HRM 2600 Chapter Notes - Chapter 9: Performance Appraisal, Ath, Scatter Plot

• School: York University
• Department: Human Resources Management
• Course: HRM 2600
• Professor: Christa Wilkin

Document Summary

Strategic compensation compensation of employees in ways that enhance motivation and growth while aligning their efforts with the objectives, philosophies, and culture of the organization. Firms are forced to change their pay philosophies from paying for a specific job position to also rewarding employees on how well their individual competencies and work contributions lead to organizational success. Reasons for a strategic compensation policy include to: Pay equity a(cid:374) e(cid:373)plo(cid:455)ee"s pe(cid:396)(cid:272)eptio(cid:374) that (cid:272)o(cid:373)pe(cid:374)satio(cid:374) (cid:396)e(cid:272)ei(cid:448)ed is e(cid:395)ual to the (cid:448)alue of the work performed. Equity theory explains how people respond to situations in which they feel they have received less (or more) than they deserve. Individuals form a ratio of their inputs (ksas) to their outcomes (salary, benefits) in a situation. 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.