BUSI 1250 Lecture Notes - Lecture 7: Piece Work, Capital Accumulation, Profit Sharing
Document Summary
Class #7: strategic pay plans aka compensation management . Part 3 combine 1 & 2: set your rates of pay. Develop rate ranges for each job within each job family. Broadbanding collapse salary grades & ranges into a few wide levels or bands . There has been a shift from 43 percent to 80 percent in the number of companies offering at least one variable compensation program. Organizations have moved in this direction in order to more strategically tie compensation to their business objectives. Variable pay links pay with some measure of performance such as: Fixed pay is salary that is set and is independent of performance. Managers and executives : annual bonus, capital accumulation plans. Tendency to pay managers and professionals based on their performance as well as on the value of their jobs. Compensating managers: salary, benefits, short-term incentives, long-term incentives, perquisites (perks) Profit sharing: a portion of profits is shared amongst employees.
