Compensation

Q1. What should or should not be the relationship between compensation and the business strategy of an organization? What is the concept of internal consistency/alignment and external competitiveness?

A. The relationship concerning the compensation should support the organization’s business strategy. Compensation allows organizations to remain competitive throughout the marketplace. It also allows employees to be competitive within the organization to retain top tier high quality performers the compensation must be adequate for the specific task or project. Compensation is a motivator that encourages advanced levels in productivity. For an organization to succeed, compensation must be applied strategically according to the organization’s mission, vision and goals. From an employee perspective, motivation is the driving force of receiving quality performance and productivity levels.

Q2. Define and describe the difference between the Equal Pay Act and the issue of comparable worth.

A. The (EPA) Equal Pay Act is a federal law that prohibits discrimination on the basis of gender in the payment of wages. Congress enacted the EPA as an amendment to the Fair labor Standards Act, to correct the conditions created by the pay inequalities that existed specifically to remedy the wage disparity faced by women. Comparable worth involves those jobs that are held by women and undervalued in the labor market that are comparable to the jobs largely held by men.

Q3. What is the criteria used to differentiate between exempt and non-exempt? What law defines the term?

A. Exempt employees are legally exempt from the overtime provisions of the Fair Labor Standards Act. They are paid monthly and on a salary basis. The salary also cannot be reduced because of the variations in the quality or quantity of work. Non-exempt employees are covered by the Act in which minimum wage is given along with an entitlement of overtime pay for hours worked beyond forty...