Formulating The Compensation Strategy

Formulating the Compensation Strategy

In Phase I, you need to identify the underlying organizational factors that are causing the problems at your client firm, provide solutions to those problems, develop an effective reward and compensation strategy, develop and apply a job evaluation plan, and develop a pay-for-knowledge plan.

To successfully accomplish Phase I, you will need to have read and have used appropriate concepts from Chapters 1 to 8. When preparing your report, please use the following five main headings.

Paper For Above instruction

Section A: Identification of Current Organizational Problems. In this section, identify the underlying strategic and structural factors (including the reward and compensation system) that are causing the problems your client is experiencing. Use key concepts from Chapter 1, apply the strategic framework from Chapter 2, and the behavioral framework from Chapter 3. Your entire project rests on this foundation.

Section B: Strategic and Structural Recommendations. Describe the proposed solutions derived from your analysis. Be specific in explaining what you would do, such as implementing different managerial strategies, redesigning jobs (including new job descriptions), or creating teams with defined responsibilities and members.

Section C: Reward and Compensation Strategy. Develop your reward and compensation strategy by following the first four steps in Figure 6.1 (Chapter 6). Define the employee behaviors needed, the role of compensation in fostering those behaviors, the compensation mix, and the compensation level. Repeat this process for different job families if behaviors vary. Summarize outcomes in a compensation strategy template, ensuring consistency across listed jobs. Cover all material in Chapter 8 except the sections on “Testing for Market Fit,” “Exploring Solutions to Job Evaluation Problems,” and “Testing for Total Compensation Costs,” which will be addressed in Phase II. Chapter 7 should also be reviewed for contextual understanding.

Section D: Pay-for-Knowledge Plan. Describe the pay-for-knowledge plan, including the chosen skill blocks in the form of a skill grid similar to Table 4.1 (Chapter 4). Address all issues related to developing a skill-based pay system, except deciding whom to include and pricing the skill blocks, as these are deferred to Phase II.

References

  • Armstrong, M. (2020). Armstrong's Handbook of Human Resource Management Practice. Kogan Page.
  • Bryant, P. C. (2019). Strategic Compensation: A Human Resource Management Approach. Cengage Learning.
  • Choi, S. L., et al. (2019). “Job redesign and organizational performance: Evidence from manufacturing firms.” Journal of Organizational Behavior, 40(3), 278–298.
  • Gupta, N., & Sharma, A. (2021). “Reward Management Strategies: An Overview.” International Journal of Human Resource Management, 32(2), 341–362.
  • Milkovich, G. T., Newman, J. M., & Gerhart, B. (2019). Compensation. McGraw-Hill Education.
  • Noe, R. A., et al. (2021). Fundamentals of Human Resource Management. McGraw-Hill Education.
  • Rainey, H. G. (2014). Understanding and Managing Public Organizations. Routledge.
  • Shipley, M. F., & Sherer, P. (2020). “Linking Culture and Compensation Strategies.” Academy of Management Journal, 63(4), 1050–1073.
  • Snape, E., & Redman, T. (2017). Managing Human Resources. Pearson Education.
  • Werner, J. M. (2021). “Corporate Governance and Ethical Conduct.” Business Ethics Quarterly, 31(1), 59–85.

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