus
Commission
Gain sharing
Merit Raises
Profit Sharing
Stock Options
Stock Ownership
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Administrative Office Management, 13th Ed
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5. Administrative Office Management, 13th Ed
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An employee’s total…by the company
Direct compensation…by the employer
As an example…performance appraisal
Chapter 8
Administrative Office Management, 13th Ed

6. 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
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Administrative Office Management, 13th Ed
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Indirect compensation…cost of employment
Although there are…benefits and services
State: Unemployment…imposed on employers
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Worker’s compensation…death on the job
Pay for time not…bereavement leaves
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Administrative Office Management, 13th Ed

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

9. 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)
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Administrative Office Management, 13th Ed
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10. Administrative Office Management, 13th Ed
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Policy…and other matters
Procedure…course of action
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Employee handbooks…to drug testing
Chapter 8
Administrative Office Management, 13th Ed

11. 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
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Administrative Office Management, 13th Ed
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In organizations,…and survivor shock
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Exit Interviews…of their employment
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The following questionnaire…Services
Chapter 8
Administrative Office Management, 13th Ed

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

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