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Lecture 3

Compensation Lecture 3.docx

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Department
Administrative Studies
Course
ADMS 3490
Professor
Parbudyal Singh
Semester
Winter

Description
Lecture 3­A Behavioral Framework for Compensation • Design a pay system that will drive behaviour aligning with org goals and strategy • Pay is not the only factor that plays into org success • Under some conditions pay and the way you pay can screw up an org  SEARS • Having problems in their org, where certain employees were working harder than  others • Job dissatisfaction (people who worked hard and people who did not got paid the  same) • Proposed a pay system to pay individuals who worked harder a higher salary • Performance measurement was not clear, how do you measure how one individual  is working harder than one another • It was proposed that the amount of materials/equipment that they used would  determine performance. NOT VERY EFFECTIVE • Got a class action law suit, the department was closed down because of the pay  system GREEN GIANT • Got customer complaints about food contamination, insects being found inside the  food cans • Manager came up with the idea t
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