WDW101Y1 Study Guide - Final Guide: Competitive Advantage

• School: UTSG
• Department: Woodsworth College Courses
• Course: WDW101Y1
• Professor: Ted Mock

Document Summary

Compensation objectives: efficiency, fairness, compliance with laws and regulations. Every employers must address: internal alignment, external competitiveness, employee contributions, management of the pay system. -internal alignment: pay comparisons between job and skills inside an organization. -external competitiveness: comparison of compensation with that of competitors. -employee contributions: this refers to the relative emphasis placed on performance. the incentive program techniques associated with contributions are seniority-based, performance-based, and merit guidelines. Two major components of total rewards are total compensation and rational returns. Strategic perspective: a focus on compensation decisions that help the organization gain and sustain competitive advantage. Competitive advantage: a business practice or process that results in better performance than one"s competitors. Four steps to develop a total compensation strategy are: assess total compensation implications, including business strategy and competitive dynamics, other hr systems, to improve organizational effectiveness, managers should align the compensation strategy to the organization"s strategy.