Strategic Human Resource Management

Section Four

recommendations are an indicator of future reality, executive
compensation systems will be largely indistinguishable from
those of lower-level employees except for the magnitude of
differentials based on contributions. However, in accordance
with the compensation innovations presented in this section,
lower-level employees also are likely to receive a larger
component of their compensation in the form of variable pay
and gain sharing.

„ EMPLOYEE DEVELOPMENT

Several approaches are available for the development of
workforce skills that are needed for strategy implementation.
The discussion of employee development will begin with
training programs.

Training Programs

Companies having an investment perspective of human
resource management view training as an opportunity to
increase long-term productivity. Training also may be viewed as
the solution to a number of problems, such as substandard
quality resulting from skill deficiencies and voluntary turnover
of employees seeking more rewarding jobs. It also may reduce
involuntary turnover of employees who are terminated because
of skill deficiencies and provide a means of preventing skill