ORGB 423 Lecture Notes - Lecture 13: Equal Pay For Equal Work, Tim Hortons, Market Basket
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Lecture 13
Remember*: Not all success is defined as profit.
• E.g. Designing the cap and trade for EDF, in the ivey league case
Industrial benchmark information for EDF:
• High-Tech Companies:
• Envt. NGO Sector:
o 4.6% of Boards of Directors had ethnic minorities
Rest of the class is assignment 4, due next class
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Lecture 14 – Rewarding Talent: Designing Compensation
Systems 1
Strategic Compensation
Links the compensation of employees to the mission, objectives,
philosophies, and culture of the organization
Common Strategic Compensation Goals
1. To reward employees’ past performance:
o The Atlantic article shared results of survey that found that
employees think it fair to base compensation on
performance
2. To remain competitive in the labour market
3. To maintain salary equity among employees
4. To mesh employees’ future performance with organizational goals
5. To control the compensation budget
6. To attract new employees
7. To reduce unnecessary turnover
Motivating Employees through compensation:
• Pay equity: An employee’s perception that compensation received
is equal to the value of the work performed
o Defined as distributive fairness
Relationship between equity and motivation
• Feeling of Being Underpaid/Inequity: Your Input/output is way
more than another person’s input/output
• Equity: Your input/output equals to comparison person’s
input/output
• Feeling of Being Overpaid/Inequity: Your input/output is less
(smaller) than another person’s input/output.
Expectancy Theory: A theory of motivation that holds that employees
should exert greater work effort if they have reason to expect that it will
result in a reward that they value.
• E.g. You worked hours on assignment 3, and you expect to receive
a grade that will reflect that effort (a good grade)
Determining Compensation
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Document Summary
Remember*: not all success is defined as profit: e. g. Designing the cap and trade for edf, in the ivey league case. Industrial benchmark information for edf: high-tech companies, envt. Ngo sector: 4. 6% of boards of directors had ethnic minorities. Rest of the class is assignment 4, due next class. Links the compensation of employees to the mission, objectives, philosophies, and culture of the organization. Motivating employees through compensation: pay equity: an employee"s perception that compensation received is equal to the value of the work performed, defined as distributive fairness. Expectancy theory: a theory of motivation that holds that employees should exert greater work effort if they have reason to expect that it will result in a reward that they value: e. g. You worked hours on assignment 3, and you expect to receive a grade that will reflect that effort (a good grade) Internal factors (depend on: employer"s ability to pay is an important one, e. g.