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Strategic Reward Systems I

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Holostik India Ltd.
Holostik India Ltd.

The document discusses various reward systems and theories related to compensation. It covers the key elements of reward systems including base salary, incentives, and benefits. It also discusses equity theory, agency theory, tournament theory, and controversies surrounding pay for performance plans. Some suggestions are provided for more effective pay for performance plans including loosely coupling pay and performance and designing plans to fit each firm's unique situation.

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Strategic Reward Systems I HR Management MBAO 6030
Strategic Reward Systems I: Pay for Performance ,[object Object],[object Object],[object Object],[object Object],Reward Systems consist of the following elements: Reward Systems consist of the following elements: Non-financial Rewards 1. Intrinsic Rewards – centers on the work itself 2. Praise, recognition, time off and other rewards given to the employee by peers or superiors.
Strategic Reward Systems I: Pay for Performance ,[object Object],[object Object],[object Object],[object Object],[object Object]
Strategic Reward Systems I: Need for Consistency with Other HR Systems Culture Performance Management Employment Training Labor Relations Rewards Overtime pay rules in contract Sign-on Bonus Merit Pay Merit pay reinforces performance culture Skill-based pay
Strategic Reward Systems I ,[object Object],[object Object]
Theoretical Models of Pay and Performance: Equity theory (Adams, 1963) ,[object Object],[object Object],[object Object],[object Object]
Theoretical Models of Pay and Performance: Equity theory (Adams, 1963) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Equity Theory – Exchange Scenarios ,[object Object],[object Object],[object Object]
Consequences of Inequity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Equity Theory Implications ,[object Object],[object Object],[object Object],[object Object]
Agency Theory ,[object Object],[object Object],[object Object]
Agency Theory ,[object Object],[object Object],[object Object]
Agency Theory ,[object Object]
Agency Theory ,[object Object]
Agency Theory ,[object Object]
Agency Theory ,[object Object]
Tournament Theory ,[object Object],[object Object],[object Object]
Tournament Theory ,[object Object],[object Object]
Controversies that Surround Pay for Performance Plans ,[object Object]
Controversies that Surround Pay for Performance Plans ,[object Object]
Controversies that Surround Pay for Performance Plans ,[object Object]
Controversies that Surround Pay for Performance Plans ,[object Object]
Controversies that Surround Pay for Performance Plans ,[object Object],[object Object]
Controversies that Surround Pay for Performance Plans ,[object Object]
Some Suggestions for More Effective Pay For Performance Plans ,[object Object]
Some Suggestions for More Effective Pay For Performance Plans ,[object Object]
Some Suggestions for More Effective Pay For Performance Plans ,[object Object]
Six Myths about Pay (Pfeffer, 1998) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Critical Thinking Questions ,[object Object]
Critical Thinking Questions ,[object Object],[object Object],[object Object]

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Strategic Reward Systems I

  • 1. Strategic Reward Systems I HR Management MBAO 6030
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  • 4. Strategic Reward Systems I: Need for Consistency with Other HR Systems Culture Performance Management Employment Training Labor Relations Rewards Overtime pay rules in contract Sign-on Bonus Merit Pay Merit pay reinforces performance culture Skill-based pay
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