, NELSON Long, Richard J. (Richard Joseph), author
Strategic compensation in Canada / Richard J. Long, Parbudyal Singh.—Sixth edition.
Strategic Compensation in Canada, Sixth Edition
by Richard J. Long and Parbudyal Singh (Nelson Education series in human resources management) Includes bibliographical
references and index. Issued in print and electronic formats.
Senior Publisher, Digital and Print Content: Jackie Wood ISBN 978-0-17-665716-1 (softcover).—ISBN 978-0-17-682554-6 (PDF)
Executive Marketing Manager: Amanda Henry 1. Compensation management—Canada—Textbooks. 2. Textbooks. I. Singh, Parbudyal,
author II. Title. III. Series: Nelson Education series in human resource management
Content Manager: Elke Price
HF5549.5.C67L56 2017 658.3'220971
Photo and Permissions Researcher: Jessie Coffey C2017-900419-0
C2017-900420-4
Production Project Manager: Jennifer Hare
Production Service: MPS Limited
Copy Editor: Karen Rolfe
Proofreader: MPS Limited
Indexer: MPS Limited
Design Director: Ken Phipps
Higher Education Design PM: Pamela Johnston
Interior Design: Sharon Lucas
Cover Design: Sharon Lucas
Compositor: MPS Limited
Copyright © 2020 by Tophatmonocle Corp.
ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be
reproduced, transcribed, or used in any form or by any means—graphic, electronic, or
mechanical, including photocopying, recording, taping, Web distribution, or information
storage and retrieval systems—without the written permission of the publisher.
Every effort has been made to trace ownership of all copyrighted material and to secure
permission from copyright holders. In the event of any question arising as to the use of any
material, we will be pleased to make the necessary corrections in future printings.
Library and Archives Canada Cataloguing in Publication
,About the Series
Brief Contents
Contents
About the Authors
Preface
About the Series
Part 1 Strategy, Rewards, and Behaviour About the Authors
Preface
Chapter 1 A Road Map to Effective Compensation
Chapter 2 A Strategic Framework for Compensation
Chapter 3 A Behavioural Framework for Compensation
Part I Strategy, Rewards, and Behaviour
Chapter 1 A Road Map to Effective Compensation
Part 2 Formulating Reward and Chapter Learning Objectives
Opening Vignette: A Whopping Salary Increase for Everyone! Does It Work?
Compensation Strategy Introduction to the Importance of Compensation Systems
Your Compensation System: Asset or Liability?
Chapter 4 Components of Compensation Strategy The Premise of This Book
Chapter 5 Performance Pay Choices Role and Purpose of the Compensation System
Chapter 6 Formulating the Reward and Compensation Strategy Extrinsic vs. Intrinsic Rewards
Rewards vs. Incentives
Reward vs. Compensation Strategy
Part 3 Determining Compensation Values Criteria for Success: Goals for the Compensation System
A Road Map to Effective Compensation
Chapter 7 Evaluating Jobs: The Job Evaluation Process Step I: Understand Your Organization and Your People
Chapter 8 Evaluating Jobs: The Point Method of Job Evaluation Step II: Formulate Your Reward and Compensation Strategy
Chapter 9 Evaluating the Market Step III: Determine Your Compensation Values
Chapter 10 Evaluating Individuals Step IV: Design Your Performance Pay and Indirect Pay Plans
Step V: Implement, Manage, Evaluate, and Adapt the Compensation System
The Context of Compensation Management
Part 4 Designing Performance Pay and Indirect Pay Summary
Plans Key Terms
Discussion Questions
Chapter 11 Designing Performance Pay Plans Using the Internet
Chapter 12 Designing Indirect Pay Plans Exercises
Case Question
Simulation Cross-Reference
Part 5 Implementing, Managing, Evaluating, and Notes
Adapting the Compensation System
Chapter 2 A Strategic Framework for Compensation
Chapter 13 Activating and Maintaining an Effective Compensation System Chapter Learning Objectives
Opening Vignette: A Tale of Two Firms
Appendix Introduction to Effective Compensation Systems
A Strategic Framework for Compensation
Glossary Strategy and the Concept of Fit
Structural Variables
Managerial Strategy
, Contextual Variables Understanding Organizational Citizenship Behaviour
Managerial Strategies and Reward Systems Causes of Citizenship Behaviour
Classical Managerial Strategy Creating Citizenship Behaviour
Human Relations Managerial Strategy Behavioural Implications for Designing Reward Systems
High-Involvement Managerial Strategy 1. Define the Necessary Employee Behaviour
Interrelationships Among Structural Variables 2. Determine the Necessary Employee Attributes
Determinants of the Most Appropriate Managerial Strategy 3. Identify Salient Employee Needs
Environment 4. Ensure a Positive Reward Valence
Corporate Strategy 5. Make It Clear That Performance Will Lead to Rewards
Technology 6. Provide Conditions for Effort to Lead to Performance
Organization Size Summary
The Nature of the Workforce Key Terms
Tying It All Together Discussion Questions
Trends in Managerial and Compensation Strategies Using the Internet
The Evolution of Managerial Strategies Exercises
Trends in Compensation Systems Case Questions
Summary Simulation Cross-Reference
Key Terms Notes
Discussion Questions
Using the Internet
Exercises
Part 2 Formulating Reward and Compensation Strategy
Case Questions
Simulation Cross-Reference Chapter 4 Components of Compensation Strategy
Notes Chapter Learning Objectives
Opening Vignette: Pay Systems Are Changing
Introduction to Compensation Mix Choices
Chapter 3 A Behavioural Framework for Compensation
Fundamental Components of the Compensation Mix
Chapter Learning Objectives
Base Pay
Opening Vignette: Fouled-Up Pay Systems Lead to an Economic Meltdown
Performance Pay
Introduction to Reward Systems and Behaviour
Indirect Pay
Types of Reward Problems
Base Pay Methods: Market Pricing
Failure to Produce Desired Behaviour
Advantages of Market Pricing
Production of Desired Behaviour and Undesirable Consequences
Disadvantages of Market Pricing
Production of Reward Dissatisfaction
Base Pay Methods: Job Evaluation
Desired Reward Outcomes
Advantages of Job Evaluation
Three Key Employee Behaviours
Disadvantages of Job Evaluation
Three Key Employee Attitudes
Base Pay Methods: Pay for Knowledge
Causes and Consequences of Reward Dissatisfaction
Advantages of Skill-based Pay
Causes of Reward Dissatisfaction
Disadvantages of Skill-based Pay
Consequences of Reward Dissatisfaction
Issues in Developing a Skill-based Pay System
Understanding Membership Behaviour
Competency-based Pay Systems
Causes of Membership Behaviour
Summary
Rewards, Satisfaction, and Commitment
Key Terms
Is Low Turnover Always Good?
Discussion Questions
Understanding Task Behaviour
Using the Internet
Content Theories of Motivation
Exercises
Maslow’s Hierarchy of Needs
Case Questions
Process Theories of Motivation
Money as a Motivator
Strategic compensation in Canada / Richard J. Long, Parbudyal Singh.—Sixth edition.
Strategic Compensation in Canada, Sixth Edition
by Richard J. Long and Parbudyal Singh (Nelson Education series in human resources management) Includes bibliographical
references and index. Issued in print and electronic formats.
Senior Publisher, Digital and Print Content: Jackie Wood ISBN 978-0-17-665716-1 (softcover).—ISBN 978-0-17-682554-6 (PDF)
Executive Marketing Manager: Amanda Henry 1. Compensation management—Canada—Textbooks. 2. Textbooks. I. Singh, Parbudyal,
author II. Title. III. Series: Nelson Education series in human resource management
Content Manager: Elke Price
HF5549.5.C67L56 2017 658.3'220971
Photo and Permissions Researcher: Jessie Coffey C2017-900419-0
C2017-900420-4
Production Project Manager: Jennifer Hare
Production Service: MPS Limited
Copy Editor: Karen Rolfe
Proofreader: MPS Limited
Indexer: MPS Limited
Design Director: Ken Phipps
Higher Education Design PM: Pamela Johnston
Interior Design: Sharon Lucas
Cover Design: Sharon Lucas
Compositor: MPS Limited
Copyright © 2020 by Tophatmonocle Corp.
ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be
reproduced, transcribed, or used in any form or by any means—graphic, electronic, or
mechanical, including photocopying, recording, taping, Web distribution, or information
storage and retrieval systems—without the written permission of the publisher.
Every effort has been made to trace ownership of all copyrighted material and to secure
permission from copyright holders. In the event of any question arising as to the use of any
material, we will be pleased to make the necessary corrections in future printings.
Library and Archives Canada Cataloguing in Publication
,About the Series
Brief Contents
Contents
About the Authors
Preface
About the Series
Part 1 Strategy, Rewards, and Behaviour About the Authors
Preface
Chapter 1 A Road Map to Effective Compensation
Chapter 2 A Strategic Framework for Compensation
Chapter 3 A Behavioural Framework for Compensation
Part I Strategy, Rewards, and Behaviour
Chapter 1 A Road Map to Effective Compensation
Part 2 Formulating Reward and Chapter Learning Objectives
Opening Vignette: A Whopping Salary Increase for Everyone! Does It Work?
Compensation Strategy Introduction to the Importance of Compensation Systems
Your Compensation System: Asset or Liability?
Chapter 4 Components of Compensation Strategy The Premise of This Book
Chapter 5 Performance Pay Choices Role and Purpose of the Compensation System
Chapter 6 Formulating the Reward and Compensation Strategy Extrinsic vs. Intrinsic Rewards
Rewards vs. Incentives
Reward vs. Compensation Strategy
Part 3 Determining Compensation Values Criteria for Success: Goals for the Compensation System
A Road Map to Effective Compensation
Chapter 7 Evaluating Jobs: The Job Evaluation Process Step I: Understand Your Organization and Your People
Chapter 8 Evaluating Jobs: The Point Method of Job Evaluation Step II: Formulate Your Reward and Compensation Strategy
Chapter 9 Evaluating the Market Step III: Determine Your Compensation Values
Chapter 10 Evaluating Individuals Step IV: Design Your Performance Pay and Indirect Pay Plans
Step V: Implement, Manage, Evaluate, and Adapt the Compensation System
The Context of Compensation Management
Part 4 Designing Performance Pay and Indirect Pay Summary
Plans Key Terms
Discussion Questions
Chapter 11 Designing Performance Pay Plans Using the Internet
Chapter 12 Designing Indirect Pay Plans Exercises
Case Question
Simulation Cross-Reference
Part 5 Implementing, Managing, Evaluating, and Notes
Adapting the Compensation System
Chapter 2 A Strategic Framework for Compensation
Chapter 13 Activating and Maintaining an Effective Compensation System Chapter Learning Objectives
Opening Vignette: A Tale of Two Firms
Appendix Introduction to Effective Compensation Systems
A Strategic Framework for Compensation
Glossary Strategy and the Concept of Fit
Structural Variables
Managerial Strategy
, Contextual Variables Understanding Organizational Citizenship Behaviour
Managerial Strategies and Reward Systems Causes of Citizenship Behaviour
Classical Managerial Strategy Creating Citizenship Behaviour
Human Relations Managerial Strategy Behavioural Implications for Designing Reward Systems
High-Involvement Managerial Strategy 1. Define the Necessary Employee Behaviour
Interrelationships Among Structural Variables 2. Determine the Necessary Employee Attributes
Determinants of the Most Appropriate Managerial Strategy 3. Identify Salient Employee Needs
Environment 4. Ensure a Positive Reward Valence
Corporate Strategy 5. Make It Clear That Performance Will Lead to Rewards
Technology 6. Provide Conditions for Effort to Lead to Performance
Organization Size Summary
The Nature of the Workforce Key Terms
Tying It All Together Discussion Questions
Trends in Managerial and Compensation Strategies Using the Internet
The Evolution of Managerial Strategies Exercises
Trends in Compensation Systems Case Questions
Summary Simulation Cross-Reference
Key Terms Notes
Discussion Questions
Using the Internet
Exercises
Part 2 Formulating Reward and Compensation Strategy
Case Questions
Simulation Cross-Reference Chapter 4 Components of Compensation Strategy
Notes Chapter Learning Objectives
Opening Vignette: Pay Systems Are Changing
Introduction to Compensation Mix Choices
Chapter 3 A Behavioural Framework for Compensation
Fundamental Components of the Compensation Mix
Chapter Learning Objectives
Base Pay
Opening Vignette: Fouled-Up Pay Systems Lead to an Economic Meltdown
Performance Pay
Introduction to Reward Systems and Behaviour
Indirect Pay
Types of Reward Problems
Base Pay Methods: Market Pricing
Failure to Produce Desired Behaviour
Advantages of Market Pricing
Production of Desired Behaviour and Undesirable Consequences
Disadvantages of Market Pricing
Production of Reward Dissatisfaction
Base Pay Methods: Job Evaluation
Desired Reward Outcomes
Advantages of Job Evaluation
Three Key Employee Behaviours
Disadvantages of Job Evaluation
Three Key Employee Attitudes
Base Pay Methods: Pay for Knowledge
Causes and Consequences of Reward Dissatisfaction
Advantages of Skill-based Pay
Causes of Reward Dissatisfaction
Disadvantages of Skill-based Pay
Consequences of Reward Dissatisfaction
Issues in Developing a Skill-based Pay System
Understanding Membership Behaviour
Competency-based Pay Systems
Causes of Membership Behaviour
Summary
Rewards, Satisfaction, and Commitment
Key Terms
Is Low Turnover Always Good?
Discussion Questions
Understanding Task Behaviour
Using the Internet
Content Theories of Motivation
Exercises
Maslow’s Hierarchy of Needs
Case Questions
Process Theories of Motivation
Money as a Motivator
