An Overview Of Tourist Motivation Tourism Essay

An Overview Of Tourist Motivation Tourism Essay Tourist motivation is seen by many writers as one of the key elements in understanding tourist decision-making behaviour. A sound understanding of travel motivation plays a critical role in predicting future travel patterns and destination selection. The big answer to the basic question, why do people travel? has occupied the minds of tourist researchers for many years. Many different motives compel people to travel. Various methods have been employed to uncover travel motives. The following literature will shed light on various theories that can be used to have a knowledge why people travel to urban destination. Tourist motivation can be defined as the global integrating network of biological and cultural forces which gives value and direction to travel choices, behaviour and experience. (Pearce, Morrison Rutledge, 1998). Put simply, motivation is a state of arousal of a drive or need which impels people to activity in pursuit of goals. Once the goals have been achieved the need subsides and the individual returns to the equilibrium-but only briefly because new motives arise as the last one is satisfied. As cited in Seaton (1997) motivation of the individual person to travel, to look outside for what he cannot find inside have been largely created by society and shaped by everyday life. Grays (1979) travel-motivation theory, poses only two main motives for travel. One is the desire to go from a known to an unknown place, called in Grays theory wanderlust. The other motive is what Grays called sunlust. This generates a trip to a place which can provide the traveler with specific facilities t hat do not exist in his or her own place of residence. Some of the motives which determine their travel choices are recreation, pleasure, new experiences, cultural interest, shopping. The existence of internal and external factors which motivates human behavior is assumed by many authors. Kotler (182) for example, stipulate that motivation can be caused by the result of internal and external stimuli. Internal stimuli arise from personal needs and wants that can be physiological, social, egocentric, safety, and self-actualisation. External stimuli arise from marketing. Travel motives can be personal (personal training, compensation, rest and knowledge) or interpersonal (resulting from social relations) (dann, 1977, Yoon and Uysal, 2005). Dann (1977) classifies personal motives as those that predispose the individual for travelling, escape from daily routines, the desire to escape from solitude while interpersonal motives arise from the need to seek some form of social recognition that is obtained through travel. According to the push and pull concept, Crompton (1979), push factors explains the desire for travel while the pull motives have been used to explain the actual destination choice. Nine motivations of leisure travelers were identified and classified seven as socio-psychological or push motives and two as cultural or pull motives. The seven push motives were, escape from a perceived mundane environment, exploration and evaluation of self, relaxation, prestige, regression, enhancement of kinship relationships, and facilitation of social interaction. The pull motives were novelty and education. Maslow (1943) identified two motivational types: tension-reducing motives; arousal-seeking motives. There are five needs forming a hierarchy, progressing from the lower to the higher needs. At the bottom are the basic needs for food, water and air. Then, above them is the need for safety, security, and protection. The higher needs in this hierarchy only come into focus when the lower needs in the pyramid are met. Once an individual has moved upwards to the next level, needs in the lower level will no longer be prioritized. Cooper et al (2005) questioned Maslows theory saying that why and how Maslow selected the basic five needs remain unclear, although Page (2003) feels that it has relevance in understanding how human action is understandable and predictable compared to research which argues that human behaviour is essentially irrational and unpredictable. Though much criticism about Maslows theory, the tourism literature has borrowed a lot from Maslow since he provides a convenient set of containers that can be relatively labeled and provide a useful framework for understanding psychological motivational factors in tourism. Thus, for example, although the apparent purpose of a trip may be for shopping, the underlying psychological motivation may be to impress their neighbours and gain higher social status. Iso-Ahola (1982) says that tourists will switch roles while on holiday, and that over time different needs will arise. Single motivation may not always act as the determining factor for travel. If within the holiday, the initial needs are satisfied, other motivations might emerge. Indeed, it is congruent with Maslows theories of needs to argue that if initially there is a primary need for relaxation while on a holiday, the satisfaction of that need will create awareness of other needs such as exploration of place as a means of acquiring a sense of belonging or to enable processes of self-actualisation to take place. Dann (1981) has identified seven elements of tourist motivations: travel as a response to what is lacking yet desired; destination pull in response to motivational push; motivation as fantasy(engage in behaviour and activities that are culturally unacceptable in their home environment like prostitution and gambling); motivation as classified purpose(VFRs); motivational typologies; motivation and tourist experiences; motivation as auto-definition and meaning (the way in which tourist define their situations and respond to them).[Page Connell,2003]. Beard and Ragheb (1983:225), propose four motivational needs which came from the work of Maslow (1970).These are: the intellectual component (such as learning, exploring, discovering, thought or imagining), the social component where individuals engage in leisure activities for social reasons. This component includes two basic needs (need for friendship and interpersonal relationships and the need for the esteem of others), the competence-mastery component assesses the extent to which individuals engage in leisure activities in order to achieve, master, challenge and compete. The activities are usually physical in nature and finally the stimulus-avoidance component of leisure motivation which assesses the drive to escape and get away from over-stimulating life situations. It is the need for some individuals to avoid social contacts, to seek solitude and calm conditions; and for others it is to seek to rest and to unwind themselves. These four motivations form the foundation of their Leisure Motivation. P.Pearce (1988) using the concept of a travel ladder when investigating motivation for tourism, suggested that motivation are multivariate and dynamic, changing particularly as a result of ageing and lifecycle stage, as well as being influenced by other people. He proposed the following motivation categories: relaxation, stimulation, relationship, self-esteem and development, fulfillment. In Pearces model, the motivations listed can be divided into two categories. The needs may be self-centered or directed at others. Thus, for instance, relaxation may be a solo exercise where the holiday-maker seeks a quiet restful time alone or it can be relaxation in the company of others, springing from the need for external excitement and desire for novelty. Stimulation can be self-directed which springs from the concern for own safety, or it can be directed toward others arising out of the concern for others safety. Relationship can be self-directed which means giving love and affection and main taining relationships, or it can be directed at others which means receiving affection, to be with group membership. Self-esteem and development maybe self-directed like development of skills, special interests, competence and mastery, or it may be directed at others like prestige, glamour of travelling. Fulfillment is totally self-directed as it fulfils individual dreams, understands oneself more and experience inner peace and harmony. There are some criticisms against Pearces travel motivations. For example, Pearce argues that stimulation may be understood along a dimension of risk and safety of self or others. However, it might be argued that there is a real and distinctive difference between these two motivations. Chadwick (1987) provided a simplified categorization of why people travel under three main headings. These are as follows: Pleasure: leisure, culture, active sports, visiting friends and relatives, Professional: Meeting, missions, business, etc, other purposes: Study, health and transit. Classifying tourist behaviours have important implications for the study of the impact of tourism on destination. Shaw Williams (2002) opines that many of the typologies are based around identifying the significant traits of tourists. According to Klenosky (2002) travel behaviour is motivated by two sets of factors, one that influences or pushes a person to consider travelling outside his or her everyday environment and another set that attracts or pulls that person to visit a particular destination. Several sociological theories have been put forward in the tourist literature in an attempt to explain motivation. Cohen (1972), in his early studies sub-divided tourist into four types based on motivation. He asserted that all tourists are seeking some element of novelty and strangeness while, at the same time, most also need to retain something familiar. He distinguished tourist using sociological principles into organized mass tourist, individual mass tourists, explorer and drifter. Hence, at one end of his continuum was the organized mass tourist seeking familiarity in the holiday surroundings, while at the other end, the drifter is willing to accept far more strangeness. Smith (1977) provided a more detailed variant of Cohens tourist typologies. Smith (1977) identifies 7 categories of tourist who have been termed as interactional typologies: explorer, elite, off-beat, unusual, incipient mass, mass, and charter. However, Plog (1990) criticised the validity of Smiths typology. Shaw Williams (2002) argued that Plogs typology is built upon asking tourists about their real general lifestyles or value systems, often using perceptual information derived from in-depth interviews. Plog suggested two set of individual: allo-centric and psycho-centric. The latter are concerned primarily with the self, are inhibited and non-adventurous. In term of tourist behaviour, psycho-centrics want the familiar and are unlikely to travel great distances to explore new tourism destinations. Conversely, the former are confident, naturally inquisitive and seek out the unfamiliar when travelling. This typology can be used to examine tourist motivations as well as attitudes to particular destinations and modes of travel. Johns Gyimothy (2002) states that Plog (1973) used a psychometric scale to categorise tourists into allocentric, midcentric and psychocentric, depending on individuals relative focus on their own culture and the one they are visiting. Psychocentrics tourists like nice swimming pool; well organized trip; good facilities; pub lunches. Cooper et al (2005) feel they are conservative in their travel patterns. However, Cooper et al (2005) questions the applicability of the typology. They feel that tourists may on a second visit travel to nearby psychocentric-type areas, whereas the main holiday maybe in an allocentric-type destination. Gottlieb(in Davidoff and Davidoff,1983) as cited in Seaton(1997), suggests that there are two kinds of tourists-those who seek a pampered lifestyle beyond their means in everyday life while the latter, having access to material luxuries in their everyday life, seek simpler, more primitive contacts in their leisure(e.g. on safaris, roughing it on adventure h olidays, etc). Shaw Williams (2002) states few problems associated with tourist typologies. Firstly, typologies are relatively static models due to lack of information (Lowyck et al, 1990).Secondly, individuals change as tourists over time. Changing patterns of tourist behaviour do not exist in sufficient detail or scale. Tourist typologies offer just mere generalities. According to Shaw Williams (2002) these typologies are beneficial despite their limitations. They provide insight into motivations of tourist and their behaviour. An insight of the various types of tourism purpose and motivation is crucial for those planning and marketing tourist destinations. All service providers and tourism planners must know why people want their products. However, there are many problems of determining tourism motivations. According to Seaton (1997) people rarely think about the underlying reasons for their actions. Motivations for activities may not bear too much self-critical scrutiny like sex tourism. Again tourism motivations often include contradictory impulses. Seaton (1997) typifies two such sets of opposing desires: Novelty and adventure (exploring a new place) vs. Familiarity and security (staying in a hotel with familiar comforts). Another problem is that it is often difficult to distinguish individual motives from socially constructed vocabularies of motives. People often give reasons for doing things that they have been programmed to give, none of which may constitute the real reason for a trip. According to P age (2003), if we are able to understand what prompts people to leave their homes and travel to new places, then we may be able to develop approaches that will help us to manage the tourists and their impacts and plan an enjoyable experience for them. More fundamentally, understanding tourist motivation may help to explain why certain places are more developed as successful tourism destination than others and then continued to grow, stagnated or declined as tastes and fashions changed.

Designing Pay Levels, Mix and Pay Structures

CHAPTER 8 DESIGNING PAY LEVELS, MIX AND PAY STRUCTURES LEARNING OBJECTIVES 1. Identify the major decisions in establishing externally competitive pay. 2. Describe the purpose(s) of a salary survey. 3. Discuss the importance of defining the relevant market in a pay survey. 4. Explain the steps involved in designing a pay survey. 5. Describe the key issues involved in interpreting the results of a pay survey. 6. Explain how the market pay line combines the internal structure with external market rates. 7. Discuss the use of pay grades and pay ranges and their relationship to internal alignment and external competitiveness. . Discuss the pros and cons of the market pricing approach to establishing a pay structure. OUTLINE I. MAJOR DECISIONS A. There are seven major decisions involved in setting externally competitive pay and designing the corresponding pay structures 1. specifying employer's external/competitive pay policy 2. define the purpose of the survey 3. select the relevant marke t competitors 4. designing and conducting surveys 5. interpreting survey results and constructing the market line 6. constructing a pay policy line that reflects the external pay policy 7. alancing competitiveness with internal alignment through the use of ranges, flat rates, and/or bands Definition:A survey is the systematic process of collecting and making judgments about the compensation paid by other employers Steps in conducting wage and salary surveys: 1. select the jobs to be surveyed 2. define the relevant markets 3. select the firms to be surveyed 4. determine the information to ask 5. determine the data collection technique 6. administer the survey II. SPECIFY COMPETITIVE PAY POLICY an external pay policy requires information on the external market †¢ surveys provide the data for translating that policy into pay levels, pay mix & pay structures III. THE PURPOSE OF A SURVEY? A. Conducting a salary survey is necessary to obtain data to set an organization’s pay p olicy relative to its competitors. B. An employer conducts/participates in a survey for the following reasons †¢ its an opportunity to collect information to make judgements regarding compensation †¢ to adjust pay to changing external pay rates & recognize pay trends in marketplace to establish/develop or price an adequate pay structure †¢ to analyze personnel problems that may be pay related †¢ defending pay practices in a court of law †¢ to attempt to estimate the labor costs of product market competitors †¢ hiring and retaining competent employees †¢ promoting worker productivity C. Adjust Pay Level – How Much to Pay? market surveys provide information so that an employer will be able to adjust the firm's pay levels relative to competitors (ex. AACSB salary survey) 1. most organizations make adjustments to employees’ pay on a regular basis . these adjustments can be based on one, or more, of the following issues: a. overall upward movement of pay rates caused by competition for people in the market. b. performance. c. ability to pay. d. terms specified in a contract. D. Adjust Pay Mix – What Forms? 1. the mix of forms and their relative importance makes up the â€Å"pay package† 2. adjustments to the different forms that competitors use (base, bonus, benefits, etc) & the relative importance they place on each form occur less frequently than adjustments to overall pay level . it is unclear why changes to the pay mix occur less frequently than changes in the pay level 4. since some pay forms may affect employee behavior more than others, collecting information on total compensation, the mix of pay competitors us, and costs of various forms is increasingly important E. Adjust Pay Structure 1. survey information used for directly valuing jobs in some cases 2. in other instances, used to validate job evaluation results (see if market rates vary greatly from those obtained in the firm’s job eva luation)Study Special Situations 1. information used to review competitor pay scales in case of high turnover or to justify differentials between certain gender dominated jobs in legal situations 2. many special studies appraise the starting salary offers or current pay practices for targeted groups, such as patent attorneys, sales managers, or software engineers G. Estimate Competitors' Labor Costs 1. surveys allow for organizations to compare labor costs especially in a highly competitive industry, as input for decisions making, etc. 2. hey may use salary survey data to benchmark against competitors’ product pricing and manufacturing practices IV. SELECT RELEVANT MARKET COMPETITORS A. To make decisions about pay level, mix, and structures, a relevant labor market must be defined that includes employers who compete in one or more of the following areas Relevant markets are expressed as: †¢ employers who compete for the same occupations and skills required †¢ the ge ographic distance employees are willing to commute/relocate †¢ employers who compete with the same products/servicesB. As the importance and complexity of qualifications increase, the geographic limits also increase C. Competition tends to be national or international for managerial and professional skills and local or regional for clerical and production skills D. The generalizations do not always hold true. Examples include: 1. in areas with high concentrations of scientists, engineers, and managers, the primary market comparison may be regional, with national data used only secondarily 2. some larger firms ignore local market conditions E.Research suggests that if skills are tied to a particular industry, as underwriters, actuaries, and claims representatives are to insurance, the market should be defined on an industry basis 1. if certain skills, i. e. accounting, sales, clerical, are not limited to one particular industry, then industry considerations are less important. 2 . from the perspective of cost control and ability to pay, competitors in the product/service market should be included since the pay rates of these competitors will affect both an employer’s costs of operations and its financial condition. F.While the quantity of data available for international comparisons is improving, using the data to adjust pay requires a lot of judgment. G. Fuzzy Markets 1. new organizations and jobs fuse together diverse knowledge and experience, so â€Å"relevant† markets appear more like â€Å"fuzzy† markets 2. organizations with unique jobs and structures face the double bind of finding it hard to get comparable market data at the same time they are placing more emphasis on external market data V. Design the Survey A. Consulting firms offer a wide variety of surveys covering almost every job family and industry group imaginable.B. Survey design involves considering the following issues: 1. Who should be involved in the survey design? 2. How many employers should be included? 3. Which jobs should be included? 4. What information should be collected? C. Whom to Involve? †¢ compensation specialist or HRM manager †¢ operating managers †¢ employees (task managers) †¢ outside consultants (avoid wage fixing allegations) D. How Many Employers? †¢ depends on circumstances, no set/magic numbers (problematic for global companies) †¢ in small markets with few employers: 2 or 3 firms in larger local markets with 200-300 positions: 12-24 firms †¢ in national labor market and some regional survey: 100+ firms †¢ salary surveys reflect industry, geographical area Publicly Available Data a. The Bureau of Labor Statistics is the major source of publicly available compensation data and publishes extensive information on various occupations in different geographic areas b. While some private sector firms may track the rate of change in BLS data as a cross-check on other surveys, the data are n ot specific enough to be used alone â€Å"Word-of-Mouse† a.A click of the mouse makes a wealth of data available to everyone and means that managers must be able to explain the salaries paid to employees compared to those a mouse-click away. b. The quality of salary data on the Web is highly suspect. Where Are the Standards? a. Opinions about the value of consultant surveys are rampant b. Many firms select one survey as their primary source and use others to cross-check of validate the results c. Some firms routinely combine the results of several surveys and weight each survey in a composite based on a judgment of the quality of the data reported . For staffing decisions, employment test designers report the test’s performance against a set of standards (reliability, validity, etc. ) For market surveys and analysis, similar indices and standards do not exist E. Which Jobs to Include? Keep the survey simple and include only enough jobs necessary to accomplish the purpo se of the survey and to encourage participation 1. Benchmark Jobs Approach †¢ include only benchmark (stable in content) jobs in the surveys †¢ ensure that benchmark jobs represent all unction/levels in the firm †¢ slotting of remaining jobs 2. Low-High Approach †¢ useful for skills based structure that has no match with competitors †¢ identify highest and lowest paid benchmark jobs for the relevant †¢ skills and use these as anchors for skills based structures †¢ slot the remaining wage rates into the structure 3. Benchmark Conversion Approach †¢ traditional approach †¢ perform job evaluation on all jobs and use benchmarks on survey †¢ transfer salary info from benchmark jobs & convert internal structureF. What Information to Collect? Collect information about: †¢ the nature of the organization (size, structure, financial) †¢ information about the total compensation system (bonus, benefit) †¢ actual rates paid to each incumbent for jobs included in survey No survey includes all the data included in the discussion; the data collected depend on the purpose of the survey. Organization Data – data includes company identification, financial information, size of company, and the structure of the organization. .Total Compensation Data †¢ all the basic types of pay forms are required to assess the total pay package and competitors’ practices †¢ data collected includes: (1)Base pay – amount of cash competitors decided each job and incumbent is worth. (2)Total cash – includes base plus bonus; indicates competitors’ use of performance-based cash payments. (3)Total compensation – includes total cash plus stock options and benefits VI. INTERPRET SURVEY RESULTS & CONSTRUCT A MARKET LINE There is no single best approach that is used to analyze data.There are steps that the organization should take to ensure that use of the information is justified. A. Verify Data †¢ test for quality & accuracy of data (examine distribution patterns) †¢ check for accuracy of job matches (titles vs. descriptions) †¢ if jobs are similar but not identical, then leveling can be used to weight data according to closeness of match B. Anomalies 1. perusing actual salary data provides an analyst with a sense of the quality of the data and helps identify any areas for additional consideration. 2. nomalies may include: 1) does any one company dominate? 2) do all employers show similar patterns? 3) outliers? 3. analysis of the anomalies may indicate additional information about competitors’ pay policies, ex. a competitor may deliberately differentiate itself with pay as part of its strategy C. Statistical Analysis †¢ frequency distribution (organizes data into intervals) †¢ central tendency (mean, mode, median, weighted means) †¢ dispersion (get some idea from mean and dispersion value, the distribution of wages; ex. tandard dev iation, quartiles/percentiles) †¢ outliers/extreme values can distort mean value †¢ using this information to establish a single wage value D. Update the Survey Data †¢ to counteract â€Å"aging† of data, adjusts need to be made Extent of updating depends on: †¢ historical trends in the marketplace †¢ economic outlook for the future in the employer's market †¢ consumer price index (CPI) †¢ manager's judgement E. Construct a Market Pay Line Development of a market pay line involves making decisions about which benchmark jobs to include, which companies to include, and which measures of pay to use usually a straight line but can be curvilinear or hinged †¢ statistical techniques such as regression analysis can be used to derive a market pay line †¢ pay level policy will reflect positioning of pay line (percentile) Definition: A market line links a company’s benchmark jobs on the horizontal axis (internal structure) with market rates paid by competitors (market survey) on the vertical axis. It summarizes the distribution of going rates paid by competitors in the market F. Combine Internal Structure and External Wage RatesThe internal consistency and external competitiveness components of the pay model are combined through the development of the pay structure. The pay structure achieves two objectives: 1. produces pay policy line to reflect market wages to internal structure 2. allows for pay ranges, and give the firm some internal flexibility VII. FROM POLICY TO PRACTICE: THE PAY POLICY LINE A. The pay policy line reflects external competitive position in the market B. There are several ways to translate external competitive policy into practice 1.Choice of measure – based on Colgate’s stated policy, Colgate would use the 50th percentile for base pay and the 75th percentile for total compensation as compensation measures in its regression 2. Updating – the approach used by an organiza tion to update salary survey data reflects its pay policy. C. Policy Line as Percent of Market Line. 1. another way to translate pay-level policy into practice is to simple specify a percent above or below the regression line (market line) that an employer intends to match and then draw a new line at this higher (or lower) level 2. here are alternatives among competitive pay policies, and there are alternative ways to translate policy into practice 3. if the practice does not match the policy, then employees receive the wrong message VIII. FROM POLICY TO PRACTICE: GRADES AND RANGES Creating pay ranges is also part of designing a pay structure that reflects the organization’s policies on maintaining internal alignment and external competitiveness A. Why Bother with Grades and Ranges? 1. grades and ranges offer flexibility to deal with pressures from external markets and differences among organizations quality differences among jobholders †¢ productivity differences among individuals †¢ differences in the mix of pay forms competitors use 2. ranges provide managers the opportunity to: †¢ recognize individual performance differences with pay †¢ meet employee expectations that pay will increase with time †¢ encourage employees to remain with organization 3. from an internal alignment perspective a range reflects differences in: †¢ performance †¢ experience 4. from an external competitiveness perspective, a range is a control device 5. ranges are not used by all employers skill-based plans establish single rates for each skill level regardless of performance or seniority †¢ flat rates are favored by unions (use regression formula) †¢ broad bands are being adopted for greater flexibility B. Develop Grades †¢ fairly similar jobs (comparable value) are grouped together †¢ lateral moves without change in pay †¢ allows for certain degree of flexibility †¢ some subjective decisions in designing pay gr ades makes it tough †¢ jobs grouped together for traditional purposes, career pathing C. Establish Ranges Midpoints, Minimums, and Maximums midpoint of each range serves as control point to correspond with †¢ the pay policy line following a matching(competitive) policy †¢ midpoint reflects pay level at which competent person is paid †¢ range spreads vary according to jobs (spread increasing with worth) †¢ determine degree of overlap desired (arithmetic, geometric, random) D. What Size Should the Range Be? a. size of the range is based on judgment about how the ranges support career paths, promotions, and other organization systems. (1)top-level management positions typically have ranges of 30 to 60% above and below the midpoint 2)entry to mid-level professional and managerial positions typically have ranges of 15 to 30% above and below the midpoint (3)office and production work typically have ranges of 5 to 30% above and below the midpoint b. compensation ma nagers use actual survey rates, particularly the 75th and 25th percentiles, as the range minimums and maximums c. another approach is to establish the minimum and maximum separately, with the amount between the minimum and the midpoint a function of how long it takes a new employee to become fully competent E. Overlap (re: rules of thumb) degree of overlap to mirror commonality between grades †¢ high degree of overlap indicate small differences in the value of jobs in adjoining grades – ex. title change but not much change in pay †¢ overlap beyond three adjacent grades should be avoided †¢ jumps in pay grade should involve at least 10% differential †¢ size of differentials should support career movement thru’ structure †¢ difference between supervisor and worker: approx. 1 grade or 15% IX. FROM POLICY TO PRACTICE: BROAD BANDING A. Broad banding is a new technique 1. his approach consolidates approximately 4 – 5 traditional pay grades int o a single band with one minimum and one maximum 2. since a band encompasses many jobs of differing values, a range midpoint is usually not specified B. Contrasts between ranges and broad bands are highlighted in Exhibit 8. 19 C. Supporters of broad bands list several advantages: 1. they provide flexibility to define job responsibilities more broadly 2. they support redesigned, downsized, or boundary-less organizations that have eliminated layers of managerial jobs 3. they foster cross-functional growth and development. a. mployees can move laterally across functions within a band to gain depth of experience b. emphasis on lateral movement with no pay adjustments helps manage the reality of fewer promotions in flattened organizational structures 4. flexibility eases mergers and acquisitions since there are not a lot of levels to argue over D. The most important difference between the grades and ranges and broad-banding approaches is the location of controls 1. grade and range approa ch has guidelines and controls designed into the pay system 2. band approach has only a total salary budget that provides constraints. E.Banding involves two steps: 1. Set the number of bands a. examples indicate the use of 5 to 6 bands for pay purposes (1)Merck uses 6 bands for its entire pay structure (2)General Electric replaced 24 levels of work with 5 bands b. the challenge is how much to pay employees who are in the same band but different functions performing different work 2. Price the bands and reference market rates a. each band will likely include multiple job families. b. based on external market differences in pay rates, the different functions within each band are likely to be priced differently collapsing several traditional grades into one or two career bands †¢ objective is to provide more flexibility in moving people among jobs †¢ don’t need to change band or make pay adjustment when moved Steps 1. Set number of bands – usually three to eigh t for pay purposes. 2. Price bands using reference market rates and zones 3. Determine within band (lateral) movement since purpose of banding is to encourage cross-functional movement X. BALANCING INTERNAL AND EXTERNAL PRESSURES: ADJUSTING THE PAY STRUCTURE A.Adjustments may be necessary in the pay structure to balance internal consistency and external competitiveness. B. A distinction has been made between the job structure and the pay structure 1. A job structure orders jobs on the basis of internal organizational factors that are reflected in job evaluation or skill/competency certification 2. A pay structure is anchored by an organization’s external competitive position and reflected in its pay-policy line C. Reconciling Differences †¢ Internal JE & external market survey results may not agree and may therefore produce two different structures †¢ pay structure vs. ob structure (ex. labor shortage may impact this) †¢ review of the JA and JE may be necessary to see if a job was accurately evaluated or to a/c for differences between market rate & internal rate †¢ managers tend to weigh market data more heavily than internal J. E. D. Locality Pay †¢ problems with governmental transfers (NYC vs. Des Moines) †¢ GS system makes no allowance for performance factor †¢ federal government pay system less sensitive to market changes †¢ Federal Employee Pay Comparability Act of 1990 (FEPCA) E. Compression †¢ caused by pressure of external forces vs. nternal factors †¢ outside wages increasing faster than internal ones †¢ pay differential among jobs are smaller relative to KSA differences XI. MARKET PRICING †¢ strong emphasis on market de-emphasizes internal consistency. †¢ price as many jobs as possible in external market, then rank to mark the unique jobs †¢ appropriate for firms with lots of jobs comparable to external market †¢ down side is that it allows competitors (market) set pay policy XI. YOUR TURN: Word-Of-Mouse: Dot-Com Compensation Comparisons YOUR TURN 2:Are Compensation Surveys Upward Biased?

Human Resource Management Managing Conflict in the...

CONTENTS 1. Introduction 2. HRM activities 2.1 Employee relations 2.2 Handling organisational conflict 3. Conflict resolution: a theoretical framework 3.1 Techniques HR managers use for conflict management 3.2 Types of collisions they manage 3.3 Role of trade unions in regulating employee disputes 4. Conflict resolution: a comparative case study of UK and Russia 4.1 British approach to the employee relations 4.2 Employee relations in Russia 5. Conclusion 6. List of references | 1 2 2 2 3 3 4 5 7 8 | | 1. Introduction Managing human resources (HRM) appears to be a part and parcel of effective and efficient organisation. Inherently, the underlying gist of HRM is to maximise economic†¦show more content†¦It suggests that employee failing to fulfil agreements should devise alternatives, make adjustments and set forth counter offer for consideration. Ultimately, another approach that can be practised by HR management is mentoring. Setting up a successful mentor system where fresh employees can learn the ropes guarantees that core practices are realised and accomplished from the moment a new employee becomes the piece of the organisation. 3.2 Types of collisions they manage Leopold, Harris and Watson (2005, p. 410) believe that conflict â€Å"is a facet of cooperation and cooperation is a facet of conflict†. To illustrate this apparent paradox, we can closely examine the types of conflicts and classify them clearly into six categories (see Figure 1). Research confirms that HR managers face specific conflicts in each kind of dispute (Business Horizons, 1997). |Types Of Conflicts |Specification | |Interpersonal |Communication difficulties, personal irritations; jealousy, embarrassments, insults, | | |fights. | |Operations issues |Work assignments, vacation scheduling, overtime, union rules, work load, sick leave. | |Discipline |Attendance, drug use, theft, policy violations,Show MoreRelatedThe Human Resource Management Plan2042 Words   |  9 Pagesand Great Britain can carry wonderful benefits. The Human Resource Department must give attractive packages to appeal to skilled workers when expanding outside of the US. Bridging the gap when salaries are not as attractive can be achieved by providing other befits like healthcare, covering the cost of additional educational expenses for employees, tuition cost for children. Benefits become expensive when working with scores of people nationally and internationally. 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Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesJones Senior Managing Editor: Judy Leale Production Project Manager: Becca Groves Senior Operations Supervisor: Arnold Vila Operations Specialist: Cathleen Petersen Senior Art Director: Janet Slowik Art Director: Kenny Beck Text and Cover Designer: Wanda Espana OB Poll Graphics: Electra Graphics Cover Art: honey comb and a bee working / Shutterstock / LilKar Sr. Media Project Manager, Editorial: Denise Vaughn Media Project Manager, Production: Lisa Rinaldi Full-Service Project Management: ChristianRead MoreCross Cultural Management Research6745 Words   |  27 PagesIntroduction Management in any corporation requires a strong management plan and involves diversity or one type or another. Organizations that become multinational corporations have an even greater challenge. 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