HRM Final Notes.docx - HRM Finals � 01 Managing...

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HRM Finals ▶ 01 Managing Compensation (How to make a compensation package) (03) It used to consider compensation as a cost that the organization needs to pay, but these days org recognizes as an investment to the employees and not nec a cost because having good comp. package for employees not only has a benefit of retaining qualified employees but also has a critical role of retaining the comparative advantage of the firm in the market. It is no longer considered as a cost that org. must deal with. (04) Compensation Components Direct (Monetary thing; the one that we usually know) Directly influencing livelihood of employees (usually the money stuff) Indirect (defined as benefits ) Insurance, vacation plans, not directly related to money itself but more onto their quality of living: when they can have days off, they have other options when they need to choose to. Ex) Stock Options Nonfinancial Recognition program… When we recognize their work or the value, not nec as a promotion, but assigning employees to jobs where they can pursue their highest value. Working Enviornment When these are included compensation could be formulated. (05) Compensation Alignment (noted in order) Compensation Strategy (theoretical form) Consideration of how compensation is aligned to the organization objectives How we pay for the performance Reason(Bases) for compensation Pay Mix (real factors) Internal factors External factors Job evaluation systems Pay Tools (How to pay) Salary Survey Assessment (Properly designed? Paid?) In this session we will be talking about all of these bullet points. (06) Strategic Compensation (The 1 st phase) (Bulletpoints = to consider when making c.p) We talked about strategic HR in the beginning of the course. How the HR decision should be helpful to fuflill the org’s objectives. The similar logic is applied here as well. Compensation must be aligned with the organization’s objectives. (07) - The most fundamental reason why firms try to get competitive advantage and get qualified employees (To remain competitive in the labor market)
- (To control the compensation budget) You don’t want to go bankrupt. Financially well maintained organization is also important. The more the better 식으로 운영되지 않아 ! - (To reduce unnecessary turnover) better C.P – better to remain in company instead of looking for alternative options. Compensation becomes a key to retention issues within the organization (08) Linking Compensation to Org Obj. (09) P-f-p standard 1 st bp (definition) rather than providing guidelines for their payment, it is focusing on the performance literally. At least the partial part has fulfilled their performance in order to get paid.

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