Implementing Compensation and Security
As Jack Welch said, "If you pick the right people and give them the opportunity to spread their wings-and put compensation as a carrier behind it-you almost don't have to manage them." This module will give you an understanding how compensation can be used strategically to motivate employees. Companies need to assess organizational objectives in relation to specific employment goals-employee retention for continued growth, compensation distribution to ensure employees feel treated fairly, and adhere to a budget. The internal and external factors that affect the wage mix are presented as well as methods used to determine the relative worth of jobs. You will also look at three important compensation issues: equal pay for equal worth, wage-rate compression, and low salary budgets. As a manager, it is important to understand strategic reasons for incentive plans and appreciate why companies are tying pay for performance.
Required Readings/Resources: Read Chapters 9 & 10 in Textbook Power points 9 & 10
Discussion
Identify a company which has an incentive plan in place. You can use your own company, as well. How does the company culture affect the compensation philosophy?
Discuss the strategy behind the compensation model and outline the plan design. Include the reasons to implement an incentive plan and the different types as it relates to individuals, groups and enterprise-wide.
Why are these plans important and what make them successful. Discuss with your peers.
Refer to the MBA Discussions power point presentation for tips on how to gain maximum learning and points from your discussion engagement
- Post a substantive response to the question (minimum 250-300 words).