Readings 1. Read the following chapters in your text, Strategic Compensation : o Chapter 6: Building Internally Consistent Compensation Systems o Chapter 7: Building Market-Competitive Compensations Systems o Chapter 8: Building Pay Structures That Recognize Employee Contributions Discussions To participate in the following discussions, go to this week's Discussion link in the left navigation. 1. Building Blocks Discuss the basic building blocks of developing a market competitive pay system, including the relationship between internal and external equity. Respond to at least two of your fellow students’ postings. Market competitive pay systems represent companies’ compensation policies that fit the imperatives of competitive advantage. It helps to attract and retain the most qualified employees. If well designed, it can promote competitive strategies. Having the ability to provide sufficient resources will enable companies to be productively creative. There are four activities that create market-competitive pay systems. • Conducting strategic analyses. This is an examination of a company’s external (industry profile, competitors information, and long-term growth prospects) market context and internal factors (financial condition and functional capabilities). • Assessing competitors; pay practices with compensation survey. This is a collection and subsequent analysis of competitors’ compensation data. Focus is on wage and salary practices as well as benefits. Compensation surveys are used to get realistic views of competitors’ pay practices. • Integrating the internal job structure with external market pay rates. Integration results in pay rates that reflect both the company’s and the external market’s valuations of jobs. Regression analysis which is a statistical method is used by compensation professional to achieve integration. • Determining compensation policies. Pay policies must fit the companies standing
Running Head: PERFORMANCE MANAGEMENT 1 Performance Management Timothy Vallin Instructor: Sherrie Lewis October 7, 2012 Performance Management Performance management is something that is very important to a company. This is something that has to be constantly monitored. It is monitored in order to see how smoothly the organization as a whole is running. You also use performance management to see if there is something that needs to be altered in order to make things run better. As easy as it sounds, you may come across a variety of issues. Sometimes there can be a problem with the management plans. These types of issues have strong impacts on the employees and how they work. If there is a performance issue with employees then you are most likely to have an issue in compensation. So when companies begin implementing performance management, they must make sure that their plan is one that will successfully work for their organization which includes improvement for employees as well as organizations by overcoming the difficulties when starting the new plan and encouraging better performance through the use of incentives. Performance is an important factor in an organization. So organization must be interested in developing and implementing an effective performance management system. This is the only way that a company can remain a top performer amongst organizations. In today’s business and as businesses progress, challenges will come and the organizations will have to learn how to adapt to the rapid pace and efficiency that will be demanded. This will require the need for organizations to ensure that the projects they have matches their strategic goals and business objectives. In order for this to happen, performance management must be utilized in every management function that monitors employees, processes, equipment and time in order to make sure the organization is able to reach the goals that are set.