Chapter Two
Strategic Compensation in Action:
Strategic Analysis and
Contextual Factors
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Table 2-1
NAICS Sectors (1 of 2)
Code
NAICS Sectors
11
Agriculture, Forestry, and Hunting
21
Mining
22
Utilities
23
Construction
31-33
Manufacturing
42
Wholesale Trade
44-45
Retail Trade
48-49
Transportation and Warehousing
51
Information
52
Finance and Insurance
© Prentice-Hall, Inc., 2001
Table 2-1
NAICS Sectors (2 of 2)
Code
NAICS Sectors
53
Real Estate and Rental and Leasing
54
Professional, Scientific, and Technical Services
55
Management of Companies and Enterprises
56
Administrative and Support and Waste
Management and Remediation Services
61
Education Services
62
Health Care and Social Assistance
71
Arts, Entertainment, and Recreation
72
Accommodation and Food Services
81
Other Services (except Public Administration)
92
Public Administration
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Figure 2-1
NAICS Code Elements
NAICS Code 33461
3
3
4
6
1
Sector:
Manufacturing
Subsector:
Computer & Electronic Product Mfg.
Industry Group:
Mfg. & Reproduction of Magnetic and Optical Media
Industry:
For example, Manufacture of Blank Video and Audio Tapes
© Prentice-Hall, Inc., 2001
Table 2-2
Influences on Competitive Strategy (1 of 2)


National Culture
» Power distance
» Individualism-collectivism
» Uncertainty avoidance
» Masculinity-femininity
Organizational Culture
» Traditional organizational hierarchy
» Flatter organizational structures
» Team orientation
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Table 2-2
Influences on Competitive Strategy (2 of 2)

Organizational and Product Life Cycle
» Growth
» Maturity
» Decline
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Figure 2-2
Traditional Organizational Structure
Chief
Exec. Officer
President
Executive
VP
VP
Accounting
VP
Finance
VP
HR
VP
Mftg.
VP
Marketing
Director
Accounting
Director
Finance
Director
HR
Director
Mftg.
Director
Marketing
Manager
Accounting
Manager
Finance
Manager
HR
Manager
Mftg.
Manager
Marketing
© Prentice-Hall, Inc., 2001
Table 2-3
Designing Pay-for-Knowledge Programs



Establishing Skill Blocks
» Skill type
» Number of skills
» Grouping of skills
Transition Matters
» Skills assessment
» Aligning pay with the knowledge structure
» Access to training
Training and Certification
» In-house or outsourcing training
» Certification and recertification
© Prentice-Hall, Inc., 2001
Figure 2-3
Annual Salary
Broadbanding Structure and Its Relationship to
Traditional Pay Grades and Ranges
Grade E
Grade D
Grade C
Grade B
Grade A
Band A
Low
Band B
Job Worth
High
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