HRM 305- Midterm Exam Guide - Comprehensive Notes for the exam ( 67 pages long!)

• School: University of Waterloo
• Department: Human Resources Management
• Course: HRM305
• Professor: Derek Morgan

Document Summary

The most effective compensation system for a given firm is the one that adds the most value to the organization, after considering all its costs (optimal reward strategy) The success or failure of any reward system depends on how well it fits the organization context and its system as a whole. Therefore, to successfully design, manage and modify any reward system, you must understand this context and how it links to the reward system. Framework that identifies the key aspects of the organizational context and then illustrates how each affects the reward system. This framework shows three managerial strategies that an organizational can adopt and shows how each relates to an organizations structure and its best-fit reward system. The framework then identifies the determinants of managerial strategy, since these will ultimately determine the most appropriate reward strategy. Organizational culture: the set core values and understanding shared by members of an organization.