Post on 15-Nov-2014
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Q1 How past pay decisions become obstacles to future competitive advantages?
OBSTACLES TO FUTUREReducing Profit
High labor cost
Lack in downsizing decision
Lack in negotiation & Persuasion skills of management
Increasing Cost
Lack of automation
Lack in SCM process innovation
Stringent Govt Policies
Pension & Retirement benefits
Q2 Look at the factors that shape a
compensation strategy?
FACTORS
OBJECTIVES EXTERNAL ALLIGNMENT
INTERNAL ALLIGNMENT
EMPLOYEE CONTRIBUTI
ON
MANAGEMENT
Objectives Fairness Compliance Efficiency
Internal Alignment Comparison among the jobs or skill level inside a single organization Pertains to the pay rates for both employees during equal work and for
those doing dissimilar work.Affects all three compensation objectives.
External Alignment Refers to pay comparisons with competitors
Twofold effect on objectives - To ensure that pay is sufficient to attract and retain employees
- To control labour costs
Employee Contribution
How much emphasis should be there on paying for
performance ?
Directly affects employee attitude and behaviour. Performance based pay affects fairness.
Management
Means ensuring right people get the right pay for achieving the right objectives in the right way.
Q3 How to make a pay strategy more flexible & resilient?
Pay strategyRestructuring of : - Pension’s policies - Retirement benefits - On the medical & health care expenses
Negotiation with the govt. - Regarding pension & retirement benefits to be
launched by govt at all the levels - Equal and fair mandatory policies for all the firms
Laying-off of non performers & acquiring fresh talented
people in the management
Investment in R&D & Automation
Re- engineering - Focus on lean management - Effective new tech implementation for SCM
Improvement/changes in variable pay performance
Reducing cost & increasing productivity by: - LDP for workers - Effective utilization of land - Better sourcing of raw materials
Improving employee’s engagement activities
Queries !!!
Group No. 2 :
SIVA PRIYA SGARIMA KATIYARNIDHI JALANANSHUL MISHRARESHIKA KAUR KOHLI TUSHAR NEB