ADMS 3490 Lecture 6: Chapter 6- Formulating the Reward and Compensation Strategy
Document Summary
Chapter 6: formulating the reward and compensation strategy. Employment standard: legislaion that sets minimum standards for pay and other condiions of employment. Human rights legislaion: legislaion that prohibits discriminaion in hiring or employment on the basis of race, ethnic origin, religion, gender, marital status, or age. Trade union legislaion: legislaion that deines the rights of paries involved in a collecive bargaining relaionship. Labour market constraints: constraints on compensaion strategy lowing from the relaive levels of demand and supply for paricular occupaional groups. Product/service market constraints: constraints on compensaion strategy caused by the nature of the product or service market in which the irm operates. Technical ladder: deined progressions of skills development to keep work interesing and provide opportuniies for higher compensaion. Lag compensaion-level strategy: a compensaion-level strategy based on paying below the average compensaion level in a given labour market. Lead compensaion policy: a compensaion-level strategy based on paying above the average compensaion level in a given labour market.