Management and Organizational Studies 3342A/B Chapter 2: Week 2 Reading

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3342A/B
• Professor: Jody Merritt

Document Summary

Similarities and differences in strategies: there are 5 dimensions of compensation strategy, objectives. Internal alignment: external competitiveness, employee contributions, management, pay strategies are different between different industries, but they can also differ across competitors in the same industries, different strategies within the same industry. Just examples in the text: different strategies within the same company, sometimes different business units within the same corporation will have different competitive conditions, adopt different business strategies and thus fit different compensation strategies. 1: competing on cost usually means low compensation, while innovation systems tend to have higher compensation, most firms don"t necessarily fit into one generic system, they most likely use a combination of several generic plans, support hr strategy. The pay model guides strategic pay decisions: the pay model can be used (and should be used) to guide the strategic pay decision a company makes (objectives, internal alignment, external competitiveness, employee.