23-Nov-18

The lmportance of a Rapidly Growing

Global Economy
Welcome { Since the end of World War ll, social, political,
and economic systems have moved toward a world
To economy

A Session * Movrng toward a more complex and competitive

world at a rapid pace

On * Expanding focus on market forces and

international resource allocation
Compensation in a Knowledge- !a lncreasing importance of labor costs as one of
Based Global Economy the critical factors within a global economy

2l st Century Competitive Landscape The lmportance of a Rapidly Growing

Global Economy

'i Concern of the Government to redistribute income

to the poorer members of their society

2l st Century Competitive Landscape The major problems facing the economy

* Many jobholders make little or no constructive

contribulions to the output of the hiring
organlzations
'! Overall poor performance oI the organizations

t !t Overstaffing often results in inefficient operations

and promotes cronyism and corruption

"a The problem of ensuring the effective and

efflcient delivery oI the products/services

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 23-Nov-18

What is to be done to overcome the Capitalism and Knowledge in a Global

problem of mismatch between reward and Economy
performance? * Dilference between the income ot the lower-
paid and the higher-paid members of the
{ lntroducing performance-based remuneration
workforce
system for allworkers
{ Recognlzlng:
,s lncreased work loads

{ lob tequlrements * Advances in knowledge and skills

+ Employee-related knowledgq and 3kills
r Performance related lncentives that link
lndividuals, team, work unit, and
+ Organizatlon performance

Capitalism and Knowledge in a Global Compensation and Organizational Strategy

EconomY
t Tho fallofthe Sovlet EmPire { Relationship between organizational strategy and
compensation
{ The polltlcal€oclal-economlc battle between capltallsm
and communlsm-soclallsm
{ lssues drawing attentlon lnclude: What has to be done to accomPlish
{ jobs organizational strategy?
I Employee income from iob-related eflorts
. Organizatlonal prof ltabilitY
l Ability to compet€ in global markets
{ lncorne dlstribution

Capitalism and Knowledge in a Global What has to be done to accomplish

EconomY
organizational strategy?
a The lallof the Soviet EmPlre
{ The work that must be performed by some work unit or
t The political-soclal-€conomic battl. between capltallsm Individual
and communlsm-soclalEm
t Th. klnds and levels of knowledge and skill requlred
a lssues drawlng attentlon lnclude:
aThe quallty of people needed to promote
l jobs organizational success
+ Employee lncome from job_related eflorts { The rewards the oaganization can offerto its members
r Organlzational Prof ltablllty that Promote a work culture

l Abillty to compete in global ma*ets

4lncome dlstdbutlon

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 23-Nov-18

What is the greatest force for the continuation of

What is the relationship between pay and poverty in the current democratic-capitalist
social class? society?
a The work that must be performed by somewo unit or aThe pollllcal€oclal-economlc battle b€tween
rndividual capllalbm on one slde and communism-soclallsm on th€
othor slde has focused ronewad world-wida attentlon on
jobs, employee lncome from Job'related efforts,
organlzational profltablllty, ability to comPete in global
ma*et, and lncome distributlon in the Unlted States and
throughoutthe world.
a The pay and compensatlon for those wlth acceptable
levels of knowledgo and skllls wlll rlse, wheroas those
wlth mlnlmal levels of roquired knowledg€ and skllls wlll
see their lncolno opportunilies stagnat6, or even decline.

oo. s^ Kh.nd.k.r

What are the buming issues to sustain Will the two-wage-earner family become
competitive advanlage? more or less important in the future?
a lntegrating knowledge and skill requirements, t Rising trend of women joining the labor force

organization compensation, and employee a Job-related earnings provided the income

necessary to move from the workang-poor class to
income mrddle-middle and upper-maddle class
a Lifestyle and comPensation a The desire to enjoy the lifestyle of a given class
a Pay and social class became a pnmary motlvalor ol rncreaslng
importance for the two-wage-earner family
a Social structure and income
a Establishing class family income limits

What are the three major classes of society

and their subsets?
a Upper class a Lower class
Ultrarich Thank You
+ f Working poor
+ Wealthy r poverty For
a Middle class
Attending the Session
J Upper middle
{ Middle middle
a Lower middle