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STRATEGIC COMPENSATION SYSTEM
Index Introduction to compensation Components of compensation Types of compensation Need of compensation management Strategic compensation
INTRODUCTION TO COMPENSATION
Evolution of strategic compensation
Importance of compensation
1) Evolution of strategic compensation
2) Importance of compensation An ideal compensation system will have
positive impact on the efficiency and results produced by employees.
Solves disputes between the employee union and management.
It will enhance the process of job evaluation.
It aims at creating a healthy competition among them and encourages employees to work hard and efficiently.
The sound compensation system is hallmark of organization’s success and prosperity.
Every employee would be able to compute his own compensation receivable.
It will raise the morale, efficiency and cooperation among the workers. It, being just and fair would provide satisfaction to the workers.
Such system would help management in complying with the various labor acts.
The business organization can think of expansion and growth if it has the support of skillful, talented and happy workforce.
COMPONENTS OF COMPENSATION Job – analysis Pay structures Salary surveys
Job analysis
Salary surveysPay structure
1) Job - analysis
2) Pay structure
3) Salary surveys Meaning of salary surveys
Objective of salary surveys
Types of salary surveys
Types of salary surveys
TYPES OF COMPENSATION Direct compensation
Indirect compensation
1) Direct compensation
2) Indirect compensation
NEED OF COMPENSATION MANAGEMENT
STRATEGIC COMPENSATION
MORGAN STANLEY CASE STUDY In 1993, when terrorists attacked the World
Trade Center for the first time, financial services company Morgan Stanley learned a life-saving lesson. It took the company 4 hours that day to evacuate its employees, some of whom had to walk down 60 or more flights of stairs to safety.
Morgan Stanley took a close look at its operation, analyzed the potential disaster risk and developed a multi-faceted disaster plan.
On September 11, 2001, the planning and practice paid off. Immediately after the first hijacked plane struck One World Trade Center, Morgan Stanley security executives ordered the company's 3800 employees to evacuate from World Trade Center buildings, Two and Five. This time, it took them just 45 minutes to get out to safety!
Stanley offered grief counseling to workers and increased its security presence.
It also used effective communications strategies to provide timely, appropriate information to management and employees, investors and clients, and regulators and the media.
In making a commitment to prepare its most valuable asset, its people, Morgan Stanley ensured the firm's future.
Sources of information www.davidmaister.com/blog/548/
Compensation-Systems en.wikipedia.org/wiki/
Alternative_compensation_system www.hr-guide.com/data/G400.htm
Book - Compensation: theory, evidence, and strategic implications - Barry A. Gerhart, Sara Rynes - 2003
THANKYOU
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