1 0 1 0 1 torkornoo, e. k. (2014). toc. a manual of compensation & total rewards management.update mode1.5

DRAFT. Table of Contents. A Manual of Compensation and Total Rewards Management By E. K. Torkornoo
COPYRIGHT@2011, 2014. E. K. TORKORNOO. All Rights Reserved. This material may not be stored, reproduced, transmitted, quoted, or used in
any form, format, part, or portion in any medium, mode, means without the express written permission of the author. For permission to use,
please contact the author, Mr. E. K. Torkornoo by Email: ekt2010associates@gmail.com; Or On Phone: +233-24-267-7015; OR +233-50-332-7127.
This version printed on Thursday, October 23, 2014 Page 1 of 61
A Manual
Of
Compensation And Total Rewards Management
By
E. K. Torkornoo, M.Sc.(Econs) (London)
Certified Compensation Professional (CCP)

Table of Contents

Section
Section Name
Topics / Sub Topics (Note: The topics are provided as an indicative guide to help understand the scope of the subject matter. Assessment will only be based on topics treated in class – Not on all the topics listed).
A.
Introduction, Importance, And ‘Hot’ Developments in Compensation & Total Rewards
1. Introduction, Importance, And ‘Hot’ Developments in Compensation & Total Rewards
1.1. Welcome To the ‘Hottest’ Field in Talent and Human Resource Management Today: Compensation and Total Rewards Management / Or Why Total Rewards Are Hot
1.2. Total Rewards: Strategic Route To The Top In HR, and Beyond
1.3. Total Rewards: The Most Comprehensive Approach To Talent Management
1.4. Pay For Performance: A Global Search For New Answers
1.5. Ghana’s Economic Survival: Percentage of National Budget Going To Pay Government Employees Salaries in Ghana: Risen Sharply To 70%; But Government Employee Want More
1.6. Ghana & The Single Spine Saga: Nobody Seems to Want To Get Married to The Single Spine
1.7. Ghana’s Failed Education System Gives Worse Results Even As We Spend More on Pay For Teachers: Problem With How (not How Much) We Pay Teachers
1.8. How Runaway Rewards And Incentives Contributed to The Global Financial Meltdown
1.9. Regulatory And Stakeholder Vigilance on Executive Compensation
1.10. Microsoft Drops Bell Curves and Stack Ranking Suspected as Causes of Weak Innovation, Poor Collaboration, etc.
1.11. Denominating Pay In Dollars: Lucky If You Get It in Ghana
1.12. The Age of Consolidation, Monetization, Dollarization, etc.
1.13. Global Labor In Search Of Petro-Dollars and Expatriate Assignments
1.14. What Do Employees Want: From Fried Rice Generation to Baby Boomers?
1.15. In Search Of The Magic Wand: From Job Satisfaction To Sustainable Engagement

Section
Section Name
B.
Working Definitions And Language of Compensation and Total Rewards
2. Working Definitions And Language of Compensation and Total Rewards
2.1. Beware of Arcane, Anachronistic, Ancient, And Amateur / Pedestrian Terminology And Usage
2.2. The Tower Of Babel Afflicting The Single Spine Pay Policy In Ghana
2.3. What Is Total Rewards? A WorldatWork Reference
2.4. WorldAtWork Glossary
2.5. Other Definitions in Rewards Surveys and Reports By Major Consulting Companies
2.6. Emerging Terms And Language of Rewards
2.6.1. Terms From The New World of Executive Compensation and Rewards
C.
The Context And Environment of Compensation and Total Rewards
3. The Context And Environment of Compensation and Total Rewards
3.1. Legal, Regulatory, And Governance
3.1.1. External Legal, Regulatory, And Governance
3.1.2. Internal Legal, Regulatory, And Governance
3.1.2.1. Board Oversight & Committees
3.1.2.2. Other Internal Governance and Regulatory
3.2. Economic Context of The Firm And Rewards
3.2.1. Competition, Profitability, Etc.
3.2.2. Supply and Demand of Talent
3.2.3. Inflation, Cost of Living, Exchange Rates, Etc.
3.2.4. Profitability, Other Economic Metrics
3.3. Socio-Demographic Context of The Organization
3.4. Cultural, Historical, & Legacy Factors And Rewards
3.5. Other Context And Environment of Rewards
3.5.1. Technology & Data Management Context
3.5.2. Political Context of Rewards
3.5.3. Geography, Footprint, Locations, Etc.
3.5.4. Other Context And Environment of Rewards

Section
Section Name
D.
Strategic Context: Company Strategy, HR Strategy, Rewards Strategy …
4. Strategic Context: Company Strategy, HR Strategy, Rewards Strategy …
4.1. Company Strategy Context
4.2. HR Strategy Context
4.3. Rewards Strategy Context
4.3.1. General Rewards Strategy Direction
4.3.2. Employee Segmentation In Rewards Strategy
4.3.3. Rewards Differentiation in Rewards Strategy
4.3.4. Employee Value Proposition (EVP) In Rewards Strategy
4.3.5. Performance - Rewards Links In Rewards Strategy
4.3.6. Talent Management and Rewards Strategy
4.3.7. Other Dimensions And Aspects of Rewards Strategy
E.
Psychology, Motivation, Behavior Context of Compensation and Total Rewards
5. Psychology, Motivation, Behavior Context of Compensation and Total Rewards
5.1. Introduction
5.2. A General Model (Of Mind, Motivation, Movement, and Money)
5.3. Equity Theory & Implications For Compensation & Total Rewards
5.4. Expectancy Theory & Implications For Compensation & Total Rewards
5.5. Skinner’s Reinforcement Theory & Implications For Compensation & Total Rewards
5.6. McGregor’s Theory X And Theory Y And Implications For Compensation & Total Rewards
5.7. Herzberg’s Two Factor Theory And Implications For Compensation & Total
5.8. Locke’s Goal Setting Theory And Implications For Compensation & Total
5.9. Employee Satisfaction, Engagement, And Behavior
5.10. Other Theories Related to Compensation & Total Rewards

Section
Section Name
F.
Framework & Models of Compensation and Total Rewards
6. Framework & Models of Compensation and Total Rewards
6.1. A Systems View
6.1.1. Inputs into Compensation and Total Reward Programs
6.1.2. Throughputs in Compensation and Total Reward Programs
6.1.3. Outputs in Compensation and Total Reward Programs
6.1.4. Feedback in Compensation and Total Reward Programs
6.1.5. The Environment in Compensation and Total Reward Programs
6.1.6. Closed or Open Systems?
6.2. Total Rewards Model from WorldatWork (The Leading Association for Professional in Total Rewards)
6.2.1. Context of Total Rewards (Business Strategy, Organization Culture, HR Strategy, External Influences, Geography)
6.2.2. Five Elements of Total Reward Strategy
6.2.3. The Desired Behaviors
6.2.4. The Exchange Relationship (What Employer Provides, What Employee Provides),
6.2.5. Employee / Employer State of Being
6.2.6. The Evolution of Total Rewards: Total Rewards in Year 2000 versus Year 2006
6.3. E. K. Torkornoo’s Hierarchy of Performance (And Rewards)
6.3.1. A Model For Diagnosis of Problems
6.3.2. A Model For Prescribing Structured Solutions

Section
Section Name
G.
The Rewards Program: Overview Of The Cascade of Critical Decisions In Compensation And Total Rewards
7. The Rewards Program: Overview Of The Cascade of Critical Decisions In Rewards
7.1. Importance And Uses Of The Rewards Program
7.1.1. A Tool For Strategy, Planning, And Delivery of Solutions
7.2. The Rewards Program Elements - Overview
7.2.1. Rewards Philosophy
7.2.2. Rewards Strategy
7.2.3. Rewards System
7.2.4. Rewards Mix
7.2.5. Rewards (Competitive) Policy Line(s)
7.2.6. Rewards Structure
7.2.7. Rewards Implementation
7.2.8. Rewards Analytics: Metrics, Measurement, Reporting, And Action
H.
Strategic Goals, Operational Objectives, Ideal Characteristics Of Compensation & Total Rewards – Important Distinctions
8. Strategic Goals, Operational Objectives, Ideal Characteristics Of Compensation And Total Rewards – Important Distinctions
8.1. Why The Distinctions Are Important
8.2. Strategic Goals of Compensation And Total Rewards
8.3. Operational Objectives of Compensation And Total Rewards
8.4. Ideal Characteristics of Compensation And Total Rewards
8.4.1.Corporate Strategy Alignment
8.4.2. Contribution
8.4.3. Compliance And Equity
8.4.4. Consistency: Internal
8.4.5. Currency
8.4.6. Competitiveness: External
8.4.7. Continuity & Sustainability
8.4.8. Cost-Benefit Analysis / Efficiency / ROI
8.4.9. Customization
8.4.10. Community Alignment
8.4.11. Communication Effectiveness

Section
Section Name
8.4.12. Change Management Impact
8.4.13. Other Characteristics
I.
The Rewards Program – Intermediate Details: Rewards Philosophy and Rewards Strategy
9. The Rewards Program – Intermediate Details: Rewards Philosophy and Rewards Strategy
9.1. Overview of The Rewards Program Revisited
9.2. Rewards Philosophy
9.2.1. Rewards Philosophy Implications For Management Style
9.2.2. Theory X Rewards Philosophy
9.2.3. Theory Y Rewards Philosophy
9.2.4. Other Manifestations of Rewards Philosophy
9.2.5. Foresight Versus Hindsight Rewards Philosophy
9.2.6. Rewards Philosophy Statement
9.2.7. Case Studies & Exercises In Rewards Philosophy
9.3. Rewards Strategy: Revisit, Statement,
9.3.1. Cascade from Rewards Philosophy
9.3.2. Corporate – HR – Rewards Strategy Links
9.3.3. Factors Affecting Rewards Strategy
9.3.3.1. Stage of Development
9.3.3.2. Culture
9.3.3.3. Industry / Sector
9.3.3.4. Economics, Demand and Supply, Competition & Positioning
9.3.3.5. Socio-Demographic
9.3.3.6. Political
9.4. Special Dimensions of Strategy
9.4.1. Employee Segmentation
9.4.2. Employee Value Proposition
9.4.3. Differentiated Rewards
9.4.4. Rewards Strategy Statement

Section
Section Name
9.5. Strategy Options – Overview
9.5.1. Traditional Organizations
9.5.2. Entrepreneurial Organizations
9.6. Strategic Analysis In Rewards
9.6.1. Units of Analysis in Rewards Strategy
9.6.2. Levels of Analysis in Rewards Strategy
9.6.3. Rewards Strategy Time Horizons
9.6.4. PEST Analysis
9.6.5. Scenario Planning
9.6.6. Five Forces Analysis
9.6.7. Market Segmentation
9.6.8. SWOT Analysis
9.7. Case Studies & Exercises in Rewards Strategy
J.
The Rewards Program – Intermediate Details: Rewards Systems
10. The Rewards Program – Intermediate Details: Rewards Systems
10.1. Definition
10.2. Overview
10.2.1.1. Job Based Reward Systems
10.2.1.2. Person-Based (Skill-based, Knowledge-Based, Competency-based,…) Reward Systems
10.2.1.3. Performance-Based Reward Systems
10.2.1.4. Hybrid Reward Systems
10.2.2. Job-Based Reward Systems
10.2.2.1. When and Why to Use Job-Based Pay Systems
10.2.2.2. Primary basis for Pricing Jobs in Job-Based Pay Systems
10.2.2.3. Methods, Moments and Madness in Job-Based Pay Systems
10.2.3. Person-Based (Skill-based, Knowledge-Based, Competency-Based …) Reward Systems

Section
Section Name
10.2.3.1. When and Why to Use Person-Based Pay
10.2.3.2. Systems
10.2.3.3. Primary basis for Pricing in Person-Based Pay Systems
10.2.3.4. Methods, Moments and Madness in Person-Based Pay Systems
10.2.4. Performance-Based Reward Systems
10.2.4.1. When and Why to Use Performance-Based Pay Systems
10.2.4.2. Primary basis for Pricing Jobs in Performance-Based Pay Systems
10.2.4.3. Methods, Moments and Madness in Performance-Based Pay Systems
10.2.5. Case Studies & Exercises in Rewards Systems
K.
The Rewards Program – Intermediate Details: Special Note on Performance- Based Rewards Systems & Pay Increases
11. The Rewards Program – Intermediate Details: Special Note on Performance- Based Rewards Systems & Pay Increases
11.1. What Is Performance? Really!
11.2. A Hierarchy of Performance
11.3. When and Why to Use Performance-Based Pay Systems
11.4. Primary basis for Pricing in Performance-Based Pay Systems
11.5. Pure Performance-Based Pay Systems
11.6. Hybrid Pay Systems Emphasizing Performance-Based Pay
11.7. Examples of Performance-Based Pay Systems
11.7.1. Sales Compensation as a Model for Performance-Based Pay
11.7.2. Piece Work in Both Blue Collar and White Collar Environments
11.7.3. Individual Bonus and Incentive Systems
11.7.4. Team Group-Based Bonus and Incentive Systems
11.7.5. Some Organization-Wide Performance-Based Pay Plans
11.7.5.1.1. Profit Sharing
11.7.5.1.2. Gainsharing

Section
Section Name
11.7.6. Methods, Moments and Madness in Performance-Based Pay Systems
11.7.7. Pay Increase Processes Related to Different Pay Systems
11.7.7.1. Pay Increase in Job-Based Pay Systems
11.7.7.2. Pay Increase in Person / Skill / Knowledge-Based Pay Systems
11.7.7.3. Pay Increase in Performance-Based Pay Systems
11.7.7.4. Pay Increase in Hybrid Pay Systems
L.
The Rewards Program – Intermediate Details: Rewards Mix
12. The Rewards Program – Intermediate Details: Rewards Mix
12.1. Rewards Mix (Elements, Components)
12.1.1. Rewards Mix Simplified:
12.1.1.1. Base Versus Variable
12.1.2. Other Definitions of
12.2. Rewards Mix: A Strategic Approach
12.3. Rewards Mix As Behavior & Performance Drivers
12.3.1. Determinants of What Should be Included in Pay Mix
12.3.2. Pay Mix and Units of Analysis: Some Aspects
12.3.2.1. Compensation
12.3.2.1.1. Fixed Compensation
12.3.2.1.1.1. Base Pay
12.3.2.1.1.2. Basic Pay Versus Base Pay: Nomenclature and Definitions
12.3.2.1.1.3. Allowances: Fixed
12.3.2.1.1.4. Allowances: Special Purpose & Contingent Allowances
12.3.2.1.1.5. Other Cash Elements and Allowances
12.3.2.1.1.6. Guaranteed Cash
12.3.2.1.2. Variable Compensation
12.3.2.1.2.1. Short Term Incentives
12.3.2.1.2.2. Long Term Incentives

Section
Section Name
12.3.2.1.2.2.1. Cash
12.3.2.1.2.2.2. Equity / Share / Stock Compensation
12.3.2.1.2.2.3. Other
12.3.2.1.2.3. Other Variable Cash
12.3.2.2. Employee Benefits As Valuable Rewards Mix
12.3.2.3. Work Life Balance As Valuable Rewards Mix
12.3.2.4. Development and Career Opportunities As Valuable Rewards Mix
12.3.2.5. Developments in Rewards Mix
12.3.2.5.1. Pay Consolidation and Pay Monetization in Ghana: What, Why, Who, For Whom, When, How, So What?
12.3.3. Pay Mix in Different Type of Settings
12.3.3.1.1. By Type of Organization & Strategy
12.3.3.1.2. Traditional Organizations
12.3.3.1.3. Transitional Organizations
12.3.3.1.4. Entrepreneurial Organizations
12.3.3.1.5. By Role Level and Risk
12.3.3.1.6. Pay Mix In Sales Roles By Degree of Persuasion
12.3.3.1.7. Other Kinds of Mix
M.
The Rewards Program – Intermediate Details: Rewards (Competitive) Policy Line
13. The Rewards Program – Intermediate Details: Rewards (Competitive) Policy Line
13.1. Meaning of Pay Policy
13.2. Units of Analysis and Comparison In Rewards Policy Line Decisions
13.3. Typical Units of Comparison In Rewards Policy Line Decisions
13.3.1.1. Fixed Compensation Elements
13.3.1.2. Variable Compensation Elements
13.3.1.3. Total Cash Versus Target Total Cash
13.3.1.4. Total Value versus Target Total Value

Section
Section Name
13.3.1.5. Other Units of Analysis and Comparison Rewards Policy Line Decisions
13.4. Level of Analysis In Rewards Policy Line Decisions – Choosing Comparators
13.4.1. The Game of Apples and Oranges
13.4.2. Cherry Picking Versus Real Comparisons
13.4.3. Scope, Geography, Industry, Level, Etc.
13.5. Rewards Policy Line Broad Alternatives And Rationale For Using Them
13.6. Multiple Policy Lines: Whether, When, Why And How To Use Them
13.7. Match; Lead; Lag; Lead-lag Rewards Policy Line Decisions
13.8. Rewards Surveys and Studies: The Dos And Don’ts Of Benchmarking and ‘Best Practices’
13.9. Salary Surveys and Rewards (Competitive) Policy Line
13.9.1. Choosing Surveys
13.9.2. Choosing Comparators
13.9.3. Choosing Variables
13.9.4. Choosing Statistical Measures
13.9.5. Showing How You Compare
13.9.6. Showing Where You Want To Be For Target Employees
13.9.7. Other Policy Line Decisions in Using Surveys
13.9.8. Cases & Exercises in Rewards (Competitive) Policy Line
N.
The Rewards Program – Intermediate Details: Rewards Structure
14. Rewards Structure
14.1. Rewards Structure Versus Pay Structure: Is There A Difference?
14.2. Use and Misuse Of The ‘Structure’ in Rewards
14.3. Overview of Goals, Uses, and Nature of Rewards Structure
14.4. Rewards Structure and Employee Behavior
14.5. Rewards Structure Versus Pay System: Which Drives Which?
14.6. Rewards Structure, Pay Structure, Pay Ladders, Pay Spines as Hierarchies of The Value of Jobs and Work
14.7. Methods for Determining The Value of Jobs and Work

Section
Section Name
14.7.1.1. Traditional Job Evaluation – Overview
14.7.1.1.1. Types of Job Evaluation
14.7.1.1.2. Compensable Factors
14.7.1.1.3. Distinctions: Position, Job, Job Class, Job Class Series, Job Family
14.7.1.1.4. Job Analysis: Scope, Focus, Processes, Data Collection
14.7.1.1.5. Job Descriptions: Dimensions and Elements
14.7.1.1.6. Using Job Evaluation Systems & Instruments
14.7.1.1.7. Comparisons – Job Hierarchies
14.7.1.1.8. Job Grades / Bands
14.7.1.1.9. Constructing the Pay Structure
14.7.1.1.10. Key Data Elements of Pay Structure
14.7.1.1.10.1. Pay Range: Minimum, Maximum,
14.7.1.1.10.2. Range Spread: Significance And Uses
14.7.1.1.10.3. Range Penetration
14.7.1.1.10.4. Pay To Max: A New Measure
14.7.1.1.10.5. Mid Point: Significance And Uses
14.7.1.1.10.6. Mid Point Progression: : Significance And Uses
14.7.1.1.10.7. Compa-ratio: : Significance And Uses
14.7.1.1.10.8. Other Element of Pay Structure
14.7.1.2. Market-Referenced Job Pricing (Market Pricing) – Overview
14.7.1.2.1. Before You Look at Surveys: Decisions, Decisions, Decision
14.7.1.2.1.1. Job Families to Cover in Market Pricing
14.7.1.2.1.2. Selecting Benchmark Jobs for Market Pricing
14.7.1.2.1.3. Verifying Job Descriptions for Market Pricing
14.7.1.2.2. Market Surveys Sources and Challenges
14.7.1.2.2.1. Sources of Surveys
14.7.1.2.2.2. Number of Survey Sources required for Reliability
14.7.1.2.2.3. Survey Quality Indicators

Section
Section Name
14.7.1.2.3. Matching Your Jobs to Those in the Survey
14.7.1.2.3.1. Content, Level and Scope Dimensions
14.7.1.2.3.2. Data Dimensions
14.7.1.2.3.2.1. Number of companies reporting
14.7.1.2.3.2.2. Number of Survey Jobs per Benchmark Job
14.7.1.2.3.2.3. Data Elements / Variables In Use
14.7.1.2.3.2.4. Quality of Data
14.7.1.2.3.2.5. Data Cuts (Industry, Scope, etc.)
14.7.1.2.3.3. Adjusting The Data: Techniques For Fine-Tuning
14.7.1.2.3.3.1. Aging the Data
14.7.1.2.3.3.2. Geographic Adjustments
14.7.1.2.3.3.3. Adjusting for Composite (Multiple survey sources)
14.7.1.2.3.3.3.1. Average Versus Weighted Average
14.7.1.2.4. Market Pricing in a World without regular, reliable, third-party surveys:
14.7.1.2.4.1. The Pros And Cons Of Calling Around
14.7.1.2.4.2. The Pros And Cons Of Using “Club Data”
14.7.1.2.4.3. Data Elements available
14.7.1.2.4.4. Pros and Cons of Data Available
14.7.1.2.4.5. Consulting Firms And Providers of Market Surveys
14.7.2. Pay Structure Issues
14.7.2.1. Single Spine Versus Multiple Spine in Pay Structure
14.7.2.2. Organization Culture and Fit / Misfit of Pay Structure
14.7.2.3. Restriction of Range
14.7.2.4. Pay Compression
14.7.2.5. Managing the Basis for Progression through The Range
14.7.2.6. Overemphasis on Base Pay
14.7.2.7. Managing / Mismanaging Control Points

Section
Section Name
14.7.2.8. Other Issues
14.7.3. The Limits of Pay Structure Versus Total Rewards Structure: Frontiers Of Practice
14.7.4. Cases & Exercises in Rewards Structure
14.7.4.1. A Tower of Babel Creates Rocky Marriage to The Single Spine Pay Policy In Ghana
14.7.4.2. Other Cases And Exercises
O.
The Rewards Program – Intermediate Details: Rewards Structure, Salary Surveys, Rewards Studies Etc.
15. The Rewards Program – Intermediate Details: Rewards Structure, Salary Surveys, And Rewards Studies
15.1. Range of Salary Surveys, Rewards Studies, Etc.
15.1.1. Salary Surveys: A Survey of Surveys
15.1.1.1. Salary Budget Surveys
15.1.1.2. Industry Surveys
15.1.1.3. Occupational Surveys
15.1.1.4. General Industry Surveys
15.1.1.5. Regional / Geographical Surveys
15.1.1.6. Geographical Differentials Surveys
15.1.1.7. Other Surveys
15.1.2. Rewards Studies
15.1.2.1. Why Rewards Studies
15.1.2.2. Providers of Rewards Studies
15.1.2.3. Scope of Rewards Studies
15.1.2.4. Cases And Examples of Rewards Studies
15.2. Participating In Salary Surveys (Versus Simply Using Off-The- Shelf Surveys)
15.2.1. A Common Problem: Reservations About Sharing Sensitive Salary Information

Section
Section Name
15.2.2. Effect Of Reservations About Sharing Sensitive Salary Information
15.2.3. A Common Solution: Third Party Surveys by Reputable Survey Service Providers
15.2.4. Why Participate In Salary Surveys
15.2.5. Pre-requisites for Participation: Internal Resources
15.2.6. Rules of Participation: Confidentiality, Plus More
15.2.7. Purpose and Timing of Salary Surveys
15.2.8. Selecting Your Salary Surveys
15.2.8.1. Is One Survey Enough?
15.2.8.2. A Strategic Portfolio Approach To Salary Surveys
15.2.9. Getting Your Data Ready
15.2.9.1. Job Documentation: Job Descriptions
15.2.9.2. Benchmark Jobs: Meaning And Significance
15.2.9.3. Matching Jobs To Market Benchmark Jobs; Major Activity
15.2.10. Completing Questionnaires: Salary and Other Rewards Data
15.2.11. Completing Questionnaires: Rewards Practices
15.2.12. Submitting Questionnaires
15.2.13. Answering Follow-Up Questions
15.2.14. What Happens Behind The Scenes: Compiling, Analyzing, Developing Salary Survey Reports and Access to Databases
15.2.15. Acquiring / Purchasing Survey Results When You Participated
15.2.15.1. Sponsored Surveys:
15.2.15.2. Non-Sponsored Surveys
15.2.15.3. Hard Copy Survey Reports
15.2.15.4. Soft-Copy Survey Reports
15.2.15.5. Access To Survey Databases
15.2.16. Using Survey Data: Selected Decisions and Activities
15.2.16.1.1.1. Deciding What You Want And Why: Begin With The End In Mind

Section
Section Name
15.2.16.2. Selecting Scope, Slices, Or Cuts of Data In Salary Surveys
15.2.16.3. Selecting Comparators
15.2.16.4. Choosing Data Variables (Units of Analysis and Comparison)
15.2.16.5. Understanding Measures of Dispersion and Central Tendency
15.2.16.5.1. The Median Versus The Mean
15.2.16.6. Using Quartiles and Percentiles
15.2.16.7. Determining Salary Movements in the Market
15.2.16.8. Other Analytical Considerations
15.2.16.9. Developing Internal Reports And Proposals For Change To Management
15.2.16.9.1. Outline of Internal Reports And Proposals For Change
15.2.16.9.2. Links to Organization’s Vision, Mission, Strategy
15.2.16.9.3. Where We Stand
15.2.16.9.4. Incorporating Other Rewards Studies In Decision-Making
15.2.16.9.5. What We Need To Change And Why: Making The Business Case For Change
15.2.16.9.6. Costing The Alternative Positions in the light of Market Movements
15.2.16.9.7. Pro-Forma Implementation Plans
15.2.16.9.8. Projecting Desired Outcomes To Be Monitored: A Much Under-served Task
15.2.16.9.9. Managing Presentations To Management
15.2.16.9.10. Managing Presentations To Boards
15.2.16.9.11. Developing Implementation Plans
15.2.16.9.12. Resource Requirements Within The Compensation And Rewards Function of Human Resource Departments

Section
Section Name
P.
The Rewards Program – Intermediate Details: Rewards Program Implementation / Administration
16. The Rewards Program – Intermediate Details: Rewards Program Implementation / Administration
16.1. Required Resources for The Implementation Of The Rewards Program
16.1.1. Budgets: Capital and Operating Budgets For The Implementation Of The Rewards Program
16.1.2. Organizational Unit & Organization Structure For Rewards Management
16.1.3. Technical Staff For Rewards Management
16.1.4. Technology Systems / Platforms
16.1.5. Specialized Software & Licenses Beyond Typical ERP
16.1.6. Surveys, Studies, Subscriptions, and Sources of Data
16.1.7. Professional Associations: Membership, Resources, Activities
16.1.8. Professional Development: Conferences, Seminars & Workshops
16.1.9. Consultancy Support Projects
16.1.10. Outsourced Rewards Implementation Operations
16.2. Alliances & Partnerships For The Implementation Of The Rewards Program
16.2.1. Internal Alliances & Partnerships:
16.2.2. External Alliances & Partnerships – Outsourced Services
16.2.3. Unions & Staff Associations And Their Roles in The Implementation Of The Rewards Program
16.3. Additional Tools For Rewards Program Implementation:
16.3.1. Policy and Procedures Documentation
16.3.2. User Manuals For Supervisors
16.3.3. Employee Manuals
16.3.4. Orientation, Learning & Development (Training Programs) Programs
16.3.5. Rewards Communications (Details Elsewhere In This Outline
16.4. Using Testing & Quizzes To Reinforce Mastery & Currency of Knowledge Of Rewards Programs, Policy & Procedures
16.5. A Special Note on Emerging Technology For The Implementation Of The

Section
Section Name
Rewards Program
16.6. A Special Note on Rewards Surveys, Studies, Subscriptions, and Other Sources of Data
Q.
The Rewards Program – Intermediate Details: Rewards Program Implementation / Administration – Focus on Rewards Communications
17. The Rewards Program – Intermediate Details: Rewards Program Implementation / Administration – Focus on Rewards Communications
17.1. Importance of Rewards Communications
17.2. The Complex Environment Of Rewards Communications: Opportunities, Issues, Technology, Social / Demographic, Cultural, Etc.
17.3. A Total Rewards Approach To Rewards Communications
17.4. The Strategic Communications Process – Overview
17.5. Annual Calendar in The Implementation Of The Rewards Program
17.6. Special Events in The Implementation Of The Rewards Program
17.7. Cases & Exercises in Rewards Communication
R.
The Rewards Program – Intermediate Details: Rewards Program Implementation / Administration With Focus on Outsourcing
18. The Rewards Program – Intermediate Details: Rewards Program Implementation / Administration With Focus on Outsourcing
18.1.1.1. Rationale For Outsourcing Some Rewards Programs
18.1.1.2. Types of Rewards Programs Typically Outsourced
18.1.1.3. Some Selected Issues To Consider Before Outsourcing:
18.1.1.3.1. Data Security and Confidentiality
18.1.1.3.2. Disaster Management & Service Continuity
18.1.1.3.3. Resources of Vendors
18.1.1.3.4. Other Issues
18.1.1.4. Vendors of Outsourced Rewards Solutions
18.1.1.5. Deciding What To Outsource
18.1.1.6. Vendor Vetting: Requests For Proposals
18.1.1.7. Vendor Vetting: Reviewing Proposals From Vendors
18.1.1.8. Vendor Selection and Contracting

Section
Section Name
18.1.1.9. Vendor Relationship Management
18.1.1.10. Monitoring Performance of Vendors of Outsourced Rewards Solutions
18.1.1.11. Closing Vendor Relationships And Making Transition Arrangements
S.
Employee Benefits Program Management
19. Employee Benefits Program Management
19.1. A Total Rewards Approach To Employee Benefits
19.1.1. Component Elements of Employee Benefits
19.1.2. A Problem With Employee Benefits: Under Estimated, Under Communicated, Under Appreciated, Under Valued
19.1.3. The Cost Of Employee Benefits Programs: Total Cost, Relative Cost, Other Costs
19.1.4. The Value of Employee Benefits
19.1.5. Matching Employer and Employee Perspectives
19.2. Issues And Developments in Employee Benefits Programs
19.2.1. Rising Costs: Healthcare, Insurance, Etc.
19.2.2. Demographic & Psychographic Changes
19.2.3. Employee Choices, Preferences, Utilization, And Abuse Issues
19.2.4. Communication Issues And Developments: Electronic Communications
19.2.5. Management Issues
19.2.6. Other Issues And Developments
19.3. Managing Mandated Employee Benefits
19.4. Managing Optional Employee Benefits
19.5. Managing Open Enrolment Programs & Processes
19.6. Managing Terminal Benefits
19.7. Monitoring Impact Of Employee Benefits
19.8. Case Studies / Exercises in Employee Benefits Management

Section
Section Name
T.
Work-Life Balance Program Management
20. Work-Life Balance Program Management
20.1. A Total Rewards Approach To Work Life Balance Programs
20.1.1. Emerging Game-Changer in Competitive Positioning
20.1.2. Value and Alignment With Employees
20.2. Elements of Work Life Balance Programs
20.2.1. Workplace flexibility
20.2.2. Paid and unpaid time off
20.2.3. Health and well-being
20.2.4. Caring for dependents
20.2.5. Financial support
20.2.6. Community involvement
20.2.7. Management involvement/culture change interventions
20.3. Emerging Issues And Solutions in Work-Life Balance Management
20.4. Managing Work Life Balance Programs
20.4.1. Customization of Programs
20.4.2. Current Trends
U.
Performance and Recognition Program Management
21. Performance and Recognition Program Management
21.1. Managing Performance Management
21.1.1. A Total Rewards Approach To Performance And Recognition Programs
21.1.2. Elements of Performance and Recognition Programs
21.1.3. CENTRAL QUESTION: Why Do Public and Private Sector Organizations Fail To Perform, and What can We Do to Fix the Problem For Good?
21.1.4. Re-Defining Performance – A New Lens for Looking at Organizations and The People Who Work in Them
21.1.5. Goals of Performance and Recognition Programs

Section
Section Name
21.1.6. Performance and Recognition Policy and Planning
21.1.7. Performance Management
21.1.7.1. Diagnosis of Performance Issues and Dimensions
21.1.7.1.1. The “Garbage Can” Approach To Diagnosis
21.1.7.1.2. A Systems Approach To Diagnosis
21.1.7.1.3. A Structured Hierarchy of Performance Approach To Diagnosis
21.1.7.1.3.1. Level of Analysis in Performance Management
21.1.7.1.3.2. Unit of Analysis in Performance Management
21.1.7.2. Design of Performance Management Programs
21.1.7.3. Development of Performance Management Programs
21.1.7.4. Delivery / Deployment / Implementation of Performance Management
21.1.7.5. Data Management / Evaluation of Performance Management
21.1.7.6. Emerging Issues in Performance Management
21.2. Recognition Programs
V.
MINI-SEMINAR
High Performance Organizations: Critical Must Haves
22. High-Performance Organizations: Achieving High Performance Through Leading-Edge Strategy And Tools In Compensation & Total Rewards Management: Critical 'Must Haves’ [A MINI SEMINAR]
22.1. What Is High Performance, and What Is The Importance of Compensation & Total Rewards Strategy to That End?
22.2. High Performance and Why Compensation & Total Rewards Programs Fail: ABCD ‘Factors’- Examples Of Fatally-Flawed Gambles, Histrionics…. And …Idiocy…, In The Pursuit Of (Distributive, Procedural, And Other…) ‘Justice’
22.3. Compensation & Total Rewards Strategy, Levels Of Analysis, And The Hierarchy Of Performance
22.4. The Problem With Attraction, Retention, Motivation, And Skill Development As Goals, OR Serious Limitations With The Tentative, Tenuous, Troublesome, And Tired

Section
Section Name
A-R-M-S Race
22.5. Distinction Between ‘Elemental’ Versus Strategic Approach To Compensation & Total Rewards Management for High-Performance
22.6. ‘The’ Must Haves: Eight (8) Essentials For High-Performance Total Rewards Strategy As Evidenced Globally
22.7. High-Performance Total Rewards Strategy: Putting It All Together
22.8. Obtaining Buy-In For High-Performance Total Rewards Strategy
22.9. Implementation of High-Performance Total Rewards Strategy For Success: Some Considerations
22.10. Did Our Strategy Make An Impact? Leveraging Improved Measurement And Metrics Beyond The ‘Old School’, A-R-M-S Waving, And Other Tiresome Approaches
W.
Special Rewards Programs – Overview
23. Special Rewards Programs – Overview
23.1. A Total Rewards Approach To Special Rewards Programs
23.2. Executive Compensation and Rewards – An Overview
23.3. Equity / Share Compensation and Rewards – An Overview
23.4. Sales Compensation And Rewards – An Overview
23.5. Development and Career Opportunities / Career Paths, Planning And Succession – An Overview
23.5.1. Understanding Relational Rewards
X.
Rewards Analytics: Measurement, Metrics, and Markets
24. Rewards Analytics: Measurement, Metrics, and Markets
24.1. Importance Of Rewards Analytics: Measurement, Metrics, and Markets
24.2. Strategic Level Measures, Metrics, And Markets
24.2.1. Metrics Of Interest By Stakeholder Type
24.2.2. Total Rewards Measurement, Metrics, and Markets
24.2.3. Employee Segmentation Measurement, Metrics, and Markets

Section
Section Name
24.2.4. Differentiated Rewards Measurement, Metrics, and Markets
24.2.5. Employee Value Proposition Measurement, Metrics, and Markets
24.2.6. Performance Measurement, Metrics, And Markets
24.2.7. Other Strategic Level Measurement, Metrics, and Markets
24.3. Operational Level Measures
24.3.1. Reward System Check: Are We Really A Performance-Based Organization?
24.3.2. Reward Mix Measures, Metrics, And Markets
24.3.3. Reward (Competitive) Policy Line Measures, Metrics, And Markets
24.3.4. Fixed Compensation Measurement, Metrics, and Markets
24.3.4.1. Elements of Fixed Compensation
24.3.4.2. Job Evaluation Programs (Details in Other Documentation)
24.3.4.3. Market Surveys, Studies, and Statistics
24.3.4.3.1. Job Descriptions & Profiles for Market Comparisons: Focus on Benchmark Jobs
24.3.4.3.2. Key Surveys, Studies, and Data Sources: Selection and Targeting
24.3.4.3.3. Selecting Comparators:
24.3.4.3.3.1. Using Scope Data
24.3.4.3.3.2. Other Measures
24.3.4.3.4. Matching Benchmark Jobs to Jobs In Key Surveys
24.3.4.3.5. Market Data Analysis
24.3.4.3.6. Pay Structure Construction Considerations Aligned To Strategy
24.3.4.3.7. Decision-Making And Adjustments Relative to Data from Market Surveys, Studies, and Statistics
24.3.4.3.7.1. Dating and Aging Data
24.3.4.3.7.2. Factoring-In Economic Data
24.3.4.3.8. Financial Impact Determination of Alternative Responses to Market Data
24.3.4.4. Other Base Pay Programs

Section
Section Name
24.3.4.4.1. Relative Ratios of Fixed Pay Elements
24.3.5. Variable Pay Measurement, Metrics, and Markets
24.3.5.1. Units of Analysis in Variable Pay Measurement, Metrics, And Measurement
24.3.5.2. Ratio of Variable pay To Other Rewards
24.3.5.3. Business Strategy and KPIs
24.3.5.4. Cascade of KPIs
24.3.5.5. Short Term Incentives Measurement, Metrics, and Markets
24.3.5.6. Long Term Incentive Measurement, Metrics, and Markets
24.4. Employee Benefits Measurement, Metrics, and Markets
24.5. Work Life Balance Measurement, Metrics, and Markets
24.6. Performance And Recognition Measurement, Metrics, and Markets
24.7. Development and Career Opportunities Measurement, Metrics, and Markets
24.8. Other Measurement, Metrics, and Markets
Y.
Special Developments, Issues, and Topics
25. Special Developments, Issues, and Topics in Compensation and Total Rewards
25.1. Say On Pay Legislation and Trends
25.2. Pay For Performance Focus of Executive Compensation
25.3. 2008-2009 Global Financial Crises, Executive Compensation, Governance and Accountability – Time for Change
25.4. The GCC: The World of Work and Compensation in The Middle East’s Gulf Cooperation Council (GCC) Countries: Defying Conventional ‘Wisdom’
NOTE: This module is about ‘Special Developments…”. As such information here is fluid and changes with little or no notice.

Section
Section Name
Z.
Appendices, Glossary, And References
26. Appendices, Glossary, And References
26.1. Appendices
26.2. Glossary of Rewards Terminology
26.3. References

CHAPTER DETAILS

Section
Section Name
A.
Introduction, Importance, And ‘Hot’ Developments in Compensation & Total Rewards
1. Introduction, Importance, And ‘Hot’ Developments in Compensation & Total Rewards
1.1. Welcome To the ‘Hottest’ Field in Talent and Human Resource Management Today: Compensation and Total Rewards Management / Or Why Total Rewards Are Hot
1.2. Total Rewards: Strategic Route To The Top In HR, and Beyond
1.3. Total Rewards: The Most Comprehensive Approach To Talent Management
1.4. Pay For Performance: A Global Search For New Answers
1.5. Ghana’s Economic Survival: Percentage of National Budget Going To Pay Government Employees Salaries in Ghana: Risen Sharply To 70%; But Government Employee Want More
1.6. Ghana & The Single Spine Saga: Nobody Seems to Want To Get Married to The Single Spine
1.7. Ghana’s Failed Education System Gives Worse Results Even As We Spend More on Pay For Teachers: Problem With How (not How Much) We Pay Teachers
1.8. How Runaway Rewards And Incentives Contributed to The Global Financial Meltdown
1.9. Regulatory And Stakeholder Vigilance on Executive Compensation
1.10. Microsoft Drops Bell Curves and Stack Ranking Suspected as Causes of Weak Innovation, Poor Collaboration, etc.
1.11. Denominating Pay In Dollars: Lucky If You Get It in Ghana
1.12. The Age of Consolidation, Monetization, Dollarization, etc.
1.13. Global Labor In Search Of Petro-Dollars and Expatriate Assignments
1.14. What Do Employees Want: From Fried Rice Generation to Baby Boomers?
1.15. In Search Of The Magic Wand: From Job Satisfaction To Sustainable Engagement

Section
Section Name
B.
Working Definitions And Language of Compensation and Total Rewards
2. Working Definitions And Language of Compensation and Total Rewards
2.1. Beware of Arcane, Anachronistic, Ancient, And Amateur / Pedestrian Terminology And Usage
2.2. The Tower Of Babel Afflicting The Single Spine Pay Policy In Ghana
2.3. What Is Total Rewards? A WorldatWork Reference
2.4. WorldAtWork Glossary
2.5. Other Definitions in Rewards Surveys and Reports By Major Consulting Companies
2.6. Emerging Terms And Language of Rewards
2.6.1. Terms From The New World of Executive Compensation and Rewards

Section
Section Name
C.
The Context And Environment of Compensation and Total Rewards
3. The Context And Environment of Compensation and Total Rewards
3.1. Legal, Regulatory, And Governance
3.1.1. External Legal, Regulatory, And Governance
3.1.2. Internal Legal, Regulatory, And Governance
3.1.2.1. Board Oversight & Committees
3.1.2.2. Other Internal Governance and Regulatory
3.2. Economic Context of The Firm And Rewards
3.2.1. Competition, Profitability, Etc.
3.2.2. Supply and Demand of Talent
3.2.3. Inflation, Cost of Living, Exchange Rates, Etc.
3.2.4. Profitability, Other Economic Metrics
3.3. Socio-Demographic Context of The Organization
3.4. Cultural, Historical, & Legacy Factors And Rewards
3.5. Other Context And Environment of Rewards
3.5.1. Technology & Data Management Context
3.5.2. Political Context of Rewards
3.5.3. Geography, Footprint, Locations, Etc.
3.5.4. Other Context And Environment of Rewards

Section
Section Name
D.
Strategic Context: Company Strategy, HR Strategy, Rewards Strategy …
4. Strategic Context: Company Strategy, HR Strategy, Rewards Strategy …
4.1. Company Strategy Context
4.2. HR Strategy Context
4.3. Rewards Strategy Context
4.3.1. General Rewards Strategy Direction
4.3.2. Employee Segmentation In Rewards Strategy
4.3.3. Rewards Differentiation in Rewards Strategy
4.3.4. Employee Value Proposition (EVP) In Rewards Strategy
4.3.5. Performance - Rewards Links In Rewards Strategy
4.3.6. Talent Management and Rewards Strategy
4.3.7. Other Dimensions And Aspects of Rewards Strategy

Section
Section Name
E.
Psychology, Motivation, Behavior Context of Compensation and Total Rewards
5. Psychology, Motivation, Behavior Context of Compensation and Total Rewards
5.1. Introduction
5.2. A General Model (Of Mind, Motivation, Movement, and Money)
5.3. Equity Theory & Implications For Compensation & Total Rewards
5.4. Expectancy Theory & Implications For Compensation & Total Rewards
5.5. Skinner’s Reinforcement Theory & Implications For Compensation & Total Rewards
5.6. McGregor’s Theory X And Theory Y And Implications For Compensation & Total Rewards
5.7. Herzberg’s Two Factor Theory And Implications For Compensation & Total
5.8. Locke’s Goal Setting Theory And Implications For Compensation & Total
5.9. Employee Satisfaction, Engagement, And Behavior
5.10. Other Theories Related to Compensation & Total Rewards

Section
Section Name
F.
Framework & Models of Compensation and Total Rewards
6. Framework & Models of Compensation and Total Rewards
6.1. A Systems View
6.1.1. Inputs into Compensation and Total Reward Programs
6.1.2. Throughputs in Compensation and Total Reward Programs
6.1.3. Outputs in Compensation and Total Reward Programs
6.1.4. Feedback in Compensation and Total Reward Programs
6.1.5. The Environment in Compensation and Total Reward Programs
6.1.6. Closed or Open Systems?
6.2. Total Rewards Model from WorldatWork (The Leading Association for Professional in Total Rewards)
6.2.1. Context of Total Rewards (Business Strategy, Organization Culture, HR Strategy, External Influences, Geography)
6.2.2. Five Elements of Total Reward Strategy
6.2.3. The Desired Behaviors
6.2.4. The Exchange Relationship (What Employer Provides, What Employee Provides),
6.2.5. Employee / Employer State of Being
6.2.6. The Evolution of Total Rewards: Total Rewards in Year 2000 versus Year 2006
6.3. E. K. Torkornoo’s Hierarchy of Performance (And Rewards)
6.3.1. A Model For Diagnosis of Problems
6.3.2. A Model For Prescribing Structured Solutions

Section
Section Name
G.
The Rewards Program: Overview Of The Cascade of Critical Decisions In Compensation And Total Rewards
7. The Rewards Program: Overview Of The Cascade of Critical Decisions In Rewards
7.1. Importance And Uses Of The Rewards Program
7.1.1. A Tool For Strategy, Planning, And Delivery of Solutions
7.2. The Rewards Program Elements - Overview
7.2.1. Rewards Philosophy
7.2.2. Rewards Strategy
7.2.3. Rewards System
7.2.4. Rewards Mix
7.2.5. Rewards (Competitive) Policy Line(s)
7.2.6. Rewards Structure
7.2.7. Rewards Implementation
7.2.8. Rewards Analytics: Metrics, Measurement, Reporting, And Action

Section
Section Name
H.
Strategic Goals, Operational Objectives, Ideal Characteristics Of Compensation & Total Rewards – Important Distinctions
8. Strategic Goals, Operational Objectives, Ideal Characteristics Of Compensation And Total Rewards – Important Distinctions
8.1. Why The Distinctions Are Important
8.2. Strategic Goals of Compensation And Total Rewards
8.3. Operational Objectives of Compensation And Total Rewards
8.4. Ideal Characteristics of Compensation And Total Rewards
8.4.1. Corporate Strategy Alignment
8.4.2. Contribution
8.4.3. Compliance And Equity
8.4.4. Consistency: Internal
8.4.5. Currency
8.4.6. Competitiveness: External
8.4.7. Continuity & Sustainability
8.4.8. Cost-Benefit Analysis / Efficiency / ROI
8.4.9. Customization
8.4.10. Community Alignment
8.4.11. Communication Effectiveness
8.4.12. Change Management Impact
8.4.13. Other Characteristics

Section
Section Name
I.
The Rewards Program – Intermediate Details: Rewards Philosophy and Rewards Strategy
9. The Rewards Program – Intermediate Details: Rewards Philosophy and Rewards Strategy
9.1. Overview of The Rewards Program Revisited
9.2. Rewards Philosophy
9.2.1. Rewards Philosophy Implications For Management Style
9.2.2. Theory X Rewards Philosophy
9.2.3. Theory Y Rewards Philosophy
9.2.4. Other Manifestations of Rewards Philosophy
9.2.5. Foresight Versus Hindsight Rewards Philosophy
9.2.6. Rewards Philosophy Statement
9.2.7. Case Studies & Exercises In Rewards Philosophy
9.3. Rewards Strategy: Revisit, Statement,
9.3.1. Cascade from Rewards Philosophy
9.3.2. Corporate – HR – Rewards Strategy Links
9.3.3. Factors Affecting Rewards Strategy
9.3.3.1. Stage of Development
9.3.3.2. Culture
9.3.3.3. Industry / Sector
9.3.3.4. Economics, Demand and Supply, Competition & Positioning
9.3.3.5. Socio-Demographic
9.3.3.6. Political
9.4. Strategy Options – Overview
9.4.1. Traditional Organizations
9.4.2. Entrepreneurial Organizations
9.5. Strategic Analysis In Rewards
9.5.1. Units of Analysis in Rewards Strategy

Section
Section Name
9.5.2. Levels of Analysis in Rewards Strategy
9.5.3. Rewards Strategy Time Horizons
9.5.4. PEST Analysis
9.5.5. Scenario Planning
9.5.6. Five Forces Analysis
9.5.7. Market Segmentation
9.5.8. SWOT Analysis
9.5.9. Employee Segmentation
9.5.10. Employee Value Proposition
9.5.11. Differentiated Rewards
9.5.12. Rewards Strategy Statement
9.6. Case Studies & Exercises in Rewards Strategy

Section
Section Name
J.
The Rewards Program – Intermediate Details: Rewards Systems
10. The Rewards Program – Intermediate Details: Rewards Systems
10.1. Definition
10.2. Overview
10.2.1.1. Job Based Reward Systems
10.2.1.2. Person-Based (Skill-based, Knowledge-Based, Competency-based,…) Reward Systems
10.2.1.3. Performance-Based Reward Systems
10.2.1.4. Hybrid Reward Systems
10.2.2. Job-Based Reward Systems
10.2.2.1. When and Why to Use Job-Based Pay Systems
10.2.2.2. Primary basis for Pricing Jobs in Job-Based Pay Systems
10.2.2.3. Methods, Moments and Madness in Job-Based Pay Systems
10.2.3. Person-Based (Skill-based, Knowledge-Based, Competency-Based …) Reward Systems
10.2.3.1. When and Why to Use Person-Based Pay
10.2.3.2. Systems
10.2.3.3. Primary basis for Pricing in Person-Based Pay Systems
10.2.3.4. Methods, Moments and Madness in Person-Based Pay Systems
10.2.4. Performance-Based Reward Systems
10.2.4.1. When and Why to Use Performance-Based Pay Systems
10.2.4.2. Primary basis for Pricing Jobs in Performance-Based Pay Systems
10.2.4.3. Methods, Moments and Madness in Performance-Based Pay Systems
10.2.5. Case Studies & Exercises in Rewards Systems

Section
Section Name
K.
The Rewards Program – Intermediate Details: Special Note on Performance- Based Rewards Systems & Pay Increases
11. The Rewards Program – Intermediate Details: Special Note on Performance- Based Rewards Systems & Pay Increases
11.1. What Is Performance? Really!
11.2. A Hierarchy of Performance
11.3. When and Why to Use Performance-Based Pay Systems
11.4. Primary basis for Pricing in Performance-Based Pay Systems
11.5. Pure Performance-Based Pay Systems
11.6. Hybrid Pay Systems Emphasizing Performance-Based Pay
11.7. Examples of Performance-Based Pay Systems
11.7.1. Sales Compensation as a Model for Performance-Based Pay
11.7.2. Piece Work in Both Blue Collar and White Collar Environments
11.7.3. Individual Bonus and Incentive Systems
11.7.4. Team Group-Based Bonus and Incentive Systems
11.7.5. Some Organization-Wide Performance-Based Pay Plans
11.7.5.1.1. Profit Sharing
11.7.5.1.2. Gainsharing
11.7.6. Methods, Moments and Madness in Performance-Based Pay Systems
11.7.7. Pay Increase Processes Related to Different Pay Systems
11.7.7.1. Pay Increase in Job-Based Pay Systems
11.7.7.2. Pay Increase in Person / Skill / Knowledge-Based Pay Systems
11.7.7.3. Pay Increase in Performance-Based Pay Systems
11.7.7.4. Pay Increase in Hybrid Pay Systems

Section
Section Name
L.
The Rewards Program – Intermediate Details: Rewards Mix
12. The Rewards Program – Intermediate Details: Rewards Mix
12.1. Rewards Mix (Elements, Components)
12.1.1. Rewards Mix Simplified:
12.1.1.1. Base Versus Variable
12.1.2. Other Definitions of Rewards Mix
12.2. Rewards Mix: A Strategic Approach
12.3. Rewards Mix As Behavior & Performance Drivers
12.3.1. Determinants of What Should be Included in Pay Mix
12.3.2. Pay Mix and Units of Analysis: Some Aspects
12.3.2.1. Compensation
12.3.2.1.1. Fixed Compensation
12.3.2.1.1.1. Base Pay
12.3.2.1.1.2. Basic Pay Versus Base Pay: Nomenclature and Definitions
12.3.2.1.1.3. Allowances: Fixed
12.3.2.1.1.4. Allowances: Special Purpose & Contingent Allowances
12.3.2.1.1.5. Other Cash Elements and Allowances
12.3.2.1.1.6. Guaranteed Cash
12.3.2.1.2. Variable Compensation
12.3.2.1.2.1. Short Term Incentives
12.3.2.1.2.2. Long Term Incentives
12.3.2.1.2.2.1. Cash
12.3.2.1.2.2.2. Equity / Share / Stock Compensation
12.3.2.1.2.2.3. Other
12.3.2.1.2.3. Other Variable Cash

Section
Section Name
12.3.2.2. Employee Benefits As Valuable Rewards Mix
12.3.2.3. Work Life Balance As Valuable Rewards Mix
12.3.2.4. Development and Career Opportunities As Valuable Rewards Mix
12.3.2.5. Etc.
12.3.2.6. Developments in Rewards Mix
12.3.2.6.1. Pay Consolidation and Pay Monetization in Ghana: What, Why, Who, For Whom, When, How, So What?
12.3.3. Pay Mix in Different Type of Settings
12.3.3.1.1. By Type of Organization & Strategy
12.3.3.1.2. Traditional Organizations
12.3.3.1.3. Transitional Organizations
12.3.3.1.4. Entrepreneurial Organizations
12.3.3.1.5. By Role Level and Risk
12.3.3.1.6. Pay Mix In Sales Roles By Degree of Persuasion
12.3.3.1.7. Other Kinds of Mix

Section
Section Name
M.
The Rewards Program – Intermediate Details: Rewards (Competitive) Policy Line
13. The Rewards Program – Intermediate Details: Rewards (Competitive) Policy Line
13.1. Meaning of Pay Policy
13.2. Units of Analysis and Comparison In Rewards Policy Line Decisions
13.3. Typical Units of Comparison In Rewards Policy Line Decisions
13.3.1.1. Fixed Compensation Elements
13.3.1.2. Variable Compensation Elements
13.3.1.3. Total Cash Versus Target Total Cash
13.3.1.4. Total Value versus Target Total Value
13.3.1.5. Other Units of Analysis and Comparison Rewards Policy Line Decisions
13.4. Level of Analysis In Rewards Policy Line Decisions – Choosing Comparators
13.4.1. The Game of Apples and Oranges
13.4.2. Cherry Picking Versus Real Comparisons
13.4.3. Scope, Geography, Industry, Level, Etc.
13.5. Rewards Policy Line Broad Alternatives And Rationale For Using Them
13.6. Multiple Policy Lines: Whether, When, Why And How To Use Them
13.7. Match; Lead; Lag; Lead-lag Rewards Policy Line Decisions
13.8. Rewards Surveys and Studies: The Dos And Don’ts Of Benchmarking and ‘Best Practices’
13.9. Salary Surveys and Rewards (Competitive) Policy Line
13.9.1. Choosing Surveys
13.9.2. Choosing Comparators
13.9.3. Choosing Variables
13.9.4. Choosing Statistical Measures
13.9.5. Showing How You Compare
13.9.6. Showing Where You Want To Be For Target Employees
13.9.7. Other Policy Line Decisions in Using Surveys
13.9.8. Cases & Exercises in Rewards (Competitive) Policy Line

Section
Section Name
N.
The Rewards Program – Intermediate Details: Rewards Structure
14. Rewards Structure
14.1. Rewards Structure Versus Pay Structure: Is There A Difference?
14.2. Use and Misuse Of The ‘Structure’ in Rewards
14.3. Overview of Goals, Uses, and Nature of Rewards Structure
14.4. Rewards Structure and Employee Behavior
14.5. Rewards Structure Versus Pay System: Which Drives Which?
14.6. Rewards Structure, Pay Structure, Pay Ladders, Pay Spines as Hierarchies of The Value of Jobs and Work
14.7. Methods for Determining The Value of Jobs and Work
14.7.1.1. Traditional Job Evaluation – Overview
14.7.1.1.1. Types of Job Evaluation
14.7.1.1.2. Compensable Factors
14.7.1.1.3. Distinctions: Position, Job, Job Class, Job Class Series, Job Family
14.7.1.1.4. Job Analysis: Scope, Focus, Processes, Data Collection
14.7.1.1.5. Job Descriptions: Dimensions and Elements
14.7.1.1.6. Using Job Evaluation Systems & Instruments
14.7.1.1.7. Comparisons – Job Hierarchies
14.7.1.1.8. Job Grades / Bands
14.7.1.1.9. Constructing the Pay Structure
14.7.1.1.10. Key Data Elements of Pay Structure
14.7.1.1.10.1. Pay Range: Minimum, Maximum,
14.7.1.1.10.2. Range Spread: Significance And Uses
14.7.1.1.10.3. Range Penetration
14.7.1.1.10.4. Pay To Max: A New Measure
14.7.1.1.10.5. Mid Point: Significance And Uses
14.7.1.1.10.6. Mid Point Progression: : Significance And Uses

Section
Section Name
14.7.1.1.10.7. Compa-ratio: : Significance And Uses
14.7.1.1.10.8. Other Element of Pay Structure
14.7.1.2. Market-Referenced Job Pricing (Market Pricing) – Overview
14.7.1.2.1. Before You Look at Surveys: Decisions, Decisions, Decision
14.7.1.2.1.1. Job Families to Cover in Market Pricing
14.7.1.2.1.2. Selecting Benchmark Jobs for Market Pricing
14.7.1.2.1.3. Verifying Job Descriptions for Market Pricing
14.7.1.2.2. Market Surveys Sources and Challenges
14.7.1.2.2.1. Sources of Surveys
14.7.1.2.2.2. Number of Survey Sources required for Reliability
14.7.1.2.2.3. Survey Quality Indicators
14.7.1.2.3. Matching Your Jobs to Those in the Survey
14.7.1.2.3.1. Content, Level and Scope Dimensions
14.7.1.2.3.2. Data Dimensions
14.7.1.2.3.2.1. Number of companies reporting
14.7.1.2.3.2.2. Number of Survey Jobs per Benchmark Job
14.7.1.2.3.2.3. Data Elements / Variables In Use
14.7.1.2.3.2.4. Quality of Data
14.7.1.2.3.2.5. Data Cuts (Industry, Scope, etc.)
14.7.1.2.3.3. Adjusting The Data: Techniques For Fine-Tuning
14.7.1.2.3.3.1. Aging the Data
14.7.1.2.3.3.2. Geographic Adjustments
14.7.1.2.3.3.3. Adjusting for Composite (Multiple survey sources)
14.7.1.2.3.3.3.1. Average Versus Weighted Average
14.7.1.2.4. Market Pricing in a World without regular, reliable, third-party surveys:
14.7.1.2.4.1. The Pros And Cons Of Calling Around
14.7.1.2.4.2. The Pros And Cons Of Using “Club Data”

Section
Section Name
14.7.1.2.4.3. Data Elements available
14.7.1.2.4.4. Pros and Cons of Data Available
14.7.1.2.4.5. Consulting Firms And Providers of Market Surveys
14.7.2. Pay Structure Issues
14.7.2.1. Single Spine Versus Multiple Spine in Pay Structure
14.7.2.2. Organization Culture and Fit / Misfit of Pay Structure
14.7.2.3. Restriction of Range
14.7.2.4. Pay Compression
14.7.2.5. Managing the Basis for Progression through The Range
14.7.2.6. Overemphasis on Base Pay
14.7.2.7. Managing / Mismanaging Control Points
14.7.2.8. Other Issues
14.7.3. The Limits of Pay Structure Versus Total Rewards Structure: Frontiers Of Practice
14.7.4. Cases & Exercises in Rewards Structure
14.7.4.1. A Tower of Babel Creates Rocky Marriage to The Single Spine Pay Policy In Ghana
14.7.4.2. Other Cases And Exercises

Section
Section Name
O.
The Rewards Program – Intermediate Details: Rewards Structure, Salary Surveys, Rewards Studies Etc.
15. The Rewards Program – Intermediate Details: Rewards Structure, Salary Surveys, And Rewards Studies
15.1. Range of Salary Surveys, Rewards Studies, Etc.
15.1.1. Salary Surveys: A Survey of Surveys
15.1.1.1. Salary Budget Surveys
15.1.1.2. Industry Surveys
15.1.1.3. Occupational Surveys
15.1.1.4. General Industry Surveys
15.1.1.5. Regional / Geographical Surveys
15.1.1.6. Geographical Differentials Surveys
15.1.1.7. Other Surveys
15.1.2. Rewards Studies
15.1.2.1. Why Rewards Studies
15.1.2.2. Providers of Rewards Studies
15.1.2.3. Scope of Rewards Studies
15.1.2.4. Cases And Examples of Rewards Studies
15.2. Participating In Salary Surveys (Versus Simply Using Off-The- Shelf Surveys)
15.2.1. A Common Problem: Reservations About Sharing Sensitive Salary Information
15.2.2. Effect Of Reservations About Sharing Sensitive Salary Information
15.2.3. A Common Solution: Third Party Surveys by Reputable Survey Service Providers
15.2.4. Why Participate In Salary Surveys
15.2.5. Pre-requisites for Participation: Internal Resources
15.2.6. Rules of Participation: Confidentiality, Plus More
15.2.7. Purpose and Timing of Salary Surveys
15.2.8. Selecting Your Salary Surveys
15.2.8.1. Is One Survey Enough?
15.2.8.2. A Strategic Portfolio Approach To Salary Surveys

Section
Section Name
15.2.9. Getting Your Data Ready
15.2.9.1. Job Documentation: Job Descriptions
15.2.9.2. Benchmark Jobs: Meaning And Significance
15.2.9.3. Matching Jobs To Market Benchmark Jobs; Major Activity
15.2.10. Completing Questionnaires: Salary and Other Rewards Data
15.2.11. Completing Questionnaires: Rewards Practices
15.2.12. Submitting Questionnaires
15.2.13. Answering Follow-Up Questions
15.2.14. What Happens Behind The Scenes: Compiling, Analyzing, Developing Salary Survey Reports and Access to Databases
15.2.15. Acquiring / Purchasing Survey Results When You Participated
15.2.15.1. Sponsored Surveys:
15.2.15.2. Non-Sponsored Surveys
15.2.15.3. Hard Copy Survey Reports
15.2.15.4. Soft-Copy Survey Reports
15.2.15.5. Access To Survey Databases
15.2.16. Using Survey Data: Selected Decisions and Activities
15.2.16.1.1.1. Deciding What You Want And Why: Begin With The End In Mind
15.2.16.2. Selecting Scope, Slices, Or Cuts of Data In Salary Surveys
15.2.16.3. Selecting Comparators
15.2.16.4. Choosing Data Variables (Units of Analysis and Comparison)
15.2.16.5. Understanding Measures of Dispersion and Central Tendency
15.2.16.5.1. The Median Versus The Mean
15.2.16.6. Using Quartiles and Percentiles
15.2.16.7. Determining Salary Movements in the Market
15.2.16.8. Other Analytical Considerations
15.2.16.9. Developing Internal Reports And Proposals For Change To Management

Section
Section Name
15.2.16.9.1. Outline of Internal Reports And Proposals For Change
15.2.16.9.2. Links to Organization’s Vision, Mission, Strategy
15.2.16.9.3. Where We Stand
15.2.16.9.4. Incorporating Other Rewards Studies In Decision-Making
15.2.16.9.5. What We Need To Change And Why: Making The Business Case For Change
15.2.16.9.6. Costing The Alternative Positions in the light of Market Movements
15.2.16.9.7. Pro-Forma Implementation Plans
15.2.16.9.8. Projecting Desired Outcomes To Be Monitored: A Much Under-served Task
15.2.16.9.9. Managing Presentations To Management
15.2.16.9.10. Managing Presentations To Boards
15.2.16.9.11. Developing Implementation Plans
15.2.16.9.12. Resource Requirements Within The Compensation And Rewards Function of Human Resource Departments

Section
Section Name
P.
The Rewards Program – Intermediate Details: Rewards Program Implementation / Administration
16. The Rewards Program – Intermediate Details: Rewards Program Implementation / Administration
16.1. Required Resources for The Implementation Of The Rewards Program
16.1.1. Budgets: Capital and Operating Budgets For The Implementation Of The Rewards Program
16.1.2. Organizational Unit & Organization Structure For Rewards Management
16.1.3. Technical Staff For Rewards Management
16.1.4. Technology Systems / Platforms
16.1.5. Specialized Software & Licenses Beyond Typical ERP
16.1.6. Surveys, Studies, Subscriptions, and Sources of Data
16.1.7. Professional Associations: Membership, Resources, Activities
16.1.8. Professional Development: Conferences, Seminars & Workshops
16.1.9. Consultancy Support Projects
16.1.10. Outsourced Rewards Implementation Operations
16.2. Alliances & Partnerships For The Implementation Of The Rewards Program
16.2.1. Internal Alliances & Partnerships:
16.2.2. External Alliances & Partnerships – Outsourced Services
16.2.3. Unions & Staff Associations And Their Roles in The Implementation Of The Rewards Program
16.3. Additional Tools For Rewards Program Implementation:
16.3.1. Policy and Procedures Documentation
16.3.2. User Manuals For Supervisors
16.3.3. Employee Manuals
16.3.4. Orientation, Learning & Development (Training Programs) Programs
16.3.5. Rewards Communications (Details Elsewhere In This Outline
16.4. Using Testing & Quizzes To Reinforce Mastery & Currency of Knowledge Of Rewards Programs, Policy & Procedures
16.5. A Special Note on Emerging Technology For The Implementation Of The Rewards Program
16.6. A Special Note on Rewards Surveys, Studies, Subscriptions, and Other Sources of Data

Section
Section Name
Q.
The Rewards Program – Intermediate Details: Rewards Program Implementation / Administration – Focus on Rewards Communications
17. The Rewards Program – Intermediate Details: Rewards Program Implementation / Administration – Focus on Rewards Communications
17.1. Importance of Rewards Communications
17.2. The Complex Environment Of Rewards Communications: Opportunities, Issues, Technology, Social / Demographic, Cultural, Etc.
17.3. A Total Rewards Approach To Rewards Communications
17.4. The Strategic Communications Process – Overview
17.5. Annual Calendar in The Implementation Of The Rewards Program
17.6. Special Events in The Implementation Of The Rewards Program
17.7. Cases & Exercises in Rewards Communication

1 0 1 0 1 torkornoo, e. k. (2014). toc. a manual of compensation & total rewards management.update mode1.5

1 0 1 0 1 torkornoo, e. k. (2014). toc. a manual of compensation & total rewards management.update mode1.5

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1 0 1 0 1 torkornoo, e. k. (2014). toc. a manual of compensation & total rewards management.update mode1.5