Can Pay Be Strategic?: A Critical Exploration of Strategic by Jonathan Trevor

By Jonathan Trevor

Pay is a key section of the employment courting and it's been encouraged by way of a few lately as a device for boosting organizational functionality and sustained competitiveness. This publication explores the realities of up to date pay administration in seven top businesses working globally within the fast-paced purchaser items area.

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Rynes and Gerhart (2000) illustrate a top- down model of alignment between corporate strategy, business strategy and functional strategies, including HR and reward strategies. Corporate strategic decisions are choices concerning product strategies, industries in which the organization is to compete, and the choice of what to offer to market. Business strategy, taking a lead from the corporate strategy, is the means by which the organization differentiates itself from competitors. While two companies may compete within the same product market, each may pursue a different business strategy as a means of enhancing their competitiveness and extracting maximum rents from the finite financial capacity of the market.

Implicit within the highly pervasive notion of the value chain model is the one-dimensional nature of the causal linkage between the elements comprising the chain. The value chain model does not incorporate sufficient provision to recognize the array of mediating variables that influence performance, the dependent variable, nor the complex interactions that occur at different levels between the elements of the value chain (Wright and Nishii, 2004). Strategic pay interventions are, for example, necessarily formulated at the level of the organization.

1996), referenced in Stiles and Kulvisaechana (2003). 5 Summary of human resource best practices (identified within extant literature) idea that practices within it are interrelated and internally consistent, and that “more is better” with respect to the impact on performance, because of the overlapping and mutually reinforcing effect of multiple practices’. This view emphasizes the need for strong consistency among HR practices (internal fit) in order to achieve effective performance, for which there is much empirical support (Huselid, 1995; Delaney and Huselid, 1996; Arthur, 1994; Pfeffer, 1994; MacDuffie, 1995).

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