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Chapter One Strategic Compensation: A Component of Human Resource Systems

summary definisi compensation

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111 views9 pages

Chapter One Strategic Compensation: A Component of Human Resource Systems

summary definisi compensation

Uploaded by

Maya Sari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Strategic Compensation: A Human Resource

Management Approach

Chapter one

Strategic
Compensation: A
Component of
Human Resource
Systems
Ninth Edition
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
Group 1 :

Reezha Alvha Guntara 09211950083004


Ade Noni R. 09211950093006
Maya Sari 09211950083001
Widia Yuliati Puspaningrum 09211950083007
Yustina Aldiast Ithrisa 09211950083012
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
Learning Objectives
1.1 Define strategic compensation.
1.2 Summarize the role of compensation as a strategic
business partner.
1.3 Explain strategic compensation decisions.
1.4 Identify and discuss the building blocks and
structural elements of strategic compensation
systems.
1.5 Describe the fit of the compensation function in
organizations.
1.6 Identify the stakeholders of the compensation
function and summarize their stakes in the work
compensation professionals perform.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
Learning Objective 1.1
Define strategic compensation.

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
What is Compensation?

Compensation represents the rewards


employees receive for performing their jobs.
These rewards are either:
1. Intrinsic compensation :
Reflects employees’ psychological mind
sets that result from performing their jobs

2. Extrinsic compensation :
Includes both monetary and non-monetary
(e.g., benefits) rewards
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
What Is Strategic Compensation?

Strategic Compensation refers to the design


and implementation of compensation systems to
reinforce the objectives of both HR strategies
and competitive business strategies.

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
Competitive Business Strategy
1. The planned use of company resources
• Financial capital
• Equipment capital
• Human capital
2. Multiple years of time span
3. Competitive strategy choices
• Lowest cost strategy
• Differentiation strategy

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
Human Resource Strategies
The use of multiple HR practices to reinforce competitive
business strategy, for example:

We (Eli Lilly) are a global healthcare leader


headquartered in Indianapolis, IN. Our 39,000
employees around the world work to discover and
bring life-changing medicines to those who need them,
and improve the understanding and management of
disease.

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
Relationship Between Strategic Decisions
and Compensation Practices

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.

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