HRM 3490 Lecture Notes - Lecture 13: Financial Statement, Internal Control, A.D. Vision

• School: York University
• Department: Human Resources Management
• Course: HRM 3490
• Professor: Parbudyal Singh

Document Summary

Chapter 13: activating and maintaining and effective compensation system. Bottom up: budget is created by applying the compensation rates to employees, factoring probable merit and seniority increases as well as expected turnover. Top down: management creates a budget by setting a limit on the total amount of compensation available for coming year and then divide available funds among departments and units, divide among employees. Compensation administration: documenting the compensation system, administering compensation, assigning compensation responsibilities and planning the infrastructure, and developing processes for ongoing communication about compensation. Administering compensation: collect necessary info about time worked, if emp are eligible for overtime pay, which emp have been terminated, calculate gross earnings and deductions, prepare and distribute the pay cheques or notices. Communicating compensation information: emp and managers need to be made aware of any changes to compensation that affect them made aware of any responsibilities they have for providing information necessary for the compensation administration process.