Compensation and Benefits

The Pay Model and Pay Strategy is key to understanding how to design a compensation system that can help an organization achieve success and sustain competitive advantage. How people are paid affects their behaviors at work. Critical in compensation design is thoughtful strategic alignment.


Using the first two chapters of the Compensation textbook, videos, and additional resources, answer the questions completely. • Describe the objectives of the pay model. Give an example of each. • How do the objectives set the standards to judge success?

Explain why one company can have different pay objectives for differentbusiness units.• Define the four (4) policy choices in the pay model. How do the policies createguidelines to manage pay? Give examples of

Sample Solution

Compensation and Benefits

The pay model of compensation and benefits helps mangers to structurally design and understand the compensation system for their employees. The model consists of three main components: objective of the remuneration model, the policy that is the foundation for the structure, and the techniques that link the policy to the objectives. The objectives within the pay model play the main purpose of efficiency, fairness, compliance and ethics. As such, the objectives serve as the main guide by which the pay system is aligned with and serves as the standards upon which the pay system`s success can be judged by. One company can have different pay objectives for different business units as each of these units would face different market incentives.

ere are many definitions for surveillance, because there are many kinds of observations. During the surPRISE project the researchers used a definition which correctly summarises what surveillance mean: ‘monitoring people in order to regulate or govern their behaviour’(2014). Surveillance and surveillance society concepts are used as synonyms by many authors.

Lyon (), provides an accurate summary of the existence and function of the surveillance society. He argues that electronic observation is an essential activity of all the industrial societies. However, people should not be frightened or be paranoid, rather certain restrictions should be imposed. (p. 161)

On the other hand, surveillance systems developed historically hand in hand with democratic governments and with rights of the citizenship. We cannot say that is an “unambiguous or unmitigated evil” (p. 162) and we cannot insist that this is an unquestionable or “inevitable” (p. 162) negative, as there are different type of observations, as well as having restrictive consequences for the life of human society.

2. Security as an essential part of our lives

In the 20th century a new term, “societal security” was coined. As a result of globalization, these security policy measures are no longer confined to the local level, but they are global and require close cooperation between nations. Global issues threaten society like terrorism, cultural and religious conflicts, global warming and so on. For these global issues global terms are needed. After the terror attack on 11th September, in 2001, it has become evident to the world, including the electorate and to the government, that the security policy measures that have been applied in the past, will not be enough to overcome the terrorists. It seemed clearly that those intelligence forms and national security techniques are not enough to stop the outrage. As a result of events and the following fear, serious measures, steps and bills were adopted by both the society and the political leadership, which has never happened before. Since the attacks have happened, surveillance became more important and it has become a fundamental tool in the fight against terror