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For Leader Analysis Paper #2, please submit a 4-6 page
(minimum, not counting title page, abstract, table of contents,
or references pages) double-spaced paper that details the
following:
1. Specifically, how did your leader display (or not display)
aspects of Communication and Leadership (Unit
4), Recognizing and Leveraging Organizational Culture and
Climate (Unit 5), and Developing High Performing Teams(Unit
6).
2. Please include citations and references to Units 4, 5, and 6
reading materials that support your answers.
3. How can you apply the conclusions of your assessment and
analysis to leadership roles and responsibilities in your
organization?
Your paper must include ALL the following:
Title PageExecutive Summary
Summary of points made, written LAST
Table of ContentsIntroduction (~0.5 page)
Outline of points you will make concerning your leader’s
communication skills, influence on organizational climate, and
team leadership.
Sec. 1 - Communication and Leadership (~1-1.5 pp)
How your leader demonstrates (or fails to demonstrate)
effective intra-organizational communication.
1. What means of communication does the leader use? Prefer?
2. How does she or he verify that communication is received
and understood?
3. How (by what means and in what attitude) does the leader
receive feedback?
Sec. 2 (~1-1.5 pp.) – Recognizing and Leveraging
Organizational Culture and Climate
A. How your leader promote (or fails to promote) a positive
intra-organizational climate?
B. How does your leader affect the “5 indicators of a positive
climate":
1. Trust
2. Teamwork
3. Communication
4. Job satisfaction
5. Social cohesiveness
Sec. 3 (~1-1.5 pp.) – Developing High Performing Teams
A. What sort of team did your leader build around himself or
herself, how did he or she lead it, and how did the team help the
leader to succeed?
B. How did the leader manage the “5 Rs”:
1.
1.
1. Roles
2. Rules
3. Relationships
4. Responsibilities
5. Results
Reading/Reference material to be used:
Unit -4
Lesson 4.1:
· Read Lussier & Achua, Chapter 6, pp. 184-200; take Self-
Assessment 1 (Listening Skills) on pp. 188.
· Read PMBOK Guide, Chapter 10, pp. 359-392.
· Review the slide deck:and Fundamentals of Communication
and LeadershipDownload Fundamentals of Communication and
Leadership
· ReadDeath by Information Overload.
· View the LinkedIn Learning video: Managing Project
Communication with Doug Rose - Introduction, Sections 1 & 2
(Sections 3-6 are optional).
· Based on the video (specifically Section 1: Understanding the
Communications Plan) think of a presentation or proposal you
have given or observed, or may be giving in the future,
and complete a Stakeholder Register. Requirements include a
brief synopsis of the presentation or proposal (1 page
maximum) and a completed register.
Lesson 4.2:
· Read Lewis, Chapter 9.
· Review the slide deck: Processing Information.
· Additional Reference:
· Katz, D. & Kahn, R.L. (1978). The Social Psychology of
Organizations (2nd Ed.). New York: John Wiley & Sons.
· Complete the Barsch Learning Style Inventory (Links to an
external site.) and discuss your reactions in the Discussion
Forum. Consider these questions in your forum post:
· What are your preferences?
· What do you think are the preferences of your boss, peers, and
subordinates?
· How can you apply this knowledge of preferences?
Unit-5
Lesson 1
· Read Lussier & Achua, Chapter 10, pp. 357-371.
· Read Lewis, Chapters 7, 11, &13.
· Review the Unit 5 PowerPoint slidesDownload Unit 5
PowerPoint slides.
Lesson 2
· Read Lussier & Achua, Chapter 10, pp. 369-370.
· View the TED Talk YouTube video: "What's So Different
About Cultures Anyway?" (Links to an external site.)by Dato
Gogichaishvili and participate in the Unit 5 Lesson 2 Discussion
Forum
· Attend and actively participate in the weekly online session
via Adobe Connect.
Unit-6
Lesson 1:
· Read Lewis, Chapter 6.
· Read Lussier & Achua, Chapter 8, pp. 268-286; 293-299.
· Read PMBOK Guide, Sections 9.4-9.5, pp. 336-351.
· Read Jensen, The "5 R's" - A Team Charter Framework (Links
to an external site.).
· Review the Unit 6.1 slide deck.Download Unit 6.1 slide deck.
Lesson 2:
· Review the Unit 6 Lesson 2 PowerPointsDownload Unit 6
Lesson 2 PowerPoints
View the YouTube video:"5 Dysfunctions of Teams" (Links to
an external site.)
5
Research Paper
_____________
__________
ENG
Professor
October 9, 2021
Abstract
Introduction: Background Information
Employee compensation refers to the benefits employees
receive in exchange for their services. The concept dates bac k
many years and has contemporarily developed to become an
essential component in human resource management. In 1982,
there was a wage freeze in France that revolutionized employee
compensation (Igalens and Roussel, 1999). During this years,
companies favored individual pay rise to collective pay rise.
Years later, companies focused on pay rise based on their
strategies, corporate culture and employee expectations (Igalens
& Roussel, 1999). Presently, employee compensation packages
have massive influence on the employee choices. According to
(Michael et al., 2016), differences in compensation packages
cause the high turnover rates experienced in companies as
employees move from organization to another. Thus, despite
compensation dating back to many years, it is still an issue
contemporarily because of external competition, its emotive
nature and internal disparities in compensation. Importance of
the Study
The study on the impacts of employee compensation
packages on employee retention, satisfaction and motivation is
crucial in numerous ways. First, the aim of every organization
is to retain, satisfy and motivate its workforce to remain
productive for a long time. The findings of the study will
therefore help organizational managers to use compensation
package as a tool to meet the primary objectives of their
companies (Ghazanfar et al., 2011). Secondly, employee
compensation is rapidly becoming a strategy in many
organizations (Groysberg et al., 2021). Best companies are
focusing on how to address employee needs to keep the best
talent within their firms. The study results will augment the
urgent need for improved employee benefits. Lastly, the study is
important due to increasing cases of employees migrating
moving to rival companies. Managers may apply the knowledge
of the study to become more competent in terms of human
resource management and avert high turnover incidences.
Historical Background of Employee Compensation Packages
The history of employee compensation dates back to
2050B.C. In Sumeria, employees were compensated for injuries
incurred when at work. Ancient China, Greece and other parts
of the world followed suit by introducing laws that protected
workers. In the Arab world, employee who incurred injuries on
their ears received compensation proportional to the surface
area injured. During industrial revolution when manufacturing
became widespread, compensation schemes increased due to the
augmented use of machines that posed a risk to the workers. In
the US, each state formulated its compensation laws to dictate
employee benefits. Mississippi was the last state to enact
compensation laws for its workers in 1948. Public and private
companies offer a range of compensation as a means to maintain
a productive workforce. Also, through the years, employee
benefits have expanded to include healthcare, bonuses among
other benefits.
Approaches to solving Compensation Issues
One of the approaches intended to ensure effective
employee compensation is legislation. Different states in the US
developed laws that dictate employee compensation. Another
strategy is through formation of trade unions and employee
associations. Through these associations, the employees have
championed for pay rise and other work benefits. Also, the
judiciary has had a role to play in enhancing employee
compensation since some compensation disputes ends up in
courts.
Conclusion of Intro
Compensation remains a problem because of external
competition. Some firms pay their workers high salaries
accompanied with a wide range of benefits compared to others.
The high benefits enable the firms to retain, satisfy and
maintain their workforce and on the other hand, causes
dissatisfaction among workers in other organizations. Thus, the
study focuses on the impacts of external competition and
internal disparities on employee compensation.
Body 1: Logical Support for the Thesis
Better compensation packages contribute to employee
motivation. Employee motivation is the urge to dedicate one's
effort towards success to deliver performance at the workpl ace
and contribute to overall organizational success. A study
conducted by (Igalens & Roussel, 1999) showed a relationship
between compensation packages and employee motivation. It
involved French employees and data was collected through
questionnaires send via their emails or given to them directly.
The findings of their data analysis showed that ‘under certain
conditions, individualized compensation of exempt employees
can be a factor of work motivation’ (Igalens & Roussel, 1999).
Moreover, exempt employees were motivated by fixed pays
rather than bonuses. The trend is explained by the fact that
almost all organizations offer their employees benefits such as
healthcare insurance coverage and the difference only arises in
terms of fixed pays. The results showed that exempt employees
were demotivated if there was no direct relationship between
performance and fixed pay rise and performance (Igalens &
Roussel, 1999). On the other hand, the exempt employees felt
the drive to strive in their organizations when the fixed pays
were high.
This evidence supports that compensation packages
influence employee motivation. Organizations that offer better
compensation packages to their employees are more likely to
keep their workforce motivated. (Ghazanfar et al., 2011) also
showed that there was a positive influence between fixed pay
and employee motivation. Organizations with high fixed pays
for their employees maintained a vibrant workforce compared to
their peers. The study also reinforced the importance of fixed
pays to employee performance by showing that, other
compensation benefits are less likely affected employee
motivation. Therefore, it is true that compensation packages
affect employee motivation in organizations and, consequently
improves or lowers organizati onal efficiency and effectiveness.
To that end, the executives and human resource management
should focus on compensation packages to maintain an enthused
labor force.
Besides influencing employee motivation compensation
packages affect job satisfaction in organizations. In a study
conducted by (Igalens & Roussel, 1999), the author found that
compensation packages affect employee job satisfaction. Job
satisfaction refers to employee happiness of their job as a whole
or individual element of their jobs. According to the study,
employees feel contented when there is perceived internal and
external equity for their fixed pays (Igalens & Roussel, 1999)
while they feel less satisfied if their peers in other companies
receive far better-fixed pay than theirs for the same work done.
Also, internal equity in compensation packages is a strong
determinant of job satisfaction. (Igalens & Roussel, 1999) found
that organizations contributed to employee job satisfaction if
each worker received compensation packages based on the
amount of work done. On the contrary, employees were less
likely satisfied with their jobs if they received payments that
were not proportionate to the amount of work they did.
A further investigation into the relationship between job
satisfaction and compensation packages by (Ghazanfar et al.,
2011) showed a positive correlation between the two variables.
Employees were more satisfied in organizations that offered
better-fixed pays than those that offered less employee
compensation. Also, evidence backing the role of compensation
packages on job satisfaction is found in the study by (Igalens &
Roussel, 1999) showing a positive relationship between
compensation packages and employee motivation. In
workplaces, only motivated employees experience job
satisfaction. Since lower fixed pays demotivate workers, it is
true to conclude that, they cause job satisfaction. Thus, the
findings support the thesis that compensation packages affect
job satisfaction.
Body II: Logical Supporting Ideas Continued
Moreover, compensation packages affect employee
retention. Retention is the ability of organizations to keep the
most desirable talent for a long period (Prince et al., 2016). The
study aimed to investigate the relationship between
compensation packages and employee retention and job
satisfaction and employee compensation packages. The study
consisted of 71 employees and data collection was done through
the use of questionnaires (Prince et al., 2016). The data analysis
results showed that there was a positive association between
employee compensation and retention rates. Employees
receiving high compensation packages and rewards at their
workplace more likely served their organizations for many years
than those receiving lower compensation packages (Prince et
al., 2016). The reason for high turnover rates is attributed to the
existing internal competition where rival organizations compete
to acquire the best talents. Different governments lose their best
employees to private organizations because they offer the bes t
pays. Further results in the study showed that compensation
packages were related to job satisfaction. The association
between the two variables indicates that compensation packages
affect job retention. Workers may only serve their companies
for long if they are satisfied with their jobs; otherwise, they
seek alternative employers with better compensation schemes.
The study by (Prince et al., 2016) proves the hypothesis
that compensation is the essential tool to maintain a vibrant and
motivated workforce. Since there is a close relationship between
compensation packages, employee satisfaction, retention, and
motivation, the human resource must direct effort to the
compensation packages. Holding to the best talent in
organizations is possible with the best compensation strategies.
Hence, the human resource departments need to adopt strategic
approaches when offering compensation packages to their
employees to ensure the workforce remains intact.
Lastly, compensation packages are critical to organizations
and human resource management teams because they affect
employee workplace performance. A study by (Igalens &
Roussel, 1999) showed that compensation packages affect
employee motivation and job satisfaction. A disgruntled
workforce is less productive thereby affecting the overall
employee and organizational performance. Another study by
(Prince et al., 2016) showed that there exists an association
between compensation packages, retention, and job satisfaction.
Higher compensation packages lead to better employee
retention. When organizations hold to the best talent,
performance improves because of the advantage of experience
over the years. Also, retaining the best workers enhances
production as the company reaps from their skills. On the
contrary, high and constant turn-over rates minimize employee
and overall performance because the company continuously
loses its talents limiting operational fluidity.
A further study by (Ghazanfar et al., 2011) showed a
relationship between compensation package, job satisfaction,
and employees. Since the key factors to performance are job
satisfaction and motivation, compensation packages impact
individual productivity. (Groysberg et al., 2021) showed that
the factor driving performance is employee packages.
Companies with high fixed pays for their employees enjoyed
high productivity than organizations with lower fixed pays for
their employees because the employees had the impetus to fight
for their organizations. Moreover, a motivated workforce
creates a friendly workplace environment for all individuals to
succeed. Since compensation packages affect employee
performance, it is the most critical element in human resource
management.
Opposing Viewpoints and Why They Are Wrong
One of the opposing arguments against the role of compensation
packages is that they promote unnecessary external competition
raising operational costs. When one company provides better
compensation packages, it will attract the best talents from
other companies. To retain their best employees, companies
raise their fixed pays and end up operating at very high costs
(Ghazanfar et al., 2011). One of the modern tools organizations
use to outdo rivals is employee benefits, bonuses, and fixed
pays (Igalens & Roussel, 1999). Consequently, many companies
struggle with meeting the employee compensation packages to
create, maintain and sustain a determined workforce. In their
study, (Ghazanfar et al., 2011) found that packages shape
satisfaction and motivation within employees. Since
competition focused on pay and employee benefits raises the
operational cost, managers should turn to other alternative
strategies such as democratic leadership that allow teams to
grow, remain motivated, and be contented with their work using
limited resources (Fiaz et al., 2017). In their study, (Fiaz et al.,
2017) confirmed that the nature of leadership style affected
employee motivation and satisfaction, with democratic and
Laisser-Faire leadership cultivating an encouraged workforce.
On the other hand, autocratic leadership resulted in a
demotivated workforce.
Their views are wrong because, in their investigation, the
authors did not study how different leadership styles integrate
compensation packages within their organizations. The fact that
most organizations use compensation packages to hook best
talents rather than leadership methods means that packages have
an upper hand in influencing human resources. Also, the views
by (Fiaz et al., 2017) are incorrect because employees will not
work in an environment where they do not receive
compensations proportional to their output. Therefore,
organizations with better pay attract such employees leading to
higher turnover rates.
Another argument against the influence of compensation
packages in organizations is that they promote internal
disparities among the workforce thereby creating rifts.
Supporters of the argument believe that, since compensation
packages are unequally distributed in most organizations,
companies ought to use other alternatives to promote employee
motivation, job satisfaction, and retention. From their
perspectives, organizations need to pay employees an equal
amount of fixed pays as a way of ensuring equality. The
opposition exists despite (Ghazanfar et al., 2011; Prince et al.,
2016, Igalens & Roussel, 2011) showed that compensation
affects all the elements of satisfaction, retention, and
motivation. Further studies have shown that employees are
demotivated if there is no internal equity in the compensation
packages and that influences employee morale, satisfaction,
performance, and productivity.
The internal disparity perception is flawed for many
reasons. First, organizations compensate employees equitably
based on the roles and duties assigned to them. Employees
undertaking demanding and technical roles receive higher fixed
pays compared to those performing lesser roles because of the
effort they direct towards accomplishing their tasks. Therefore,
it would be unfair to compensate employees equally while their
duties are different. Second, other strategies perceived as
motivating and leading to job satisfaction do not guarantee
unfairness elimination in organizations. An example of an
alternative approach to maintain a motivated, satisfied and
productive workforce is training them. Most employees would
welcome an opportunity to grow their skills. Though training is
relevant in bolstering employee satisfaction and motivation,
different personnel receive different training based on their
roles. Thus, compensation packages stand as the only viable and
most crucial tool in strategic human resource management
because other alternatives have weaknesses too.
Conclusion
References
Fiaz, M., Su, Q., Amir, I., & Saqib, A. (2017). Leadership styles
and employees’ motivation: Perspective from an emerging
economy. The Journal of Developing Areas, 51(4), 143–156.
https://doi.org/10.1353/jda.2017.0093
Ghazanfar , F., Chuanmin , S., Khan, M. M., & Bashir, M.
(2011, January). A Study of Relationship between Satisfaction
with Compensation and Work Motivation. International Journal
of Business and Social Science . Retrieved September 12, 2021,
from https://www.researchgate.net/profile/Faheem-
Ghazanfar/publication/228752899_A_Study_of_Relationship_be
tween_Satisfaction_with_Compensation_and_Work_Motivation/
links/556c8ad508aeccd7773be3fd/A-Study-of-Relationship-
between-Satisfaction-with-Compensation-and-Work-
Motivation.pdf.
Groysberg, B., Abbott, S., Marino, M. R., & Aksoy, M. (2021).
Compensation Packages That Actually Drive
Performance. Harvard Business Review, 99(1), 102–111.
Igalens, J., & Roussel, P. (1999). A study of the relationships
between compensation package, work motivation and job
satisfaction. Journal of Organizational Behavior, 20(7), 1003.
https://doi-org.mylibrary.wilmu.edu/10.1002/(SICI)1099-
1379(199912)20:7<1003::AID-JOB941>3.0.CO;2-K
Michael, B., Prince, A. F., & Chacko, A. (2016). Impact of
Compensation Package on Employee Retention. CLEAR
International Journal of Research in Commerce &
Management, 7(10), 36–40.

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  • 2. climate": 1. Trust 2. Teamwork 3. Communication 4. Job satisfaction 5. Social cohesiveness Sec. 3 (~1-1.5 pp.) – Developing High Performing Teams A. What sort of team did your leader build around himself or herself, how did he or she lead it, and how did the team help the leader to succeed? B. How did the leader manage the “5 Rs”: 1. 1. 1. Roles 2. Rules 3. Relationships 4. Responsibilities 5. Results Reading/Reference material to be used: Unit -4 Lesson 4.1: · Read Lussier & Achua, Chapter 6, pp. 184-200; take Self- Assessment 1 (Listening Skills) on pp. 188. · Read PMBOK Guide, Chapter 10, pp. 359-392. · Review the slide deck:and Fundamentals of Communication and LeadershipDownload Fundamentals of Communication and Leadership · ReadDeath by Information Overload. · View the LinkedIn Learning video: Managing Project Communication with Doug Rose - Introduction, Sections 1 & 2 (Sections 3-6 are optional).
  • 3. · Based on the video (specifically Section 1: Understanding the Communications Plan) think of a presentation or proposal you have given or observed, or may be giving in the future, and complete a Stakeholder Register. Requirements include a brief synopsis of the presentation or proposal (1 page maximum) and a completed register. Lesson 4.2: · Read Lewis, Chapter 9. · Review the slide deck: Processing Information. · Additional Reference: · Katz, D. & Kahn, R.L. (1978). The Social Psychology of Organizations (2nd Ed.). New York: John Wiley & Sons. · Complete the Barsch Learning Style Inventory (Links to an external site.) and discuss your reactions in the Discussion Forum. Consider these questions in your forum post: · What are your preferences? · What do you think are the preferences of your boss, peers, and subordinates? · How can you apply this knowledge of preferences? Unit-5 Lesson 1 · Read Lussier & Achua, Chapter 10, pp. 357-371. · Read Lewis, Chapters 7, 11, &13. · Review the Unit 5 PowerPoint slidesDownload Unit 5 PowerPoint slides. Lesson 2 · Read Lussier & Achua, Chapter 10, pp. 369-370. · View the TED Talk YouTube video: "What's So Different About Cultures Anyway?" (Links to an external site.)by Dato Gogichaishvili and participate in the Unit 5 Lesson 2 Discussion Forum · Attend and actively participate in the weekly online session via Adobe Connect. Unit-6 Lesson 1:
  • 4. · Read Lewis, Chapter 6. · Read Lussier & Achua, Chapter 8, pp. 268-286; 293-299. · Read PMBOK Guide, Sections 9.4-9.5, pp. 336-351. · Read Jensen, The "5 R's" - A Team Charter Framework (Links to an external site.). · Review the Unit 6.1 slide deck.Download Unit 6.1 slide deck. Lesson 2: · Review the Unit 6 Lesson 2 PowerPointsDownload Unit 6 Lesson 2 PowerPoints View the YouTube video:"5 Dysfunctions of Teams" (Links to an external site.) 5 Research Paper _____________ __________ ENG Professor October 9, 2021
  • 5. Abstract Introduction: Background Information Employee compensation refers to the benefits employees receive in exchange for their services. The concept dates bac k many years and has contemporarily developed to become an essential component in human resource management. In 1982, there was a wage freeze in France that revolutionized employee compensation (Igalens and Roussel, 1999). During this years, companies favored individual pay rise to collective pay rise. Years later, companies focused on pay rise based on their strategies, corporate culture and employee expectations (Igalens & Roussel, 1999). Presently, employee compensation packages
  • 6. have massive influence on the employee choices. According to (Michael et al., 2016), differences in compensation packages cause the high turnover rates experienced in companies as employees move from organization to another. Thus, despite compensation dating back to many years, it is still an issue contemporarily because of external competition, its emotive nature and internal disparities in compensation. Importance of the Study The study on the impacts of employee compensation packages on employee retention, satisfaction and motivation is crucial in numerous ways. First, the aim of every organization is to retain, satisfy and motivate its workforce to remain productive for a long time. The findings of the study will therefore help organizational managers to use compensation package as a tool to meet the primary objectives of their companies (Ghazanfar et al., 2011). Secondly, employee compensation is rapidly becoming a strategy in many organizations (Groysberg et al., 2021). Best companies are focusing on how to address employee needs to keep the best talent within their firms. The study results will augment the urgent need for improved employee benefits. Lastly, the study is important due to increasing cases of employees migrating moving to rival companies. Managers may apply the knowledge of the study to become more competent in terms of human resource management and avert high turnover incidences. Historical Background of Employee Compensation Packages The history of employee compensation dates back to 2050B.C. In Sumeria, employees were compensated for injuries incurred when at work. Ancient China, Greece and other parts of the world followed suit by introducing laws that protected workers. In the Arab world, employee who incurred injuries on their ears received compensation proportional to the surface area injured. During industrial revolution when manufacturing became widespread, compensation schemes increased due to the augmented use of machines that posed a risk to the workers. In the US, each state formulated its compensation laws to dictate
  • 7. employee benefits. Mississippi was the last state to enact compensation laws for its workers in 1948. Public and private companies offer a range of compensation as a means to maintain a productive workforce. Also, through the years, employee benefits have expanded to include healthcare, bonuses among other benefits. Approaches to solving Compensation Issues One of the approaches intended to ensure effective employee compensation is legislation. Different states in the US developed laws that dictate employee compensation. Another strategy is through formation of trade unions and employee associations. Through these associations, the employees have championed for pay rise and other work benefits. Also, the judiciary has had a role to play in enhancing employee compensation since some compensation disputes ends up in courts. Conclusion of Intro Compensation remains a problem because of external competition. Some firms pay their workers high salaries accompanied with a wide range of benefits compared to others. The high benefits enable the firms to retain, satisfy and maintain their workforce and on the other hand, causes dissatisfaction among workers in other organizations. Thus, the study focuses on the impacts of external competition and internal disparities on employee compensation. Body 1: Logical Support for the Thesis Better compensation packages contribute to employee motivation. Employee motivation is the urge to dedicate one's effort towards success to deliver performance at the workpl ace and contribute to overall organizational success. A study conducted by (Igalens & Roussel, 1999) showed a relationship between compensation packages and employee motivation. It involved French employees and data was collected through questionnaires send via their emails or given to them directly. The findings of their data analysis showed that ‘under certain conditions, individualized compensation of exempt employees
  • 8. can be a factor of work motivation’ (Igalens & Roussel, 1999). Moreover, exempt employees were motivated by fixed pays rather than bonuses. The trend is explained by the fact that almost all organizations offer their employees benefits such as healthcare insurance coverage and the difference only arises in terms of fixed pays. The results showed that exempt employees were demotivated if there was no direct relationship between performance and fixed pay rise and performance (Igalens & Roussel, 1999). On the other hand, the exempt employees felt the drive to strive in their organizations when the fixed pays were high. This evidence supports that compensation packages influence employee motivation. Organizations that offer better compensation packages to their employees are more likely to keep their workforce motivated. (Ghazanfar et al., 2011) also showed that there was a positive influence between fixed pay and employee motivation. Organizations with high fixed pays for their employees maintained a vibrant workforce compared to their peers. The study also reinforced the importance of fixed pays to employee performance by showing that, other compensation benefits are less likely affected employee motivation. Therefore, it is true that compensation packages affect employee motivation in organizations and, consequently improves or lowers organizati onal efficiency and effectiveness. To that end, the executives and human resource management should focus on compensation packages to maintain an enthused labor force. Besides influencing employee motivation compensation packages affect job satisfaction in organizations. In a study conducted by (Igalens & Roussel, 1999), the author found that compensation packages affect employee job satisfaction. Job satisfaction refers to employee happiness of their job as a whole or individual element of their jobs. According to the study, employees feel contented when there is perceived internal and external equity for their fixed pays (Igalens & Roussel, 1999) while they feel less satisfied if their peers in other companies
  • 9. receive far better-fixed pay than theirs for the same work done. Also, internal equity in compensation packages is a strong determinant of job satisfaction. (Igalens & Roussel, 1999) found that organizations contributed to employee job satisfaction if each worker received compensation packages based on the amount of work done. On the contrary, employees were less likely satisfied with their jobs if they received payments that were not proportionate to the amount of work they did. A further investigation into the relationship between job satisfaction and compensation packages by (Ghazanfar et al., 2011) showed a positive correlation between the two variables. Employees were more satisfied in organizations that offered better-fixed pays than those that offered less employee compensation. Also, evidence backing the role of compensation packages on job satisfaction is found in the study by (Igalens & Roussel, 1999) showing a positive relationship between compensation packages and employee motivation. In workplaces, only motivated employees experience job satisfaction. Since lower fixed pays demotivate workers, it is true to conclude that, they cause job satisfaction. Thus, the findings support the thesis that compensation packages affect job satisfaction. Body II: Logical Supporting Ideas Continued Moreover, compensation packages affect employee retention. Retention is the ability of organizations to keep the most desirable talent for a long period (Prince et al., 2016). The study aimed to investigate the relationship between compensation packages and employee retention and job satisfaction and employee compensation packages. The study consisted of 71 employees and data collection was done through the use of questionnaires (Prince et al., 2016). The data analysis results showed that there was a positive association between employee compensation and retention rates. Employees receiving high compensation packages and rewards at their workplace more likely served their organizations for many years than those receiving lower compensation packages (Prince et
  • 10. al., 2016). The reason for high turnover rates is attributed to the existing internal competition where rival organizations compete to acquire the best talents. Different governments lose their best employees to private organizations because they offer the bes t pays. Further results in the study showed that compensation packages were related to job satisfaction. The association between the two variables indicates that compensation packages affect job retention. Workers may only serve their companies for long if they are satisfied with their jobs; otherwise, they seek alternative employers with better compensation schemes. The study by (Prince et al., 2016) proves the hypothesis that compensation is the essential tool to maintain a vibrant and motivated workforce. Since there is a close relationship between compensation packages, employee satisfaction, retention, and motivation, the human resource must direct effort to the compensation packages. Holding to the best talent in organizations is possible with the best compensation strategies. Hence, the human resource departments need to adopt strategic approaches when offering compensation packages to their employees to ensure the workforce remains intact. Lastly, compensation packages are critical to organizations and human resource management teams because they affect employee workplace performance. A study by (Igalens & Roussel, 1999) showed that compensation packages affect employee motivation and job satisfaction. A disgruntled workforce is less productive thereby affecting the overall employee and organizational performance. Another study by (Prince et al., 2016) showed that there exists an association between compensation packages, retention, and job satisfaction. Higher compensation packages lead to better employee retention. When organizations hold to the best talent, performance improves because of the advantage of experience over the years. Also, retaining the best workers enhances production as the company reaps from their skills. On the contrary, high and constant turn-over rates minimize employee and overall performance because the company continuously
  • 11. loses its talents limiting operational fluidity. A further study by (Ghazanfar et al., 2011) showed a relationship between compensation package, job satisfaction, and employees. Since the key factors to performance are job satisfaction and motivation, compensation packages impact individual productivity. (Groysberg et al., 2021) showed that the factor driving performance is employee packages. Companies with high fixed pays for their employees enjoyed high productivity than organizations with lower fixed pays for their employees because the employees had the impetus to fight for their organizations. Moreover, a motivated workforce creates a friendly workplace environment for all individuals to succeed. Since compensation packages affect employee performance, it is the most critical element in human resource management. Opposing Viewpoints and Why They Are Wrong One of the opposing arguments against the role of compensation packages is that they promote unnecessary external competition raising operational costs. When one company provides better compensation packages, it will attract the best talents from other companies. To retain their best employees, companies raise their fixed pays and end up operating at very high costs (Ghazanfar et al., 2011). One of the modern tools organizations use to outdo rivals is employee benefits, bonuses, and fixed pays (Igalens & Roussel, 1999). Consequently, many companies struggle with meeting the employee compensation packages to create, maintain and sustain a determined workforce. In their study, (Ghazanfar et al., 2011) found that packages shape satisfaction and motivation within employees. Since competition focused on pay and employee benefits raises the operational cost, managers should turn to other alternative strategies such as democratic leadership that allow teams to grow, remain motivated, and be contented with their work using limited resources (Fiaz et al., 2017). In their study, (Fiaz et al., 2017) confirmed that the nature of leadership style affected
  • 12. employee motivation and satisfaction, with democratic and Laisser-Faire leadership cultivating an encouraged workforce. On the other hand, autocratic leadership resulted in a demotivated workforce. Their views are wrong because, in their investigation, the authors did not study how different leadership styles integrate compensation packages within their organizations. The fact that most organizations use compensation packages to hook best talents rather than leadership methods means that packages have an upper hand in influencing human resources. Also, the views by (Fiaz et al., 2017) are incorrect because employees will not work in an environment where they do not receive compensations proportional to their output. Therefore, organizations with better pay attract such employees leading to higher turnover rates. Another argument against the influence of compensation packages in organizations is that they promote internal disparities among the workforce thereby creating rifts. Supporters of the argument believe that, since compensation packages are unequally distributed in most organizations, companies ought to use other alternatives to promote employee motivation, job satisfaction, and retention. From their perspectives, organizations need to pay employees an equal amount of fixed pays as a way of ensuring equality. The opposition exists despite (Ghazanfar et al., 2011; Prince et al., 2016, Igalens & Roussel, 2011) showed that compensation affects all the elements of satisfaction, retention, and motivation. Further studies have shown that employees are demotivated if there is no internal equity in the compensation packages and that influences employee morale, satisfaction, performance, and productivity. The internal disparity perception is flawed for many reasons. First, organizations compensate employees equitably based on the roles and duties assigned to them. Employees undertaking demanding and technical roles receive higher fixed pays compared to those performing lesser roles because of the
  • 13. effort they direct towards accomplishing their tasks. Therefore, it would be unfair to compensate employees equally while their duties are different. Second, other strategies perceived as motivating and leading to job satisfaction do not guarantee unfairness elimination in organizations. An example of an alternative approach to maintain a motivated, satisfied and productive workforce is training them. Most employees would welcome an opportunity to grow their skills. Though training is relevant in bolstering employee satisfaction and motivation, different personnel receive different training based on their roles. Thus, compensation packages stand as the only viable and most crucial tool in strategic human resource management because other alternatives have weaknesses too. Conclusion References
  • 14. Fiaz, M., Su, Q., Amir, I., & Saqib, A. (2017). Leadership styles and employees’ motivation: Perspective from an emerging economy. The Journal of Developing Areas, 51(4), 143–156. https://doi.org/10.1353/jda.2017.0093 Ghazanfar , F., Chuanmin , S., Khan, M. M., & Bashir, M. (2011, January). A Study of Relationship between Satisfaction with Compensation and Work Motivation. International Journal of Business and Social Science . Retrieved September 12, 2021, from https://www.researchgate.net/profile/Faheem- Ghazanfar/publication/228752899_A_Study_of_Relationship_be tween_Satisfaction_with_Compensation_and_Work_Motivation/ links/556c8ad508aeccd7773be3fd/A-Study-of-Relationship- between-Satisfaction-with-Compensation-and-Work- Motivation.pdf. Groysberg, B., Abbott, S., Marino, M. R., & Aksoy, M. (2021). Compensation Packages That Actually Drive Performance. Harvard Business Review, 99(1), 102–111. Igalens, J., & Roussel, P. (1999). A study of the relationships between compensation package, work motivation and job satisfaction. Journal of Organizational Behavior, 20(7), 1003. https://doi-org.mylibrary.wilmu.edu/10.1002/(SICI)1099- 1379(199912)20:7<1003::AID-JOB941>3.0.CO;2-K Michael, B., Prince, A. F., & Chacko, A. (2016). Impact of Compensation Package on Employee Retention. CLEAR International Journal of Research in Commerce & Management, 7(10), 36–40.