PAY MODEL  objectives, Internal alignment, external competitiveness, employee contributions,

management.

Chapter 1 compensation = all forms of financial returns
and tangible services & benefits. Total Rewards = Total
compensation and relational returns.
Total compensation = cash compensation & benefits. Cash
CompensationBase pay (wage/salary) merit/CoL
(increments to base pay in recognition of past work/pay
adjustments to keep up w cost of living) short term
incentives (pay directly tied to performance-commission)
Long term incentives (multiyear efforts, stock options).
Benefits Insurance&pensions(protect employees from
financial risks of daily life) work/life programs (vacation,
flexible work arrangement, accessibility) allowances (aunty
lu clothing allowance)
Objectives of comp – efficiency, fairness, compliance,
ethics. 4 strategic policies in the pay model – internal
alignment, competitiveness, employee contribution, and
management
Pay techniques- tech associated w each strategic policy- internal
structure , pay structure , incentive program & evaluation
Chapter 3- Defining internal alignment  the relationships
within the org. (among different jobs/skills/competencies within
a single organization aka internal equity. Structure needs to
support org strategy, workflow, motivate. Workflow – process
which g&s are created & delivered to the customer pay
structure – hierarchical, reflect flow in the org. Factors that
shape internal structure = External factors (gov
policies/laws/regulation, stakeholders, cultures/customs.
Organizatonal factors (strategy, technology, human capital,
employee acceptance, cost implications. Internal structure
(internal labour markets, levels,differentials,criteria) economic
pressure – exchange value & use value. Procedural – process
decision is reached distributive – fairness of the decision
outcome. Tailored – low cost, customer focused, i.e.
Walmart,dons. Loosely- flexible, agile,adapting orgs i.e.3M
layered (heirarchial)– fewer levels. Smaller differentials , collab
effort delayered(egalitarianl)- multiple levels, detailed jobs,
individual effort 3 consequences of internally aligned structure
– efficiency, fairness, compliance

Chapter 2 the totality of decisions. Stated (deliberate) vs
unstated (making up as u go). strategy – business directions
an org has made to achieve its objectives support business
strategy – pay systems align w orgs strategy. Support Hr
strategy- pay systems algin w orgs hr strategy&systems.
Comp key to attracting, retaining&motivating. 1. Assess
total comp implications (biz strategy & competitive
dynamics-understand the biz, Hr strategy-is pay a
supporting player or acc making change, culture/values-pay
system mirror image or repuation, employee preferences,
union preferences) 2. Map a total comp strategy (map
using pay model) 3. Implement strategy (implement
through design & execution) 4. Reassess the fit (recognize if
changes need to be made to fit w conditions, adapt &
improve.) testing competitive advantage – is it aligned?
Does it differentiate? Does it add value? Step 2 example 
whole foods
Chapter 4- job analysis. Task – unit of analysis, specific things
incumbent does. Job – group of tasks performed by one person
that makes up total work assigned. Job family – grouping of
related jobs w broadly similar content. Determining internal
structure of a job – job analysisjob descriptions job
evaluation job structure. ___ based structures – job (look at
what theyre doing and the expected outcomes) person (who are
they, skill, competency) methods for collecting information –
interviews, focus groups, questionnaires, observation, journals&
dairies.information to be collected- job identification (titles,
departments, # incumbents, job content, purpose of each task.
Job analysis includes – identification/job content/qualification
data. Conventional job analysis – develop prelim job info,
conduct tour of job site, conduct interview, 2 nd tour, consolidate
job infor, verify job description. Must be reliable, valid,
acceptance, current (timely), useful.

Chapter 5job based pay structures and job evaluation. Job evaluation – process of systematically determining relative worth
of jobs to create structure. Eval based on job content, skills, value to org, org culture, and external market. Major decision-
establish purpose of eval, decide wether to use single or multiple plans, chose among alternative approaches, obtain
involvement of relevant stakeholder, evaluate the usefulness of the plan. Structure is aligned if – supports org strategy, supports
flow, is fair, motivates behaivour. Eval methods- ranking, classification, point method. Ranking-rate and arrange jobs according
to their value to the company . classification – classes or grades defined to describe a group of jobs]