Pay is an important management issue in many organizations, which increasingly have been focusing on how wages can be used as a management tool. Today, the vast majority of managers perceive each employee as a resource to be developed to increase the company's potential value.
In this context, there has been a shift from considering salary as an expense, to see salary as a means to motivate employees to continually develop and improve their performance. The focus is more on how a systematic salary policy can help to support a company's strategic goals, culture, and value creation.
Determination of the salary policy is also an important management tool in relation to ensuring recruitment, retention, and development of staff. Follow PROBANA at Facebook!
Recruitment, retention, and development of employees is always an important management task for companies to ensure that they have the right human resources who are motivated to make an effort and carry out the company’s core tasks.
It is not only an important issue in boom times, but also a general management issue to be handled to ensure the company creates maximum value and efficiency in order to be competitive. Follow PROBANA at Facebook!
A Mini MBA from PROBANA helps to clarify how management can use pay structure as a management tool for achieving the company's strategic objectives while promoting a specific employee behavior, and what considerations management should make when working with strategic reward management.
The Mini MBA will briefly clarify what is meant by the concept of reward management and how companies through performance pay can affect employee behavior. The Mini MBA will deal with different pay strategies and illustrate the effect of these on the basis of case study examples. Moreover, Total Reward Management will be included, a management concept that goes a step further in reward strategy by involving a wider reward basis than just salary and other financial benefits in the reward of employees.
The main focus of the chapter will be on how strategic salary determination may be the basis for performance management and employee behavior and what considerations are important to make when working with reward management.