Folly of Rewarding “A” while hoping for “B” – Giving the employees rewards for hoping more work is done.
Intrinsic/Relational – satisfy higher level needs for self-esteem and development. Recognition & status, employment security, challenging work, learning opportunities
Extrinsic/Transactional – Satisfy basic needs for survival and security. Benefits include income protection, allowances, and work/life focus. Cash compensation includes long-term incentives, short-term incentives, and merit costs of living.
Before a company starts developing its compensation system, it needs to establish a reward strategy. This is a mix of rewards both extrinsic and intrinsic, ...view middle of the document...
Employee contributions – relation emphasis placed on employee performance
Indirect forms of pay – benefits, paid time off, tuition reimbursement, day care assistance
Strategic HRM – high involvement approach
Corporate Strategy – Miles and Snow Typology – defender, prospector, analyzer
Defender business strategy – focuses on dominating a narrow product or service market segment.
Prospector Business strategy – identifying and exploiting new opportunities quickly.
Analyzer business strategy – exploiting new opportunities at a relatively early stage while maintaining a base or tradition
Porters Typology – Business strategies can be categorized along 2 dimensions, based on whether the firm is seeking to be the low-cost producer of standard products or whether it is attempting to differentiate itself by having unique products or services.
- Low-Cost strategy- depends on providing low cost product or services to a broad range of customers.
- Focused Low cost strategy – depends on providing low-cost products or services to a narrow range of customers.
- Differentiation strategy – depends on providing unique products or service to a broad range of customers.
- Focused differentiator business strategy – providing unique products or service to a narrow range of customers.
3 Managerial Strategies:
1) The classical managerial strategy – believe that people are inherently lazy, dislike work, and would prefer to get as much as they can from a work relationship while giving as little as possible
2) The human relations managerial strategy – most employees dislike work, but they can be induced to work in order to satisfy their social needs.
3) The high involvement managerial strategy – work can be intrinsically motivating if the organization is structured properly.
They each represent a particular combination of structural variables that has proved to be successful in the right circumstances.
Time and Motion studies – is a business efficiency technique combining the time study work of Frederick Winslow Taylor with the Motion study of Frank and Lillian Gilbreth. Ex. Look closely at what you’re doing, spot opportunities to be more efficient, make a change to the way you work to do it, see if it produces the expected results, redo it.
Organizational structure – the means through which an organization generates the behaviours necessary to execute its business strategy.
Organizational/Product life cycle – decline phase (lowest-cost or differentiation strategies)
Relationship between managerial strategy and organizational structure
The relationship between the two is that organizational structure is based off of the three managerial strategies because they show what employees like to do in the organization.
Relationship between managerial strategy and rewards
Rewards can be given to employees to help motivate them to work based off the three managerial strategies.