The Pay System

1
The Pay System

• Techno MBA??
• ? ? ?

2
COMPENSATION

• External Influences On Pay
• Economy Product and Labor Market
• ??? ?? ?? ?? lt-gt ?? ??? ?? ?? ?? ??
• Government Regulations
• ????, ????, ????, ????, ???? ?
• Unions
• ?? ??? ? ??? ??
• Organization Influences On Pay
• ??? ??? ??? ? ???? ????
• Employee Characteristics
• ???? ??? ?? ??? (??, ??, ??)

3
The Pay System

• Multiple Forms Of Pay
• ???? ??, ??, ???, ???
• ???? ????, ??, ????, ????, ??
• ???? ?? ?? ? ?? ???, ??? ????
• Multiple Pay Objectives
• Improve Productivity and Customer Satisfaction
• Control Costs
• Treat Employees Fairly
• Comply With Laws
• Enhance individual and/or team performance

4
The Pay System

• Pay Policy Decisions
• External Competitiveness
• ??? ??? ???? ??? ??? ??? ??
• ??? ??? ?? ??? ???? ???? ??? ??? ????? ??
• Internal Alignment
• ????, ??, ?? ??
• Employee Contribution
• ????, ?? ??
• Implementation
• ???? ?? ?? ? ??
• Balancing Policy Decisions
• ??? ??

5
External Competitiveness

• ????? ???? ?? ???? ??? ??
• ????
• ????? ??? ???? ???? ??? ????
• ??????? ???? ?? ???? ??
• Measure the Market
• ?? ??
• Conducting a Survey
• ??? ??, ???? ???? ??
• ??? ??? - ??
• ?? ?? ??

6
External Competitiveness

• Relevant Market
• ??? ??, ??, ??? ???
• Key Jobs
• ??? ??? ???
• ?? ??? ??? ??
• ?? ??? ?? ????? ???
• ???? ????? ??
• ???? ???? ??? ??
• Survey Result
• ?? ??
• ?????

7
External Competitiveness

• What Pay Level to Set?
• Match ?? ? ??
• Lead ?? ? ??? ???, ??? ???, ?? ????? ? ?? ?? ??
• Lag ?? ??, ?? ?? ??
• Translating Pay Level Policy into Practice
• Lag
• Lead/Lag
• Lead

8
Internal Alignment

• ????? ??? ??? ???, ???, ??, ????? ??
• ????? ???? ? ?? ?? ??? ????
• ??? ??, ??, ??, ?? ? ?? ?? ??????
• ?? ??? ??????? ??? ???? ????
• Egalitarian Versus Hierarchical Structures
• ???? ?? ???, ?? ?? ??
• ???? ?? ???, ?? ?? ??
• Designing a Job-based Structure Job evaluation
• Ranking ??? ???
• Classification ??? ??, ???? ??
• Point Methods ?? ?? ??

9
Internal Alignment

• ???
• ????
• ???? ?? ??
• ? ??? ???? ???? ???
• Compensable Factors
• ????, ??? ??, ??? ??, ???, ??? ??, ????, ??, ????
• ???? ??
• ???? ??
• ?? ???
• ?? ??? ??? ??

10
Internal Alignment

• Skilled-Based Structures
• ?? ?? ??? ??
• ??? ?? ??? ?(?)
• Competency-Based Structures
• ?? ??? ??? ???? ?
• Market-Based Structures
• ?????? ??
• Building Bureaucracies?
• ????

11
Paying Individual Employees

• Employee Contribution
• ????? ? ??? ??? ??? ????
• ??? ??? ??? ? ????
• ??? ?? ?? ?? ?????
• Should Employees be paid differently?
• ??? ??? ?? ?? gt ?????, ???? ??
• ???? ?? gt ??, ??? ?? ??? ??
• Flat Rates
• ?? ?? ???? ????, ??? ??? ???, ???? ??
• Pay Ranges
• ???? ??? ?? ??? ??
• ??, ??, ??? ?? ?? ??? ??, ????, ??? ?????
• ???? ???? lt-gt ?? ?? ??
• Broadbanding
• ?? ?? ?? -gt ??? ??, ???? ??
• ??? ???? ????? ?? ???? ?? ??? ???? ??
• ????? ?? ??? ?? ?? ??? ??? ??

12
How to pay for Employee Contribution

• ? ?????? ??? ??(???, ????),
• ????(????, ????)
• ??? ???? ?? ??
• ???? ???? ???? ??? ??
• Merit Pay
• ??? ?? ??
• ??/??? ??? ???? ???? ??
• ????? ??? ??????? ???? ???? ?????
• Is Merit Mismanaged?
• ?? ????? ????
• ??, ???? ?? ?? ??? ?? ??
• ?????? ??? ??
• ????? ????? ?? ??? ?? ?? ???, ???? ??? ??
• ?? ?? ??
• 5??? ??? ??? ?? ?? ???? ??? ?? ????? ??

13
How to pay for Employee Contribution

• Individual Incentives
• ????? ????, ????? ??? ??? ???? ??
• ????? ?? ??? ??? ??? ???? ??? ?
• ??? ????? ??? ????? ?
• ??? ????? ?? ??? ???? ?? ???? ?
• ???
• ??? ??? ?? ??
• ??? ???? ??(????, ??????)
• Team Unit Based Plan
• ??? ??? ???? ??? ? ?? ???? ??
• Gainsharing
• ??? ??, ????? ?? ????
• Profit sharing
• ????? ?? ????

14
How to pay for Employee Contribution

• Gainsharing
• ??? ?? ?????, ??? ???? ??? ??,
• ???? ???? ???? ??, ??? ???? ???
• ????? ?? ????? ????? ???? ????
• ?? ???? ???,??? ???
• ???? ?? ???? ???? ??? ??? ????
• Gainsharing ???(???) ??(????) ??? ??(??)
• Stars, Loafers, Free Riders
• Profit Sharing and Bonus Plans
• ??? ??? ???? ??? ?? ??
• ?? ??? ???? ??? ??? ?? ??

15
Does Paying For Employee Contributions Pay off?

• Pay For Performance Affects Equity
• Leverage ???? ? ??? ??
• Risk ??? ???? ????? ?? ??
• Procedural justice ??? ???? ???? ??? ???
• ??? ??? ??? ???, ??? ?? ??? ??
• The Dark Side of Variable Pay
• ??? ??? ?????? ???
• Pay For Performance Affects Efficiency
• ??? ??? ???? ??? ??????
• ??? ? ??? ? ??

16
Pay Implementation

• Gaining Acceptance
• ???, ???? ???, ????? ??? ?????
• Ensuring Legal Compliance
• ??? ??? ?? ??
• ????, ??????, ??????, ????
• ???? ???
• ????? ??? ??
• Comparable Worth
• ????
• ????? ??? ??
• ??? ??? ?? ??? ????
• Special Group
• ??, ?? ????, ????

17
International Pay System

• Comparing Wages and Productivity
• ??? ???, ????
• Comparing Systems
• ??? ???
• Global Snapshots
• ??? ????
• Expatriate Pay
• ??, ??, ????, ??? ??
• ????? ??
• ??? ??

18
SUMMARY

• ????? ????? ??????
• ???? ??? ??? ??? ????
• ???? ?? ??, ??? ?? ??
• ??

19
Thank you