Chapter 1 Organisational Strategy and Reward policy PDF

EZDV 202: HRM Reward Systems Lecture 1 (Prescribed reading Bussin & Diez Chapter 1) Consider the following…  What do you think your degree will be worth when you graduate?  How much do you want to earn upon leaving university?  Which city would you like to wo...

EZDV 202: HRM Reward Systems Lecture 1 (Prescribed reading Bussin & Diez Chapter 1) Consider the following…  What do you think your degree will be worth when you graduate?  How much do you want to earn upon leaving university?  Which city would you like to work in?  What will attract you to work in an organisation? Organisational strategy Competitive strategy (three primary areas of focus) Operational Excellence Product/service leadership Customer intimacy Marketing position (figure 1.1) Business cycle ( Industry maturity curve)  Multi-dimensional construct of Policies rewards Practices or systems Processes Procedures Reward criteria Reward strategy  Total rewards model Compensation Benefits Work-life Effectiveness Recognition Performance management Talent development Strategic process Vision Vision Mission Mission Strategic objectives Strategic objective s Functional / operational strategy Operatio nal Strategy H R s HR Reward t strategy strategy r a t Strategic reward management in practice Steps Analyse  Internal + External environments  Existing reward arrangements  Needs of the business  Diagnose issues and problems Understand  Individual needs and preferences of employees Formulate  Formulate a reward philosophy Create  Total package that ensure financial and non-financial rewards are brought together Align  Ensure alignment with your HR strategy Implement  Plan and deliver, consistency is vital  Business life cycle Industry maturity curve Embryonic Growth Mature Ageing Start up; new product Acquire market share; find Consolidate position; Cost reduction; development new markets Become a low-cost Withdrawal from producer; Find and protect unprofitable market market niches segments Less emphasis on Continue to emphasize Attention on keeping Huge emphasis on transactional rewards long term incentives salary and perks benefits and salary competitive Stress on non-financial Catch up with salary and Bonuses oriented to Little attention given to rewards benefits productivity improvement long term growth, growth- oriented incentives  Remuneration Policy Statement of intent Purpose Application and scope Document control and versions Links to performance management and talent management Communication and extent of transparency  Discussion questions What steps are considered in when linking total remuneration and business strategy? What are all the components that should be included in a remuneration policy? Pre-reading for next week  Chapter 2: Job Roles and Competence, and  Chapter 3: Job Evaluation