CHAPTER #1A COMPONENT OF HUMAN RESOURCE

SYSTEMS

Strategic Compensation

No longer just personnel management

HR is a strategic partner Government regulations Compensation plays a huge role

Ability to attract and retain employees Facilitate success

Merit pay Incentives Competitive base pay

Strategic Vs. Tactical Decisions

Strategic decisions guide the activities of firms.

Tactical decisions support the fullfillment of the strategic decisions.

Look page #12

Class exersize

Look up NAICS

Read over home page and understand what information is available.

Click on New Code SystemReview information on this link

Compensation Professional Goals

HR has staff function: idea to support lineRecruitmentSelectionPerformance apprasialTrainingCareer developmentLabor-management functionsEmployee terminationsLegal compliance

Compensation Managers must be able to

Design and build pay plans that meet the needs of the firm’s strategy.

Teach managers how to use compensation tools at the right time and place and in the right situation.

What is Compensation ?

Intrinsic

Psychological States

Skill Variety Task Identity Task significance Autonomy Feedback

Extrinsic

Core pay Adjustments to core Legally required Discretionary

History of Pay Systems #9

Scientific Management Systems

Time and Motion Studies

Welfare Practices

Competitive advantages

Compensation Managers Goals

HR is staff and supports the line.Compensation systems must support

Recruitment and selection Performance appraisals Training Career Development Employment termination Legislation Internal consistency Market competitiveness Incentive pay

Stakeholders of the Compensation System

EmployeesLine ManagersExecutivesUnionsUS Government

North American Industry Classification System Manual (NAICS)

Class exercise: Type Strategic Compensation

What do you find? Click on a few sites. Click on NAICS

DOL.gov Look under BLS

How would you use this to check on external consistency?

How would you use this to check on internal consistency?