Professional Documents
Culture Documents
Jayendra Rimal
Support organizational mission and strategy through compensation strategy and tactics that integrate major organizational groups of employees. It is necessary for organizational leaders to understand how strategy and tactics interact and become integrated. The compensation system must be transmitted in a manner that is understood and accepted by all employees that they are contributing to the success and the organization is willing to share the revenues in an equitable manner.
DEVELOPMENT OF AN ORGANIZATION
Establishing a Philosophy Identifying the Mission Developing Policy Formulating Organizational Strategy Determining Goals and Objectives Defining Work Unit Activities Grouping Tasks into Jobs
DEVELOPMENT OF AN ORGANIZATION
The Philosophy Many do not have written ones but it describes the values of the top management. Critical to organizational success is the degree of congruence between members and company vales. Mission Describes in value-laden terms what the organizations hopes to accomplish in the long term and reasons for existence. Policy Broad guidelines for directing actions. Strategy This provides the foundation for future growth and development of the organization. It has to be realistic. Goals and Objectives These are result oriented statements that make the transition from strategic to tactical operations through the most effective and efficient means. Work Unit Activities Necessary to develop unit level functional statements. This helps in integrating objectives with that of the units. Worker Tasks Specific individuals are assigned identified tasks, duties and responsibilities.
Satisfaction Employees make decisions based on comparison with others, both in and out of the organization Job Satisfaction Pay and job satisfaction, although different, significantly influence each other. Organizational Satisfaction Some of the factors that promote this are security in employment, fairness in personnel decisions, accepting organizational philosophy
Satisfaction here means fulfillment of an obligation; is individual based and is a dynamic process, not a thing.
PAY RELATIONSHIP
Pay Equity fairness in pay is usually evaluated by asking How well does my pay compare with that other employees of my unit and the organization? But certain jobs pay better than other jobs with organizations differing in how much they pay they pay employees. This is the market-based economy.
Pay Ratios There must be a relationship between pay of all employees from top to bottom. Ratios of lowest to highest is 5:1; in the US it is much higher while in Nepal it is very high in some industries.
ANY QUESTIONS?