Textbook Notes (368,566)
Canada (161,966)
York University (12,849)
HRM 3490 (10)
Ping Peng (10)

Strategic Framework for Compensation

7 Pages
Unlock Document

Human Resources Management
HRM 3490
Ping Peng

Chapter 2 Strategic Framework for Compensation The Concept of Fit - The success or failure of any reward system depends on how well it fits the organizational context and total organizational system. Organization as a System Contingency Approach to Organization Design o Premise that the best type of structure for an organization depends on the key contingences (contextual variables) associated with that organization:  Type of environment in which organization operates  The type of technology it uses  The size of the organization  The nature of the people employed Structural Variables  Reward system o Compensation system  Job Design o The manner in which the total amount of work to be done is divided into subtasks that can be handled by individual workers  Coordination and departmentation mechanisms o The methods used to ensure that the work of individual employees fits together such that the overall task is accomplished  Decision making and Leadership Structure o The mechanisms through which the organization’s decisions are made and the type of leadership role played by those in managerial positions  Communication and Information Structure o The methods used to communicate information throughout the organization and the amount and kinds of information to be transmitted. Contextual Variables - Factors in the firm’s context that indicate the most appropriate managerial strategy and organizational structure. - The key point about contextual variables is that a change in any of them may trigger a need for a change in the reward system Domain – describes the specific products or services offered by a given organization Task environment – the portion of the general environment that has direct relevance to a give organization  Organization’s Environment  Corporate Strategy  Technology  Size  Workforce Managerial Strategies Classical Managerial Strategy - An approach to management that assumes most employees inherently dislike work but can be induced to work in order to satisfy their economic needs - Thinking is completely separated from doing - Jobs are designed with only a few basic elements so they can be supervised closely and so that employees can be replaced easily if they quit or are dismissed. - Jobs are arranged in strict, hierarchical, pyramidal fashion because of the overriding need for accountability. Human Relations Managerial Strategy - An approach to management that assumes most employees inherently dislike work but can be induced to work in order to satisfy their social needs - Paternalism – the organization is like a family, in which employees are like children who need to be treated kindly but firmly by a benevolent employer who knows what is best for them and the organization - Arranges jobs to allow social interaction among employees - The role of then leader is controlling but employee orientated - Rewards that are mainly extrinsic and focus on loyalty to the organization High Involvement Managerial Strategy - An approach to management that assumes that work can be intrinsically motivating if the organization is structured properly - Major effort to create jobs that are interesting and challenging Peopleare motivated by:  Needs for
More Less

Related notes for HRM 3490

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.