1. © Prentice-Hall, Inc., 2001 Chapter Two Strategic Compensation in Action: Strategic Analysis and Contextual Factors

2. © Prentice-Hall, Inc., 2001 Table 2-1 NAICS Sectors (1 of 2) CodeNAICS Sectors 11Agriculture, Forestry, and Hunting 21Mining 22Utilities 23Construction 31-33Manufacturing 42Wholesale Trade 44-45Retail Trade 48-49Transportation and Warehousing 51Information 52Finance and Insurance

3. © Prentice-Hall, Inc., 2001 Table 2-1 NAICS Sectors (2 of 2) CodeNAICS Sectors 53Real Estate and Rental and Leasing 54Professional, Scientific, and Technical Services 55Management of Companies and Enterprises 56Administrative and Support and Waste Management and Remediation Services 61Education Services 62Health Care and Social Assistance 71Arts, Entertainment, and Recreation 72Accommodation and Food Services 81Other Services (except Public Administration) 92Public Administration

4. © Prentice-Hall, Inc., 2001 Figure 2-1 NAICS Code Elements Industry Group: Mfg. & Reproduction of Magnetic and Optical Media 3 Subsector: Computer & Electronic Product Mfg. Sector: Manufacturing 346 NAICS Code 33461 1 Industry: For example, Manufacture of Blank Video and Audio Tapes

5. © Prentice-Hall, Inc., 2001 Table 2-2 Influences on Competitive Strategy (1 of 2) l National Culture »Power distance »Individualism-collectivism »Uncertainty avoidance »Masculinity-femininity l Organizational Culture »Traditional organizational hierarchy »Flatter organizational structures »Team orientation

6. © Prentice-Hall, Inc., 2001 Table 2-2 Influences on Competitive Strategy (2 of 2) l Organizational and Product Life Cycle »Growth »Maturity »Decline

7. © Prentice-Hall, Inc., 2001 Figure 2-2 Traditional Organizational Structure Chief Exec. Officer President Executive VP HR Director HR Manager HR VP Mftg. Director Mftg. Manager Mftg. VP Finance Director Finance Manager Finance VP Accounting Director Accounting Manager Accounting VP Marketing Director Marketing Manager Marketing

8. © Prentice-Hall, Inc., 2001 Table 2-3 Designing Pay-for-Knowledge Programs l Establishing Skill Blocks »Skill type »Number of skills »Grouping of skills l Transition Matters »Skills assessment »Aligning pay with the knowledge structure »Access to training l Training and Certification »In-house or outsourcing training »Certification and recertification

9. © Prentice-Hall, Inc., 2001 Figure 2-3 Broadbanding Structure and Its Relationship to Traditional Pay Grades and Ranges Annual Salary Band ABand B LowHigh Job Worth Grade A Grade B Grade C Grade D Grade E