8. Globalization Impact
Moving Products and services across the national
boundary in seamless way
Greater Competition
Quick and Improve Customer Services
Advance IT system, Knowledge and Skills are the way to be
competitive today.
9. Cont’d
Organizations No Longer Afford Extensive Hierarchies
Individuals No Longer have Loyalty Contract
10. Need of Key Skills
• Demand more then Supply
• Hot Talent
• Negotiation
11. Diversity
Employee from different areas
Individual Differences
Reward System
Teams
Collective Response
13. Pay the person
For individual worth (knowledge, skills and
competencies) rather than for the value of a job they
perform.
14. Cont’d
Pay system based on job and job evaluation
Individual had stable duties.
Add considerable value due to high knowledge and
skills
Very dangerous and misleading to pay them according to
job worth rather then their individual worth.
15. Job and Job evaluation
Stable duties
Market value of individual
High level of knowledge and skills
Job worth
High level of performance
16. Payment method
According to market value
According to knowledge
According to skills
According to competencies
Considering the internal and external market labor into
account
More emphasize on external
17. Challenge in paying
individual
Developing good measure for
Their skills, knowledge and competencies
Measure Use by mostly organization,
Leadership and communication ability
Technical and business knowledge
18. Future perspective
Detailed intranet based description
Knowledge and skills to be effective
Knowledge and skills profile
19. Important objectives
Motivate individual to learn the skills and knowledge
Raise the pay of individual to become more valuable
Clearly key to developing pay system and retain valuable human
capital.
21. Reward Excellence
Through a pay for performance compensation that
establishes a clear relationship between a significant amount
of pay and attainment of organizational objectives.
22. Cont’d
Important way to attract and retain top performance.
potentially powerful motivator.
Partial substitute for traditional loyalty employment
relationship.
23. Cont’d
Traditional Evidence:
• Pay cannot be a motivator.
• Does not motivate the employees.
New Evidence:
• Does not support this view.
• Significance amount of pay and behavior.
24. Elements of reward
Career Long term
development incentive
Promotion
opportunities
Short term
incentive
Work/life
balance
Flexible
Base salary and
work
benefits
environment
25. Traditional Approach to Pay
for performance
Pay on the basis of merit.
Disadvantages:
• Failure approach
• Poor Measure
• Small changes in compensation
• No motivational impact
• Failure to retain high performance.
26. Pay for Performance Plan
Important for organization reward system.
Satisfy needs.
Reflect the Strategy, structure and business process.
Fits the characteristics of organization .
27. Variable Pay Plans
Profit Sharing
Stock ownership
Or
Variable Pay
Stock Option
Plan
Team/Group Incentive
28. Types: PSP
Cash plan
Deferred plan
Combination plan
29. Seniority-Based pay
system
Primarily Encourage individual to stay with the
organization
Don’t reward skill development or performance
effectiveness.
Don’t motivate individual to improve their skills or
perform effectively.
Fails to develop human capital or organization and
retaining the most valuable employees.
31. Individualizing the pay
system
To give employees choices in how they are rewarded and
what reward they receive.
32. Cont’d
One-size-fits-all approach
Give little choice
Homogeneous work force
Does not fit a divorce work force
33. One-size-fits-all
approach
With Diverse Workforce:
• Tremendous risk of giving individual reward.
• Negative consequences.
• Negative for motivation.
• Failing to reward with things that they value highly.
35. Reward and organizational
culture
Diverse workforce
Similarities and differences among employees.
Homogeneous workforce
Same type of job
Same condition
36. Strategic reward
Embrace everything that employees value in the
employment setting.
38. Alternative
Considerable amount of choice
Give option to individuals
Work simply for cash, having extensive benefits, or choose
the type of pay for performance system.
39. Advantages
Tailoring rewards to employees preferences
Greater Effectiveness
Retaining diverse workforce
Negative point
Create too diverse workforce that wants to establish a strong
unified Culture.
40. Cont’d
Organizations are,
• Moving towards a more diverse workforce.
• Becoming more global.
• Flexibility and individualizations.
