Compensation & rewards for employees at help withassignment


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Compensation & rewards for employees at help withassignment

  1. 1. Compensation & Rewards for Employees at<br /><br />
  2. 2. A pay is a statement of an employee’s worth by an employer. <br />An employee is given compensation based upon the contribution of that particular employee to the organization.<br />Pay is a perception of worth by an employee. The employee shall also feel his worth thanks to his pay.<br /><ul><li></li></li></ul><li>This must not be confused with the least earning employees are worthless. <br />But the priority, importance and the level of hierarchy must also be taken into consideration.<br />Compensation is directly linked to the mission, objectives, philosophies and culture of the employees.<br /><ul><li></li></li></ul><li>It serves to mesh the monetary payments made to the employees with specific functions of the HR program in establishing a pay for performance standard.<br /> It is also a way to motivate employees through compensation.<br /><ul><li></li></li></ul><li>Employees are compensated because of the following reasons.<br />To reward the past performance of the employee. <br />To remain competitive in the labor market. <br />To maintain salary equity among employees. <br />To mesh employees’ future performance with organizational goals. <br /><ul><li></li></li></ul><li>To control the compensation budget. <br />To attract new work force. <br />To reduce unnecessary turnover.<br /><ul><li></li></li></ul><li>Compensation that an organization provides can be either above the industry standard.<br />Equal to that of industry standard or below to that of the industry standard. <br />The ability of the compensation must be such that the employees must be motivated to perform to the best of their abilities. <br /><ul><li></li></li></ul><li>The level of compensation also determines the differential between recruiting new employees or working with senior employees.<br />The pay scale raise and revision is of significant importance in an organization and will be subjected to the merit and seniority of the employees. <br />The pay levels needed to facilitate the achievement of a sound financial position in relation to the products and services offered.<br /><ul><li></li></li></ul><li>The basis for compensation<br />Hourly work: Work paid on an hourly basis. <br />Piece work: Work paid on the number of units produced. <br />Salary workers: Employees whose compensation is computed on the basis of weekly, biweekly or monthly pay periods. <br /><ul><li></li></li></ul><li>Pay for performance: Refers to a wide range of compensation options.<br /> Including merit-based pay, bonuses, salary commissions, job and pay banding, team/group incentives and various gain sharing programs.<br />Where managers tie compensation to employee effort and performance.<br /><ul><li></li></li></ul><li>Motivating Employees through compensation<br />Pay Equity: An employee’s perception about the compensation received is equal to the value of work performed. <br />Motivation theory explains that an employee under situations will respond to the compensation they have received by thinking over paid, or under paid. <br /><ul><li></li></li></ul><li>Expectancy Theory: A theory of motivation, this theory thinks that an employee in order to receive a good compensation must work hard to achieve it. <br />They must also believe that good performance is valued by the employer will reward by providing expected compensation. <br /><ul><li></li></li></ul><li>Pay Secrecy: It is an organizational policy prohibiting employees from revealing their compensation information to anyone. <br />This creates misconceptions and creates distrust in the employees about fairness pay and pay for performance standards.<br /><ul><li></li></li></ul><li>Factors influencing Wage Mix<br />Internal Factors: Compensation strategy within the organization, the worth of the job, relative worth of the employee and the employer’s ability to pay. <br />External factors: Conditions of labor market, area wage rates, cost of living, collective bargaining, legal requirements.<br /><ul><li></li></li></ul><li>Job Evaluation Systems<br />The systematic process of determining the relative worth of jobs in order to establish which jobs should be paid more than others within an organization.<br />Job Ranking System: Oldest system of job evaluation by which jobs are arrayed on the basis of their relative worth. <br /><ul><li></li></li></ul><li>Job Classification System: A system of job evaluation in which jobs are classified and grouped according to a series of predetermined wage grades. <br />Successive grades require increasing amounts of job responsibility, skill, knowledge, ability or other factors selected to compare jobs. <br /><ul><li></li></li></ul><li>Point System: It is quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it.<br />Permits jobs to be evaluated quantitatively on the basis of factors or elements that constitute the job.<br /><ul><li></li>