Compensation Administration
CONTENTS
CONTENTS
Chapter Activities .................................................................................. Research Outputs .......................................................................... Case Study .................................................................................... Compensation Issues .................................................................... Vocabulary ..................................................................................... Questions for Review..................................................................... Your Turn........................................................................................ Teamwork....................................................................................... CHAPTER 4 FORMS OF COMPENSATION Chapter Overview .................................................................................. What Can You Say? ............................................................................... Compensation Philosophies ................................................................ Contingent Pay ...................................................................................... Individual Contingent Pay .............................................................. Team-based Pay ............................................................................ Organizational Performance-based Pay........................................ Compensation for Executives .............................................................. Compensation for Salespeople ........................................................... Computerization of Payroll System ..................................................... Chapter Summary ................................................................................. Chapter Activities .................................................................................. Research Outputs .......................................................................... Case Study .................................................................................... Compensation Issues .................................................................... Vocabulary ..................................................................................... Questions for Review..................................................................... Your Turn........................................................................................ Teamwork....................................................................................... CHAPTER 5 EMPLOYEE BENEFITS ADMINISTRATION Chapter Overview .................................................................................. What Can You Say? ............................................................................... Objectives and Justification of Employee Benefits .......................... Government-mandated Compensation and Benefits ........................ Minimum Wage .............................................................................. Holiday Pay .................................................................................... Premium Pay.................................................................................. Overtime Pay ................................................................................. Night Shift Differential .................................................................... Service Charges ............................................................................ Service Incentive Leave................................................................. Maternity Leave ............................................................................. Paternity Leave .............................................................................. Parental Leave for Solo Parents .................................................... Leave for Victims of Violence Against Women and Their Children .... Special Leave for Women .............................................................. Thirteenth-Month Pay .................................................................... Separation Pay............................................................................... Retirement Pay .............................................................................. Employees’ Compensation ............................................................ PhilHealth Benefits ......................................................................... Social Security System Benefits .................................................... Pag-IBIG Benefits .......................................................................... Voluntary Benefits ................................................................................. Chapter Summary ................................................................................. Chapter Activities .................................................................................. Research Outputs .......................................................................... Case Study .................................................................................... Compensation Issues .................................................................... Vocabulary ..................................................................................... Questions for Review..................................................................... Your Turn........................................................................................ Teamwork.......................................................................................
79 79 80 80 83 85 87 89 93 94 94 95 96 98 98 99
Preface .............................................................................................................
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CHAPTER 1 FOUNDATION OF COMPENSATION ADMINISTRATION Chapter Overview .................................................................................. 1 What Can You Say? ............................................................................... 2 Nature of Compensation ....................................................................... 3 Basic Types of Compensation ....................................................... 3 Objectives of Compensation.......................................................... 4 Classification of Compensation .......................................................... 5 Policies Affecting Compensation ........................................................ 6 Components of a Compensation System ........................................... 7 Theories on Wages ............................................................................... 9 Difference Between Wage and Salary ................................................. 12 Compensation Concepts ...................................................................... 12 Labor Market Theories .......................................................................... 15 Chapter Summary ................................................................................. 19 Chapter Activities .................................................................................. 22 Research Outputs .......................................................................... 22 Case Study .................................................................................... 23 Compensation Issues .................................................................... 23 Vocabulary ..................................................................................... 25 Questions for Review..................................................................... 27 Your Turn........................................................................................ 29 Teamwork....................................................................................... 31
100 101 103 105 105 105 106 107 108 109 111 113 114 114 115 115 116 117 118 119 119 120 120 120 121 121 121 121 122 122 123 123 124 124 125 127 129 129 130 130 133 134 135 137
CHAPTER 2 JOB VALUES AND COMPENSATION DECISIONS Chapter Overview .................................................................................. What Can You Say? ............................................................................... Job Analysis ........................................................................................... Nature of Job Analysis ................................................................... Dimensions of Job Analysis........................................................... Dimensions of Job Analysis........................................................... Job Analysis Process..................................................................... Job Description .............................................................................. Job Description .............................................................................. Job Evaluation ....................................................................................... Nature of Job Evaluation................................................................ Nature of Job Evaluation................................................................ Job Evaluation Process ................................................................. Compensable Factors.................................................................... Compensable Factors.................................................................... Job Evaluation Methods................................................................. Job Structure.................................................................................. Job Structure.................................................................................. Market Rate Analysis ............................................................................ Dimensions of Wage Surveys........................................................ Dimensions of Wage Surveys........................................................ Sources of Wage Surveys.............................................................. Data Collection and Analysis ......................................................... Data Collection and Analysis ......................................................... Chapter Summary ................................................................................. Chapter Activities .................................................................................. Research Outputs .......................................................................... Case Study .................................................................................... Case Study .................................................................................... Compensation Issues .................................................................... Compensation Issues .................................................................... Vocabulary ..................................................................................... Questions for Review..................................................................... Your Turn........................................................................................ Teamwork....................................................................................... Teamwork....................................................................................... Your Turn........................................................................................ CHAPTER 3 SALARY STRUCTURE DECISIONS Chapter Overview .................................................................................. What Can You Say? ............................................................................... What Can You Say? ............................................................................... Minimum Wage ...................................................................................... Salary Structures .................................................................................. Salary Structures .................................................................................. Factors Affecting Salary Structures ............................................... Developing the Salary Structure .................................................... Developing the Salary Structure .................................................... Pay Grades .................................................................................... Types of Salary Structure............................................................... Types of Salary Structure............................................................... Managing the Salary Structure ...................................................... Chapter Summary ................................................................................. Chapter Summary ................................................................................. Managing the Salary Structure ...................................................... Chapter Overview .................................................................................. Minimum Wage ...................................................................................... Factors Affecting Salary Structures ............................................... Pay Grades .................................................................................... Job Analysis ........................................................................................... Nature of Job Analysis ................................................................... Job Analysis Process..................................................................... Job Evaluation ....................................................................................... Job Evaluation Process ................................................................. Job Evaluation Methods................................................................. Market Rate Analysis ............................................................................ Sources of Wage Surveys.............................................................. ................................................................................. .................................................................................. Research Outputs .......................................................................... Vocabulary .....................................................................................
33 35 35 35 36 39 41 42 42 43 44 45 48 48 48 49 50 51 55 55 56 56 59 61 63 65 67 68 68 69 69 70 72 73 76 77
35 35 36 39 41 42 42 43 44 45 48 48 48 49 50 51 55 55 56 56 59 61 63 65 67 68 68 69 69 70 72 73 76 77
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References ....................................................................................................... Index .................................................................................................................
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2025 Higher Education Learning Solutions for the Business and Accountancy Program 125
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