ADMS 2600 Chapter Notes - Chapter 9: Market Basket, Job Evaluation, Scatter Plot

• School: York University
• Department: Administrative Studies
• Course: ADMS 2600
• Professor: Gordon Qi Wang

Document Summary

Strategic compensation is the compensation of employees in ways that enhance motivation and growth while simultaneously aligning employee efforts with organization objectives, philosophies, and culture. Strategic compensation planning serves to mesh the monetary payments made to employees with specific hr functions (i. e. recruitment of new employees > rate of pay for jobs can either increase or limit the supply of applicants). In cases of high pay rates where the applicant pool is large, employers may raise their selection standards and hire better qualified employees. Exceptional employees > performance appraisals may justify increased pay rates. There are three important aspects of strategic compensation planning: linking compensation to organizational objectives: After the recent economic downturn, there is pressure on both private and public sector organizations to make their pay systems more performance based (i. e. restrictions on public orbs. like ontario hospitals on bonuses and salary increases).