MGHB12H3 Chapter Notes - Chapter 9: Scatter Plot, Canada Labour Code, Equal Pay For Equal Work
Document Summary
Strategic compensation: it is the compensation of employees in ways that enhance motivation and growth while at the same time aligning their efforts with the objectives, philosophies, and culture of the organization. Three important aspects of strategic compensation planning: linking compensation to organizational objectives, the pay for performance standard, and motivating employees through compensation. It is not uncommon for organizations to establish very specific goals for linking their organizational objectives to their compensation program. Formalized compensation goals serve as guidelines for managers to ensure that wage and benefit policies achieve their intended purpose. The more common goals of a strategic compensation policy include: Equity theory: it is essential that an employee"s pay is equitable in terms of his/her contributions, and in terms of what other employees are receiving for their contributions. Equity theory is a motivation theory that explains how people respond to situations in which they feel they have received less (or more) than they deserve.
