2. New trends in CRM
Do due diligence: use of the best practices
Get senior management buy in
Focus on data quality from the onset: need to focus on
data quality and validation of information
3. Identify synergies across the organization: processes
should contribute in the financial development of the
organization
Companies trend towards the pay for performance
4. Concept of human capital
Human capital is the stock of competencies, knowledge
, social and personality attributes, including creativity,
embodied in the ability to perform labor so as to produce
economic value. It is an aggregate economic view of the
human being acting within economies, which is an
attempt to capture the social, biological, cultural and
psychological complexity as they interact in explicit
and/or economic transactions.
5. Determinants of intra and inter industry
differentials in compensation
Once job analysis has been done organizations need to
decide upon the pay structures. Pay structure refers to
the process of setting up the pay for a job in an
organization. The process deals with internal and
external analysis to estimate the compensation package
for a job profile. Internal equity, External equity and
Individual equity are the most popular pay structures.
6. Internal Equity
The internal equity method undertakes the job position in the
organizational hierarchy. The process aims at balancing the
compensation provided to a job profile in comparison to the
compensation provided to its senior and junior level in the
hierarchy. The fairness is ensured using job ranking, job
classification, level of management, level of status and factor
comparison.
7. External Equity
Here the market pricing analysis is done. Organizations formulate their
compensation strategies by assessing the competitors’ or industry
standards. Organizations set the compensation packages of their
employees aligned with the prevailing compensation packages in the
market. This entails for fair treatment to the employees. At times
organizations offer higher compensation packages to attract and retain
the best talent in their organizations.
8. Designing compensation for chief executives & senior
managers and knowledge workers
Executive pay (also executive compensation), is financial
compensation received by an officer of a firm. It is typically a
mixture of salary, bonuses, shares of and/or call options on the
company stock, benefits, and perquisites, ideally configured to
take into account government regulations, tax law, the desires
of the organization and the executive, and rewards for
performance .
9. Over the past three decades, executive pay has risen
dramatically relative to that of an average worker's wage in the
United States,[2] and to a lesser extent in some other countries.
Observers differ as to whether this rise is a natural and
beneficial result of competition for scarce business talent that
can add greatly to stockholder value in large companies, or a
socially harmful phenomenon brought about by social and
political changes that have given executives greater control
over their own pay
