HRM598 STUDY GUIDE
Chapter 1: The Pay Model (Milkovich Text)
Chapter 2: Strategy: The Totality of Decisions (Milkovich Text) Team Project
Begin Team Project. See the Team Project tab under Course Home for more details. See Syllabus/"Due Dates for Assignments & Exams" for due date information.
Given an organization’s strategic goals and workforce strategy, create a compensation system in which the objectives, policies, and techniques are aligned with those key strategy drivers. Key Concepts
Align compensation design with higher level workforce and organizational strategic plans. Internal alignment asks us how we differentiate worth within the organization. Do we recognize effective differences among staff and management, different functional areas of expertise, line versus staff, and any other issues in the internal hierarchy or jobs? Finally, how do we manage the total reward system ? Can we trace how well pay and reward processes align with an effective workforce plan, and ultimately, the organization’s strategic plan?
Evaluate Compensation objectives to insure effectiveness.
Evaluate total reward strategies regarding the mix of base, incentive, and benefits to ensure competitiveness. There are four objectives to any total reward system. These are efficiency, fairness, compliance, and ethics. 1. Does the reward system work?
2. Does it foster workers’ performance?
3. Do customers and shareholders see higher quality, customer service, and profitability? 4. Is the reward system cost efficient, or does it deliver rewards that might not be tightly coupled to actual performance?
TCO A DISCUSSION:
What is your definition of compensation?
How do perspectives on compensation differ, and why does that matter?
What forms of pay are used in your organization, and are they effective in motivating performance? My previous organization was based on a hierarchy pay system based on pay grade (rank) not connected to a specific skills, however, the better performance, the better evaluation received helps promotion of rank along with of factors. Performance doesn’t guarantee an increase in pay at any paygrade, but bonuses are based on specific job descriptions and retention needs for specific job tasks.
Tell the class how is (was) the compensation system structured? Is your perspective similar to the perspective discussed in Chapter 1 of the text? Explain why or why not?
My organization didn’t per se have a compensation system structure as the civilian sector, however, paygrades E1 – E3 pay increases are automatic between 6 months to 1 ½ year, but E-4 and above paygrades are performance and knowledge based on a system that combines the final multiple score of performance evaluation and examination scores of various categories. Bonuses for certain job descriptions (rates) are given based on the needs of the organization and vary from fiscal year to fiscal year, and are not performance based. In addition, there are allowances such as standard of living pay to offset the cost of civilian housing which is based on geographical location, married or single status, and paygrade.
For this second discussion, I would like us to look at exhibit 2.8 "Strategic Mapping." Take any organization that you know, current employer, school, friend's employer, etc. Share with the class how you believe your organization's strategy compare to that of Microsoft or SAS?
My previous organization strategic mapping compared to Microsoft is similar in the areas of objective (prominence); internal hierarchy; and management (transparency) because the organization’s mission strategy is a leading role and is prominent overall else expect personnel safety, in the same way, hierarchy our system as paygrade (promotion) increase such does pay, but is used as an incentive to pursue more pay and responsibility, and has certain entitlements (larger allowances) due to time in service and...
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