IRE367H1 Chapter Notes - Chapter 1: Job Performance, Total Rewards, Employee Benefits
23 Nov 2020
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Ire367 chapter 1: a road map to effective compensation. For employers, the compensation system can be used to help the organization achieve its strategy and objectives; it can help attract, retain, and motivate employees. Can also have philosophical and moral implications. For employees, pay influences their standard of living. For shareholders, the financial value of the pay system to the organization"s bottom line is important. The more complex the behavior and the higher of performance required, the more complex the compensation system needs to be. A compensation system is one of the most powerful tools available to an employer for shaping employee behavior and influencing company performance, yet many organizations waste this potential, viewing compensation as a cost to be minimized. Some compensation systems actually promote unproductive or counterproductive behavior. Failure to adapt reward systems to changing circumstances can cause new strategies to falter, new organizational structure sto collapse, new technologies to malfunction, and entire companies to founder.
