Compensation is the third classical aspect of merciful resource planning after staffing and training and development those were discussed in previous chapter . As we have agreed on the importance of a proper execution appraisal, compensation has to reflect correctly how employees’ performances are ack at one timeledged. A proper compensation is an important factor in to motivate employees to be more productive, in a nonher word, compensation will contribute to the long-term strategy of the organization.
Key elements in compensation
In this chapter, the guideline how to carry compensation has been provided. The heart and soul rewards provided to employees washstand be under many different forms of every direct monetary compensation, such as wage, salary, bonus, commission or indirect financial compensation such as sociable security, health insurance, medical leave and many other motivator forms. While the financial compensation are initially important to employee, the nonfinancial compensations, that includes job satisfaction, the psychological and physical factors, are not less important. Historically, compensation has focused primarily on financial compensations and benefits.
However, this has changed overtime, the new model, that is known as the Professional Association for Compensation, now includes characteristics of nonfinancial compensation.
Equity in financial compensation is other important element that author has described. The compensation should be intimately considered about the market level of compensation or outside(a) equity, about the fairness of compensation within the organization or internal equity, and about the employee equity and team equity. Inequity can result in morale problem. Employees may leave the degraded when they feel being compensated unfairly. It’s even worsened if the employees do not leave but stay and cut their effort. In either event, the organization’s overall performance is damaged....If you want to get a full essay, order it on our website: Orderessay
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