Q1 How past pay decisions become obstacles to future competitive advantages?

OBSTACLES TO FUTUREReducing Profit

High labor cost

Lack in downsizing decision

Lack in negotiation & Persuasion skills of management

Increasing Cost

Lack of automation

Lack in SCM process innovation

Stringent Govt Policies

Pension & Retirement benefits

Q2 Look at the factors that shape a

compensation strategy?

FACTORS

OBJECTIVES EXTERNAL ALLIGNMENT

INTERNAL ALLIGNMENT

EMPLOYEE CONTRIBUTI

ON

MANAGEMENT

Objectives Fairness Compliance Efficiency

Internal Alignment Comparison among the jobs or skill level inside a single organization Pertains to the pay rates for both employees during equal work and for

those doing dissimilar work.Affects all three compensation objectives.

External Alignment Refers to pay comparisons with competitors

Twofold effect on objectives - To ensure that pay is sufficient to attract and retain employees

- To control labour costs

Employee Contribution

How much emphasis should be there on paying for

performance ?

Directly affects employee attitude and behaviour. Performance based pay affects fairness.

Management

Means ensuring right people get the right pay for achieving the right objectives in the right way.

Q3 How to make a pay strategy more flexible & resilient?

Pay strategyRestructuring of : - Pension’s policies - Retirement benefits - On the medical & health care expenses

Negotiation with the govt. - Regarding pension & retirement benefits to be

launched by govt at all the levels - Equal and fair mandatory policies for all the firms

Laying-off of non performers & acquiring fresh talented

people in the management

Investment in R&D & Automation

Re- engineering - Focus on lean management - Effective new tech implementation for SCM

Improvement/changes in variable pay performance

Reducing cost & increasing productivity by: - LDP for workers - Effective utilization of land - Better sourcing of raw materials

Improving employee’s engagement activities

Queries !!!

Group No. 2 :

SIVA PRIYA SGARIMA KATIYARNIDHI JALANANSHUL MISHRARESHIKA KAUR KOHLI TUSHAR NEB