MGHB12H3 Chapter Notes - Chapter 9: Equal Pay For Equal Work, Performance Appraisal, Absenteeism
Document Summary
Strategic compensation planning goes beyond determining what market rates to pay employees to purposefully linking compensation to the org"s mission and general business objectives. Strategic compensation planning serves to mesh the monetary payments made to employees with specific functions of the hr program. Linking compensation to organizational objectives: one of the key purposes of the compensation system is to motivate employees. Equity theory: pay constitutes a quantities measure of an employee"s relative worth. It is essential that the pay be equitable in terms of those contributions. Inputs (abilities, skills, experiences) outcomes (salary, benefits): equity is achieved when their perceived input/output ratio equals the input/output ratio of referent others. Hourly work work paid on an hourly basis. Piecework work paid according to the number of units produces. Outcome 2: determining compensation the wage mix. Employee"s relative worth: employees tend to be rewarded more for merely being present than for being productive on the job.
