Compensation Chapter 2

Front 1

Strategy

Back 1

Refers to the fundamental directions that an organization chooses.

Front 2

Strategic Perspective

Back 2

Focuses on those compensation choices that help the organization gain and sustain competitive advantage.

Front 3

Innovator Strategy

Back 3

Stresses new products and short response time to market trends. Less emphasis on evaluating skills and jobs and more on incentives designed to encourage innovations.

Front 4

Cost Cutter's Strategy

Back 4

Efficiency-focused strategy stresses doing more with less by minimizing costs, encouraging productivity increases, and specifying in great detail exactly how jobs should be preformed.

Front 5

Customer-focused Strategy

Back 5

Stresses delighting customers and bases employee play on how well they do this.

Front 6

AMO Theory

Back 6

P=f(A,M,O)

Front 7

In AMO P is

Back 7

Performance

Front 8

In AMO f is

Back 8

Function of 3 factors.

Front 9

In AMO A is

Back 9

Ability

Front 10

In AMO M is

Back 10

Motivation

Front 11

In AMO O is

Back 11

Opportunity

Front 12

H.P.W.S

Back 12

High performance work systems

Front 13

Steps in Developing a Total Compensation Strategy

Back 13

1. Assess total compensation implications.
2. Map a total compensation strategy.
3. Implement Strategy.
4. Reassess.

Front 14

Context

Back 14

Wide range of factors, including legal and regulatory requirements, cultural differences, changing workforce demographics, expectations, and the like.

Front 15

Non-Exempt

Back 15

Employees covered by the Fair Labor Standards Act.

Front 16

Transparency

Back 16

Refers to openness and communication about pay.

Front 17

Ownership

Back 17

Refers to the role non HR managers play in making pay decisions.

Front 18

What 3 tests determine whether a pay strategy is a source of advantage?

Back 18

1. Is it aligned?
2. Does it differentiate?
3. Does it add value?

Front 19

ROI

Back 19

Return On Investment

Front 20

Best-Pay Practices

Back 20

Compensation practices that allow employers to gain preferential access to superior HR talent and competencies(ie valued assets) which in turn influence the strategies the org. adopts.

Front 21

Pay Levels

Back 21

External competitiveness

Front 22

Virtuous Cycle

Back 22

Upward momentum, Continuous improvement.

Front 23

Vicious Cycle

Back 23

Downward momentum, continuous difficulties.