Chapter 1 and Intro Compensation Lecture Summer 2015posting Essay

Submitted By yukichen317
Words: 656
Pages: 3

WELCOME TO BUSINESS 406
INTRODUCE YOURSELF…


Name (first, last)



Location you call “home”



Graduation date



After grad plans



Your favorite undergraduate course. Why?

STEPS TO AN
EFFECTIVE
COMPENSATIO
N SYSTEM

QUESTIONS WE WILL ADDRESS
TODAY:


Purpose of a compensation system



Steps in designing a comp. system



Components of compensation



How to assess if a compensation system is successful 

Intrinsic vs. extrinsic rewards

WHY STUDY COMPENSATION
AND BENEFITS?


40 -70% of operating budgets



Single largest operating expenditure



Canada employers spend:


$800+ billion on wages and salaries



$100 billion on employee benefits

DISCUSSION QUESTION
Join with 2-3 other students and discuss the following scenario:


You are the Human Resource Manager at Top
Flight a golf ball manufacturing company.
The compensation system at Top Flight is disjointed and archaic. You have decided the whole system needs to be revamped.
Describe how you will proceed. Be specific including the first 5-7 steps you will take.
Who will you involve? How will you determine success?

STEPS TO AN EFFECTIVE
COMPENSATION SYSTEM
(TEXTBOOK):
5. Implement, manage, evaluate, and adapt the compensation system
4. Design performance pay & indirect pay plans
3. Determine reward & compensation values
2. Formulate reward and compensation strategy
1.Understand your organization and your people nk ically i h
T
te g a r
St

STRATEGIC THINKING AND PLANNING MAP
Explore

Discover

•Mission & Values
•Vision
•Strategy
•Stakeholders
•Key Processes
•Competition
•Economics
•Resources
•Capabilities
•Issues

Monitor & Measure
•Strengths
•Weaknesses
•Opportunities
•Threats

Design

•Strategic Initiatives
•Deployment Framework
•Align Systems &
Infrastructure
•Establish Policy

Business Results
Profitability
Growth
Stakeholder Satisfaction

Implement Systems
•Communication
•Goals and Plans
•Process Improvement

•Performance Measures
•Reward and Recognition
•Education

COMPENSATION VALUES AND
STRATEGIES
Compensation Philosophy: Our compensation system supports our Vision and
Principles and reflects Cruise West’s continued success.
Principles
 Link compensation, performance and results.
 Provide compensation reflective of the appropriate labor market.
 Design, implement and administer compensation systems that attract and retain quality people based upon individual, group and company results.
 Utilize employee reward and recognition programs to embody the essence of the Cruise West Vision and Principles.
Strategies
 Align base salary/pay toward the appropriate job function, skill level and labor market median.
 Design benefits and work practices that offer employee choice and are cost effective and competitive
 Design and implement a streamlined, relevant compensation system that can be clearly and consistently communicated and administered.
 Design and implement a variable pay plan based upon the achievement of individual and group results and/or corporate profits.
…