***Mathguy18*** Unit 7

UNIT VII STUDY GUIDE

Extending the System

Throughout this course, emphasis has been placed on compensation programs. For the most part, it appears as though compensation programs are basically the same across the board in many organizations. As employees, it is likely that many of you have experienced different compensation programs. You have more than likely witnessed many supervisors, executives, and directors receiving different pay rates.

What value do special groups, unions, and international pay systems add to compensation? Why are these topics important? What benefit, if any, do they add to an organization’s compensation program and administration?

As we venture into Unit VII, we will find answers to the questions presented above.

Chapter 14: Compensation and Special Groups

The focus of this chapter is on the employee groups that do not fit in the basic compensation model. This group of employees is referred to as a special group. Within this chapter, you will be introduced to various special groups: supervisors, corporate directors, executives, scientists and engineers (professionals), the sales force, and contingent workers (Milkovich, Newman, & Gerhart, 2014). After reading this chapter, you should be able to distinguish the differences between each group. You should also have a better understanding of the key conflicts faced by each special group and the specific concerns of each group.

Chapter 15: Union Role in Wage and Salary Administration

Within this chapter, emphasis will be placed on union roles in wage and salary administration. Unions have been around for many years. Many employees felt the need to join unions in an effort to seek better pay and benefits. In recent years, research has shown a decline in union membership (Milkovich, et.al., 2014). Although there has been a noted decline, unions are very prevalent in some organizations.

Some people may argue that unions have control of management and that they dictate compensation programs within an organization. Upon reading this chapter, you will be able to draw your conclusion of this statement.

As you can see, Chapter 15 will discuss reasons for the decline in union membership. It will also provide insight on the impact unions have on the following: general wages and benefit levels, structure of wages, nonunion firms, and wage and salary policies and practices in unionized firms. All of these can impact economic changes.

Chapter 16: International Pay Systems

What is meant by global guide and what does it consist of? What strategies are utilized to determine which compensation system to use when dealing with international employees?

Global competition has a major impact on pay systems. As you look at company growth, many organizations are now doing business in foreign countries. In doing business internationally, organizations must be on top of their game and prepared to deal with pay concerns and establish appropriate pay systems.

Chapter 16 provides insight into the understanding of pay variations around the world. Emphasis will be placed on the factors that help to determine the differences and similarities that are in the global guide. In your reading, you will be introduced to the four general factors of the global guide, along with the five sub-factors. Additional focus will be placed on the significance of these factors in relation to international pay. Other areas of focus within Chapter 16 include comparison of compensations systems in different countries. Looking at the various factors and compensation strategies will provide great insight on international pay systems.

Reference

Milkovich, G. T., Newman, J. M., & Gerhart, B. (2014). Compensation (11th ed.). New York, NY: McGraw-Hill/Irwin.