Weekly Summary Essay

Submitted By Meredith-Keck
Words: 435
Pages: 2

Weekly Summary – Week Six

Chapter ten primarily discussed the changes that have occurred in compensation trends. It covered four primary areas of focus regarding compensation. First, the large increase in the diversity of pay strategies and practices. Strategies range from variable pay, special recognition bonuses, individual and group incentive plans, and broad based success sharing programs and flexible benefits. Second, the constantly rising cost of employee benefits. Healthcare costs are rising and companies are trying to keep up with the best benefits packages to sustain their employees. Third, the salary gap continues to widen between the top and bottom management levels. Fourth, pay strategies are increasingly being used to communicate major changes in organizations, such as downsizing. Pay for performance and pay-at-risk are two of the strategies that have been used for this reason.

The text elaborates on the effect the pay system and scale has on the organization. Pay can motivate and direct employee behavior, positively and negatively, depending on how they feel about their compensation. Money is what ultimately attracts and retains employees. Case in point- I am currently trying to decide on a job offer. I have been offered two positions, one is on a team that I have worked with in the past, and I’ll call this option A. I truly respect this team and feel like the job satisfaction would be tremendous. The other position has a very negative environment and my potential boss is well known for her temper, I'll call this option B. If money were not a factor, I would take option A in a