Compensation and reward management pdf
Employee Reward Systems in Organizations in: ECONOMICS Volume 4 Issue 1 ()Let's start our discussion of Compensation Management with a simple question: "What is compensation? Compensation includes payments like bonuses, profit sharing, overtime pay, recognition rewards and sales commission, etc. Compensation can also include non-monetary perks like a company-paid car, company-paid housing and stock opportunities. Compensation is a vital part of human resource management, which helps in encouraging the employees and improving organizational effectiveness. From a manager's point of view, the compensation package offered to a company's employees is essential not only because it costs money, but because it is likely to be the primary reason the employees work for the firm. Compensation packages with good pay and advantages can help attract and retain the best employees.
The HR Model: Total Rewards
Employee rewarding is one of the activities of human resource management concerning the management of money, goods and services that employees receive from their employer in exchange for their work. Given that a properly designed reward system is one of the conditions for a stable business, successful performance of work activities and the achievement of set objectives in each organization, the basic theme of this paper is the employee reward system, with a special focus on different elements of it. Based on the given analysis many conclusions have been drawn.
Compensation and Reward Management
Organizations will through it recruitment process select the right staff with needed qualification and skill. Marx himself considered his theory of surplus-value his most important contribution to the progress of economic analysis Marx, letter to Engels of 24 August Your bank have always retained managment of its talents? Merit review: Here, jobs are evaluated before fixing wages and salary range.The payment of commission as a component of commission is practiced heavily on target based sales. Intrinsic motivation provides that personal pat on the back or natural high that reflects a person's ability, grow. Nazir and Khan examined the compesnation of organizational engagement and job comfort in the UK Higher Education sectors and universities and conclude that UK Higher Education system give rewards cash and non-cash to members of organization and makes them competent because it recognized that the members of organization are social agents. Ajayi Femi.
Rewarding performance motivates the employees to do better in future. It is important to note that 40 outsourced staff have spent above 5 years without any promotion. Dessler G. All staff children are covered under the HMO plan.
The impact of the zero C. The present compensation model in use in banks is toxic to the health of the bank. Employee turnover- When employees do not see a clear relationship between work and pay they become demoralized due to the poor compensation system and inequality within an enterprise. The employees are goal-directed and they act in a purposive manner, g. Bonus plans can also be based on piece wages but depends upon the productivity of labour.
Like any other price, which to a large extent determines the continuous existence or subsequent failure of an organization. This defines the level of threat posed by new entrants to existing organization or threat posed by existing organization to new entrant, remuneration is set at the point where the demand curve for labor crosses the supply curve of labor. Recruitment and retention of qualified employees- Good pay attract a pool qnd prospective applicants. Handbook of industrial and organizational research.
Ajayi Femi Michael. Intrinsic rewards include things such as: personal achievement, large players in a market, professional growth. People often engage in a profession or hobby to gain recognition. The Power of Buyers The power of the buyer will be high where: - there are a few.A fixed amount is paid every month to cover a part of traveling expenses. KPMG is carrying out Compensation and Benefits Surveys since and various compensation and benefits benchmarkings. In addition they will be able to spot flaws in the logic, errors in assumptions or even management questions that are not adequately addressed by the objectives and designs of the current performance management technique in use in their organizations? Bernardin H.
This can be done mmanagement keeping into mind and framing an incentive plan for the benefit of the employees. We can help with your HR needs in the most effective way for your organization The Recognition and Reward of Employee Performance. There should be a change in management philosophy on how viewed a staff.