Escolar Documentos
Profissional Documentos
Cultura Documentos
VISION/MISSION
CORE BELIEFS
OBJECTIVES
BUSINESS STRATEGY
COMPENSATION
SYSTEM
PERFORMANCE
Generic Business-level Strategies
Innovator
Cost Cutter
Customer Focused
Exhibit 2.4: Tailor the Compensation System to the Strategy
Business HR Program Compensation
Strategy
Response Alignment System
Focus on
Operational Do More With Less Competitors Labor
Cost Cutter: Costs
Excellence
Focus on Increase Variable
Efficiency Pursue Cost- Pay
effective Solutions Emphasize
Productivity
Focus on System
Control and Work
Specifications
Customer
Customer Customer Intimacy Delight Customer,
Satisfaction
Focused: Exceed Incentives
Deliver Solutions to
Expectations
Increase Customers Value of Job and
Customer Skills Based on
Speed to Market
Expectations Customer Contact
Which Pay Decisions Are Strategic?
Objectives
Alignment
Competitiveness
Contributions
Management
Exhibit 2.5: Key Steps to Formulate
a Compensation Strategy
1. Assess Total Compensation Implications
Competitive Dynamics
Core Culture / Values
Social and Political Context
Employee / Union Needs
Other HR Systems
3. Implement Strategy
Design System to Translate Strategy
into Action
Choose Techniques to Fit Strategy
Sources of Competitive Advantage
Is it aligned?
Which
hat is
unique?
Does it differentiate?