Premium Essay

Equity Article Hay Group Inc

In: Business and Management

Submitted By khjdbs
Words 3553
Pages 15
When setting pay rates, compensation managers must take into consideration the employees' perception of fair, equitable compensation.

Pay Equity: Internal and External Considerations

KENT ROMANOFF
Associate Hay Group, Inc.

KEN BOEHM
Labor Economist Pacific Telesis

EDWARD BENSON
Vice-President, Hay Group, Inc.

EqUity (or fairness), a central theme in compensation theory and practice, arises in many different contexts. Here, for example, are some major areas: • The legal and economic issue of equal pay for similar work (comparable worth). • Pay differences caused by external competition or market pressures. • The fairness of individual wage rates for people who are doing the same job. • Individual employee views of their value relative to their pay. A company's approach to equity is as important as the actual pay programs it im­ plements. Companies typically emphasize external equity in the design of their com­ pensation structures. This focus on external equity enables a ,company to develop compensation structures and programs that are competitive with other companies in appropriate labor markets. Perceptions of equity can also influence a company's abil­ ity to attract, retain, and motivate its employees. Employee perceptions of equity and inequity are equally important and should be carefully considered when a company sets compensation objectives. Employees who perceive equitable pay treatment may be more motivated to perform better or to sup­ port a company's goals. Individual employees, however, perceive equity in many different ways. Therefore, it is difficult to specify one definition of equity that is ap­ plicable to all s i t u a t i o n s . ' In sum, compensation equity poses a conceptual and practical challenge: how to reconcile the company's ability to pay (financial resources), desire to pay (image), and
17

COMPENSATION AND…...

Similar Documents

Free Essay

College Assurane Plan

...incurred deficiency in their trust fund. 5. Independent Trustee Some of the pre-need companies' trustee were affiliates. Pacific Plans' trustee is RCBC, both are under the Yuchengco Group of Companies. CAP's trustee is Bank of Commerce, both have Sobrepeña affiliation. Ayala Plans trustee is BPI, both under Ayala Corporation, Philam Plans trsustee is Philam Savings. Cocolife trustee is UCPB; and First Union's trustee is Union Bank. There is a possibility that a collusion between these two related companies may occur.  Excerpts from Congressional Planning and Budget Department House of Representatives: Collusion between pre-need companies and their affiliates could result in possible diversion of the trust fund into business ventures other than the intended investment specified by the SEC.  In 2005, Senator Serge Osmena, during committee hearings, mentioned about CAP and PPI impropriety in handling their trust fund. Specifically, he pointed to the questionable investment of CAP in its affiliates company such as the Fil-Estate Management, Inc (FEMA) and PPI appointment of Rizal commercial Banking Corporation (RCBC) as its trustee bank. Likewise, Atty. Maricel Lopez, counsel for CAP planholders accused CAP’s executives of diverting P25 billion of its trust funds to its affiliated corporations (Camp John Hay Development Corporation, Metro Railway Transit and Fil-Estate Company). As a result, CAP had incurred P1 billion loss in bad investment in FEMA alone, a holding company......

Words: 3495 - Pages: 14

Premium Essay

Matha Stewart Lost Reputation

...University of Technology 168 Jifeng E. Rd. Wufeng District Taichung 41349, Taiwan Abstract Martha Stewart places her name on her products. She becomes the face of her company and the voice of her brand. When her personal misconduct occurred, she made her company vulnerable and risky as well. This casestudy examines how Martha Stewart managed her corporate communication when her public image and reputation were tarnished on trial for alleged insider trading scandal. The trial not only led her to prison but also hurt her brand equity. The study shows that Stewart’s early response to her crisis demonstrated lack of situation awareness. In the beginning of her investigation, she kept her public persona intact, ignoring or downplaying her role in it. As a result, what Stewart called “a small personal matter” later became a full-blown crisis. If she had managed her communication in a more timely manner, the magnitude of her crisis might have been minimized. This article also provides detailed insights for organizations to learn from her crisis response strategies. Keywords: Organizational crisis, Crisis communication, Image restoration 1. Introduction The personalities of strong business leaders can help shape and enhance their corporate image. In some cases, the leaders become the virtual icon of the corporate brand, lending their personal prestige to the brand and personifying the company. They can also threaten the company when they are involved in a scandal. In this......

Words: 9481 - Pages: 38

Premium Essay

Motivation

...Motivation in today's workplace: the link to performance. ABSTRACT In today's hyper-competitive marketplace, understanding what fosters and forwards employee motivation--and, thus, organizational performance--is critical. Based on theories, studies, best practices, case studies and resources about motivation, this solutions-focused research article presents valuable information for the senior HR leader seeking competitive advantage. ********** Introduction In today's marketplace, where companies seek a competitive edge, motivation is key for talent retention and performance. No matter the economic environment, the goal is to create a workplace that is engaging and motivating, where employees want to stay, grow and contribute their knowledge, experience and expertise. Motivation is generally defined as the psychological forces that determine the direction of a person's level of effort, as well as a person's persistence in the face of obstacles. The direction of a person's behavior refers to the many possible actions that a person could engage in, while persistence refers to whether, when faced with roadblocks and obstacles, an individual keeps trying or gives up. (1) The responsibility for motivation is three-fold: it falls on the senior leadership, the direct manager and the employee. Numerous factors are involved, from trust, engagement and values (individual and organizational) to job satisfaction, achievement, acknowledgement and rewards.......

Words: 30807 - Pages: 124

Premium Essay

Bren&Jerry Case Study

...end up like Ben and Jerry’s, where soon after a multinational acquired it, key facets of its social mission were cut from the company.2 Ben & Jerry’s Homemade, Inc. was once the darling of proponents of social enterprise and social entrepreneurship.3 It was a for-profit corporation that seemingly did not put profits first. Rather, it pursued, in the parlance, a “double bottom” line, seeking to advance progressive social goals, while still yielding an acceptable financial return for investors. It advanced its social mission in many ways, such as by committing 7.5% of its profits to a charitable foundation; conducting in-store voter registration; and buying ingredients from suppliers who employed disadvantaged populations.4 Ben & Jerry’s founders, Ben Cohen and Jerry Greenfield, held out their double bottom line approach (they called it the “double-dip”) as a model for others who wished to “Lead With [their] Values and Make Money, Too.”5 * Professor of Law at Indiana University School of Law—Indianapolis. ** Professor of Law at Indiana University School of Law—Indianapolis and Professor of Philanthropic Studies at the Indiana University Center on Philanthropy. † Thanks to the organizers of the symposium “Corporate Creativity: The Vermont L3C & Other Developments in Social Entrepreneurship,” and the editors of this Article: Merrill Bent, Emily Montgomery and Sofia Yazykova at the Vermont Law Review. Thanks also to research assistants Jonathan Lund and Phillip Triplett. 1. BEN......

Words: 21309 - Pages: 86

Premium Essay

Labor Relations

...relations can refer generally to any association between workers and management about employment circumstances. Most frequently, labor relations refers to dealings involving a workforce that is already unionized and management, or has the potential to become unionized. Labor relations are vital to organizations. The National Labor Relations Act was passed in the 1930s, which gave workers the right to bargain collectively and form unions in the United States (http://www.investorglossary.com/labor-relations.htm). To begin to understand the contributions of unions and their effects on organizations, we must first determine what unions are and what their role has been in labor relations and the nation’s organizations. Labor unions are groups formed by laborers who share a certain characteristics. Characteristics such as the industry, the type of work they do, and who agree that the union will act as their spokesperson or negotiator in all matters dealing with employment involving the employees and their respective employers. By forming unions, employees individually are able to work concurrently to negotiate with their employers to promote every member of the union. The course of bargaining for mutually beneficial benefits or agreements, and the communication between employees and their employers during that process and after that process, are what forms the basis of labor relations. Labor relations cover all aspects of an organization and of being an employee and all......

Words: 3438 - Pages: 14

Premium Essay

Ceo Pay, Compensation Websites and Managerial Implications of Compensation

...comes to CEO pay, the board of directors and the stockholders are generally the two groups that determine what the base salary of a CEO will be and how he/she will be rewarded for leading the company in terms of stock options, benefits and other amenities. In order to align the interests of shareholders/stockholders, the CEO pay is sometimes structured so that it is linked to the shareholder return or stock performance which equals overall company performance and makes the shareholders and the CEO wealthier. However, there is a debate whether company performance and executive pay are strongly related in general U.S. corporations. (Milkovich, Newman, & Gerhart, 2011) These compensation practices have raised ethical concerns as well because the executives are encouraged to make business decisions that benefit themselves rather than the corporation in order to meet or exceed performance goals that are necessary to receive the incentive pay. (Wiliams, 2010) Generally speaking, bonuses and other incentives decrease during tough economic times but they rebound with a force once the economy is back on track. The recent Wall Street Journal article demonstrates this fact, as it reported that CEO bonuses at 50 major corporations jumped a median of 30.5% which was the biggest gain in the last three years. (Lublin, 2011) Top executives collected a lot of different types of pay: salaries, long-term equity awards, and bonuses related to corporate performance. One notable example was......

Words: 4626 - Pages: 19

Premium Essay

Hrm Kcompetitive Strategy

...manager characteristics such as personality, skills, abilities, values, and perspectives are matched with particular types of business strategies. For example, a recently released study conducted by Hay Group Incorporated, in conjunction with the University of Michigan and the Strategic Planning Institute, reports that when a business is pursuing a growth strategy it needs top managers who are likely to abandon the status quo and adapt their strategies and goals to the marketplace. According to the study, insiders are slow to recognize the onset of decline and tend to persevere in strategies that are no longer effective; so, top managers need to be recruited from the outside. Growth companies that staffed 20% of their top three levels with outsiders exceeded their expected return on investment by 10%. Those that relied on inside talent fell short of their goals by 20%. The same holds true for companies in declining industries: companies with outsiders in one out of every five top managements jobs exceeded expected returns by 20%; those with a low proportion of outsiders fell 5% short.* Outsiders, of course, are not always helpful. When a business is pursuing a mature strategy, what is needed is a stable group of insiders who know the intracacies of the business. The results of the Hay study suggest that the staffing practices of top management be tied to the nature of the business because different aspects of business demand different behaviors from the individuals......

Words: 9217 - Pages: 37

Premium Essay

The Glass Ceiling Effect: Women’s Career Advancement in Puerto Rico

...struggling within all types of organizations for equal roles in the workplace, equal pay for equal work, and equal respect along with men. Women have been a part of the working world for hundreds of years but only very recently has the world of work truly changed for women (Higginbotham & Romero, 1997). Educated, experienced women are well aware of the value they bring to the workplace. According to a 2004 study of 353 Fortune 500 companies by Catalyst (2004) explored the link between the representation of women in top management and a corporation's financial performance. The study revealed on average, those companies that have higher women's representation on their top management teams financially outperformed with a 35% higher return on equity than those companies with lower women's representation companies. Purpose for the Study The persistence of wage differentials between men and women with identical productive characteristics is an important fact of labor markets in both developed and developing countries (Blau & Kahn, 2000). Based on a U.S. General Accounting Office (GAO) report, research on equal pay and career advancement does not explain the magnitude of earnings differences between men and women, nor why these differences exist. The GAO investigated factors that contribute to earnings differences. Considering the difference between work patterns of men and women, as well as other key factors, women earned, on average, 80% of men's earnings in 2000. However, the GAO......

Words: 4521 - Pages: 19

Free Essay

Biomass

...Plains Indians (then early settlers) used buffalo chips to build fires to heat their tepees (and sod huts). This was probably the first use of biomass energy in America. Early settlers learned from the Indians to heat their sod huts. After the buffalo became extinct, cow chips were used. On the plains there weren’t many trees and coal had not been discovered there, so this was a matter of survival (Whyte n.d.). Once the chips were dried in the sun they were almost odorless, and placed outside the tepees and sod huts. Western pioneers would modify their stoves to burn cow chips as they were plentiful along the cattle drive trails where the cattle were brought to the railroad cars for sale, and transporting to other areas. They compacted hay and then twisted it into twig-like bundles called cats. When the settlers started farming on the plains, they used corn stalks, corn cobs, and sunflower stalks as a source of fuel. In the United States, the first facility identified as a biomass power plant went on line in 1982. Using corn residues, rice husks, soy beans and sorghum residues, willows, switch grass, and organic waste from land fills as fuel, we could provide enough energy for all the homes in New England (Whyte n.d.). I interviewed Paul Perlwitz, an engineer for Nippon Paper Industries USA Co., Ltd, who works in the environmental department. He is working endlessly complete their project to build a $71 million biomass boiler. The new boiler will be 68% efficient,......

Words: 3497 - Pages: 14

Premium Essay

Swot

...form10k_fy13.htm UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ——————————— FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended: June 4, 2013 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to _________ Commission file number 1-12454 RUBY TUESDAY, INC. (Exact name of registrant as specified in charter) 63-0475239 (I.R.S. Employer Identification No.) 150 West Church Avenue, Maryville, Tennessee 37801 (Address of principal executive offices and zip code) (865) 379-5700 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Common Stock, par value $0.01 per share Name of each exchange on which registered New York Stock Exchange GEORGIA (State or other jurisdiction of incorporation or organization) Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yeso No x Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No x Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for......

Words: 86797 - Pages: 348

Premium Essay

Why Investors Choose Sharemarket

...ABSTRACT BACKGROUND: During the last two years, most of the Private Equity (PE) companies of Bangladesh have increased their investments significantly. Easy access to capital, as well as inexpensive leverage, has led to an increase in activity of PE buy-outs of market leaders with strong cash flow. The competition for objects that are for sale has amplified, which has resulted in price increases of the objects. The higher prices offered by the PE companies also affects the number of initial public offerings (IPO) on the Dhaka and Chittagong Stock Exchanges. One reason for the small number of current IPOs is that the objects simply have been valued higher by PE companies than they would do in an IPO. PURPOSE: The purpose with this thesis is, from a shareholder’s point of view, to analyze and describe the reasons of making an IPO instead of selling to a PE company. METHODOLOGY: Since the research is based on gathering and understanding information regarding specific persons’ choices and motives, a qualitative approach has been conducted. CONCLUSION: All the main motives of the IPO could have been achieved by selling to PE Company, except the motive of attaining share liquidity. One of the attractive reasons for share liquidity is that shareholders easily can choose between reducing ownership, increasing ownership or remain with existing shares. Another attractive reason is that financial institutions normally become shareholders, which in turn increases the......

Words: 13249 - Pages: 53

Premium Essay

Financial Accounting

...Stockholders' Equity Intangible Asset Cost of Goods Sold Balance Sheet Balance Sheet Balance Sheet Income Statement Balance Sheet Income Statement Balance Sheet Income Statement Retained Earnings Statement Balance Sheet Balance Sheet D Current Asset/Long-Term Investment Operating Expense Long-Term Liability—Contra Other Income Temporary account closed to Retained Earnings Current Liability E Plant Asset F Operating Expense Income Statement Income Statement Balance Sheet Not Applicable Income Statement Balance Sheet Income Statement Income Statement Balance Sheet Balance Sheet Income Statement Balance Sheet (2) G Other Income Intangible Asset I Temporary account closed to Retained Earnings Income Tax Expense Current Liability Operating Expense Other Expense Current Liability Current Asset Other Income Current Asset Account Title Land Loss on Disposal of Plant Assets Maintenance and Repairs Expense Mortgage Payable Notes Payable Classification L Plant Asset Other Expense Financial Statement Balance Sheet Income Statement Normal Balance Debit Debit Debit Credit Credit M Operating Expense Long-Term Liability Income Statement Balance Sheet Balance Sheet N Current Liability/ Long-Term Liability P Patents Paid-in Capital in Excess of Par— Common Stock Paid-in Capital in Excess of Par— Preferred Stock Preferred Stock Premium on Bonds Payable Prepaid Insurance Prepaid Rent Rent Expense Retained Earnings Intangible Asset Stockholders’......

Words: 56249 - Pages: 225

Premium Essay

“Errors in Preparing Financial Plan in Investment Firm”

...biggest drop, from 208,438 to 10,152 with an aggregate value of PhP17 billion in 2000 to PhP1.7 billion in 2008.    Despite the problems hounding the industry, latest data from the SEC showed that the number of plans sold increased to 40 percent, from 33,989 in the first two months of 2008 to 48,239 in the first two months of the 2009. Life plans grew by 72 percent, from 23,611 to 40,589.    But the sale of educational and pension plans    fell by 50 percent and 24 percent, respectively Relevant facts from the study Pre-need crisis: Unkindest cut of all By Raul Pangalangan Philippine Daily Inquirer First Posted 00:18:00 01/30/2009 Filed Under: Financial & Business Services, Financially Distressed Companies, Legacy banking group ?Tis the ?most unkindest cut of all?: to throw to the mercy of the market precisely those parents who were responsible enough to save for the proverbial rainy day. The pre-need crisis has victimized the typical plan holder ? salaried employees and overseas Filipino workers ? and for the government to pretend to be neutral by being legalistic shows that the soft state approach has made for pathetically soft-brained thinking. The first set of victims consists of those whose pre-need plans have matured but are unable to collect full value on the money they had invested. They purchased the pre-need plan to protect their children’s future from the uncertainties of life, only to discover now that the pre-need company is itself the......

Words: 2748 - Pages: 11

Premium Essay

The New York Times Company: a Case Study Analysis

...THE NEW YORK TIMES COMPANY: A Case Study Analysis John J. Head WestCom Group Consulting Inc. School of Communication Telecommunications Management 4480 Western Michigan University 1903 West Michigan Avenue Kalamazoo, Michigan 49008 November 8, 2012 ©2012 John J Head Source: New York Times Co. Table of Contents I. Historical Overview 1 Early steps 2 Diversification 3 Challenges, changes 4 II. Organizational structure 5 Table 1 5 III. Business Operations 6 Table 2 7 The flagship 8 IV. Financial performance 9 Table 3 9 V. Future outlook 11 Branding 11 SWOT analysis and other risks 12 Table 4 13 Demographics 15 Philosophy 16 i Endnotes 18 I. HISTORICAL OVERVIEW “All the News That’s Fit to Print.” Special are those instances in business when a slogan becomes so synonymous with a company. Those words, found on the front page of every copy of every edition of The New York Times since 1896, began as a way to define the publication to its readership. That slogan stands to this day, but the newspaper and its parent, The New York Times Company, have grown far beyond the reaches of New York City and its surrounding boroughs. The New York Times Company is a diversified media company whose core purpose is “to enhance society by creating, collecting and distributing high-quality news, information and entertainment.”1 It is a publicly traded company (NYTC on the New York Stock Exchange) and publishes three major daily......

Words: 5813 - Pages: 24

Premium Essay

Millerscoors vs Anheuser-Busch

...launched another program in 2011 at their Golden Brewery. With this program, MillerCoors was able to increase recycling by 51% between September and December 2011. These programs rewarded with increased revenue of $200,000 from recycling and reducing the costs that are linked to disposing waste (MillerCoors.com). MillerCoors believes that waste is a resource out of place. MillerCoors reuses and recycles over 99% of the materials in their brewery. They turn the “waste” materials into usable energy, compost, and soil conditioner for the brewery’s use. The leftover waste products are sent to other companies that can put them to use. The leftover waste products from the Albany Brewery are used to fertilize crops on their on-site 600-acre hay farm and on-site 700-acre tree farm. The Golden Brewery was the first major brewery to provide the feedstock that other companies use to manufacture ethanol. Ethanol is used to fuel flex fuel vehicles (MillerCoors.com). MillerCoors engaged in other efforts to cut down on energy usage and emissions. MillerCoors follows a guideline of environmental stewardship to lower energy consumption, reduce greenhouse gas emissions, and use alternative energy sources. Following is a list of examples of ways that MillerCoors made an effort to lower energy use and emissions: * Electric vehicle charger- In 2011, MillerCoors installed an electric vehicle charger at the Irwindale Brewery to allow employees the option to commute to work......

Words: 9229 - Pages: 37