Strategies Flashcards
Strategy
Fundamental business directions that an organization has made in order to achieve its strategic objectives
Strategic Perspective
focuses on those compensation decisions that help the organization gain and sustain competitive advantage
5 Strategic Compensation Choices
Objectives
Internal Alignment
External Competitiveness
Employee Contributions
Management
Best Fit Approach
Suggests a company is more likely to achieve competitive advantage if pay practices are aligned with business and HR strategies
Best Practices Approach
Suggests that there exists a set of best-pay practices which can be applied universally across all situations
Competitive Advantage 3 Tests
a) Is it Aligned?
b) Who is the jobholder?
c) Does it differentiate?
d) Does it add value?
e) Does it follow all the rules?
Select all that apply
a, c, d
Formulating a Total Compensation Strategy
1: Assess Total Compensation Implications
2: Map a Total Compensation Strategy
3: Implement Strategy
4: Reassess the Fit
What does emerging evidence suggest a focus on for most effectiveness?
a) Which management function is best for employees
b) What practices pay off best under what conditions
c) Which employees are best suited for the job
d) Catering to which job is produces best productivity
B)
1: Assess
Business Strategy
Competitive Dynamics
HR Strategy
Culture/Values
Social and Political Context
Union Preferences
2: Map
Objectives
Internal Alignment
External Competitiveness
Employee Contributions
Management
3: Implement
Design system to Translate Strategy into Action
Choose Techniques to Fit Strategy
4: Reassess
Realign conditions and strategy changes
Business and HR Strategies are;
a) Interlinked
b) Need to align with pay systems
c) Supported by strategy and strategies choices
d) Aligned with the businesses policy structure
e) Aligned with compensation strategy
(Choose all that apply)
a, b, c
