MANA 443 Lecture Notes - Lecture 2: Watson Wyatt Worldwide, Air Canada, Job Satisfaction
2 Feb 2017
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Document Summary
A fundamental business decision that an organization has made in order to achieve its strategic objectives e. g. , what business to be in, how to gain competitive advantage. The greater the alignment, or fit , between the organizational strategy and the pay/compensation system, the more effective/better performance the organization. Based on a recent survey by watson wyatt of 122 canadian companies, only 51% said their compensation/reward system align with their overall business strategy. The alignment is easy to say but is difficult to reach. Support hr strategy: hr systems will be more effective when the compensation system motivates employees to act on their abilities and take advantage of the opportunity to make a difference. Compensation is the key to attracting, retaining and motivating employees. In order for organizations to become successful, their overall business decisions, hr programs, and compensation and benefits strategies need to be aligned.
