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BUSI4413 – Compensation
Assignment 5&6
Chapter 6: Review Questions 3-4
3.
Why is there not more variation in core competencies between organizations? What does differ?
As stated in the textbook, most organizations use that same list of 20 core competencies. I think that this is likely because most of the popular competencies are essential for a successful workforce and business. Although organizations attempt to base their competencies off their mission and vision, most are still trying to run a successful business. Another reason I think that most organizations use the same of similar competencies, is the “don’t recreate the wheel” method. A lot of things in business is adopted from something that was previously successful. If
a one organizations in a similar industry has already designed their core competencies and it aligns well with your company, why wouldn’t you take them and tweak the specific activities or actions to your specific needs. If you take a close look at the top competencies, it makes sense that most organizations use them as they are what most employers would be seeking in their employees. Again, the book explains that the difference between the different organizations and their competencies are the actions associated with them that are related to the roles within the organization, and these are what create the competitive advantage. The Mission, vision and culture within the organization will influenced the competencies and which ones the organization choose to focus on. The organizations ability to think outside the box can also influence how standardized the competencies.
4.
If you were managing company’s compensation, how would you recommend that your company evaluate the usefulness of it’s job evaluation or person-based plans?
In order to achieve the next rank, employees must achieve a certain amount of required training,
have time-in experience, displayed potential of performing at the next rank, completed professional development, as well as have performed at a higher level than the majority. When the yearly ranking boards take place, employees supervisors sit down and compare employees in
a similar rank, and trade, to determine where each employee ranks based on all of the many variables mentioned above. They continue to try to tweak the ranking system as some argue that it can be biased based on popularity, but I feel as though it’s a fairly well rounded representation of the employees ability. It's important to design your compensation plan to support your mission. If you do this, your employees should be motivated to assist in getting you there. It’s also important to compare yourselves to similar organizations within the industry, and decide whether you are willing to pay
a higher amount to get the pick of the litter. As the textbook mentions, strive to maintain internal and external equity.
Chapter 7: Review Question #2 2.
What factors shape an organization’s external competitiveness?
As displayed in Exhibit 7.3 the following items shape external competitiveness:
If the labour market is screaming for employment, than the external competitiveness would be heightened as employers would need to differentiate themselves from their competitors. On the other hand, if there was a surge in technology that replaced the requirement for human resources, the competitiveness would lessen as employees would be forced to take whatever they were offered
due to the lack of jobs available. Market factors will of course influence the rate of employment needed to produce the demanded products, and the degree of competitiveness within your industry will effect the external competitiveness. Finally, the organizational factors will influence external competitiveness. If an organization is large and thriving, it may be able to offer that competitive edge of increased pay or benefits, where as if it’s a Mom&Pop shop with less than ten employees and minimal revenue, it would be unable to consider raising it’s wages. The more tech saavy the organization, the more likely that they will be required to pay higher than those without, and so on.
Case Question #2
2. What forms of pay would you recommend? Again, state your rationale.
Immediately, I would feel the need to research industry standards and competitors' different compensation offerings. Exhibit 7.1 displays an analysis of the market position of a company’s pay strategy for different jobs (both base pay and compensation). I would want to have that from any company offering comparable products. It’s also important to analyze the breakdown of base pay, benefits and other forms of compensation and compare to others. I would also review any Compensation surveys that I found related to the field of work.
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.107
.127
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