Compensation
A Balanced Approach
1st Edition
Published on 22. April 2025
Book
Paperback/Softback
424 pages
978-1-0719-4859-0 (ISBN)
Description
Compensation: A Balanced Approach covers compensation systems and practices through theory and application. Each chapter looks at compensation from both the employer and employee perspective, giving students a more holistic understanding of the role total rewards play in an organization.
Reviews / Votes
The textbook offers a comprehensive view on Compensation systems that is unparalleled in the current market. Human motivation, the Pay Model process, and policy structures are interwoven into the complex fabric of Compensation in an expert fashion. Plus, a comprehensive case study offers students a concrete example of how these concepts contribute to this nuanced function in Human Resources Management. -- Dr. Edward De La Torre, Ed.D This textbook offers a practical review of compensation and its components. Not only does it touch on the employer but also provides information for the employee. The exercises and case studies assist in facilitation of the course and compensation concepts. -- Shari Benson MA, SPHR, SHRM-SCPMore details
Edition
First Edition
Language
English
Place of publication
Thousand Oaks
United States
Publishing group
Sage Publications Inc Ebooks
Target group
College/higher education
Dimensions
Height: 279 mm
Width: 216 mm
Weight
943 gr
ISBN-13
978-1-0719-4859-0 (9781071948590)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Persons
Beverly J. DeMarr is a Professor of Management at Ferris State University where she regularly teaches classes in Compensation, Human Resources, and Negotiations. She received her Ph.D. in Organizational Behavior/Human Resource Management and Master of Labor and Industrial Relations from Michigan State University, MBA from Grand Valley State University, and BSBA from Aquinas College. Her publications include Negotiation and Dispute Resolution 2e (DeMarr & de Janasz, 2019) and Human Resource Management 5e, (Gowan, DeMarr, & David, 2023), as well as articles in Personnel Psychology, Journal of Business Ethics, Human Relations, Public Personnel Management, the International Journal of Conflict Management, and Management Teaching Review (MTR). Dr. DeMarr is an active member of the Academy of Management (AOM) and the Management and Organizational Behavior Teaching Society (MOBTS) and regularly presents at their annual conferences. She was awarded the AOM Management Education Division's (MED) J.B. "Ben" Arbaugh Outstanding Member Contribution & Leadership Award in 2024, MTR's Best Pedagogical Contribution Award for 2021, and a number of teaching awards. She currently serves on the Journal of Management Education's Editorial Review Board and is a Mentoring Program Coordinator for MED. She also chaired AOM's All-Academy Teaching Theme Committee from 2016-2019.
Vicki Fairbanks Taylor is an Associate Professor of Management at Shippensburg University of Pennsylvania, where she regularly teaches classes in Human Resources, Leadership, and Compensation. She earned her Ph.D. in Human Resource Management from Temple University, a Master's in Labor and Industrial Relations from St. Francis University, and a BSBA from Shippensburg University. Dr. Taylor published Experiential Exercises in the Classroom (Foster, Taylor, & Walker, 2021) in addition to numerous teaching-related articles and exercises. In 2021, she received the Best Pedagogical Contribution Award for an article published in Management Teaching Review. Dr. Taylor is an active member of the Academy of Management, Eastern Academy of Management, and the Management and Organizational Behavior Teaching Society. She presents regularly at annual conferences and has served on the Academy of Management Teaching Learning Conference, the Eastern Academy of Management Board, and the Experiential Learning Association's Board. Dr. Taylor is a Fellow of the Eastern Academy of Management and serves as the SHRM Chapter Advisor. She also provides leadership training and organizational consulting services to local businesses.
Claudia J. Ferrante is a Professor of Management at the United States Air Force Academy where she regularly teaches classes in Organizational Behavior, Human Resource Management, and Management Consulting. She earned her B.S. in Biology from Bucknell University, MBA and Master of Health Administration from the University of Pittsburgh, and Master of Public Policy and Management and Ph.D. in Organizational Behavior from Carnegie Mellon University. Her publications include book chapters in The Economics of Aquatic Sports and Educating for Values-Driven Leadership Across the Curriculum, as well as numerous articles in journals such as Human Resource Management, Journal of Management Education, Group and Organization Management, Business Horizons, Journal of Management Policy and Practice, The Journal of Effective Teaching, Organization Development Journal, and the Journal of Engineering and Technology Management. Dr. Ferrante is an active member and annual conference presenter for the Academy of Management (AOM) and Management and Organizational Behavior Teaching Society. She was awarded the AOM Management Education Division's (MED) J.B. "Ben" Arbaugh Outstanding Member Contribution & Leadership Award in 2024, and currently serves as AOM's Career Services Committee Coaching Coordinator and as a Mentoring Program Coordinator for MED. In addition, Dr. Ferrante chaired AOM's All-Academy Teaching Theme Committee from 2013-2016. She has received numerous awards for her teaching, research and service efforts.
Vicki Fairbanks Taylor is an Associate Professor of Management at Shippensburg University of Pennsylvania, where she regularly teaches classes in Human Resources, Leadership, and Compensation. She earned her Ph.D. in Human Resource Management from Temple University, a Master's in Labor and Industrial Relations from St. Francis University, and a BSBA from Shippensburg University. Dr. Taylor published Experiential Exercises in the Classroom (Foster, Taylor, & Walker, 2021) in addition to numerous teaching-related articles and exercises. In 2021, she received the Best Pedagogical Contribution Award for an article published in Management Teaching Review. Dr. Taylor is an active member of the Academy of Management, Eastern Academy of Management, and the Management and Organizational Behavior Teaching Society. She presents regularly at annual conferences and has served on the Academy of Management Teaching Learning Conference, the Eastern Academy of Management Board, and the Experiential Learning Association's Board. Dr. Taylor is a Fellow of the Eastern Academy of Management and serves as the SHRM Chapter Advisor. She also provides leadership training and organizational consulting services to local businesses.
Claudia J. Ferrante is a Professor of Management at the United States Air Force Academy where she regularly teaches classes in Organizational Behavior, Human Resource Management, and Management Consulting. She earned her B.S. in Biology from Bucknell University, MBA and Master of Health Administration from the University of Pittsburgh, and Master of Public Policy and Management and Ph.D. in Organizational Behavior from Carnegie Mellon University. Her publications include book chapters in The Economics of Aquatic Sports and Educating for Values-Driven Leadership Across the Curriculum, as well as numerous articles in journals such as Human Resource Management, Journal of Management Education, Group and Organization Management, Business Horizons, Journal of Management Policy and Practice, The Journal of Effective Teaching, Organization Development Journal, and the Journal of Engineering and Technology Management. Dr. Ferrante is an active member and annual conference presenter for the Academy of Management (AOM) and Management and Organizational Behavior Teaching Society. She was awarded the AOM Management Education Division's (MED) J.B. "Ben" Arbaugh Outstanding Member Contribution & Leadership Award in 2024, and currently serves as AOM's Career Services Committee Coaching Coordinator and as a Mentoring Program Coordinator for MED. In addition, Dr. Ferrante chaired AOM's All-Academy Teaching Theme Committee from 2013-2016. She has received numerous awards for her teaching, research and service efforts.
Content
Preface
Acknowledgements
About the Authors
1. Total Compensation
Nature Of The Employment Relationship
Perspectives On The Importance Of Compensation
From Total Compensation To Total Rewards
Worldatwork Total Rewards Model
The Unintended Consequences Of Pay
Ongoing Challenges: Pay Equity
Overview Of The Book
Summary
Key Terms
Discussion Questions
2. Laws Affecting Compensation
Fair Labor Standards Act
Prevailing Wage Laws
Anti-Discrimination Laws
Legal Compliance
Summary
Key Terms
Discussion Questions
3. Compensation Strategy and Objectives
Shifting Focus From Shareholders To Stakeholders
Types And Levels Of Strategies
Using Compensation Strategically
Compensation Objectives
Influences On Compensation Strategy
The Impact Of Compensation Strategy On Behavior
Matching Compensation Strategy To The Organization's Business Strategy
Compensation As A Competitive Advantage
Summary
Key Terms
Discussion Questions
4. Bases of Pay, Variations, and Differentials
Pay Structures: Defining The Value Of Jobs
Human Capital Theory: Determining The Value Of Employees
Job-Based Pay
Person-Based Pay
Variations On Job- And Person-Based Pay
Compensating Differentials
Efficiency Wage Theory
Sorting And Motivational Effects Of Differentials And Bases Of Pay
Reservation Wage
Summary
Key Terms
Discussion Questions
5. Establishing an Internally Equitable Compensation System
Internal Equity
Job Analysis
Competency Modeling: An Alternative to Traditional Job Analysis
Job Evaluation: Determining The Relative Value Of Jobs Within An Organization
Alternatives To Job Evaluation
The Role Of Ai In Creating An Internally Equitable Compensation System
Market Pricing
Summary
Key Terms
Discussion Questions
6. External Equity And Designing A Market-Competitive Pay Structure
Creating A Market-Competitive Pay Structure
Analyzing External And Internal Factors Influencing A Market-Competitive Pay Structure
Determining The Competitive Pay Policy
Collecting Market Data
Integrating The Internal Job Structure With The External Market Data
Establishing Pay Grades And Pay Ranges
Multiple Salary Structures
Market-Based Pay Structure: An Alternative To A Market-Competitive Pay Structure
Summary
Key Terms
Discussion Questions
7. Rewarding Individual Performance
Motivating Employees Through Incentives
Measuring Performance
Performance Appraisal Methods
Merit Pay
Bonuses
Commission
Piecework
Standard Hour Plans
Summary
Key Terms
Discussion Questions
8. Rewarding Group Performance
Types Of Groups
Measuring Group Performance
Challenges In Rewarding Group Performance
Types Of Rewards
Gainsharing Plans
Profit Sharing
Incentive Stock Options
Employee Stock Ownership Plans
Nonfinancial Group Incentives
Summary
Key Terms
Discussion Questions
9. Legally Required Benefits
Legally Required Employee Benefits
Social Security
Unemployment Compensation
Workers' Compensation
Family And Medical Leave Act (FMLA)
Uniformed Services Employment And Reemployment Rights Act (USERRA)
Patient Protection And Affordable Care Act (ACA)
Additional Legal Requirements
Summary
Key Terms
Discussion Questions
10. Voluntary Benefits
Legal Requirements
Employer-Sponsored Retirement Plans
Health Insurance Alternatives
Paid Time Off
Other Miscellaneous Benefits
The Importance Of A Needs Assessment
Flexible Benefits/Cafeteria Plans
Managing The System
Summary
Key Terms
Discussion Questions
11. Compensation of Special Groups
Sales
Supervisors
Contingent Workers
Directors
Executives
Unionized Workers
Two-Tier Pay Plans
Part-Time
Summary
Key Terms
Discussion Questions
12. International Compensation
Data Sources
National Differences And Requirements
Categories Of International Workers
Expatriate Pay And Benefits
Cost Containment
Repatriation
International Assignments: Pros And Cons
Summary
Key Terms
Discussion Questions
13. Compensation System Administration
Managing Compensation Communication
Pay Transparency
Addressing Employee Fairness Concerns
Managing Compensation Costs
Evaluating Effectiveness: Audits, Metrics, And Employee Feedback
From Metrics to Analytics
Managing Change
Summary
Key Terms
Discussion Questions
14. Compensation in Context: Putting It All Together
Putting The Pieces Together
Careers In Compensation
The Future Of Compensation
Work-Life Balance
Making It Personal
Summary
Key Terms
Discussion Questions
Appendix: Responsible Furniture Industries, Inc. (RFI)
Acknowledgements
About the Authors
1. Total Compensation
Nature Of The Employment Relationship
Perspectives On The Importance Of Compensation
From Total Compensation To Total Rewards
Worldatwork Total Rewards Model
The Unintended Consequences Of Pay
Ongoing Challenges: Pay Equity
Overview Of The Book
Summary
Key Terms
Discussion Questions
2. Laws Affecting Compensation
Fair Labor Standards Act
Prevailing Wage Laws
Anti-Discrimination Laws
Legal Compliance
Summary
Key Terms
Discussion Questions
3. Compensation Strategy and Objectives
Shifting Focus From Shareholders To Stakeholders
Types And Levels Of Strategies
Using Compensation Strategically
Compensation Objectives
Influences On Compensation Strategy
The Impact Of Compensation Strategy On Behavior
Matching Compensation Strategy To The Organization's Business Strategy
Compensation As A Competitive Advantage
Summary
Key Terms
Discussion Questions
4. Bases of Pay, Variations, and Differentials
Pay Structures: Defining The Value Of Jobs
Human Capital Theory: Determining The Value Of Employees
Job-Based Pay
Person-Based Pay
Variations On Job- And Person-Based Pay
Compensating Differentials
Efficiency Wage Theory
Sorting And Motivational Effects Of Differentials And Bases Of Pay
Reservation Wage
Summary
Key Terms
Discussion Questions
5. Establishing an Internally Equitable Compensation System
Internal Equity
Job Analysis
Competency Modeling: An Alternative to Traditional Job Analysis
Job Evaluation: Determining The Relative Value Of Jobs Within An Organization
Alternatives To Job Evaluation
The Role Of Ai In Creating An Internally Equitable Compensation System
Market Pricing
Summary
Key Terms
Discussion Questions
6. External Equity And Designing A Market-Competitive Pay Structure
Creating A Market-Competitive Pay Structure
Analyzing External And Internal Factors Influencing A Market-Competitive Pay Structure
Determining The Competitive Pay Policy
Collecting Market Data
Integrating The Internal Job Structure With The External Market Data
Establishing Pay Grades And Pay Ranges
Multiple Salary Structures
Market-Based Pay Structure: An Alternative To A Market-Competitive Pay Structure
Summary
Key Terms
Discussion Questions
7. Rewarding Individual Performance
Motivating Employees Through Incentives
Measuring Performance
Performance Appraisal Methods
Merit Pay
Bonuses
Commission
Piecework
Standard Hour Plans
Summary
Key Terms
Discussion Questions
8. Rewarding Group Performance
Types Of Groups
Measuring Group Performance
Challenges In Rewarding Group Performance
Types Of Rewards
Gainsharing Plans
Profit Sharing
Incentive Stock Options
Employee Stock Ownership Plans
Nonfinancial Group Incentives
Summary
Key Terms
Discussion Questions
9. Legally Required Benefits
Legally Required Employee Benefits
Social Security
Unemployment Compensation
Workers' Compensation
Family And Medical Leave Act (FMLA)
Uniformed Services Employment And Reemployment Rights Act (USERRA)
Patient Protection And Affordable Care Act (ACA)
Additional Legal Requirements
Summary
Key Terms
Discussion Questions
10. Voluntary Benefits
Legal Requirements
Employer-Sponsored Retirement Plans
Health Insurance Alternatives
Paid Time Off
Other Miscellaneous Benefits
The Importance Of A Needs Assessment
Flexible Benefits/Cafeteria Plans
Managing The System
Summary
Key Terms
Discussion Questions
11. Compensation of Special Groups
Sales
Supervisors
Contingent Workers
Directors
Executives
Unionized Workers
Two-Tier Pay Plans
Part-Time
Summary
Key Terms
Discussion Questions
12. International Compensation
Data Sources
National Differences And Requirements
Categories Of International Workers
Expatriate Pay And Benefits
Cost Containment
Repatriation
International Assignments: Pros And Cons
Summary
Key Terms
Discussion Questions
13. Compensation System Administration
Managing Compensation Communication
Pay Transparency
Addressing Employee Fairness Concerns
Managing Compensation Costs
Evaluating Effectiveness: Audits, Metrics, And Employee Feedback
From Metrics to Analytics
Managing Change
Summary
Key Terms
Discussion Questions
14. Compensation in Context: Putting It All Together
Putting The Pieces Together
Careers In Compensation
The Future Of Compensation
Work-Life Balance
Making It Personal
Summary
Key Terms
Discussion Questions
Appendix: Responsible Furniture Industries, Inc. (RFI)