MGMT1135 Midterm: MGMT1135_ Revision Notes Week 12
Document Summary
(1) what to pay employees (decided by establishing a pay structure); (2) how to pay individual employees (decided through variable pay plans and skill-based pay plans); (3) what benefits and choices to offer (such as flexible benefits); and. (4) how to construct employee recognition programs. The concept of pay is not simple. The income of salaried senior management may be straightforward, but when it comes to the executive level things become tricky. A significant proportion of a senior executive"s remuneration package is often made up of long-term incentives. It might show that employee x received a salary of ,000, plus. ,000 in short-term incentives and ,000 in long-term incentives. But as the ,000 is based on performance, they may never receive it. The worth of the job to the organisation [usually established through a technical process called job evaluation] The external competitiveness of an organisation"s pay relative to pay elsewhere in its industry [usually established through pay surveys]
