Schwind07IM09 - Chapter 9 Compensation Management 9...

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Chapter 9 Compensation Management COMPENSATION CHAPTER OBJECTIVES After studying this chapter, you should be able to: Explain the objective of effective compensation management. Discuss the consequences of mismanaged compensation programs. Describe how wages and salaries are determined. Identify the major issues that influence compensation management. Explain the differences between “equal pay for equal work” and “equal pay for work of equal value.’ Evaluate the advantages and disadvantages of incentive systems. Explain the major approaches to group incentive plans. Apply the expectancy model of motivation in a human resource system. POWERPOINT ® SLIDES Canadian Human Resource Management includes a complete set of Microsoft PowerPoint ® files for each chapter. (Please contact your McGraw-Hill Ryerson representative to find out how instructors can receive these files.) In the lecture outline that follows, a reference to the relevant PowerPoint slide for this chapter is placed beside the corresponding lecture material. The slide number helps you to see your location in the slide show sequence and to skip slides that you don’t want to show to the class. (To jump ahead or back to a particular slide, just type the slide number and hit the Enter or Return key.) 9-1 9
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Part 5 Motivating and Rewarding Human Resources LECTURE OUTLINE (with PowerPoint ® slides) Compensation Management Slide 1 Compensation Slide 2 Objectives of Compensation Slide 3 COMPENSATION Cash and non-cash rewards employees receive in exchange for their work Effective compensation management -- Employees are more likely to be satisfied and motivated to contribute to the achievement of organizational objectives Compensation perceived to be inappropriate -- Performance, motivation, and satisfaction may decline dramatically -- Employee turnover may occur resulting in loss of investment for recruitment, selection, training, and development -- Dissatisfaction may be experienced with: -- Absolute pay (physiological and security needs) -- Relative pay (social and esteem needs) OBJECTIVES OF COMPENSATION ADMINISTRATION Sometimes, objectives may conflict with one another, and trade-offs must be made Acquire qualified personnel -- Compensation needs to be high enough to attract applicants Retain present employees -- To prevent turnover, pay must be kept competitive with other employers o Ensure equity -- Internal equity requires that jobs of similar value get similar pay i.e. internal consistency -- External equity involves paying workers fairly relative to market rates Reward desired behaviour -- Pay should reinforce desired behaviours i.e. good performance, loyalty, new responsibilities, etc. o
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This note was uploaded on 03/03/2011 for the course BUS 341 taught by Professor Smith during the Spring '11 term at Wilfred Laurier University .

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Schwind07IM09 - Chapter 9 Compensation Management 9...

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