Management and Organizational Studies 3342A/B Chapter Notes - Chapter 2: Cost Leadership

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

Document Summary

Chapter 2: strategy- the totality of decisions- reread. Ultimate purpose is to gain and sustain competitive advantage. Greater alignment between org and compensation system the more effective the org. Supporting compensation: more emphasis on incentives for innovation and less on evaluating skills and jobs. Cost cutter efficiency: doing more with less minimizing costs, encouraging productivity increases, specifying how jobs are performed. Customer focused: delighting customers, pays based on how well employees do this. Differentiation strategy: those that seek to provie a unique/innovative product or service. Defenders: those that operate in stble markets and compete on cost. Prospectors: focused on innovation, new markets, etc. Most effective when: roles designed to make emlpoyees feel involved, employee ability developed through selective hiring and training deelopment, compensation system motivates employees to execute biz strategy and handle more decision making. *match each of the 5 compensation decisions (objective, internal, external, employee, management) to an org to create a compensation strategy.