Textbook Notes (290,000)
CA (170,000)
UTSG (10,000)
RSM100Y1 (400)
Chapter 9

Chapter 9 notes (book+lecture)


Department
Rotman Commerce
Course Code
RSM100Y1
Professor
Yu Wang
Chapter
9

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CHAPTER 9: REWARDS
Total Rewards: comprehensive approach to compensating and rewarding employees
creates a Value proposition (considers total value received for contributing time and
energy to the company)
-align rewards with business strategy
-focus employees on business goals
-enforce consistent pay strategies
-optimize how reward dollars are used
-control costs
Total compensation : all types of financial rewards and tangible benefits/ services that
employees receive as part of their employment
-base compensation
-pay incentives
-indirect compensation / benefits
Direct compensation: financial reward received in exchange for work
Indirect compensation: benefits/services received in exchange for work
Legal Requirements:
-Human Rights Legislation :
ocannot base prohibited pay based on prohibited grounds of discrimination
odifferences in pay may only be tied to business related considerations
Job descriptions/structures and pay structures can help orgs
demonstrate they are upholding these laws
-Employment/ Labour Standards Act
oMinimum requirements for wages, #hours, overtime, vacas, etc (Canada
labour code)
Some may be exempt (executives)
-Pay equity act
oJobs of equal value receive equal pay
Internal equity perceived fairness of pay structure within a firm
External equity perceived farness of pay compared to what other employees are
paying for the same type of labour
Job Based pay best when:
-Technology is stable
-Jobs do not change often
-Employees don’t need to cover for one and other often
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