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Chapter 8 Compensation Administration

Managing Hospitality Human Resources 4th Edition (357TXT or 357CIN)

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Competencies for Compensation Administration

1. Describe types of compensation and outline the major influences on compensation plans. 2. Describe major content and process theories of motivation and their application to compensation plan design. 3. Outline methods of determining job worth and describe the advantages and disadvantages of each. 4. Describe the steps and identify options for establishing pay structures. 5. Describe current issues in compensation administration.
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Major Influences on Compensation Plans

Cost of living Labor market influences

Union influences
Government influences

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Content Theories of Motivation

Maslows Hierarchy of Needs Theory

Alderfers ERG Theory

Herzbergs Two-Factor Theory

McClellands N-Achievement Theory Economic Man Theory

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Maslows Hierarchy of Needs

Safety and security Social Esteem Self-actualization

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Alderfers ERG Theory of Needs



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Herzbergs Two-Factor Theory

Hygiene factors (maintenance factors or dissatisfiers)

Motivators (satisfiers)

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McClellands N-Achievement Theory



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Process Theories of Motivation

Expectancy Theory Equity Theory Goal Setting Theory Skinners Reinforcement Theory

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Methods of Evaluating Jobs and Determining Pay Scales

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Ranking method Classification method Point method Factor comparison method Skill-based pay

Company Can Position Itself in These Ways

Pay leader Pay follower Meet the competitors

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