Chapter Two

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Chapter Two

• Strategic Compensation in Action Strategic
  Analysis and Contextual Factors

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Table 2-1NAICS Sectors (1 of 2)
Code NAICS Sectors 11 Agriculture, Forestry,
and Hunting 21 Mining 22 Utilities 23 Constr
uction 31-33 Manufacturing 42 Wholesale
Trade 44-45 Retail Trade 48-49 Transportation
and Warehousing 51 Information 52 Finance and
Insurance
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Table 2-1NAICS Sectors (2 of 2)
Code NAICS Sectors 53 Real Estate and Rental
and Leasing 54 Professional, Scientific, and
Technical Services 55 Management of Companies
and Enterprises 56 Administrative and Support
and Waste Management and Remediation
Services 61 Education Services 62 Health Care
and Social Assistance 71 Arts, Entertainment,
and Recreation 72 Accommodation and Food
Services 81 Other Services (except Public
Administration) 92 Public Administration
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Figure 2-1NAICS Code Elements
NAICS Code 33461
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3
4
6
1
Sector Manufacturing
Subsector Computer Electronic Product Mfg.
Industry Group Mfg. Reproduction of Magnetic
and Optical Media
Industry For example, Manufacture of Blank Video
and Audio Tapes
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Table 2-2Influences on Competitive Strategy (1
of 2)

• National Culture
• Power distance
• Individualism-collectivism
• Uncertainty avoidance
• Masculinity-femininity
• Organizational Culture
• Traditional organizational hierarchy
• Flatter organizational structures
• Team orientation

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Table 2-2Influences on Competitive Strategy (2
of 2)

• Organizational and Product Life Cycle
• Growth
• Maturity
• Decline

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Figure 2-2Traditional Organizational Structure
Chief Exec. Officer
President
Executive VP
VP HR
VP Mftg.
VP Finance
VP Accounting
VP Marketing
Director HR
Director Mftg.
Director Finance
Director Accounting
Director Marketing
Manager HR
Manager Mftg.
Manager Finance
Manager Accounting
Manager Marketing
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Table 2-3Designing Pay-for-Knowledge Programs

• Establishing Skill Blocks
• Skill type
• Number of skills
• Grouping of skills
• Transition Matters
• Skills assessment
• Aligning pay with the knowledge structure
• Access to training
• Training and Certification
• In-house or outsourcing training
• Certification and recertification

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Figure 2-3Broadbanding Structure and Its
Relationship toTraditional Pay Grades and Ranges
Grade E
Grade D
Annual Salary
Grade C
Grade B
Grade A
Band A
Band B
Low
High
Job Worth