Rewarding performance: guiding principles, custom strategies

Guiding principles Human resource management strategy Formulating an HR strategy that fits the organizational context Vision/mission Culture Environmental realities Organizational realities Strategy Structure Human resource management strategy Aligning HR strategies across the organization Performance and rewards management Appendix: defining and evaluating organizational culture Organizational culture Generational culture National/ethnic culture Accomodating workforce cultural characteristics Performance management: guiding principles Criteria for producing motivation Knows what it is Able to do it Allowed to do it Wants to do it Defining and measuring performance across levels Performance management at the organization-wide level Performance management at the business unit/group/team level Performance at the individual level Rewards management: guiding principles Formulating a direct compensation strategy Formulating an indirect compensation strategy Executing the direct compensation strategy Base pay strategy Variable compensation strategy Indirect compensation strategy Non-monetary rewards strategy

Custom strategies Rewarding performance: executives and managers Who should determine how much and how executives are paid? The executive themselves Other employees Government and society Board of directors Shareholders Which of these perspectives is correct and who decides? Effective and defensible executive compensation programs Executive compensation programs that should be avoided Establishing an acceptable executive compensation strategy Technical program design issues The level at which performance is defined, measured and rewarded How performance criteria and standards are selected and weighted for relative importance The timeframe used for defining, measuring and rewarding performance Reconciling the interests of the organization and of executives and managers Performance and rewards management for other management personnel Rewarding performance: professionals Rewarding performance: operating and administrative support personnel Rewarding performance: sales personnel What is different about professional personnel? What impact do these characterisitcs have on managing performance and rewards? Role definition and career management Performance management Rewards management Technicians: a special case? Strategies across national borders Rewarding performance: operating and administrative support personnel Performance management Rewards management Single rate base pay system Time-based base pay system Performance-based pay system Rewarding performance: part-time/temporary employees and contractors Rewarding performance: sales personnel Developing a performance and rewards management strategy for sales personnel Defining the roles within the sales function Mix of base and variable compensation Determining competitive position relative to the market Critical administrative issues Implementation Administration Evaluation Compensating sales support personnel Compensating sales management Compensating international sales personnel Rewarding performance: teams Performance and rewards management for work (process) teams Performance and rewards management for project teams Performance and rewards management for parallel teams Rewarding performance: public sector and not-for-profit organizations Performance management Rewards management Time-based pay What are the alternatives to time-based pay? Rewarding performance: global workforces Hypotheses about the impact of culture on performance management Evaluating performance appraisal system effectiveness Hypotheses about the impact of culture on rewards management Evaluating the effectiveness of rewards strategies The HR function's role in performance and rewards management

Strategy integration

Managing performance

Managing rewards: base pay

Managing base pay

Merit (job-based) pay

Person-based pay

Administering base pay programs

Timing of pay actions

Administrative controls utilized

Customized versus consistent base pay programs

Managing rewards: variable compensation

Characteristics of variable compensation

Where variable compensation plans fit

Individual plans

Group plans

Organization-wide plans

Variable compensation plan design issues

Plan objectives

Type of plan

Eligibility

Formula for determining award funds

Formula for allocating funds

Form and timing of awards

Plan administration

Plan implementation

Administrative issues

Evaluating plan effectiveness

Prerequisites for variable compensation plan success

When is a plan likely to fail?

Evaluating strategies and administering programs

Designing the instrument panel for evaluating programs

Evaluating programs using the model

Program objectives

Program methodology and process

Determining the business impact of program modifications

Performing evaluations

Applying the evaluation results

A major decision: is application of policy variables at the individual level?

Sustaining strategies: facing into the future

Alternative rewards strategies

Evaluating future workforce viability

Attract the right people

Develop people appropriately

Maximize the available supply of human resources

Maximize workforce productivity

Disseminate knowledge effectively

Redesign the organization and employee roles

Manage losses due to retirement

Manage losses due to turnover

Outsource work the organization cannot do efficiently of effectively

Conclusion.