Chapter 2 Strategy The Totality of Decisions 经典双语薪酬管理课件（2012版）.pptVIP

Chapter 2 Strategy: The Totality of Decisions Chapter Topics Similarities and Differences in Strategies Strategic Choices Support Business Strategy The Pay Model Guides Strategic Pay Decisions Developing a Total Compensation Strategy: Four Steps Chapter Topics (cont.) Source of Competitive Advantage: Three Tests “Best Practices” versus “Best Fit” Virtuous and Vicious Circles Part I Similarities and Differencesin Strategies Different strategies within the same industry Different strategies within the same company Different strategies in different industries Part II Strategic Choices Strategy refers to the fundamental directions that an organization chooses A strategic perspective : compensation choices that help the organization gain and sustain competitive advantage P32. Exhibit 2.2: Strategic Choices Part III Support Business Strategy Compensation systems can be tailored to: Innovator business strategy Cost cutter business strategy Customer-focused business strategy Part IV The Pay Model Guides Strategic Pay Decisions Five Strategic Guidelines for Compensation Choices Objectives Internal Alignment External Competitiveness Employee Contributions Management Objectives: How should compensation support business strategy and be adaptive to the cultural and regulatory global environment? Internal Alignment: How differently should the various types and levels of skills and work be paid within the organization? External competitiveness: How should total compensation be positioned against our competitors? What forms of compensation should we use? Employee contributions: Should pay increases be based on ?? Management: How open and transparent should pay decisions be to all employees? Who should be involved in designing and managing the system? P37. Exhibit 2.5: Key Steps In Formulating a Total Compensation Strategy Part V Developing A Total Compensation Strategy: Four Steps Step 1: Assess total compensation implications Step 2: Map a total compensation strategy