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23 Cards in this Set
- Front
- Back
Strategy
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Refers to the fundamental directions that an organization chooses.
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Strategic Perspective
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Focuses on those compensation choices that help the organization gain and sustain competitive advantage.
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Innovator Strategy
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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.
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Cost Cutter's Strategy
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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.
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Customer-focused Strategy
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Stresses delighting customers and bases employee play on how well they do this.
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AMO Theory
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P=f(A,M,O)
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In AMO P is
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Performance
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In AMO f is
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Function of 3 factors.
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In AMO A is
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Ability
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In AMO M is
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Motivation
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In AMO O is
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Opportunity
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H.P.W.S
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High performance work systems
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Steps in Developing a Total Compensation Strategy
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1. Assess total compensation implications.
2. Map a total compensation strategy. 3. Implement Strategy. 4. Reassess. |
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Context
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Wide range of factors, including legal and regulatory requirements, cultural differences, changing workforce demographics, expectations, and the like.
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Non-Exempt
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Employees covered by the Fair Labor Standards Act.
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Transparency
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Refers to openness and communication about pay.
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Ownership
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Refers to the role non HR managers play in making pay decisions.
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What 3 tests determine whether a pay strategy is a source of advantage?
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1. Is it aligned?
2. Does it differentiate? 3. Does it add value? |
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ROI
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Return On Investment
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Best-Pay Practices
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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.
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Pay Levels
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External competitiveness
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Virtuous Cycle
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Upward momentum, Continuous improvement.
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Vicious Cycle
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Downward momentum, continuous difficulties.
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