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Three Pay Policies for an Organization

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You are the compensation manager for a start-up 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.

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Describe three pay level policies and pick the best one.

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.
must be 200 words

This memo will examine three pay level policies and provide a recommendation for a pay level policy. Salary Survey collects the systematic process of collecting salary compensation paid by other employers. The salary survey data is used to set the pay policy based on competition and used to create the policy for pay levels and structures. The survey information is broken down by employer based on local, national and employers providing the ...

Solution Summary

An organization needs to determine a pay policy that fits their culture and that is consistent. There are three pay policies that an organization should evaluate and follow.

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See Also This Related BrainMass Solution

Human Resources: Here are two suggestions used in the solution of this assignment. The HRM must develop a pay for performance system and also address issues with Diversity in the Work Place. Diversity in the workplace has become of the utmost importance as more and more companies are becoming global. Understanding others differences is essential to the business.

What are some of the HRM strategies we should consider when developing the workforce, and conducting performance management, to enhance organizational productivity? As an example, what does your current (or previous) organization due to promote a "learning environment" within the workplace?

Please list references

Here are some highlights from the document solutions:

Strategy 1

As companies now look at compensation, many are no longer giving the standard 2-3% annual raise. Rather they are now looking at an associate's performance and the scorecard has now become the major defining factor in raises.
There are many different methods as to how one can be paid. It can be the standard annual raise, comp-time for salaried workers and pay for performance.
Pay for performance is just one of many ways that an employer can increase productivity. Pay for performance is a plan that has a balanced scorecard with an emphasis on metrics, characteristics, and computer skills that an associate must show proficiency in order to determine if the associate qualifies for raise. Human Resource managers are called upon to take the goals of the company and assess a number to them whereby managers will be able to rate their associates in order to see if they qualify for a raise. This scorecard also helps to assist in where additional training may be needed.

Strategy 2
Diversity has become one of the major focuses for enhancing organizational productivity. Associates want to work in an environment where they feel valued and empowered to contribute to the company with their expertise and ideas for the company's success. Diversity cannot be excluded from any company especially since the world has gone global and the workforce make up is of all nationalities, ethnicities, genders and disabilities just to name a few. Diversity policies are now part of a company's mission statement.
Diversity is defined as a strategy for Human Resources productivity in the Handbook of Workplace Diversity. Here are some of the characteristics: (1) increase the numerical representation, of historically excluded groups; (2) empower a diverse workforce once it is in place to participate fully in organizational decision making; and (3) ensure the inclusion of a diverse workforce in every aspect of organizational life (Kossek & Lobel, 1996). The business case for HR diversity strategies links recruitment, selection, development and retention of a diverse workforce to business goals, labor market shifts, globalization and competitive advantage (Yakura, 1996).

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