This document is a research proposal on the compensation systems of banks in Pakistan submitted by three students - Muhammad Farhan Jalali, Saba Shahab, and Sheikh Zeeshan Waris - to their professor Ms. Ayesha Hanif. The introduction provides background on the importance of compensation policies and practices in motivating employees. It also outlines the banks' restructuring plans and why investigating compensation practices is important. The literature review then summarizes past research on topics like defining compensation, designing effective compensation systems, factors that impact compensation, and relating compensation to managing risks.
A study on reward and recognition program 2016Anand Yogesh
“People may forget words; People may forget actions; but people will always remember Respect, Recognition & Appreciation given to them publicly for their contributions....”
Reward is an incentive plan to reinforce the desirable behavior of workers or employers and in return for their service to the organization.
Compensation and Reward system plays vital role in a business organization.
Reward Management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization.
A study on reward and recognition program 2016Anand Yogesh
“People may forget words; People may forget actions; but people will always remember Respect, Recognition & Appreciation given to them publicly for their contributions....”
Reward is an incentive plan to reinforce the desirable behavior of workers or employers and in return for their service to the organization.
Compensation and Reward system plays vital role in a business organization.
Reward Management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization.
This report is based on a survey of HR function leaders and business leaders in India. It identifies the major emerging trends that will define the workplace of the future.
The impact of compensation and reward systen on the performance of the Niger...Femi Michael Ajayi
THE IMPACT OF COMPENSATION AND REWARD SYSTEM ON THE PERFORMANCE OF THE NIGERIAN BANKING INDUSTRY
(A CASE STYDY OF SOME SELECTED BANKS IN KEBBI STATE)
BY
AJAYI FEMI MICHAEL
Commissioned by the Beijing Foreign Enterprise Human Resources Service Co., Ltd., (the largest HR services provider in China), the report presents the results of a survey of HR professionals at multi-national and local companies.
This study was conducted in order to evaluate the impact of different factors on workforce at the
industrial parks in Hai Duong Province. The research datawas collected primarily by interviewing production
workers and managers working at different companies at the industrial parks in Hai Duong Province In this
study, the author uses the method of Structure Equation Modeling to analyze the impact of the factors on
workforce development at the industrial parks in Hai Duong Province.
A STUDY ON EMPLOYEE RETENTION IN PL.A GROUP OF COMPANIES IAEME Publication
Employee retention is the foremost problem; which all organizations are now facing in the global competitive environment. In this conceptual paper, I have attempted to bring out some employee retention approaches, which have developed over a period of time. Retention strategies for knowledge workforce, for achieving competitive advantage are also highlighted. Employee Retention refers to the ability of the organization to retain its employees and it's emerging as a big challenge to organizations. Organization culture, pay and remuneration, flexibility and job satisfaction highly influence the retention rate for any company. Retention of employees is an important function of the HRM.
Recruitment Practices in Malaysian Knowledge Intensive Start-UpsShanmuga Pillaiyan
This paper investigates Strategic Human Resource Management (SHRM) practices adopted by knowledge intensive start-up companies in Malaysia. SHRM is considered a key to the success of these firms in line with the Resource-Based-View (RBV) of the firm. Particular focus was given to recruitment practices as recruitment is viewed as having the most significant short term impact for start-ups. This paper is based on the case study of three Malaysian knowledge intensive start-ups. The study finds that Malaysian start-ups do not perceive SHRM as critical for their success. Owner-managers of Malaysian start-ups prefer an informal & unstructured SHRM process. Key SHRM areas of recruitment and compensation are ad hoc. These findings are in line with other studies carried out globally. This paper discussed the pros and cons of the SHRM practices at Malaysian Knowledge intensive start-ups and recommends a framework for recruitment in small knowledge intensive start-ups is proposed.
Running Head Employee Compensation1Employee compensation5.docxcharisellington63520
Running Head: Employee Compensation 1
Employee compensation 5
Employee Compensation
Name:
Institution Affiliation
Course Title
Professor
Date
Employee compensation covers various things. Amongst the things that are part of it are conception philosophies, salary surveys, and discretionary benefits. These three are inevitable when it comes to employee compensation. In this paper, we shall expound more on these three contents.
The compensation philosophy of a company contains the guiding principles that are useful when making decisions regarding compensation (Services, 2003). It expresses the need to hire and retain the best talent. It also explains why the organization compensates employees the way it does. The compensation philosophy of Maersk Company covers various areas. Maersk has taken a lot of measures towards ensuring their talent management efficient. Maersk Company compensates employees according to their skills and how well they perform their jobs. The company has over the years used its resources to train underperforming employees. It has also rewarded employees who have achieved a lot in their jobs.
Salary surveys, which are carried out by employers, collect data about employee compensation (wages and employee benefits). They are of great value to every organization that conducts them. It is necessary that an organization conducts these surveys twice or thrice yearly. One advantage of the organization is that data from the survey can be obtained at discounted rates. For this to happen, the Human Resource Department has to allocate enough time for them to partake in these surveys and complete them. Salary surveys prevent the HR professionals from overpaying individuals working in similar positions. They determine whether employees are being compensated fairly and competitively. Offering competitive wages is key when trying to hire the best talent. They also avail the HR professionals with the most recent data concerning the market they are in so that they can compare their employees’ salaries to those of the local employment market. This maintains the competitive advantage of the organization in the market.
Information obtained from these surveys can be used when benchmarking. Information is also used to set levels of compensation for employees within various organizations. Salary surveys are useful when getting reviews periodically concerning the various compensation plans. The conducting of salary surveys by large companies gives them an advantage over small companies when it comes to the hiring of highly-qualified candidates. The information availed by salary surveys cannot be obtained anywhere else. When it comes to the access of such information, those who dedicated their time towards participating in the surveys are given priority. Salary surveys are important for an organization that is still in its initial stages of the establishment. Salary surveys make work easier for compensation managers, since the most c.
Running Head MOTIVATION1MOTIVATION2Motivation.docxtoltonkendal
Running Head: MOTIVATION 1
MOTIVATION 2
Motivation
Mark S. Lasky
American Public University
Dr. Moore
MGMT311 Organizational Behavior
February 11, 2018
Motivation
Motivation is a critical element that promotes productivity in the organization. Motivation is one of the determinants of a successful business entity. It is paramount to integrate motivational strategies in the organization to enhance operations and productivity (Calo, Patterson, & Decker, 2014). However, despite the benefits of motivation, there are some several factors which threaten motivational strategies in the organization. This research seeks to highlight the various risks concerning mitigation strategies in the company. Additionally, the study outlines various approaches which can be implemented to combat the risks concerning motivational strategies.
Potential risks
Remuneration is an extensive technique used as a motivational strategy. In the program, offering competitive salaries to employees may present a challenge in the long-term. In the modern business world characterized by unpredictable change, high salaries or wages may threaten the well-being of the company in low seasons. A significant remuneration program results in a high operational cost which reduces the profitability of the company (Barron & Hulleman, 2014).
Another risk worth considering is the strategy of integrating employees into the decision-making process in the company. This approach may be ineffective as some decisions are time sensitive which makes it difficult to consult all employees before the decision is made. Moreover, some decisions may point out some vulnerable points in the business when communicated to employees. This results in the employees lacking a sense of security and confidence in the company, thus translating into reduced productivity.
Personnel centered approach also presents a risk to the well-being of the company. Personnel centered approach safeguards the well-being of employees by providing flexible working hours. However, this arrangement may lead to the company having inadequate staff when there is an influx of work. Also, flexible working hours threaten the commitment and output of employees since they operate as they wish which results in low productivity if the employees lack determination.
In the implementation of the program, there is the cultural difference risk. In the implementation of the motivational strategy at the company, the diverse workforce may have a varying reception to the motivational approach. For example, in places where employees are accustomed to working for specific hours in a day, compensation for extra hours would be ineffective as a motivational strategy in the area. Also, cultural difference may result in the preference of either intrinsic or extrinsic motivational elements. This variation may lead to the execution of the wrong motivational strategy thus leading to ineffectiveness.
The theoretical literature points out that th ...
This report is based on a survey of HR function leaders and business leaders in India. It identifies the major emerging trends that will define the workplace of the future.
The impact of compensation and reward systen on the performance of the Niger...Femi Michael Ajayi
THE IMPACT OF COMPENSATION AND REWARD SYSTEM ON THE PERFORMANCE OF THE NIGERIAN BANKING INDUSTRY
(A CASE STYDY OF SOME SELECTED BANKS IN KEBBI STATE)
BY
AJAYI FEMI MICHAEL
Commissioned by the Beijing Foreign Enterprise Human Resources Service Co., Ltd., (the largest HR services provider in China), the report presents the results of a survey of HR professionals at multi-national and local companies.
This study was conducted in order to evaluate the impact of different factors on workforce at the
industrial parks in Hai Duong Province. The research datawas collected primarily by interviewing production
workers and managers working at different companies at the industrial parks in Hai Duong Province In this
study, the author uses the method of Structure Equation Modeling to analyze the impact of the factors on
workforce development at the industrial parks in Hai Duong Province.
A STUDY ON EMPLOYEE RETENTION IN PL.A GROUP OF COMPANIES IAEME Publication
Employee retention is the foremost problem; which all organizations are now facing in the global competitive environment. In this conceptual paper, I have attempted to bring out some employee retention approaches, which have developed over a period of time. Retention strategies for knowledge workforce, for achieving competitive advantage are also highlighted. Employee Retention refers to the ability of the organization to retain its employees and it's emerging as a big challenge to organizations. Organization culture, pay and remuneration, flexibility and job satisfaction highly influence the retention rate for any company. Retention of employees is an important function of the HRM.
Recruitment Practices in Malaysian Knowledge Intensive Start-UpsShanmuga Pillaiyan
This paper investigates Strategic Human Resource Management (SHRM) practices adopted by knowledge intensive start-up companies in Malaysia. SHRM is considered a key to the success of these firms in line with the Resource-Based-View (RBV) of the firm. Particular focus was given to recruitment practices as recruitment is viewed as having the most significant short term impact for start-ups. This paper is based on the case study of three Malaysian knowledge intensive start-ups. The study finds that Malaysian start-ups do not perceive SHRM as critical for their success. Owner-managers of Malaysian start-ups prefer an informal & unstructured SHRM process. Key SHRM areas of recruitment and compensation are ad hoc. These findings are in line with other studies carried out globally. This paper discussed the pros and cons of the SHRM practices at Malaysian Knowledge intensive start-ups and recommends a framework for recruitment in small knowledge intensive start-ups is proposed.
Running Head Employee Compensation1Employee compensation5.docxcharisellington63520
Running Head: Employee Compensation 1
Employee compensation 5
Employee Compensation
Name:
Institution Affiliation
Course Title
Professor
Date
Employee compensation covers various things. Amongst the things that are part of it are conception philosophies, salary surveys, and discretionary benefits. These three are inevitable when it comes to employee compensation. In this paper, we shall expound more on these three contents.
The compensation philosophy of a company contains the guiding principles that are useful when making decisions regarding compensation (Services, 2003). It expresses the need to hire and retain the best talent. It also explains why the organization compensates employees the way it does. The compensation philosophy of Maersk Company covers various areas. Maersk has taken a lot of measures towards ensuring their talent management efficient. Maersk Company compensates employees according to their skills and how well they perform their jobs. The company has over the years used its resources to train underperforming employees. It has also rewarded employees who have achieved a lot in their jobs.
Salary surveys, which are carried out by employers, collect data about employee compensation (wages and employee benefits). They are of great value to every organization that conducts them. It is necessary that an organization conducts these surveys twice or thrice yearly. One advantage of the organization is that data from the survey can be obtained at discounted rates. For this to happen, the Human Resource Department has to allocate enough time for them to partake in these surveys and complete them. Salary surveys prevent the HR professionals from overpaying individuals working in similar positions. They determine whether employees are being compensated fairly and competitively. Offering competitive wages is key when trying to hire the best talent. They also avail the HR professionals with the most recent data concerning the market they are in so that they can compare their employees’ salaries to those of the local employment market. This maintains the competitive advantage of the organization in the market.
Information obtained from these surveys can be used when benchmarking. Information is also used to set levels of compensation for employees within various organizations. Salary surveys are useful when getting reviews periodically concerning the various compensation plans. The conducting of salary surveys by large companies gives them an advantage over small companies when it comes to the hiring of highly-qualified candidates. The information availed by salary surveys cannot be obtained anywhere else. When it comes to the access of such information, those who dedicated their time towards participating in the surveys are given priority. Salary surveys are important for an organization that is still in its initial stages of the establishment. Salary surveys make work easier for compensation managers, since the most c.
Running Head MOTIVATION1MOTIVATION2Motivation.docxtoltonkendal
Running Head: MOTIVATION 1
MOTIVATION 2
Motivation
Mark S. Lasky
American Public University
Dr. Moore
MGMT311 Organizational Behavior
February 11, 2018
Motivation
Motivation is a critical element that promotes productivity in the organization. Motivation is one of the determinants of a successful business entity. It is paramount to integrate motivational strategies in the organization to enhance operations and productivity (Calo, Patterson, & Decker, 2014). However, despite the benefits of motivation, there are some several factors which threaten motivational strategies in the organization. This research seeks to highlight the various risks concerning mitigation strategies in the company. Additionally, the study outlines various approaches which can be implemented to combat the risks concerning motivational strategies.
Potential risks
Remuneration is an extensive technique used as a motivational strategy. In the program, offering competitive salaries to employees may present a challenge in the long-term. In the modern business world characterized by unpredictable change, high salaries or wages may threaten the well-being of the company in low seasons. A significant remuneration program results in a high operational cost which reduces the profitability of the company (Barron & Hulleman, 2014).
Another risk worth considering is the strategy of integrating employees into the decision-making process in the company. This approach may be ineffective as some decisions are time sensitive which makes it difficult to consult all employees before the decision is made. Moreover, some decisions may point out some vulnerable points in the business when communicated to employees. This results in the employees lacking a sense of security and confidence in the company, thus translating into reduced productivity.
Personnel centered approach also presents a risk to the well-being of the company. Personnel centered approach safeguards the well-being of employees by providing flexible working hours. However, this arrangement may lead to the company having inadequate staff when there is an influx of work. Also, flexible working hours threaten the commitment and output of employees since they operate as they wish which results in low productivity if the employees lack determination.
In the implementation of the program, there is the cultural difference risk. In the implementation of the motivational strategy at the company, the diverse workforce may have a varying reception to the motivational approach. For example, in places where employees are accustomed to working for specific hours in a day, compensation for extra hours would be ineffective as a motivational strategy in the area. Also, cultural difference may result in the preference of either intrinsic or extrinsic motivational elements. This variation may lead to the execution of the wrong motivational strategy thus leading to ineffectiveness.
The theoretical literature points out that th ...
The aim of this study is to investigate reward system and employee performance in three selected
companies such as Nestle Plc, Mumudia Integrated services and Bucebal ventures limited in Port Harcourt,
Rivers State. The study also shows how employees improve its performances in a reward system. Questionnaire
was used as instrument and 60 questionnaires were issued and while 50 questionnaires were retrieved to check
the respondent’s opinion.
Discussion post AssignmentPlease review lecture notes to ass.docxduketjoy27252
Discussion post Assignment
Please review lecture notes to assist with questions
Week 2 Lecture
In Week 2, this course will discuss the uses of incentive pay plans including the pros and cons of the various employee pay plans. This week will also discuss the relationship between performance management and compensation.
Employee incentive compensation programs grew from the philosophy that employees will be driven by rewards. As a result, organizations use incentive compensation programs to produce their targeted results. Organizations reward employees who produce. Organizations need to improve or keep employee motivation and the key is finding out what employees want and value as incentives. There are a variety of incentive pay plans. A few such plans are discretionary bonus plans, annual pay increase plan, profit sharing, retention bonusses and project-based bonus. A common compensation plan is based on the employee’s seniority and hence called “seniority pay.” An employee under this plan receives compensation due to the length of time he/she has been with the organization or tenure with the organization. Many times, this type of plan is found in unionized workforces, however it can be found in many different types of organizations as well. The one issue with this type of plan is the increase in compensation may not be appropriate, especially if the employee is not performing and as a result, it may have a negative impact on the organization. The employee may have an expectation of an increase regardless of performance or organizational productivity. If the organization doesn’t produce, the employee will expect an increase regardless. Another incentive plan is the “merit plan” where employees are paid based on past performance usually during a specific period. The merit plan pays employees for meeting standards or performance goals and can be utilized in conjunction with annual performance evaluations. For this type of pay plan to work, the organization needs to set goals that are obtainable and realistic. Some organizations utilize SMART goals. SMART goals are goals that are set that are specific, measurable, attainable, relevant and time framed. Additionally, employees need to be made aware of the terms of the merit pay plan so they know how and when to reach their goals. Goals should be aligned with the organizational mission, vision and guiding principles. Merit pay programs are not appropriate for all companies and for the plan to be successful, top management must agree to reward the top performers with meaningful pay differentials that match the levels of the employee performance (Martocchio, 2017). Another incentive plan is the “person-centered pay” which is a plan that rewards employees for acquiring job related knowledge, skills or competencies (Martocchio, 2017). The person-centered play plan is not based on job performance. This plan is a means of rewarding employees for their actions acquiring skills. Furthermore, person-ce.
The study investigates the effects of incentives on employee’s productivity. The study had the
following objectives: The relationship between incentive and productivity of employee’s in organisations
Identifying Employee motivation level with Job monetary benefitsHina Shabbir
The focus of the study is mainly the monetary and benefits that are offered to the employees to keep them motivated, the research will review these benefits offered to them in terms of helping them in their motivation and what impact does it have on the development and growth of the organizations they are working for.
A Study on Incentives, Rewards and Benefits in an OrganizationMasum Hussain
Workforce today is more articulate about their needs. Employees desire the best of everything – competitive salaries, comfortable & inspirational lifestyles, job security, career enhancement options, work-life balance, and so on. Competition for talent is ever increasing and organizations need to have well-defined philosophies and strategies to help them develop innovative ways of tapping intrinsic motivation of employees by engaging their hearts and minds. While many organisations are struggling to make sufficient progress in this direction, there are organizations that have institutionalized robust practices and effective processes in different people practice areas that go a long way in positively impacting employee perception. In this regard, two types of reward are identified, and they are intrinsic reward and extrinsic reward. Extant research showed that reward can affect job satisfaction and thereby employee performance, so this study proposes a new framework based on mediating role of job satisfaction. India’s Best Companies for Rewards and Recognition was conceptualized to recognize companies who are leading the way in the area of Rewards and Recognition for us learns from. Human resources are the most important among all the resources an organization owns. To retain efficient and experienced workforce in an organization is very crucial in overall performance of an organization. Motivated employees can help make an organization competitively more value added and profitable. The present study is an attempt to find out the major factors that motivate employees and it tells what is the relationship among reward, recognition and motivation while working within an organization. The data were collected from employees of diverse type of organizations to gain wide representation of sectoral composition. The participation in survey was voluntary and confidentiality of responses was ensured. The statistical analysis showed that different dimensions of work motivation and satisfaction are significantly correlated and reward and recognition have great impact on motivation of the employees. Implications of the study for managers and policy makers in the context of human resource practices have been discussed. Limitations and guidelines for future research are also provided.
MHR 6901, Compensation Management 1
Course Learning Outcomes for Unit I
Upon completion of this unit, students should be able to:
1. Discuss the role of employees, employers, unions, and the government in the development of
compensation programs.
1.1 Describe issues that influence an individual’s decision to apply for or accept a specific job.
1.2 Explain how compensation plans can influence the success of an organization.
1.3 Explore how influences outside an organization can affect its compensation plan.
2. Assess the impact of the Civil Rights Act of 1964, the Bennett Amendment, and Executive Order
11246 on compensation practices.
2.1 Outline the provisions of the Civil Rights Act of 1964, the Bennett Amendment, and
Executive Order 11246.
2.2 Establish the reasons why the Civil Rights Act of 1964, the Bennett Amendment, and
Executive Order 11246 were implemented.
Course/Unit
Learning Outcomes
Learning Activity
1.1 Unit I Essay
1.2 Unit I Essay
1.3 Unit I Essay
2.1 Unit I Essay
2.2 Unit I Essay
Reading Assignment
Chapter 1: Strategic Compensation: A Component of Human Resource Systems
Chapter 2: Contextual Influences on Compensation Practice
Unit Lesson
Hello, and welcome to this course. This course is an introduction to the area of compensation management.
This course looks at how compensation is developed, evaluated, and managed within an organization. You
will examine different theories of compensation management, why employees and non-employees are paid,
the manner in which they are paid, and different types of pay programs.
This course will be broken down into six different parts, which include strategic compensation, bases for pay,
designing compensation systems, employee benefits, compensation challenges, and compensation issues
around the world. When studying bases for pay, you will look at the traditional bases of pay, which include
merit pay, seniority pay, incentive pay, and person-focused pay. You will review pay systems that recognize
employee contributions, are internally consistent, and are competitive within the market. When reviewing
employee benefits, you will review both discretionary benefits and legally required benefits. Compensation
challenges will include the controversy surrounding executive compensation in the United States and paying
contingent or flexible employees. Finally, you will address compensation systems around the word and
compensating expatriates. As you can see, a wide array of compensation issues are present in today’s
workforce.
In this unit, we will concentrate on strategic compensation and some influences on compensation. So, what
do you think of when you hear the words compensation and strategic compensation? Most people think of
UNIT I STUDY GUIDE
Strategic Compensation
MHR 6901, Compensation Management 2
UNIT x STUDY GUIDE
Title
compensation as their pay and benefits, which is basically correct. The ...
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1. Muhammad Farhan Jalali
14-HRM-S-86
Saba Shahab
14-HRM-S-70
Sheikh Zeeshan Waris
14-HRM-S-114
Institute of Administrative Science
Research Proposal
Compensation System Of Banks In Pakistan
Submitted To: Ms. Ayesha Hanif
Date: JUNE 15, 2016
2. 1. Introduction
Presently, most of the banks aspire to have well-equipped employees who have got with them the
potential to bring better financial/non-financial results for them so that the organizational
objective can be met. Putting the same into practices, banks put forth their level best efforts to
design those policies & practices that are awfully admired by the employees working at their
place of work. Amongst those policies, the relatively most important ones are compensation
policies and practices that usually but largely affect the behavior and motivation of the
employees.
In order to investigate as what practices are being followed by different banks here in Pakistan,
in this research work, Pakistan has been taken under the consideration to check its standard of
compensation, its compensation strategy and the practices & policies that are involved into that
strategy against the best compensation policies & practices standards. The banks are trying to be
on the way towards its restructuring plan that covers the following at the moment:
(1) Creating and facilitating an environment that fuels up governance & accountability,
(2) Modernizing almost all operations with the help of technology, communication and
networking tool,
(3) Streamlining products and the process of delivery system so as to cut off transaction
cost, simplifying the operations with increased outreach nationwide,
(4). Providing products and services that are economically viable,
(5). Improving the standards and skills of human resource besides strengthening training
capacity for the employees,
(6). Introducing software and hardware platform in order to support Management
Information System (MIS) comprising forensic accounting & risk management related
functions. These reforms will become beneficial for the bank in terms of having its
outreach towards clients countrywide.
Due to the magnificent role bank plays in uplifting the standards of economy and being an
integral part in the development of the country particularly in the field of agriculture, it becomes
3. equally important to investigate as how these things are being worked out practically and
implemented. For this reason, it is extremely important to know as how employees are taken care
of through compensation at the bank. The very reason to highlight compensation practices of the
bank in this research is that if the employees think they are paid well; resultantly they would feel
quite happy and satisfied with the work they do.
It is explored as what are the key elements involved in the compensation strategy of the banks
for instance, the pay incentives, benefits, pay for performance and/or seniority, etc. and how
much these are significant in achieving the organizational objective and philosophy through its
workforce. This research work can prove to be quite handful for the key policy makers of the
bank if they better see this work from employee and organizational perspectives. Those
organizations do outperform which consider their employees as an asset not merely a burden. If
the employees, particularly in the lower and middle cadre of the bank who carry out the rigorous
field work and administration work simultaneously, become pretty much contented on
compensation practices and policies of the bank, this may even turns out to be a competitive
advantage for the corporation in terms of organizational effectiveness and the financial results in
every spectrum and therefore, the bank can be standing out in the middle of top leading banks
either private or the public ones. Similarly, if the employees feel motivation at work they would
become very helpful to the clients they handle in every manner and in addition to that, the
organization competitive outlook can be figure out as the most powerful tool in attracting top
talent around them and even this could enhance the market value in the industry.
Having stated that we may now proceed further and therefore let the reader know as what authors
and researchers had said about the concept of compensation at different points of time and what
are the various techniques/ways so far have been used in compensating employees in
multifarious organizations and to know as what research work has already been carried out in
this regard.
2. Literature review
In today’s world of competition and fast pace of change human resources are the major sources for an
organization to come by a sustainable competitive advantage which if built accurately on standard, give
opportunity to the organization to convert it into number of resources like money, material, methods and
machinery (Tiwari, 2012). Being a most useful tool of human resource management, compensation stands
4. out as a sole reason for which an employee works for an organization (Absar,Nimalathasan, & Jilani,
2010).
Compensation comprises all rewards either monetary or non-, well the rewards can be either direct or
indirect in nature (Geringer & Frayne, 1990 as cited in Lowe, Milliman, Cieri, & Dowling, 2002).
Compensation may be based on tangible, financial benefits as well as other benefits like cash
remuneration or be a part of total returns in the form of relational outcomes which entails,
for instance, recognition for an employee,
job security,
more challenging work or advance learning prospects.
While suffice to say that cash remuneration consists of
gross/base salary,
incentive concerning short and long span of time period
work and life balance allowances,
protection allowances
If organization fails to design a good compensation system, more chance is there that this could put the
organization into perplexing devastating circumstances (Blazovich, 2013.organizations tend to change
compensation strategies while going through different experiments having not known the consequences
attached to those strategies (Westerman,Beekun, Daly, & Vanka, 2009).
For keeping employeesmotivated enough :
allowances on pay, remuneration along with the other imbursements are to be announced by the
organization not just periodically but also on exclusive occasions (Danish & Usman, 2010).
Example ;
(For instance, an employee working in a bank of Pakistan came up with the view that she was not being
offered the salary which was being given to a male employee even she was having the same qualification
and experience however, having not known the rules and regulation of the bank, she decided not go to
courts as it would cost her much )(Ali, 2013).
It has been categorically proposed that keeping in view the rising wave of inflation in Pakistan, the
increments be made in employees’ salaries and their incentives have to be adjusted accordingly
particularly in banking industry (Bowra,Sharif, Saeed,& Niazi, 2012).
5. The organizations find it very expensive to hire a new employee so as to replace the seat left by other
employee and stats revealthat the cost is round about 100 to 125 per cent on average as compare to per
annum salary of the person who had left the job.
found that the increments in pay scale don’t happen to be due to one’ individual performance and
particularly foreign banks seem reluctant in giving away incentives even if he has done more than enough
and also notified that the gross salary is set on market basis while comparing it to the total salary of an
individual.
One considerable factor amongst many others is the education level of an individual that set the pay
criteria upon which people are offered relatively higher salaries (Schuldes, 2006).
Compensation entails all types of packages which is a direct result of having been the employee of that
organization (Dessler,2008). It is found that employees at present don’t just go for the salaries rather they
aspire to have fringe benefits that comprises usually non-monitory rewards like,
for instance,
after retirement packages,
medical and educational prospects, etc.
thus in case if organization tend to make a considerably well-off compensation system that stem from its
policies, the employees would definitely put forth their best in terms of efficiency as well as effectiveness
and this might happen in the way if the policy regarding compensation has not been devised against the
practices involved in human resource management (Khan,Aslam, & Lodhi, 2011).
Different organizations tend to use different ways to assess an employee;
rates on pay are sometimes set on the basis of evaluation of the job concerned, t
he other process is used to be in practice to increase the salaries
and sometimes the process of appraising an employee decides incentives on pay (Cloutier &
Vilhuber, 2008).
Similarly, if an employee receives comparatively high pay from the organization which is even much
higher than his above rank employees; this gesture signifies that the organization does give immense
value to that employee among the most (Huang, Lin, & Chuang, 2006).
Many a times, just compensation does not turn out to be one factor for an employee that he will get
motivated by it and organization thinks that money is only one solution to all the problems faced by the
employee, while this situation prolongs for a short period of time and the organization continues to throw
6. lot of money at employee in a false attempt to make him feel motivated while neglecting other hygienic
elements that could possibly work (Flynn, 2011).
banks are being faced with lot ofrisks like, for instance,
risks related to markets,
financial risks
. managing risks (Al-Tamimi & Al-Mazrooei, 2007).
One of the techniques that can be used to manage risk effectively suggests an alignment between
compensation, which should be based on performance of employees, and incentives (Oldfield &
Santomero, 1997 as cited in Al-Tamimi & Al-Mazrooei, 2007).
Therefore,organizations that positively enforce strong compensation package may enjoy enormous
achievements for instance,
it enhances individual turnover in terms of relative performance,
transfer of specific learning with the dimension of decentralization
and lastly provides them with a chance to overcome the gesture of standing against the change
(Wruck, 2000).
3. Researchobjective
The aim of this present research is to analyze the ways in which the employees are compensated at Banks)
and to suggest the bank, as far as compensation is concerned, number of approaches that would make a
way through towards better compensation management so that managerial staff get motivated and feel
elevated while working with the bank, in the current arena of stiff competition prevailing in banking
industry of Pakistan.
4. Researchmethodology
In order to come to achieve the research objective we need to make a well-defined research methodology
without which we may not become able to extract meaningful data that would help us in multifarious
ways.
Type ofstudy :
This research is a sort of exploratory research because we need to have a clear understanding of the
problem(s) being faced by the employees at BANKs in terms of compensation and its various aspects.
That is why when the problem is identified in a definite manner we may become able to give subtle
7. recommendations which can become very handful for the employers so that they may compete on equal
level basis or even far better as compare to their existing competitors in the banking industry of Pakistan.
However,this is a quantitative research to pursue and the population under study is employees working
in various branches of BANK .
Sampling |Design :
therefore a convenience sampling technique, a non-probability sampling technique, is used for carrying
on the research and to get the data collected through those employees who are considered to be the most
essential source of information to us. Convenient sampling technique is better to be used to touch all
those employees working in BANK who can be accessed through convenience and in an easy manner. In
this regard, a sample size would be not more or less than 55 employees of different cadres; working in
different branches of different BANKs at the moment.
Data collection method :
Furthermore, so as far research tool is concerned the research is made possible through the survey
methodology and in this methodology a questionnaire is being used as an instrument for obtaining
useful information from the employees. However,it is to be made clear to know that the scales as well as
the questionnaire has been opted from a research work in which various policies related to compensation
are highlighted, that are in use of foreign banks of Pakistan. The reason for selecting the said
questionnaire seems to be quite beneficial for us in completing this research as the variable/factors are
similar to our work.
Type ofscale :
To ensure clarity, Likert Scale has been opted for use so that we may come to get clear idea about what
actually the employees think of their pay package and the criteria upon which they are paid through and it
would be viewed at the end as what factors are significant for effectiveness of the bank.
Data analysis technique :
Moreover, so as far data analysis technique is concerned, percentage analysis would be used at the time
after when questionnaires would get filled out by respondents.
.
6. Conclusion
8. The factors/variables that are identified well before that do influence employees level of satisfaction and
bank effectiveness so as far pay structure/design is concerned can be easily figured out that is to say, pay
incentives, benefits, orientation towards outcomes, seniority, difference in pay levels, total benefit
package,pay structure itself in terms of futuristic orientation, pay for the performance, pay practices as a
tool to have high performers,overall pay practices that are handful for bringing effectiveness to the bank.
The findings have spotlighted the results came for each of these factors and therefore we have also come
to know the intensity of these factors influencing employees as well as the organization at the same time.
The employees came up with argument that pay incentives like profit and bonus sharing are quite few and
not a substantial part of the compensation strategy of the bank, the pay differences lies between job levels
and even then pay for performance is not fully observed by employees, seniority brings better salary and
benefits that slightly de-motivates employees for even having results right on target but not equally
compensated. Therefore everyone waits for that time to come to enjoy the fruit for being senior in the
hierarchy. Most of the employees want to be paid well for short term results they generate as compare to
achieving the long term ones. Again, most of the employees think that if bank produces much better
performance and have gains resultantly, it needs to have positive effect over an employee earning.
Employees seem dissatisfied with benefits included in their overall compensation which equally
demoralize the employee which affects their performance at large. On the contrary, there is still positive
aspect involved in overall pay practices to have top performers which are even useful so as far the banks
competitive outlook is concerned in the banking industry; which in turn influence the overall
effectiveness of the bank along with the fact that, however,many employees don’t think so and therefore
they are pretty much dissatisfied on pay system installed at BANK.
We may conclude, in a nutshell, that employees at BANK look at pay practices and its policies designed
in favor of the organization in terms of effectiveness,having high outperforming employees, etc. however
at the same time they don’t see bank pay practices and policies in better interest of employees’ wellbeing
whatsoever.
7. Limitations
The following limitations will be witnessed while carrying out this research work: - Cost constraints
could not allow the research work to embark upon extensive areas where bank branches are located in and
therefore,the sample size could not be increased more than 55 in number. Scarcity of time and also
resources could not allow us to be able to get the questionnaire forms filled out by respondents working in
Metropolitan branches of BANK in Pakistan.
9. 8. Recommendations
We may suggest very useful steps in line of following best practices compensation policies that seem to
be quite true and practicable to exercise: The bank needs to take into consideration the individual
performance of an employee and reward him individually. The reward may take a form of bonus and/or
profit sharing. Seniority should not be a focal point for better compensation. Employees should be
compensated for performance rather than merely on the basis of seniority. The bank should reshape its
existing benefits package in order to boost employees’ level of motivation at work. If it can’t be done
quite better, even then the bank needs to show up the importance of the existing benefits to the employees
for fueling up their motivational level. At times of financial constraints, the bank should focus on non-
financial part of total compensation program for appreciating the better performing employees i.e. by
selecting an employee of the month, applauding the employee in front of all or a letter of appreciation
could boost employee’s sense of commitment towards his work, training and development opportunities,
status symbols can work better as titles & offices along with other fringe benefits that turn out to be vital
enough in terms of employee loyalty and motivational level. The bank should refocus attention over long
term goals. The bank should share its success with its employees in shape of better compensation and
rewards like bonus or profit sharing or a combination of both or even it may take some other form as well.
The bank should better tailor the compensation practices in accordance of the needs and expectations of
its employees which certainly change with time. For this purpose, benefit survey could be a very useful
way to know the wants & needs of the employees. The bank culture should be flexible enough to adapt
the best compensation practices and/or policies of the competitors in the mainstream industry of banking
in Pakistan. Last but not the least at all, the overall compensation strategy should be tailored to the bank’s
philosophy & objectives. That is to say if the compensation strategy is aligned with the overall
organizational strategy this could bring forth true and positive results in terms of organizational
effectiveness,employee satisfaction & commitment along with excellent competitive outlook if not more.
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