What is the role of equity in designing a remuneration system?
• Definition of equity (5 marks)
• Discussion of role and importance of equity in remuneration systems (12 marks)
• Referencing and grammar (3 marks)
“When people have come to me and said I want to work with people I say good, go be a social worker. HR isn’t about being a do-gooder. It’s about how you get the best and brightest people and raise the value of the firm”.
Arnold Kanarick
ex-Chief Human Resource Officer Bear Stearns
People are the staple ingredient of all organisations that exist today. However, how these people are managed depends on each individual organisation and its strategic objectives. Strategy is the effective use of an organisation’s core competencies to achieve a competitive advantage (Hanson et al 2008 4). Organisational strategy is broken into three levels; corporate level, business level and functional level (Robbins et al 2006, 270). A corporate level strategy is the overall direction in which an organisation wishes to move, which is realised through individual business unit strategies (Robbins et al 2006, 270). Functional level strategies are departmental specific. It is the integration of these strategies that achieves business unit objectives (Hanson et al 2008 4). The role of Human Resource Management (HRM) is to facilitate departmental integration by imple ...