HRM 3420 Lecture Notes - Lecture 11: System 6

• School: York University
• Department: Human Resources Management
• Course: HRM 3420
• Professor: Ken Mc Bey

Document Summary

Chapter 13 implemening, managing, evaluaing, and adaping the compensaion system. Preparing for implementaion: preparing the compensaion budget: compensaion budget is a forecast of what the irm expects to spend on compensaion in the coming year. Top-down approach: management sets a limit on the total amount of compensaion available for the coming year then divides them in turn among their employees. Botom-up approach: the compensaion rates for the coming year applied to employees factoring in seniority increases and expected turnover, and the compensaion budget for the coming year is based on the total dollar amount derived from this process. Implemening the compensaion system: establish the implementaion task forces, put the infrastructure into place, test the system, conduct the training, communicate informaion on the system. Iniial dip: a tendency for performance to decline during he iniial stages of any change then rise and stabilize. Compensaion cost raio: the raio of total compensaion costs to total costs or to revenues.