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

By Jonathan Trevor

Pay is a key portion of the employment courting and it's been encouraged by means of a few lately as a device for boosting organizational functionality and sustained competitiveness. This ebook explores the realities of latest pay administration in seven top businesses working globally within the fast paced patron items quarter.

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Extra resources for Can Pay Be Strategic?: A Critical Exploration of Strategic Pay in Practice

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However, these configurations of HR practice may not suit all modes of strategic management. High commitment HR systems require an extensive investment of time and finance, and appear contrary to a competitive strategy emphasizing cost minimization as the primary means of competitive advantage. Accordingly, one might envisage a multi-divisional structured organization, with each division competing in a distinct product market/ functional area that requires (according to the orthodox doctrine of SHRM) the practice of different modes of HRM.

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.

Legge, 1995). Models espoused by the strategic management theorists at the normative level ascribe prescriptions that have received little empirical verification (Legge, 2001). It is not clear that these higher order features of the organization are any more tenable conceptually than the belief and aspiration for control (Legge, 1995). Similarly, much of the rhetoric of normative models of HRM emphasize the maximization of employee contribution through ‘soft’ HRM practices, high commitment work systems and high involvement work systems of the sort discussed already.

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