ISE Compensation 14TH Edition (International Edition) Textbook only

Cover
Compensation
Table of Contents
About the Author
Preface
About this Book
What's New
Acknowledgments
Part I: Introducing the Pay Model and Pay Strategy
	Chapter 1: The Pay Model
		Compensation: Does It Matter? (Or, “So What?”)
		Compensation: Definition, Please (Stakeholders)
			Society
			Stockholders
			Customers
			Managers
			Employees
		How Pay Influences Beahviors: Incentive and Sorting Effects
			Global Views—Vive la Différence
		Forms of Pay
			Cash Compensation: Base
			Cash Compensation: Merit Increases/Short-Term Incentives (Merit Bonuses)/COLAs
			Cash Compensation: Incentives
			Long-Term Incentives
			Benefits: Income Protection
			Benefits: Work/Life Balance
			Benefits: Allowances
			Total Earnings Opportunities: Present Value of a Stream of Earnings
			Relational Returns from Work
		A Pay Model
			Compensation Objectives
			Four Policy Choices
			Pay Techniques
		Book Plan
		Caveat Emptor—Be an Informed Consumer
			1. Is the Research Useful?
			2. Does the Study Separate Correlation from Causation?
			3. Are There Alternative Explanations?
		Your Turn: Compensation at the World’s Largest Company
		(Still) Your Turn: Who are Amazon’s Peer Companies for Comparing Compensation?
	Chapter 2: Strategy: The Totality of Decisions
		Similarities and Differences in Strategies
			Different Strategies within the Same Industry
			Different Strategies within the Same Company (between business units/markets)
			Different Strategies within the Same Company (Evolution over Time)
		Strategic Choices
		Support Business Strategy
		Support HR Strategy
		The Pay Model Guides Strategic Pay Decisions
			Stated versus Unstated Strategies
		Developing a Total Compensation Strategy: Four Steps
			Step 1: Assess Total Compensation Implications
			HR Strategy: Pay as a Supporting Player or a Catalyst for Change?
			Step 2: Map a Total Compensation Strategy
			Steps 3 and 4: Implement and Reassess
		Source of Competitive Advantage: Three Tests
			Align
			Differentiate
			Add Value
		“Best Practices” versus “Best Fit”?
		Guidance from the Evidence
		Virtuous and Vicious Circles
		Your Turn: Using Compensation to Improve Environmental, Social and Governance (Including Diversity & Inclusion) Performance: Apple and Starbucks
		Still Your Turn: Mapping Compensation Strategies
Part II: Internal Alignment: Determining the Structure
	Chapter 3: Defining Internal Alignment
		Jobs and Compensation
		Compensation Strategy: Internal Alignment
			Supports Organization Strategy
			Supports Work Flow
			Motivates Behavior
		Structures Vary among Organizations
			Number of Levels
			Differentials
			Criteria: Content and Value
		What Shapes Internal Structures?
			Economic Pressures
			Government Policies, Laws, and Regulations
			External Stakeholders
			Cultures and Customs
			Organization Strategy
			Organization Human Capital
			Organization Work Design
			Overall HR Policies
			Internal Labor Markets: Combining External and Organization Factors
			Employee Acceptance and Perceived Fairness
			Pay Structures Change
		Strategic Choices in Designing Internal Structures
			Tailored versus Loosely Coupled
			Hierarchical versus Egalitarian and Layered versus Delayered Structures
		Guidance from the Evidence
			Equity Theory: Fairness
			Tournament Theory (and Pay Dispersion): Motivation and Performance
			Institutional Theory: Copy Others and Conform
			(More) Guidance from the Evidence
		Consequences of Structures
			Efficiency (including Retention)
			Fairness
			Compliance
		Your Turn: So You Want to Lead an Orchestra!
		Still Your Turn: (If You Don’t Want to Lead the Orchestra...)
		Still (yes, still) Your Turn: NCAA
	Chapter 4: Job Analysis
		Structures Based on Jobs, People, or Both
		Job-Based Approach: Most Common
			Why Perform Job Analysis?
		Job Analysis Procedures
		What Information Should Be Collected?
			Job Data: Identification
			Job Data: Content
			Employee Data
			“Essential Elements” and the Americans With Disabilities Act
			Level of Analysis
		How Can the Information Be Collected?
			Conventional Methods
			Quantitative Methods
			Who Collects the Information?
			Who Provides the Information?
			What about Discrepancies?
		Job Descriptions Summarize the Data
			Using Generic Job Descriptions
			Describing Managerial/Professional Jobs
		Verify the Description
		Job Analysis: Bedrock or Bureaucracy?
		Job Analysis and Change in Work: Globalization, and Automation (Including AI)
			Change in Work
			Susceptibility to Offshoring
			Susceptibility to Automation and AI
			Job Analysis Information and Comparability across Borders
		Judging Job Analysis
			Reliability
			Validity
			Acceptability
			Currency
			Usefulness
			A Judgment Call
		Your Turn: The Customer-Service Agent
	Chapter 5: Job-Based Structures and Job Evaluation
		Job-Based Structures: Job Evaluation
		Defining Job Evaluation: Content, Value, and External Market Links
			Content and Value
			Linking Content with the External Market
		Technical and Process Dimensions
		“How-To”: Major Decisions
			Establish the Purpose
			Single versus Multiple Plans
			Choose among Job Evaluation Methods
		Job Evaluation Methods
			Ranking
			Classification
			Point Method
		Who Should Be Involved?
			The Design Process Matters
		The Final Result: Structure
		Balancing Chaos and Control
		Your Turn: Job Evaluation at Whole Foods
	Chapter 6: Person-Based Structures
		Person-Based Structures: Skill Plans
			Types of Skill Plans
			Purpose of the Skill-Based Structure
		“How-To”: Skill Analysis
			What Information to Collect?
			Whom to Involve?
			Establish Certification Methods
			Outcomes of Skill-Based Pay Plans: Guidance from Research and Experience
		Person-Based Structures: Competencies
			Defining Competencies
			Purpose of the Competency-Based Structure
		“How-To”: Competency Analysis
			Objective
			What Information to Collect?
			Whom to Involve?
			Establish Certification Methods
			Resulting Structure
			Competencies and Employee Selection and Training/Development
			Guidance (and Caution) from the Research on Competencies
		One More Time: Internal Alignment Reflected in Structures (Person-Based or Job-Based)
		Administering and Evaluating the Plan
			Reliability of Job Evaluation Techniques
			Validity
			Acceptability
		Bias in Internal Structures
			Wages Criteria Bias
		The Perfect Structure
		Your Turn: Climb the Legal Ladder
	PART III: External Competitiveness: Determining the Pay Level
		Chapter 7: Defining Competitiveness
			Compensation Strategy: External Competitiveness
				Control Costs and Increase Revenues
				Attract and Retain the Right Employees
			What Shapes External Competitiveness?
			Labor Market Factors
				How Labor Markets Work
				Labor Demand
				Marginal Product
				Marginal Revenue
				Labor Supply
			Modifications to the Demand Side
				Compensating Differentials
				Efficiency Wage
				Sorting and Signaling
			Modifications to the Supply Side (Only Two More Theories to Go)
				Reservation Wage
				Human Capital
			Product Market Factors and Ability to Pay
				Product Demand
				Degree of Competition
				A Different View: What Managers Say
				Segmented Supplies of Labor and (Different) Going Rates
			Organization Factors
				Industry and Technology
				Employer Size
				People’s Preferences
				Organization Strategy
			Relevant Markets
				Defining the Relevant Market
				Globalization of Relevant Labor Markets: Offshoring and Outsourcing
			Competitive Pay Policy Alternatives
				What Difference Does the Pay-Level Policy Make?
				Pay with Competition (Match)
				Lead Pay-Level Policy
				Lag Pay-Level Policy
				Different Policies for Different Employee Groups
				Not by Pay Level Alone: Pay-Mix Strategies
				Consequences of Pay-Level and Pay-Mix Decisions: Guidance from the Research
				Efficiency
				Fairness
				Compliance
			Your Turn: Two-Tier Wages
			Your Turn: Combining Pay Survey and Job Evaluation Data
			Appendix 7-A: Utility Analysis
		Chapter 8: Designing Pay Levels, Mix, and Pay Structures
			Major Decisions
			Specify Competitive Pay Policy
			The Purpose of a Survey
				Adjust Pay Level—How Much to Pay?
				Adjust Pay Mix—What Forms?
				Adjust Pay Structure?
				Study Special Situations
				Estimate Competitors’ Labor Costs
			Select Relevant Market Competitors
				Fuzzy Markets
			Design the Survey
				Who Should Be Involved?
				How Many Employers?
				Which Jobs to Include?
				What Information to Collect?
			Interpret Survey Results and Construct a Market Line
				Verify Data
				Statistical Analysis
				Update the Survey Data
				Construct a Market Pay Line
				Setting Pay for Benchmark and Non-Benchmark Jobs
				Combine Internal Structure and External Market Rates
			From Policy to Practice: The Pay-Policy Line
				Choice of Measure
				Updating
				Policy Line as Percent of Market Line
			From Policy to Practice: Grades and Ranges
				Why Bother with Grades and Ranges?
				Develop Grades
				Establish Range Midpoints, Minimums, and Maximums
				Overlap (and Midpoint Progression)
			From Policy to Practice: Broad Banding
				Flexibility Control
			Balancing Internal and External Pressures: Adjusting the Pay Structure
				Reconciling Differences
			Market Pricing
				Business Strategy (More than “Follow the Leader”)
			Review
			Your Turn: Google’s (now Alphabet’s) Evolving Pay Strategy
			Still Your Turn: Word-of-Mouse: Dot-Com Comparisons
Part IV: Employee Contributions: Determining Individual Pay
	Chapter 9: Pay-for-Performance: Theory and Evidence
		What Behaviors Do Employers Care About? Linking Organization Strategy to Compensation and Performance Management
		What Does It Take to Get These Behaviors? What Theory Says
		What Does It Take to Get These Behaviors? What Practitioners Say
		Does Compensation Motivate Behavior?
			Do People Join a Firm Because of Pay?
			Do People Stay in a Firm (or Leave) Because of Pay?
			Reminder: Not All Turnover is Bad (and at least some is necessary)
			Do Employees More Readily Agree to Develop Job Skills Because of Pay?
			Do Employees Perform Better on Their Jobs Because of Pay for Performance? The Short Answer is “Yes” (Especially Compared to the Alternative)
			Pay for Performance: Harmful Effects on Intrinsic Motivation (Claims and Evidence)
			Sorting and Incentive Effects
			Risk (Unintended Consequence)
		Designing a Pay-for-Performance Plan
			Efficiency
			Equity/Fairness
			Compliance
		Your Turn: Burger Boy
	Chapter 10: Pay-for-Performance: Types of Plans
		What Is a Pay-for-Performance Plan?
			How Widely Used Is Pay for Performance (PFP)?
			The Important Role of Promotion (internal or external) in Pay for Performance
		Pay-for-Performance: Merit Pay Plans
		Pay-for-Performance: Short-Term Incentive Plans (Individual-Based)
			Merit Bonuses aka Lump-Sum Bonuses
			Individual Spot Awards
			Individual Incentive Plans
			Individual Incentive Plans: Returns (But Also Risks)
			Individual Incentive Plans: Examples
		Pay-for-Performance: Short-Term Incentive Plans (“Group”-Based)
			Comparing Group and Individual Incentive Plans
			Large Group Incentive Plans
			Gain-Sharing Plans
			Profit-Sharing Plans
			Earnings-at-Risk Plans
			Group Incentive Plans: Advantages and Disadvantages
			Group Incentive Plans: Examples
		Pay-for-Performance: Long-Term Incentive Plans
			Employee Stock Ownership Plans (ESOPs)
			Performance Plans (Performance Share and Performance Unit)
			Broad-Based Stock Plans (BBSPs)
			Combination Plans: Mixing Individual and Group
		Does Variable Pay (Short-Term and Long-Term Incentives) Improve Performance Results? The General Evidence
		Your Turn: Pay at Delta and American Airlines
	Chapter 11: Performance Appraisals
		The Role of Performance Appraisals in Compensation Decisions
			Performance Metrics
		Strategies for Better Understanding and Measuring Job Performance
			The Balanced Scorecard Approach
			Strategy 1: Improve Appraisal Formats
			Strategy 2: Select the Right Raters
			Strategy 3: Understand How Raters Process Information
			Strategy 4: Training Raters to Rate More Accurately
			Strategy 5: Improving Rater Motivation and Opportunity to Rate More Accurately
		Putting It All Together: The Performance Evaluation Process
			“New” Performance Appraisal
			A Checklist of Recommended Behaviors for Managers and Employees
		EqualEmployment Opportunity and Performance Evaluation
		Tying Pay to Subjectively Appraised Performance (Merit Pay)
			Competency: Customer Care
			Performance- and Position-Based Guidelines
			Designing Merit Guidelines
		Your Turn: Performance Appraisal at American Energy Development
		Appendix 11-A: Balanced Scorecard Example: Department of Energy (Federal Personal Property Management Program)
		Appendix 11-B: Sample Appraisal Form for Leadership Dimension: Pfizer Pharmaceutical
Part V: Employee Benefits
	Chapter 12: The Benefit Determination Process
		Overview
		Why the Growth in Employee Benefits?
			Wage and Price Controls
			Unions
			Employer Impetus
			Cost (Including Tax) Effectiveness of Benefits
			Government Impetus
		The Value of Employee Benefits
		Key Issues in Benefit Planning, Design, and Administration
			Benefits Planning and Design Issues
			Benefit Administration Issues
		Components of a Benefit Plan
			Employer Factors
			Employee Factors
		Administering the Benefit Program
			Employee Benefit Communication
			Cost Containment
			Claims Processing
		Your Turn: World Measurement
	Chapter 13: Benefit Options
		Legally Required Benefits
			Workers’ Compensation
			Social Security: Old Age, Survivors, Disability & Health (OASDI) + Medicare
			Unemployment Insurance
			Family and Medical Leave Act (FMLA)
			Consolidated Omnibus Budget Reconciliation Act (COBRA)
			Health Insurance Portability and Accountability Act (HIPAA)
		Retirement and Savings Plan Payments
			Defined Benefit Plans
			Defined Contribution Plans
			Individual Retirement Accounts (IRAs)
			Employee Retirement Income Security Act (ERISA)
			How Much Retirement Income to Provide?
		Life Insurance
		Medical and Medically Related Payments
			General Health Care
			Health Care: Cost Control Strategies
			Short- and Long-Term Disability
			Dental Insurance
			Vision Care
		More Benefits
			Paid Time Off during Working Hours
			Payment for Time Not Worked
			Family-Friendly Policies (including Child Care, Family Leave, and Flexible Work)
			Elder Care
			Domestic Partner Benefits
			Legal Insurance
			Addressing Financial Precarity (and Financial Wellness)
		Benefits (or Lack Thereof): Contingent and Alternative Work Arrangement Workers
		Your Turn: Evolving Benefits: Paid Leave
		(Still) Your Turn: Evolving Benefits: Telehealth
Part VI: Extending the System
	Chapter 14: Compensation of Special Groups: Executives and Others
		Special Groups: Overview
			Supervisors
			Corporate Directors
			Executives
			How Aligned are Executive Pay and Performance?
			Say on Pay (Shareholder Votes)
			Why Is Everyone So Interested in Executive Compensation? And . . . Some Different Perspectives
			Scientists and Engineers in High-Tech Industries
			Sales Forces
			Contingent Workers and Workers under Alternative Work Arrangements (Including Independent Contractors, Gig Workers)
		Your Turn: A Sports Sales Plan
	Chapter 15: Union Role in Wage and Salary Administration
		The Impact of Unions in Wage Determination
			Union Impact on Compensation
			The Structure of Wage Packages
			Union Impact: The Spillover (or Threat) Effect
			Role of Unions in Wage and Salary Policies and Practices
			Role of Unions in Discipline, Job Security, and Assignments
		Unions and Alternative Reward Systems (and Variable Pay)
			Lump-Sum Awards/Bonuses
			Employee Stock Ownership Plans (ESOPs)
			Pay-for-Knowledge Plans
			Gainsharing Plans
			Profit-Sharing Plans
		Your Turn: Collective Bargaining and Compensation in Health Care
	Chapter 16: International Pay Systems
		The Global Context
		The Social Contract
			Centralized or Decentralized Pay-Setting
			Regulation
		(National) Culture
			Is National Culture a Major Constraint on Compensation?
		Trade Unions and Employee Involvement
		Ownership and Financial Markets
		Managerial Autonomy
		Comparing Costs (and Productivity)
			Labor Costs and Productivity
			Cost of Living and Purchasing Power
		Comparing Systems
			Japanese Traditional National System
			German Traditional National System
			Comparison of Traditional Systems in Japan, Germany, United States
			Evolution and Change in the Traditional Japanese and German Models
		Strategic Market Mind-Set
			Localizer: “Think Global, Act Local”
			Exporter: “Headquarters Knows Best”
			Globalizer: “Think and Act Globally and Locally”
		Expatriate Pay
			Elements of Expatriate Compensation
			The Balance Sheet Approach
			Expatriate Systems Objectives? Quel dommage!
		Borderless World  Borderless Pay? Globalists
		Your Turn: Globalization of the Labor Market: The English Premier League
Part VII: Managing the System
	Chapter 17: Government and Legal Issues in Compensation
		Government as Part of the Employment Relationship
		Overviews
		Fair Labor Standards Act of 1938
			Minimum Wage
			Overtime and Hours of Work
			Child Labor
		Living Wage
		Employee or Independent Contractor?
		Prevailing Wage Laws
		Antitrust Issues
		Pay Discrimination and Pay Equity: What Are They?
			Pay Discrimination
			Pay Equity
		The Equal Pay Act (and Related State Laws)
			Definition of Equal
			Definitions of Skill, Effort, Responsibility, Working Conditions
			Factors Other than Sex
			“Reverse” Discrimination
		Title VII of the Civil Rights Act of 1964 and Related Laws
			Disparate Treatment
			Disparate Impact
		Executive Order 11246
		Pay Discrimination and Dissimilar Jobs
			Evidence of Discrimination: Use of Market Data
			Evidence of Discrimination: Jobs of Comparable Worth
			More Recent Developments
		Earnings Gaps
			Sources of the Earnings Gaps
		Compliance: A Proactive Approach
		Your Turn: From Barista to Manager
		Still Your Turn: The Case of Lady Gaga’s (Former) Personal Assistant
	Chapter 18: Management: Making It Work
		Managing Labor Costs and Revenues
		Managing Labor Costs
			Number of Employees (a.k.a.: Staffing Levels or Headcount)
			Hours
			Benefits
			Average Cash Compensation (Fixed and Variable Components)
			Budget Controls: Top Down
			Budget Controls: Bottom Up
			Embedded (Design) Controls
		Managing Revenues
			Using Compensation to Retain (and Recruit) Top Employees
			Managing Pay to Support Strategy and Change
		Communication: Managing the Message
			Pay Secrecy Versus Transparency/Openness
			Pay Communication: General Principles
			Say What? (Or, What to Say?)
			Opening the Books
		Structuring the Compensation Function and Its Roles
			Centralization–Decentralization (and/or Outsourcing)
			Ethics: Managing or Manipulating?
			Your Turn: Communication by Copier
			Still Your Turn: Managing Compensation Costs, Headcount, and Participation/Communication Issues
Glossary
Name Index
Subject Index