SUMMARY OF COURSE REQUIREMENTS AND THEIR GRADING:

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1 Florida Gulf Coast University, Lutgert College of Business, Department of Management MAN 4905 / CRN 12297: INDEPENDENDENT STUDY SPRING CREDIT HOURS Dr. Monika Renard, PhD* Professor, Management Department Past Chief Negotiator and President for the faculty union, UFF FGCU. *(PhD: HR, Org Beh, Research; MBA: Finance; BBA: Economics; BS Psychology) Mrenard@fgcu.edu Office: Lutgert Hall 3351 Phone: Office Hrs: M&F 9:30 11:30, and W 3:30 4:30, and other times by appointment CONTACT WITH DR. RENARD: Please contact me through , preferably via Canvas. I will try to get back with you within 24 hours, except on weekends and holidays. REQUIRED TEXT: Martocchio, J. Strategic Compensation: A Human Resource Management Approach. 9th ed. Upper Saddle River, NJ: Prentice Hall. COURSE DESCRIPTION THIS IS AN OFF CAMPUS INDEPENDENT STUDY COURSE. NO CLASS MEETINGS ARE SCHEDULED. It is understood the independent study will be completed and graded by the last day of the semester. A copy of the final report/project will be placed in the student s College advising file. NATURE OF STUDY AND METHOD OF EVALUATION. This course focuses on the management of employee compensation. It provides an overview of organization practices, theory, and research in compensation decision making and administration. The student will learn about compensation issues in organizations including internal equity (how to determine the value of jobs in an organization), external equity (how to price jobs according to market forces), individual equity (how to pay people in the same job differently due to differences in seniority and merit), and administrative equity (how to develop and apply compensation policies). To accomplish this, the student will read Strategic Compensation by Martocchio, pass three exams on the text, and complete a research paper on the differences in compensation practices between Harvard and MIT. SUMMARY OF COURSE REQUIREMENTS AND THEIR GRADING:

2 Exams 1, 2, and 3. Each is worth 100 points. 600 points A = 90% to 100% Research Paper 400 B = 80% to 89.90% C = 70% to 79.90% Total Possible 1000 points D = 60% to 60.90% F < 60% COURSE REQUIREMENTS DESCRIBED: Exams There will be a total of three non cumulative exams. Each exam will consist of approximately 10 essay questions. Since this is an independent study, the student may schedule the exams at convenient times, including at home. Exam 1: During Late January, early February Exam 2: During March Exam 3: During April Research Paper. You will complete a page (double spaced) research paper on a comparison of the compensation practices between MIT and Harvard: pay grade and salaries, fringe benefits offered, and possible discrimination issues. Due Date: by the end of the semester: May 5, 2017 LEARNING OBJECTIVES AND OUTCOMES/ASSESSMENT: Objectives for this Course. Student should be able to: Demonstrate knowledge of governmental, and legal, influences on organization pay practices, and recognize differences in compensation practices for employees in different jobs and at different levels in the organization. Measured by: Exams, research paper. Prepare effective written reports. Measured by: Research paper Explain key Compensation theories and practices, and demonstrate knowledge of how compensation policies affect organizations and their employees. Measured by: Exams, research paper Academic Behavior Standards and Academic Dishonesty All students are expected to demonstrate honesty in their academic pursuits. The university policies regarding issues of honesty can be found in the FGCU Student Guidebook under the Student Code of Conduct and Policies and Procedures sections. All students are expected to study this document which outlines their responsibilities and consequences for violations of the policy. The FGCU Student Guidebook is available online at University Nondiscrimination Statement Florida Gulf Coast University is committed to ensuring equity and fairness for all University employees, students, visitors, vendors, contractors and other third parties. As such, the University prohibits

3 discrimination on the bases of race, color, national origin, ethnicity, religion, age, disability, sex (including sexual harassment/assault), gender identity/expression, marital status, sexual orientation, veteran status or genetic predisposition with regard to admissions, employment, programs or other activities operated by the University. This prohibition extends to enforcement of Title IX of the Education Amendments of Questions or complaints should be directed to the Office of Institutional Equity and Compliance (OIEC). The OIEC s phone number is (239) ; the OIEC address is OIEC@fgcu.edu. Disability Accommodations Services Florida Gulf Coast University, in accordance with the Americans with Disabilities Act and the university s guiding principles, will provide classroom and academic accommodations to students with documented disabilities. If you need to request an accommodation in this class due to a disability, or you suspect that your academic performance is affected by a disability, please see me or contact the Office of Adaptive Services. The Office of Adaptive Services is located in the Wellness Building. The phone number is or Video Phone (VP) In addition to classroom and campus accommodations, individuals with disabilities are encouraged to create their personal emergency evacuation plan and FGCU is committed to providing information on emergency notification procedures. You can find information on the emergency exits and Areas of Rescue Assistance for each building, as well as other emergency preparedness materials on the Environmental Health and Safety and University Police Department websites. If you will need assistance in the event of an emergency due to a disability, please contact Adaptive Services for available services and information. Student Observance of Religious Holidays All students at Florida Gulf Coast University have a right to expect that the University will reasonably accommodate their religious observances, practices, and beliefs. Students, upon prior notification to their instructors, shall be excused from class or other scheduled academic activity to observe a religious holy day of their faith. Students shall be permitted a reasonable amount of time to make up the material or activities covered in their absence. Students shall not be penalized due to absence from class or other scheduled academic activity because of religious observances. Where practicable, major examinations, major assignments, and University ceremonies will not be scheduled on a major religious holy day. A student who is to be excused from class for a religious observance is not required to provide a second party certification of the reason for the absence. Compensation Management TOPICS Chapter 1 Strategic comp All key terms at end of chapter Meaning, components of: internal consistency, external (market) competitiveness, and individual contributions. What is compensation? Core compensation, adjustments to core compensation, employee benefits (legally required vs discretionary). Financial and non financial compensation, total compensation. COLA, seniority pay, merit pay, incentive pay Different types and parts of compensation: intrinsic and extrinsic Competitive strategies: low cost v. differentiation, what they mean, how to recognize, when effective? Chapter 2 Contextual influences

4 All key terms at end of chapter Market influences on pay What causes wages to be different among industries? What is geographic pay differentials? FLSA and its coverage. What is included? What are the exemptions criteria for exempt and non exempt jobs. Equal Pay Act and its coverage, universal compensable factors, legal pay differentials Lilly Ledbetter Fair Pay Act. Title VII of the Civil Rights Act: disparate treatment, disparate impact Age Discrimination in Employment Act ADEA and its coverage Civil Rights Act of 1991 (overseas) Pregnancy Discrimination Act disability Americans with Disabilities Act reasonable accommodations, Major life activities. Family and Medical Leave Act unpaid leave Davis Bacon Act, Walsh Healey prevailing wage & benefits. Chapter 6 Internal consistency All key terms at end of chapter What is internal consistency, how is it done? What is job analysis? How/why is it used for compensation? What is in a job description? What are job descriptions? How are they used in compensation? What are worker specifications (also called job/person specifications or qualifications)? How do job summary, job description, and job analysis differ? What is O*NET and how/why is it used? What does it contain? Relationship of job analysis to job evaluation What is job evaluation? What are different types of job evaluation? What is the point method of job evaluation? What are the steps in the point method? What are compensable factors? Levels? Weights? How do you build a plan? Apply a plan? Be able to compute the points for various jobs Why is a point system a good job evaluation method to use? What are ranking, market based/market pricing evaluation, and classification plans, and how do they work? What are some advantages and disadvantages of a single plan vs. a multiple plan for job evaluation? Chapter 8 Sales only Types of sales pay plans. What determines which to choose. Sales objectives Chapter 5 Person focused plans What is a Person focused pay plan? What does it do? How do the two main types differ? What are horizontal skills, vertical skills, and depth of skills. What are competencies?

5 Where are most of these types of plans used? What are the stair step model, skill block model, job point accrual model cross departmental models. What are the advantages and disadvantages of these plans? Chapter 8 Sales compensation Why use Pay for performance incentives? What are the different sales compensation plans and how do they work: salary only, salary plus bonus, salary plus commission, commission plus draw, commission only (straight). Why would we use one type over another 3 main factors? Ch. 7 Market Competitive systems & Ch 8 Pay structures only Definitions at end of chapter What four activities do comp professionals use to create market competitive pay systems? What are salary surveys, how & why used? What is a custom developed survey? how and why is it done? Where can you find published salary surveys? What is the National Compensation Survey, what is included? Relevant labor market, how to determine, why used? Characteristics of benchmark jobs? How used? What s included and not included in a salary survey? Why and how to update a salary survey? CPI Data needed to perform a regression analysis, what this analysis says/does. Why use it? Determine a market pay line. Internal value v external value Market pay line, pay policy line, how they differ Lead policy, lag policy, match policy: what, why, how? Pay grades: What are they? how to determine which jobs go in each? Pay ranges: What are they? Range spread. Ch. 9 Discretionary Benefits Definitions at end of chapter Types of discretionary benefits. Why do companies offer them? Categories of discretionary benefits. Disability programs: long and short term Differences among life insurance programs: term, whole, universal. Retirement benefits: Defined benefit, defined contribution. Examples of defined contribution plan types. Paid time off types. Integrated paid time off: what and how. Services: employee assistance programs, flexible scheduling and leave, tuition reimbursement, outplacement assistance, wellness programs. Qualified vs nonqualified plans: what, why?

6 Vesting: cliff vesting (3 yrs). 6 yr graduated: how much of the company s money can you take if you leave before, during, after vesting. How defined benefit plans work How defined contribution plans work. Ch. 10 Legally Required Benefits Definitions at end of chapter Four categories of legally required benefits. Social Security parts. Why unemployment insurance? Who is eligible to receive benefits? Old Age, Survivor, and Disability Insurance (OASDI) What is covered under AOSDI? How long must one work to be eligible for OASDI retirement? Medicare: What is it for? Workers compensation: what is it for? Objectives? FMLA provisions, changes for military, same sex marrieds Patient Protection and Affordable Care Act (PPACA) aka Obama Care. Two mandates. Essential benefits. Health Insurance types: Fee for service, managed care, consumer driven. Managed care plans: HMO, PPO, POS. What these two types provide. Consumer driven health care: flexible spending account, FSA (pre tax, use it or lose it), health savings account (high deductibles, portable). deductible, co payment, out of pocket maximum Provisions of: COBRA, HIPPA Ch. 11 Executive Compensation Definitions at end of chapter Differences between executive pay and that for nonexecutives. Key employees, and highly compensated employees. who are they? How are they determined, why? Components of executive compensation Annual base pay, how different from nonexecs? Types and differences among executive bonuses: discretionary, performance contingent, predetermined allocation, target plan. What is deferred compensation? Stock terminology (slide) Different types of stock plans: incentives stock options, restricted stock, stock appreciation rights, phantom stock. Golden and Platinum parachutes. What are they? Why are they helpful? Enhanced benefits, what types? common types of perquisites (perks) Role of: Compensation committee, board of directors, compensation consultants. Ch. 3 Seniority and Merit All terms in chapter

7 What is seniority pay, longevity pay, how do they differ? What is human capital theory and how related to employees pay? What are the advantages and disadvantages of using seniority pay? Seniority pay in relation to competitive strategies. Construct seniority structure with steps. Read a seniority chart. Merit pay programs what are they, how do they affect base salary? Why use merit pay? How does it work? What is the connection between performance and merit pay? Why is it important to strengthen the link between performance and merit pay? What are the limitations of merit pay programs? How is performance measured for merit pay? Why is performance appraisal used? What are the biases and rater errors in performance appraisal? Ch. 8 (part) Merit cont d All terms in chapter Communication, making merit pay effective Merit pay amounts, timing Merit pay grid. What s included? How is it built and used? Why? Be able to read the merit pay grid. Red and green circle rates. What are they what do we do with them? Ch. 4 Incentives All terms in chapter Difference between incentive and traditional salaries Assumptions for incentive pay Types and characteristics of: individual incentive plans, group incentive plans, company wide incentives Performance measures for each type Advantages and disadvantages of each type Types of gainsharing programs, how to build, use them Gainsharing components, e.g. what they contain, how they are used How to compute gains with a Scanlon Plan (only) What is a profit sharing plan? Differ from gainsharing? Profit sharing formulas Employee stock plans Incentives and their relationship to strategy Ch. 12 Flexible Workforce

8 All terms in chapter What are core employees? How do we treat contingent workers differently? What are the four groups of contingent workers? Voluntary vs non voluntary part time workers What is job sharing? Why is it used? Why not? What are temporary workers and why are they used? What are leased employees? How does it work? What are independent contractors? How can companies determine whether independent contractors are employees? What are the tests? What laws cover contingent workers? What is the Safe Harbor rule? What are the three categories of flexible work schedules? What are compressed workweeks and telecommuting arrangements? How do unions react to companies attempts to pay contingent workers?