MHR 749 Lecture Notes - Lecture 13: Instrument Landing System Localizer, Sea Cave
7 Dec 2017
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Document Summary
Managing labour costs: controlling employment: head count and hours, controlling average cash compensation costs. Embedded controls: controls on managers" pay decisions come from those inherent in the design of the compensation system, range maximums and minimums, broad bands, compa-ratios, variable pay, analyzing costs, analyzing value added. Communication: managing the message: compensation communicates what is important and what is not, two reasons for communicating pay information, attract, retain, and motivate performance, employees misperceive the pay system, especially helpful for benefit information. Structuring the compensation function: centralization decentralization flexibility within corporate-wide principles reengineering and outsourcing. Elements of expatriate compensation: salary, housing, tax equalization, allowances and premiums. Alternatives to balance sheet approach: negotiation: employer and employee find agreement, localization: ties salary to host country scales and provides cots-of-living allowances, modified balance sheet: ties salary to a region, lump-sum/cafeteria approach: offers expats many choices.
