The U. S. labor force currently receives 80% of National Income through a variety of cash and inkind compensation forms. Employers use more than 80 different forms of compensation, herein called payment medium, to deliver employee wages. How firms select the set of payment medium offered to their employees is the focus of this study. / Some firms recognize that flexible compensation, i.e., giving employees a choice among alternatives, may allocate compensation more effectively. This view underscores the belief that labor's need satisfaction may be complementary to the firm's interest and goals. This belief is not new, but its recent recognition in "cafeteria type" programs revives an interest in how to match individual employee need satisfaction with a firm's objectives. / Given that firm and employee relationships are complex and dynamic, is compensation planning possible? This question addresses the problem of integrating firm goals, employee needs, and available resources into a dynamic planning method. Corporate financial and human resource policies in this program are inextricably related. / This study develops a method for planning corporate compensation policy. The planning model allocates corporate wage dollars to payment media in a manner which recognizes firm compensation policies, payment medium characteristics, employee requirements, and multiple time periods. Corporate compensation policies are identified to direct the decision process. Payment medium characteristics are estimated to identify the potential of selected media to satisfy employee requirements. Employee requirements are defined based on empirical household expenditure profiles for demographic classes and are assumed a proxy for preferences. Multiple time periods define a planning horizon sufficient to recognize shifts in the employee group demographic structure. / The planning model incorporates multiple conflicting goals and diverse sets of decision variables in a methodical, systematic analytical procedure. The integrated concept of compensation planning in this study offers an alternative to ad hoc decision processes. / Study hypotheses are stated as criteria to evaluate the planning method. Computer model results are used to evaluate primary hypotheses related to operational aspects of the study. Secondary hypotheses concern key methodological concepts underlying the planning process and are evaluated by general reference to existing theory and practice. / Model results are summarized for (a) wage fund allocation solutions under alternative priority structures for single and multiple time periods, (b) the effect of policy priority changes on goal achievement, and (c) payment medium attribute influence on the model. The results of the study support the premise that the model discriminates between different policy formulations, so that decision-makers can identify desirable and undesirable formulations and that the model differentiates plan design requirements as a function of changing employee demographics over time. / The methodological concepts used in the study are broadly based on economic and operations research literature. The application of empirical preference criteria, medium estimation, and goal programming are discussed in terms of reliability, practicality, and theoretical value. The results here support these applications for compensation planning but empirical tests and further research are needed. / Source: Dissertation Abstracts International, Volume: 41-03, Section: A, page: 1124. / Thesis (D.B.A.)--The Florida State University, 1980.
| Identifer | oai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_74145 |
| Contributors | CASSIDY, JOHN MILTON., The Florida State University |
| Source Sets | Florida State University |
| Detected Language | English |
| Type | Text |
| Format | 197 p. |
| Rights | On campus use only. |
| Relation | Dissertation Abstracts International |
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