By Raymond Lotta

The United States in Decline: An research of the advancements in the direction of struggle and Revolution, within the U.S. and world wide, within the Eighties

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Extra resources for America in Decline: An Analysis of the Developments Towards War and Revolution in the U.S. and Worldwide, in the 1980s

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All this can be done through reward and performance management. Pay level concepts There are a number of explanations of how levels of pay are determined and, therefore, the factors that need to be taken into account in deciding on the value of jobs and the design of grade and pay structures. Economic theories of pay and efficiency wage theory are perhaps the An Overview of Reward Management 23 more influential ones but there are other concepts such as human capital, principal agent theory, tournament theory and the effort bargain.

They provide a basis for defining a total rewards policy and for communicating it to employees. 2 is a matrix with four quadrants. The upper two quadrants – pay and benefits – represent transactional or tangible rewards. These are financial in nature and are essential to recruit and retain staff but can be easily copied by competitors. By contrast, the relational or intangible non-financial rewards represented in the lower two quadrants cannot be imitated so readily and can therefore create both human capital and human process advantage, as defined in Chapter 1.

Reward strategies These set out what the organization intends to do in the longer term to develop and implement reward policies, practices, processes and procedures that will further the achievement of its business and HRM goals. Reward policies These set guidelines for decision making and action. Reward practices These comprise the schemes, structures and techniques used to implement reward strategy and policy: for example, the policy on pay levels will lead to the practice of collecting and analysing market rate data, and making pay adjustments that reflect market rates of increase.

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