Discuss and explain the concept of Strategic Compensation as a component of human resource systems. Include in your discussion the opinions expressed regarding strategic analysis and contextual factors.© BrainMass Inc. brainmass.com October 17, 2018, 11:47 am ad1c9bdddf
Strategic compensation means compensation practices such as increments, and incentives being aligned with the achievement of the firm's strategic business objectives. In practice this means increments and incentives are given according to an annual evaluation. The evaluation has criteria that are related to strategic business objectives. For example, if the strategic objective of a business is to increase its market share by ...
This posting gives you a step-by-step explanation of compensation management. The response also contains the sources used.
Strategic Compensation Level Policy
1. You are the compensation manager for a startup internet company. The CEO wants to know what the best pay level policy is for this organization. Prepare a memo to the CEO explaining the three options the company can choose from and what your recommendation is, and why.
2. Explain the similarities and differences that exist among merit pay systems, incentive pay systems, and person-focused pay systems. Of the three of these pay systems, which one would you implement at your company? Explain your choice.
3.You are the compensation manager for a local Internet training company. Your CEO would like you to determine how well the salaries he pays his instructional designers measure up to other companies in the same field. Outline the steps you would take to determine this and compose a memo to your CEO showing your results. Also, make recommendations to your CEO concerning the pay rates based on the information you gathered from your research.
4. Why is it important to design internally consistent compensation systems? Explain how the job analysis process is used to create a compensation system.
Martocchio, J.J. (2013). Strategic compensation: A human resource management approach (7th ed.). Upper Saddle River, NJ: Prentice Hall.