HRM3705 CHP 9

Chapter Topics


• Major Decisions
• Specify Competitive Pay Policy
•
COMPENSATION MANAGEMENT
The Purpose
p of a Survey
y
• Select Relevant Market Competitors
• Design the Survey
• Interpret Survey Results and Construct a Market line
• From Policy to Practice: The Pay-Policy Line
CHAPTER 9 (Study unit 8)
Pay-for-Performance

, Chapter Topics

• What Behaviors Do Employers Care About?

• What Does It Take to Get These Behaviors? What Theory and Research
Say

• What Does It Take to Get These Behaviors? What Compensation People
Say

• Total Reward System: Besides Money, Other Rewards Influence Behavior!

• Does Compensation Motivate Behavior? General Comments

• Does Compensation Motivate Behavior? Specific Comments

• Designing
g g a Pay-for-Performance
y Plan

• Your Turn: Burger Boy

, What Behaviors Do Employers Care About?
• Employers want employees to perform in ways that lead to better
organizational performance

• Organizational strategy is the guiding force that determines what kinds of
employee behaviors are needed

• Behaviors that compensation needs to reinforce

– Compensation
C ti should
h ld be
b sufficiently
ffi i tl attractive
tt ti t make
to k recruiting
iti and
d
hiring good potential employees possible (attraction)

– Need
N d to
t make
k sure the
th good
d employees
l stay
t with
ith the
th company (retention)
( t ti )

– Need to find ways to motivate employees to perform well on their jobs—to
take their knowledge and abilities and apply them in ways that contribute
to organizational performance