Professional Documents
Culture Documents
Org Structure
Org Structure
Org Structure
Strategic Compensation
Issues
Strategic Compensation
Issues
Ch 4
Organizational
Characteristics
Purpose
Division of Labor
The assignment of different tasks to different people
acting individually or in groups.
Hierarchy of Authority
Level-by-level arrangement of managers in order of
increasing authority.
Ch 4
Development of an
Organization
Establish a Philosophy
Establishes general guidelines for
decisions and actions to be taken by all
members - it describes the values of top
management or the leaders of the
organization. It provides standards.
Ch 4
Develop Cont.
Ch 4
Develop
cont.
Develop Policy
Broad guidelines for directing the actions of
employees. It must be sufficiently broad to
relate to different actions and behaviors
required of the various work groups and
members of the organization, and it must
support the mission of the organization.
Ch 4
Develop cont.
Develop cont
Ch 4
Develop cont.
Satisfaction And
Individual Performance
Pay Satisfaction
People make decisions about pay based on
comparisons with others.
Job Satisfaction
People want meaningful work, an
opportunity for recognition, reward, and
advancement.
Ch 4
Satisfaction cont.
Organizational Satisfaction
People want to be secure in their work,
treated fairly, and philosophically aligned
with the organization
Ch 4
Organizational
Hierarchy
Board of Directors
Establish policy...identify organizational and
strategic missions...select senior
management and monitors their
performance.
Chairman of the Board
Inside and Outside Members
Ch 4
Organizational
Hierarchy
Senior Management
Responsible for the proper organization and
operation of the firm. Responsible for setting
organizational objectives, establishing operating
polices, and defining operating plans.
Ch 4
Organizational
Hierarchy
Operating Managers
Responsible for meeting daily quality, quantity,
and timeliness standards in the goods and
services produced in their units.
Organizational
Hierarchy
Sales Personnel
Responsible for presenting the output of the
organization to potential customers.
* Compensation methods for sales personnel
vary from salary only, sales commission only,
salary and commission, salary and bonus, and
a combination of salary, bonus, and
commission.
Ch 4
Organizational
Hierarchy
Sales Personnel
Customer service
Sales support
Indirect sales
Market analysts
Ch 4
Organizational
Hierarchy
Professionals
Their work normally involves the solution of
complex technical problems that vary widely
and may have a broad range of interpretations.
Normally they hold at minimum an
undergraduate degree and may be required to
have a license or certificate to practice.
Ch 4
Organizational
Hierarchy
Professionals
Engineers
Attorneys
Scientists
Accountants
Ch 4
Organizational
Hierarchy
Operative Employees
Make up approximately 75% of the workforce.
These employees perform assignments that
range from those given by a few specific and
easily understood oral instructions to those
requiring knowledge of specific skills and trades.
Ch 4
Organizational
Hierarchy
Operative Employees
Paraprofessionals / Technicians
Administrative support
Semi-skilled workers
Unskilled workers
Ch 4
Exempt - Nonexempt
Employees
Under both state and federal (FSLA) statute
employers are required to compensate all
workers who are not otherwise exempt,
overtime pay for all hours worked in a given
work week or day that exceeds a specified
number of hours...subject to special
exceptions and conditions.
Ch 4
Exempt - Nonexempt
Employees
Subject to
established
standards the law
provides exempt
status for
EXECUTIVES
ADMINISTRATORS
PROFESSIONALS
SALES PERSONNEL
FARM WORKERS
INTERSTATE TRANSWORKERS
Ch 4
Regular Employee
any person hired for a specific job who is
expected to work on a continuing basis and
meet certain minimum performance and timeon-job requirements.
Ch 4
Temporary Employee
Any person hired for a special project, or on an
as-needed basis, or for seasonal work, or for
any kind of work of a temporary or casual
nature.
Part-time employee
Typically any person working on a continuing
basis who works less than a full-time
employee.
Ch 4
Pay Relationships
Pay Equity
Are you paid a Fair wage?
Is there pay equity in the workplace among all
the members of the workforce?
Pay Ratios
The relationship of executive pay to the pay
of lower-level employees in the same
organization.
Ch 4