HRMN 395 Week 2 Discussion

HRMN 395 Week 2 Discussion | Assignment Help | University Of Maryland University College 

Week 2 Discussions & Learning Activities

Organizations must  decide a strategic question regarding their rewards. They have to decide how they want their total rewards (monetary, non-monetary, and the experience of working in the organization such as the values, potential for advancement, the job items, or training) to compare to their competition. Will they want to (and be able to afford to) meet the competition, exceed it, or will have have to lag it? Also the organization must determine what each position is worth to the organization. This is represented by the pay rate or salary of the position. We will look at what steps the organization should take to decide on what to pay for a position.

1.  Describe what you think is the market positioning (for total rewards) of two organizations who are competitors such as Home Depot and Lowes or Costco and Walmart. The market positioning is typically described as exceeding the competition in the rewards given, the same as the competition, or lagging the competition. At times the market positioning is complex in that it may be a mixed market positioning. For example, the compensation may be less than the competition but the benefits or the experience of working in the organization exceeds the competition. We see this at times in government, military, or non-profit organizations where the pay may be less, but the benefits and the mission of the organization is much more than other organizations.

2.  Organizations must also determine what the appropriate range of pay is for each position in the organization. Pretend your department has introduced a new position of office administrator that it will begin to recruit for soon. What, in your opinion, are three top elements to consider when setting the compensation (the wage rate or salary) for the position? Focus on only the compensation, not the benefits or other elements of total rewards. Note that the question is not asking what the specific rate of pay will be within the range that is set for the position for the person who is ultimately hired. The specific pay offered to the employee may be anywhere within the range set for the position and may be influenced by the amount of experience the person holds. We want to hear your thoughts on how the organization would set the value of the position reflected in the pay for the position, something you would have to do before consider hiring someone.