MGMT 2430 Chapter 11: Strategic Pay Plans
21 Feb 2017
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Total rewards an integrated package of all rewards gained by employees arising from their employment. 5 components of total rewards: compensation, benefits, work-life programs, performance and recognition, development and career opportunities. All forms of financial returns and tangible services and benefits employees receive as part of an employment relationship. Pay equity providing equal pay to male and female dominated job classes of equal value to the employer. Equity theory people are motivated to maintain a balance between what they perceive as their contributions and their rewards. Internal equity an employee perception of pay as fair given the pay rates of others in the organization. External equity an employee perception of pay as fair given the pay rates in other organizations. Conduct job evaluation for internal equity. Conduct salary survey for external equity. Price each pay grade using wage curves. A systematic process to determine relative worth of a job within an organization.
