HRMA 221: Strategic Pay Plans
11 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

List the basic factors determining pay rates.

Market rate, employee experience, education level, job responsibilities, and industry standards.

How should pay rates be established?

By analyzing market data, considering job responsibilities, assessing employee skills and experience, and aligning with organizational goals.

Define job evaluation and give an example.

Job evaluation is a systematic process to determine the relative worth of jobs in an organization. For example, comparing positions of a project manager and a team leader.

How should managerial and professional jobs be priced?

<p>By conducting market surveys and considering factors like demand for skills, experience required, and overall impact on the organization.</p> Signup and view all the answers

What is competency-based pay?

<p>A pay system that rewards employees based on their skills, knowledge, and competencies rather than just job title or seniority.</p> Signup and view all the answers

In South Africa, compensation must consider laws such as the ______ and the ______.

<p>Basic Conditions of Employment Act, Labour Relations Act</p> Signup and view all the answers

Which of the following is a component of employee compensation?

<p>Wages</p> Signup and view all the answers

What is the purpose of a total reward package?

<p>To attract and retain talent</p> Signup and view all the answers

The Employer's basic task is to create a bundle of rewards.

<p>True</p> Signup and view all the answers

What are the compensation policy issues?

<p>Pay for performance, pay for seniority, salary increases, overtime pay, probationary pay.</p> Signup and view all the answers

Match the following forms of equity with their descriptions:

<p>External Equity = How a job’s pay rate compares to similar jobs in other companies. Internal Equity = How fair a job’s pay rate is compared to other jobs in the same company. Individual Equity = How fair an individual’s pay is compared to co-workers doing similar work.</p> Signup and view all the answers

Study Notes

Performance Management and Appraisal in HRMA 221

  • Study Unit 3 centers on strategic pay plans, covering key topics related to employee compensation.

Basic Factors Determining Pay Rates

  • Essential factors include market conditions, employee experience, job structure, and geographical location.
  • Establishing pay rates entails a comprehensive analysis, including industry standards and organizational budgets.

Job Evaluation

  • A systematic process to determine the relative worth of jobs within an organization.
  • Example: A grading system categorizes jobs based on responsibilities, skills required, and market comparisons.

Pricing Managerial and Professional Jobs

  • Requires understanding roles, responsibilities, and external benchmarks within the industry.
  • Competency-based pay rewards skills and competencies rather than job titles.
  • Trends include broadbanding, comparable worth, and increased scrutiny of executive compensation.

Reward and Recognition

  • Focus on both extrinsic (financial) and intrinsic (emotional satisfaction) rewards.
  • Aim to align employee contributions with organizational objectives through various reward systems.
  • Compliance with numerous South African laws influencing employee compensation and rewards:
    • Basic Conditions of Employment Act
    • Labour Relations Act
    • Compensation for Occupational Injuries and Diseases Act
    • Unemployment Insurance Act
    • Employment Equity Act
    • Income Tax Act
    • Skills Development Act
    • Companies Act

Compensation Objectives

  • Attract and retain talented employees while complying with legal requirements and motivational needs.
  • Implement corporate policies that reflect competitive strategies through aligned reward strategies.

Developing an Aligned Reward Strategy

  • Assess key success factors that contribute to the company's competitive position.
  • Identify necessary employee behaviors and actions that support strategic implementation.
  • Define compensation programs that reinforce desired behaviors, with clear measurable outcomes.

Compensation Policy Issues

  • Address various issues including pay for performance versus pay for seniority, as well as cycle considerations for salary increases, promotions, and overtime.

Equity in Compensation

  • Focus on fair and just distribution of rewards across external, internal, and individual equity:
    • External equity measures how pay compares against other companies with similar roles.
    • Internal equity assesses pay fairness within the company for similar jobs.
    • Individual equity compares one employee’s pay with their peers in similar positions.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Human Resources- Performance Management and Appraisal PDF

Description

Explore the fundamentals of performance management and appraisal in Human Resources. This quiz covers key topics such as determining pay rates, conducting job evaluations, and pricing managerial and professional jobs.

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser