term paper on compensation management

• High School
• You don't have any recent items yet.
• You don't have any courses yet.
• You don't have any books yet.
• You don't have any Studylists yet.
• Information

HRM assignment - hello

Human resource management (hrm301).

East West University

Students also viewed

• SWOT- Analysis-1
• HRM301 Termpaper - .........
• Assignment on Muffler Magic
• Internal External Needs Assessment
• Impact of teamwork on organizational productivity

Related documents

• HRM301 term paper on BAT
• Bus231 Term-Paper - term paper
• Summary of training and development
• HRM Ch1 Managing Human Resources Today
• EWU Report on HR’s Role Today in Building a Competitive Organization in Bangladesh and Analyzing Interview with HR Related Personal
• HRM 301 Term Paper Group 9

Preview text

Important issues of compensation management- a critical, course title: compensation management, course code: hrm 412, section: 02, submitted to, tamanna parvin eva.

Senior Lecturer

Department of Business Administration

Submitted By

Name ID Participation

Mehenaj Sultana Bithy 2017-3-10-037 20%

Ummun Mosharrat Lamia 2017-2-10-146 20% Syed Tanjil Ahmed 2018-1-10-039 20% 20%

Date of Submission: 15 November 2021

• Introduction: ................................................................................................................................ 3

1 Scope of the studies: ............................................................................................................. 3 1 Sources of information:......................................................................................................... 3 1 Objectives of the assignment: ............................................................................................... 3

• Main Body .................................................................................................................................. 4

2 Literature Review: ................................................................................................................ 4 1. Overall effective organizational performance can be ensured through providing enough and competitive compensation package.................................................................................. 4 2. Compensation management needs rigorous assessment and continuous improvement to attain its effectiveness ............................................................................................................. 5 3. Different compensation strategies adopted by different organizations in the same ......... 6 4. Compensation strategies must be aligned with variety of business level strategies ........ 7 2 Analysis ............................................................................................................................ 8 a. Identify the relationship between competitive compensation and organizational overall performance. ........................................................................................................................... 8 b. Show and explain why rigorous assessment and continuous improvement is needed to design compensation system to attain its effectiveness. ......................................................... 9 c. Explain and give examples to prove that how different factors influence the decision of adopting several compensation strategies by any organizations in the same market. .......... 10 d. Give and Explain several compensation strategies based on variety of business level strategies by using literature review contents. ...................................................................... 11

Case solve: .................................................................................................................................... 12

a. Explain how this case demonstrates usefulness of compensation as a method for improving employee satisfaction and motivation. ................................................................ 12 b. Identify some of the ways that can be used as competitive pay programs which would be suitable for the Green Life to retain employees for a longer time ........................................ 13

• Findings..................................................................................................................................... 14

Conclusion .................................................................................................................................... 15

Reference ...................................................................................................................................... 16

2. Main Body

2 Literature Review:

• Overall effective organizational performance can be ensured through providing enough and competitive compensation package

a. In today’s speeding world, developments have made it more essential than ever for businesses to make sure they have a strategic, holistic and integrated tactic to compensation. To participate in a tough ground, now organizations need the support of some knowledgeable, involved and motivated employees more than ever. Here, compensation and benefits is a primary motivator and rewards for employees. Compensation can be an effective influence only if it is essential to people and it is seen to be tied to their performance in ways that are supposed to be credible and direct. Without rewards, a company is planting seeds for high turnover, low productivity and long-term failure.

The possibility of this study is all about the connection between the compensation and benefits with the job satisfaction among staff. This study will conduct an inspection to support the judgement. The data gain from this study will be able to offer valued understanding on the impact of compensation and benefits in the direction of job satisfaction among staff. From the outcome of the study, we can have a clear idea and perception of the association between compensation and benefits and job satisfaction among the staff. Besides, we also can classify clearly the variable of the job satisfaction among the staff.

b. Job satisfaction is a very essential attribute which is frequently measured by organizations. The subject of job satisfaction is also vital because of its implications for job related behaviors such as productivity, nonappearance or turnover. Moreover, it is also can be a significant indicator of how employees feel about their jobs and an interpreter of work behaviors such as organizational citizenship, nonattendance, and turnover. Further, job satisfaction can to some extent facilitate the relationship of personality variables and deviant work behaviors.

Broad study has shown that job satisfaction has a straight impact on the performance of employees in different levels of profession. It is linked to employee motivation and performance. For the business, job satisfaction of its employees means a work force that is motivated and committed to first-class performance. Then again, to the worker, job satisfaction carries a pleasant emotional state that often leads to a progressive work approach. A satisfied employee is more likely to be innovative, flexible, creative, and trustworthy. For that reason, the concern of job satisfaction among personnel must be explored and discussed adequately.

c. Compensation benefit to focus on the position and responsibilities performed. And, it attempts to impact employee’s current and future working performance. Also, compensation serves different objectives, the key ones being to attract, retain and motivate high-potential employees. In the meantime, the successes of those goals are subject to constraints such as the maintenance of equity, cost regulatory and lawful requirements (For example, wage and salary legislation). To worker, compensation may be seen as a return in exchange between the

companies they work for and themselves, as an entitlement for being an employee of the company, or as a reward for job well done. It is given to employees in exchange for work performed.

Compensation and benefits is an influential communicator of organizational goals and priorities and companies that expect to be successful must make employees become partners in their success. It is observed that employee compensation can be a sensitive subject, and people get very fervent when trying to determine the most appropriate compensation plan for any business. Nowadays, many human resources related concerns need to be spoken, but equally main understands the financial aspects of employee compensation and benefits. Thus, compensation and benefits play an important role in an organization. Many earlier investigates on compensation system design focused on the explicit compensation design of employees and executives, and rarely involved in compensation system design at the structural level. In current years, many researchers have gradually paid attention to compensation system design from the perspective of the organizational level.

• Compensation management needs rigorous assessment and continuous improvement to attain its effectiveness

a. According to Kari Van Hoof

The HR strategy is, compensation manager needs to attract, motivate, and retain the right employees at the right time to achieve organizational goals, all these factors should take together to improve compensation management continuously. Manager must make sure everyone engaged in making pay decisions knows what he/she chose to payoff. Compensation manager does not have to adopt a compensation strategy like a large company, but he should have a conversation what’s happening about pay slip with stakeholders, which manager can use for benchmarking: industry, size, profit, and how competitor in the market influence their compensation management. Some organizations want to offer higher pay so they can be more competitive but simply can’t afford it, so there should be enough budget for a change in pay plan. Compensation management becomes more important: when managers become realistic during defining the pay package, they can have a more productive conversation about pay. Compensation strategy isn’t like “set it and forget it”; compensation manager should engage on a regular basis to look at where the company is today and where they want to be tomorrow and set a compensation strategy that can evolve along with your business.

b. According to Alida Mooreston

Compensation manager should know the most important facts, when it comes to compensation. Because if there is any mistake, that would be needed to spend more money on recruiting, putting important projects on hold, the expenditure of having open positions sit vacant for a long time. So, what are the biggest factors?

Engagement is one of Samsung’s primary organizational objectives aimed at helping to recruit and retain employees in a competitive industry. Samsung has now reached the stage where this year more than 95% of its 1600 employees logged on to its online flexible benefits portal. When qualified one mindsets to switch his job organization does to give them more than just a good salary. the organization previously offered a gym allowance, as well as take up increasing, 86% of employees who logged on felt that highlights enhanced their overall benefits package. Samsung highlighted the categories of benefits health, wealth and lifestyle. We had a pedometer for health, a Frisbee for lifestyle and a piggy bank for wealth so that everyone had something to remind them of the benefits on offer. Employees want that integration with their benefits, and using Samsung technology helps us stay connected with our tech-savvy employees to meet their expectations, which has resulted in high take-up. This year, the organization introduced new benefits in their package. New options included, season ticket loans, personal accident insurance and a discount dining card. Adding new benefits is all part of the organization’s aim to offer an extensive employee value proposition, which is a core part of its benefits philosophy. The ‘champions’ were fully briefed to provide information to their peers. As a result, Samsung reached ‘Best pensions communications – small employer’ at the Employee Benefits Awards 2014.

c. Literature review on Huawei

Anna Fifield

China’s Huawei Technologies plans to double the amount it pays nearly all of its 194, employees this month and reward them with bonuses totaling $285 million, in recognition of the “extraordinary external challenges”. With a few exceptions for bad performance or violating company rules, employees will receive double their October base salary. There will be a minimum additional payment of $2,850. To Huawei money wasn’t the point. “There is sentiment attached to their work. Huawei focus on high paid salary for employee satisfaction rather than make them benefitted. “Under the current circumstances, bonuses are not the priority. The priority is to fight to the end.” Recently, the company has earmarked $285 million in bonuses for employees who have helped with “business continuity” this year. “Even Apple people will want to become Huawei staff. But Huawei employees work around the clock, so people should keep their workload in mind before envying the extra payments.

• Compensation strategies must be aligned with variety of business level strategies

a. It is fundamental that a reasonable, competitive and lucrative compensation scheme is made to guarantee the future achievement of the organization. If the compensation plan is completed appropriately, it can 'work on hierarchical adequacy, support human resources necessities of a business, and propel and reward accomplishment of key corporate strategic and financial objectives. It is very essential to create compensation plan & reward system that support the company’s objectives, goals and practices. Employees can earn incentives & bonuses designed by the strategic compensation plan if they can fulfill their assigned targets. The effect of compensation system creates a significant effect on employee selection, holding them & encourage them. The strategy also has influence on organization’s overall performance. While

designing the pay arrangement, HR managers should implement internal alignment as well as external race with the competitors. (Ukessays, 2021)

b. Compensation for employees addresses one of an association's greatest and most vital concessions. With a perfect structure, the compensation strategy can lead the organization to a supreme profitability. On the contrary, misleading structure of compensation management can turn the organization into a failed one in the competition. Any pay procedure should emphasize on the exceptional necessities, objectives, qualities, and culture of the association. To stay in the competitive world, one organization must design a clear, well-planned design to acquire talented employees who will be able to bring variety in the working process. Also, to retain them, very premier level of compensation structure will be needed. This can boost the employees’ performance to take the organization one step ahead by contributing more in their workplace. Perhaps the most ideal way organizations can give effective rewards that show clear arrangement with organization esteems and objectives is to give HOC rewards. So, the structure to provide compensation of any organization muse be focused to create uniqueness of the organization. (Kick, 2021)

c. To establish an accurate compensation structure, the departmental objectives must be implemented intimately with the expected behavior of the field level employees. A more engaged and vital appraisal ordinarily should be directed when organization business targets are reset for another period. For a sales-based organization, it can settle on essential choices regarding which jobs are required and which will be qualified for variable compensation and at what levels. After the HR has decided the roles of every individual, the department can create the compensation arrangement keeping the organization’s vision on mind. The structure must be simple yet effective. The least standards of measurement are more preferred than a bunch of scales to evaluate the employees’ performance. (Stephen Bruce, 2021)

a. Identify the relationship between competitive compensation and organizational overall performance.

Compensation strategy should be able to guarantee the retaining of the employee, employee’s satisfaction, the development as well as performance the employee. Over-all findings showed that it holds positive notable connections among incentive allowances, bonuses, fringe benefits, and salary. In brief, there is a co-bonding between these variables, which undoubtedly consider performance as a connection among the compensation benefit schemes, levels of employee contentment, and turnover rate. This concluded that organizations with upgraded compensation system may have an impact on their employees. This will psychologically encourage them to be

c. Explain and give examples to prove that how different factors influence the decision of adopting several compensation strategies by any organizations in the same market.

Many organizations want to offer attractive total compensation packages to remain competitive in the war for talent. But after they run operation, they realize they can’t afford it. In this situation, strategic compensation becomes even more important.

Use an employee benefit compensation to communicate with employees about the realities of their compensation:

Effective Compensat ion System

Retain Employees

Administrative Efficiency

Control Costs

Acquire talented employees

Reward Behavior

Ensure Equity of Each Employee

 Be transparent about what is possible and what’s not. Let employees know you’re doing all you can to provide the best possible compensation package.  Be an employer of choice in other ways. You may not be able to offer the top salaries in the industry. Still, you can offer other employee benefits, such as flexible work hours, access to easy environment, or subsidized transportation or lunch benefits.  Be practical in your rewards. Once you set the standard high for compensation strategies, it’s difficult to get back if you face tough financial times.  Be intentional about how compensation supports your overall human resource strategy. Look for ways to tie your compensation plan to tenure, individual performance, team performance, or a combination.

This realistic approach helps set expectations with existing employees, as well as enables you to attract and retain talent. Organizations are more effective for candidates when recruiters and hiring managers have defined pay grades they can provide, as well as information about a robust total compensation package to share during an interview. Don’t overlook the impact a strategic compensation plan can have throughout the entire employee lifecycle.

Finally, compensation planning requires a cross-functional strategic approach. Now that you have all the steps for an effective compensation strategy, it’s important to gather stakeholders together to review what’s most important for your organization. Once you have a compensation plan, find effectively communicate so that employees understand their pay grade, the opportunity for growth, and career advancement. Having a well-defined approach to compensation will ultimately encourage a company culture of trust and transparency and create a higher job satisfaction rate among employees.

d. Give and Explain several compensation strategies based on variety of business level strategies by using literature review contents.

Alignment of Compensation strategies with business level strategies:

talent could be developed. They conduct Job recognition for doing well and give motivation, when any employee gives their best performance, they should get recognition in front of everyone, and it can be monetary or non-monetary as well. Thus, it will give him motivation and other employees also want to give better performance. The company assess the pay market twice to be competitive regarding compensation, otherwise turnover will not be reduced.

They frequently redesign their pay plan, which includes reviews of job content periodically, conduct annual appraisal performance, and based on their rate of performance employee get 5% merit pay. They also do the assessment of experience and education to adjust compensation amounts, because employee’s degree and experience have economic value.

b. Identify some of the ways that can be used as competitive pay programs which would be suitable for the Green Life to retain employees for a longer time

• Get a Pulse on Your Market

After a series of wage declines in 2009 and 2010, a number of industries are now seeing continual salary growth across multiple industries and locations. If your company’s compensation plan is based on the trends in those leaner years immediately after the recession, it’s probably time to revisit your pay strategy. Or you may be at risk of losing talent to competitors who’ve more quickly adapted to shifts in the market. Keep an eye on the Pay scale index to keep track of quarterly trends in pay by location, industry and job category.

• Benchmark Your Job Positions

It’s great to have a pulse on the overarching pay trends in your industry and area, but it’s another thing to have confidence that you’re actually paying top employees at the right rates for their job. By engaging in at least once-per-year salary benchmarking, you’ll be able to identify employees who are at a “high flight risk” of turnover, and be able to make smarter decisions about where you allocate your labor budget. Download PayScale’s How to Perform Compensation Benchmarking and Salary Ranges whitepaper for more information.

• Develop a Compensation Plan

Often times, businesses fear that having a compensation plan will limit their ability to make good business decisions, so they skip building a compensation plan in favor of fewer rules and less structure. But without a formalized compensation plan, companies often miss an opportunity to structure their pay decisions in a way that support business goals. As companies grow, the costs of compensation continue to rise, and without a formalized plan in place, companies often experience problems with pay inequities, employee retention, and engagement. Simply put, it’s easier, and more cost-effective to take small steps toward developing a smart compensation plan now, than it is to alter your course later down the line.

• Identify Pay Inequities

Some people live by the motto, “What you don’t know won’t hurt you.” That’s a motto your organization cannot afford to live by when it comes to internal pay inequities. Without a formalized comp plan, it’s often common for pay inequities to develop across organizations and departments. Those pay inequities can most definitely hurt you and your organization in the form of heightened turnover, over payment, and even litigation. Learn how to identify and resolve these inequities with PayScale’s guide to pay inequities.

• Communicate Your Compensation Strategy

If you go through the process of creating a compensation plan, don’t forget to let your employees know about it. In theory, your compensation strategy should reiterate and support your business goals. So, it’s important to communicate to employees how their work aligns with the goals of the organization, and how their compensation reflects that. If you share with your employees, and make your investments in talent clear to them, you’ll be surprised by the positive effect it has on employee morale. Check out PayScale’s Four Tips for Communicating Your Compensation Plan to Employees to help you get started.

3. Findings

From the analysis of the literature review we find some key dimensions to mention. They are:

 To ensure the organization's future success, it is critical to create a fair, competitive, and lucrative compensation structure.  Organization must invent the employees’ hidden talents & nurture them  It can be difficult to align incentive pay with standard employee pay  Organization must create fair, competitive, and lucrative compensation structure  Among the most effective approaches for firms to design fair, competitive, and lucrative compensation structures is to give proper awards to employees  Appropriate compensation management can bring the organization a competitive advantage through unique human resources.  Organization should have linked employee compensation with their employee’s extra performance.  If company give average or less compensation than others, then organization should must focus on extra benefits that employee become happy with company’s extra service.

Anon., 2021. tutorialspoint. [Online] Available at: tutorialspoint/human_resource_management/human_resource_management_co mpensation?fbclid=IwAR1Vat6FzL03TrcqG6LCsqFAvuXqLlV4s34YrvHHr-- qynl6AohFUnoeKnY#:~:text=Compensation%20is%20a%20vital%20part%20of%20human% resource,in%20encouraging%

hoof, k. v., 2017. payscale. [Online] Available at: payscale/compensation-trends/5-steps-compensation- strategy/?fbclid=IwAR1p7Ttn_5IdVerLBHPdCsoDvVhv35ihZNJGWFj8eA36WuIWlRxijYF0z Lc [Accessed 22 March 2021].

mooreston, a., 2020. payscale. [Online] Available at: payscale/compensation-trends/how-to-conduct-a-compensation- analysis-and-avoid-mistakes/?fbclid=IwAR2- h81W1smIzHDjmm4X0UX7TxOaj_8yTAeycOtt3uE0JmuFQa_pPcA8FnY [Accessed 10 March 2021].

weaver, d., 2015. linkedIn. [Online] Available at: linkedin/pulse/10-ways-improve-compensation-planning-david- weaver/?fbclid=IwAR2uCsrMXsL80S0Z0P_XjHMHYQ4eJFJFXZht_rvL9gJ0Vhp8VX0Pmcioj Mk

ukessays/essays/journalism/relationship-between-compensation-and- benefits

researchgate/publication/319961157_The_Literature_Review_on_Compensatio n_System_Design

ljs.academicdirect/A25/065_084.pdf

• Multiple Choice

Course : Human Resource Management (HRM301)

University : east west university.

• Discover more from: Human Resource Management HRM301 East West University 24   Documents Go to course
• More from: Human Resource Management HRM301 East West University 24   Documents Go to course

Recommended for you

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

•  We're Hiring!
•  Help Center

Compensation Management

• Most Cited Papers
• Most Downloaded Papers
• Newest Papers
• Last »
• Organizational Design and Structure Follow Following
• Strategic Hrm Follow Following
• Performance Management Follow Following
• Organizational Development Follow Following
• Compensation and Benefits Follow Following
• How Compensation and Benefits Management System Improve the Employees Job Satisfaction Follow Following
• Organizational Behavior Follow Following
• Human Resource Management Follow Following
• Employee Relations Follow Following
• Biochemistry and molecular biology Follow Following

Enter the email address you signed up with and we'll email you a reset link.

• Academia.edu Journals
•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024