Oneof the issues that I could have answered differently if I hadknowledge of the employee compensation is that of classification ofthe exempt employees. The differences between the exempt andnone-exempt employees cause a lot of confusion for both the employersand the employees. Employees that are entitled to the overtime payunder the Fair Labor Standards Act are referred as Non-exemptemployees. These types of employees are paid one-and-a-half times theregular rate of pay when working more than 40 hours a week. Theemployees that are exempted from the overtime requirements are knownas exempt employees. These types of employees are usually executives,professional, outside sales, and administrative employees (Levesque,2012).
The shift leaders are regarded as exempt due to the fact that theywere part of the management team and that they were responsible forthe carrying out of the wide range of the managerial activities. TheFair Labor Standards act asserts that any worker that is part of themanagement team is not entitled to the overtime for the additionalhours of the work (Levesque,2012).Hence the shift workers were classified as the exempt employees.Based on my knowledge on Chapter 6(Building Internally ConsistentCompensation Systems) then I could have no problem classifying theshift leaders as exempt employees. This is because they are activelyinvolved in the decision making of the organization and hence theyare part of the management.
Jobevaluation can be defined as the systematic process for defining therelative size or worth of the jobs within the organization so as toestablish the internal activities. Job evaluation techniques providesthe basis for the designing of the equitable grade and pay structure,grading of the jobs and the management of the job and pay relatives(Armstrong, 2006). The use of the job evaluation technique in theorganization assesses the relative value and content of theorganizational positions and determines the equitable, understandableand competitive compensation systems. The job content is usuallyevaluated based on the work type, knowledge and the skills that arerequired while the job value is evaluated based on the job’scontribution to the organizational goals (Hofstetter,& Cohen, 2014).There are three primary methods for the job evaluation they includeranking, factor, and classification.
Jobranking evaluation technique involves the putting of all the jobs inan organization in the rank order based on their contributionstowards the attainment of the organizational goals. Theclassification technique is whereby a series of the grades andclasses are defined. Every class describes the various groups of thejobs. Every grade in the class represents the different levels of thedifficulty and responsibilities. The jobs are usually sorted intoclasses while matching up the job descriptions and then assigning thejob to the class that best matches. The point factor rating techniqueuses the specific factors in the determination of the relative valueof the job as compared to the others in the organization(Bandyopadhyay,& Ganguly, 2014).The compensable factors related to the job are usually the maindeterminants when using this method of the job evaluation technique.Examples include the problem solving skills, the supervisory skillsand among others.
Armstrong,M. (2006). AHandbook of Management Techniques: A Comprehensive Guide to AchievingManagerial Excellence & Improved Decision Making.Kogan Page Publishers.
Bandyopadhyay,P. K., & Ganguly, K. K. (2014). Application of PrincipalComponent Analysis in Determining Factor Weight in Point-RatingSystem of Job Evaluation. Prabandhan:Indian Journal of Management,7(3),15-25.
Hofstetter,H., & Cohen, A. (2014). The mediating role of job content plateauon the relationship between work experience characteristics and earlyretirement and turnover intentions. PersonnelReview,43(3),350-376.
Levesque,R. J. (2012). Fair Labor Standards Act. In Encyclopediaof Adolescence(pp. 921-922). Springer US.