About This Chapter
Below is a sample breakdown of the Employee Compensation Issues chapter into a 5-day school week. Based on the pace of your course, you may need to adapt the lesson plan to fit your needs.
|Day||Topics||Key Terms and Concepts Covered|
|Monday||Compensation and compensation strategies||Compensation, salary, wages, indirect compensation forms, incentives, bonuses, satisfaction, financial value|
|Tuesday||Compensation systems and compensation equity||Wage, set compensation, commission, financial equity, pay equity, employee equity|
|Wednesday||Mandatory vs. voluntary benefits and retirement compensation||Indirect financial compensation, required benefits, Social Security, set retirement benefit, cash balance plan, 401(k), pensions|
|Thursday||Incentive compensation||Performance-based pay, pay per unit produced, productivity goals, stock options, rewards for company profits|
|Friday||Trends of executive compensation in the U.S.||Base salary, bonuses, insurance, severance packages, managerial power theory, perks|
1. Understanding Employee Compensation
Compensation is pay for services during the course of employment. This can be direct (or monetary) compensation and indirect (or non-monetary) compensation in the form of benefits provided to the employee.
2. Direct, Indirect & Non-Financial Compensation Strategies
Most organizations can't get people to work for free. In this lesson, you'll learn how businesses and other organizations can use direct, indirect and non-financial compensation strategies to acquire and keep talent. A short quiz follows.
3. Common Compensation Systems: Salary, Hourly, Contractor, Pay-For-Performance
One of the core functions of human resource management is the development of a compensation system. In this lesson, you'll learn about the different methods organizations use to compensate their employees. A short quiz follows.
4. Compensation Equity: Definition & Importance
Employees want to be treated fairly by employers. This is especially true in the area of compensation. In this lesson, you'll learn about the concept of compensation equity, including internal equity, external equity and why compensation equity is important.
5. Mandatory vs. Voluntary Benefits: Definition & Examples
A key component of any organization's compensation system is the benefits provided to employees. In this lesson, you'll learn about the difference between mandatory benefits and voluntary benefits. A short quiz follows the lesson.
6. Retirement Compensation Systems: 401(k) and Pensions
One of the most valuable benefits an employer may offer to employees are employer-sponsored retirement plans. In this lesson, you'll learn about two common retirement benefits: 401(k) plans and traditional pensions. A short quiz follows.
7. Incentive Compensation Plans: Merit Pay, Piece Rates, Commissions, Bonuses & Skills-Based
An important role of human resource management is to develop a compensation system to encourage productivity. In this lesson, you'll learn about merit pay, piece rate pay, commissions, bonuses and skills-based pay and how they help achieve this goal.
8. Organizational Incentive Programs: Profit Sharing, Gain Sharing, and Employee Stock Ownership
One way to tie a company's success to employee success is to utilize incentive programs where employees profit when the company does. In this lesson, you'll learn about profit sharing, gain sharing and employee stock ownership.
9. Trends of Executive Compensation in the U.S.
Some believe executive compensation in the U.S. has gotten out of hand. In this lesson, we'll discuss how executives are compensated, how their compensation is determined and recent trends in executive compensation.
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Other chapters within the Human Resource Management Syllabus Resource & Lesson Plans course
- Overview of HRM Field: Lesson Plans
- Organizational Theories & Human Resources: Lesson Plans
- Job Analysis & Design: HRM Lesson Plans
- Staffing in Organizations: HRM Lesson Plans
- Training & Development in Organizations: HRM Lesson Plans
- Performance Appraisals: HRM Lesson Plans
- Employment Law & Employee Rights: HRM Lesson Plans
- Labor Relations: HRM Lesson Plans
- International Human Resource Management: Lesson Plans
- Current Issues & Trends in HRM: Lesson Plans