T2: Compensation Model Flashcards
IMPT- Pay Model
what are the three basic building blocks(???)
- Compensation Objectives
- Policies that form foundation of comp system
- Techniques that make up the comp system
What are the (3) objectives of compensation?
Efficiency, Fairness and Compliance
What is Efficiency?
- To achieve org objectives
- Control Labour Cost
What is Fairness?
- Fundamental objective of pay system
- Recognise both employee contributions and employee needs
What is Compliance?
-comply with country’s labour law and regulations
IMPT- Pay Model 4 policy choices
- Internal Alignment
- External Competitiveness
- Employee Contributions
- Mgmt of the pay system
IMPT- What is Internal Alignment? (def)
It refers to the pay r/s among diff jobs or skills in the company
(the relative contributions to the company’s biz objectives)
IMPT- what is external competitiveness? (def)
It refers to compensation r/s external to the org
compare w pay leaders, market/going rate and pay followers
IMPT- what is employee contributions? (def)
Refers to relation emphasis placed on employee performance
IMPT- What is mgmt of the pay system?
Policy to ensure that the right ppl get right pay for achieving the biz objectives, impt to have competent mgmt.
Techniques for the pay model 4 policy
IA:
Job analysis, Job Desc, Job Evaluation
EC:
Salary surveys
Employee cont:
performance-based or seniority-based pay increments
Mgmt:
controlling costs, comn to employees
IMPT- 3 Business Strategies
Innovator biz strategy
Cost cutter biz strategy
Customer-focused biz strategy
(ICC)
IMPT- 5 strategic guidelines for compensation choices
- Objectives
- Internal Alignment
- External Competitiveness
4, Employee Contributions - Management
