Strategic & Tactical Compensation Issues

Chapter 4 Page 47 ---- Principal Activities in development an organization Relationship in Pay Satisfaction Job Satisfaction and Organizational satisfaction Major Employees Groups

Development of an organization        Establishing Philosophy Mission Developing Policies Formulating organizational Strategy Objectives and Sub Objective goals Defining Work & Activities Grouping Tasks into Jobs

Vision – Organization Philosophy “What do we want to become?” Define the future and visualize a dream and write it down. Example: Helping People Around the World Eat and Live Better (Kraft Foods) Become the most trusted tour company in South Asia

Mission Statement

“What is our Business?” Define What you will sell, how you will sell, who you will sell, who do you care for employees, investors Example : To be the most successful computer company in the world at delivering the best customer experience in markets we serve….. “DELL”

Mission Statements

   PEPSI - "Beat Coke" HONDA - "We will crush, squash, and slaughter Yamaha" NIKE - "Crush Reebok"

Developing Policies

   Develop policies to insure Proper acceptable operation of an organization for achieving end results Policies are broad guidelines for action Policies must Support Vision & Mission

Strategy of an organization

 Top management to formulate strategy Starting from Mission Vision Statements to External & Internal factors evaluation  Strategy provides foundation of future growth and development

Objectives and Goals

What are the goals and objectives Translate Vision & Mission into output requirements Objectives at all levels Objective – Sub Objective

Work Unit activities

 Unit must develop their own function statements  Each Unit must identify what job they will do and how

Grouping Tasks into goals

  Assign jobs to individuals in the work units Be ware of the Knowledge and Skills requirements of Each Job and Task in the work unit and create Jobs accordingly

Pay Satisfaction

  Function Employee’s Perception of How much pay they should receive and how much they actually receive If both the Pay Perception and actual pay are equal employee is “Pay Satisfactory”

Job Satisfaction

  A person’s attitude concerning aspects of the work environment such as the level of pay, relationships with coworkers and supervisors, job fit, and working conditions. HR must design Jobs, The work environment in a way that it increases the Job Satisfaction

Organizational Satisfaction

 Both Job & Pay Satisfaction as well as other factors like Job Security, frustration, stress  SATISFACTION is a PROCESS