Académique Documents
Professionnel Documents
Culture Documents
Compensation: A Component
of Human Resource Systems
Equity Policies
Internal
Consistency
External
Competitiveness
Employee
Contributions
Administration
Compensation Techniques
Internal:
Job Analysis, Job Descriptions, Job Evaluation, Internal Work
Structure
External:
Market definitions, Market surveys, Policy lines, Pay structures
Individual:
Seniority based, Performance based, Incentive guidelines,
Incentive programs
Administration:
Planning, Budgeting, Communicating, Evaluating
What is Compensation?
Intrinsic Compensation:
Reflects employees psychological mind sets that result from
performing their jobs.
Through effective job design
Extrinsic Compensation:
Rewards given you by others
Includes both monetary and non-monetary (e.g., benefits)
rewards.
Through compensation systems
Feedback
Critical Psychological
State
Experienced
meaningfulness of
the work
Experienced
responsibility for
work outcomes
Gained knowledge
of results from
work activities
Benefit to
Employers
Lower turnover
Lower
absenteeism
Enhanced job
performance
Greater job
satisfaction
Discretionary Benefits:
Protection Program
Income protection programs
Health protection programs
Discretionary Benefits:
Services
Wellness programs
Tuition reimbursement
Transportation services
Outplacement assistance
Family assistance programs
Employee assistance programs (EAPs)
General Tactical HR
Decisions
Strategic Decisions
Recruitment and
Selection
Seniority pay
Merit pay
Incentive pay
Competitive strategy
HR strategy
Performance
appraisal
Compensation
strategy
Compensation
Benefit options
Training
Etc.
Competitive Strategy
Low-cost strategy:
Efficient-scale, cost minimization
Southwest Airlines, Wal-Mart
Employee roles: repetitive, predictable behaviors, short-term
focus, individual activity, concern for quantity, primary concern
for results.
Competitive Strategy
Differentiation Strategy:
Unique products: design image, technology, etc
Build brand loyalty, price premium, invest in R&D
Iams company, Saks Fifth Avenue
Employee roles: creative behavior, long-term focus, cooperative
and interdependent behavior, risk taking, openness to novel
work.
Compensation and
Recruitment, Selection
$ to get top candidates, signing bonus, benefits
Performance Appraisal
Basis for merit pay and incentives
Training
Pay for knowledge
Career Development
Promotions, lateral moves
Compensation and
Labor-Management Relations
Collective bargaining agreements, pay, COLAs, incentives
Employee Termination
Severance pay, pension, early retirement
Legislation
Income and continuity, safety, work hours, pay discrimination,
disabilities and family needs
Employees
Line managers
Executives
Unions
U.S. government