ADM 3337 Chapter Notes - Chapter 1: Life Insurance, Total Rewards, Human Capital
26 Jan 2017
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Document Summary
Amount paid affects quality of work, attitude, and willingness to be flexible. How people are paid affects their behaviour at work, which affects organizational success. Well designed compensation systems can help an organization achieve and sustain competitive advantage. Depends on if you look at it from the perspective of: Can be viewed as a measure of justice. Wage determination: human capital, demographic characteristics, and job characteristics. Men vs. women for job wage gaps women more likely to be in health related fields whereas men are in construction, transport, and equip operators. Compensation matters using stock to pay employees creates a sense of ownership that will improve performance. By paying execs, their interests should be aligned with the stockholders. Affected in two ways: major expense consider the affordability of their compensation decisions, must be minimized or optimized, influence employee behaviour and to improve organizational performance.
