HRM 3490 Lecture Notes - Lecture 6: Reward System
5 May 2019
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Chapter 6: formulating the reward and compensation strategy. Establishing a compensation strategy: an understanding of you organization and its context, an understanding of your work force, an understanding of your compensation options, an understanding of your compensation constraints. Constraints on compensation strategy: the screaming tale case, there are a number of constraints that define the boundaries within which the compensation system must be designed. It affects compensation in unionized firms by requiring that all compensation agreements be approved by the union. Unprofitable firms are more limited in their compensation options. Growth stage; new firms or fast-growing firms often have a: public sector- financial constraints are a result from funding limitations placed on them shortage of cash. by those providing the funds. *dimensions of task behavior refer to slide 8 & 9* Lagging the market: a compensation-level strategy based on paying below the average compensation level in a given labor market.
