Compensation Management-WILLAMETTE INDUSTRIES pay at risk.pptx

7/30/2019 Compensation Management-WILLAMETTE INDUSTRIES pay at risk.pptx

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GROUP 3:

ANKITA SHARMA-121309

HEMLATA JESWANI-121321

PREETI NERLEKAR-121337


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ABOUT:

Paper and wood products

Market leader

Large diversified group

INDUSTRY:

Cyclical industry

Competitive

Highly capital intensive

ORGANISATIONAL STRATEGY:-Integration and self

sufficiency

-Quality focused

-Low cost

ORGANIZATIONAL CULTURE:-Autonomy

-Employee oriented

-Good to shareholders

WILLAMETTE

INDUSTRIES


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Lead or match

the market

Attraction

Retention

PAYPHILOSOPHY


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Behavior

based

Senioritybased

PAYASSESMENT


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Monetary

benefits

Non-monetarybenefits

PAY FORM


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Decentralized

DynamicPAY PLANDESIGN


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TotalRewards

TotalCompensation

CashCompensation

BasePay

MeritPay

Benefits

Retirement

plans

StockPurchaseOptions

RelationalReturns

Employment

Security

Challengi

ngWork

Learning

Oppor

tunities


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ORGANISATIONAL STRATEGY.. COMPENSATION STRATEGY..

Customer centric

Quality focused Low cost

No per sale incentive

No short term

incentives


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Why long termincentives ? Why not short termincentives?

Inter dependent natureof industry

Cyclical nature of the

industry. Capital intensive with

long term investments.

Encouragement of longtenure of the

employees. Easy to understand and

administer.

Conflicts betweendifferent business units.

No individual control.

ROI cannot be measuredin short term.

May bring in a feeling ofinsecurity andinstability.

Difficult to measureindividual employeeperformance.


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With the pressure for incentive pay growing

from outside the organization; should it

redefine its pay practices?


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The organization should not redefine its pay

practices..

Why should it not do so ?

a) The nature of the industry does not supportthe pay practices followed by the

competitors.

b) Employees are satisfied with the current

compensation system.


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Maslows hierarchy theory


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Herzberg

Theory

Hygiene

FactorsSatisfiers


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Principles of Dynamic Pay1. Aligning of compensation with the organizations

culture, values and strategic business goals

2. Integrate pay with other people process

3. Democratize the pay process

4. Demystify compensation

5. Measure Results

6. Refine. Refine again. Refine more


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There is no one size fits all strategy

Short term incentives are not always the only way tomotivate employees

The alignment of compensation strategy to thecorporate strategy is a key determinant in the

success of the organization.

When changing its compensation strategy, anorganization should consider both internal and

external factors affecting it.


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Compensation Management-WILLAMETTE INDUSTRIES pay at risk.pptx