Hrm Homework

6578 Words27 Pages
corporate policy that specifies how training, performance management and reward systems might integrate career-planning considerations. What steps can a company take to align its compensation system with its general business strategy? Today's compensation approaches, like the rest of the business world, are changing rapidly. As a result, the bridge that connects compensation strategy to the overall business strategy may have been weakened by the frequent shifts that characterize business today. The pace of change in both business strategy and compensation design are leading many companies to consider and implement changes to one side of the bridge without making changes to align it with the other side of the bridge. As a result, the…show more content…
* How many new people needed to be hired? * What are the desired background and experience required to do the job? * Were the new roles clearly defined and articulated to the employees and the customers? * How many of the new roles required team work versus individual contribution? * How will the company know when it is attaining its goals? * And will cash be the only or the primary means of recognizing the attainment of individual and company goals? Without answers to these questions, the company's HR and compensation professionals would be unable to develop the people systems, particularly compensation systems that would support the achievement of the company's strategic goals. Choose the right compensation approach Once compensation professionals have a strong grasp of the business strategy and its associated goals and objectives, the next step in this process is to design reward systems that will support and reinforce that strategy, goals, and objectives. This is where companies seem to be swayed away from choosing the most appropriate compensation approach in favor of the most popular or trendy compensation approach. Does it make sense to change the compensation system to a broad banded approach, to use team incentives, or to link financial goals to external
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