ADMS 2600 Chapter Notes - Chapter 9: Trade Union, Expectancy Theory, Equity Theory

• School: York University
• Department: Administrative Studies
• Course: ADMS 2600
• Professor: Amanda J Hudson

Document Summary

It is the compensation of employees in ways that enhance motivation and growth while at the same time aligning their efforts with objectives, philosophies, and culture of the organization. Market rates are one element of compensation planning. Strategic compensation planning serves to mesh the monetary payments made to employees with specific functions of the hr program. When employees perform at exceptional levels, their performance appraisals may justify an increased pay rate. Three important aspects of strategic compensation planning: linking compensation to organizational objectives, the pay-for-performance standard, and motivating employees through compensation. Compensation has been revolutionized by heightened domestic competition, globalization, increased employee skill requirements, and new technology. Managers have had to change their pay philosophies from paying for a specific position or job title to also rewarding employees on the basis of their individual"s competencies or work contributions to organizational success.