HRM 3490 Lecture Notes - Lecture 2: Human Capital, Customer Service, Equity Theory
30 Oct 2014
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5 step strategic base pay system: strategic orientation (to figure out what the org wants to do with the pay system, what behaviours they want the system to drive) [mission, vision, values] {org strategy, hr strategy, goals] Internal equity: achieve internal equity- design a pay system that"s fair and transparent. Experience (<1 year, 3-5 years, 5-10 years) Allocate points to jobs (ex: blackberry: janitor, mail room. Janitor: education=14 points, experience=22, knowledge=14 (all basic level 1) physical and mental demand= harder so they get more points, etc add all the points and pay accordingly. Individual equity: human capital, end up with bands of different pays and gives you a pay structure. If people from the same band not being equally, you move the person who is being paid less up so that they are receiving more: to prevent higher paid employees from quitting, give them a bonus.
