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With respect to the establishment of middle management compensation it should <br />be noted that it is done in a way which is similar to that for other manage- <br />ment compensation which is mentioned above. More specifically, salaries and <br />fringe benefits are set by the City P:anager ir. accordance with guidelines <br />established by the City Council. The salary schedule and compensation plan <br />is then adopted by resolution and published. <br />In conclusion, the salaries for confidential employees are determined within <br />salary guidelines established by the City Council and, as in the past, have <br />been listed together with management personnel. <br />The development of specialized compensation plans has long been recognized as <br />a necessary sten in the establishment of an effective management team. The <br />primary reason for separate compensation is to recognize the responsibility <br />of management personnel and to adjust compensation commensurate with these <br />responsibilities. In this manner it is hoped that an effective and efficient. <br />management team car. be fostered and that employees who actively seek higher <br />level responsibilities within the City may do so. In so doing management <br />personnel develop a management identity which is obviously required if the <br />City is going [o find personnel responsible for the implementation of the <br />City Council municipal program. <br />Compensation Strategy for 1976=77 <br />The justification for ccmpersating management personnel in a different manner <br />than the general employees has previously been recognized by the City Council, <br />but at this point it is important to review again tl:e underlying reasons for <br />establishing a management. compensation plan. Ir_ sumr+ary form, the justifica- <br />tion is ss follows: <br />1. To foster a management id en+.ity witlv.n tY.e management group. <br />2. To compensate management employees in recognition of their <br />management .responsibilities. <br />3. To provide greater flexibility in cun:pensating exemplory <br />individual performance and/or negatively sanction less than <br />satisfactory performance. <br />4. To aid in the recruitment of qualified management personnel. <br />5. To prav:ide an incer.tlve to the rank and file employee to seek <br />management responsibility. <br />In addition, a major reason nece:asitatiug the establishment of a management <br />compc-nsatiou 1:1.;n is to efft.:tively dev_lop a management tram wia.ch is <br />separate and apart frcn; the rank and file c~hich is capable of administers <br />ing and operating the City in the case ef. a work stoppage. <br />Previcusiy, certain: management employees were represented by tlic rank and <br />file employee rrganizations in negotiations related to terms and conditions <br />of employment. <br />3. <br />