StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

The System of Compensation - Essay Example

Cite this document
Summary
The paper "The System of Compensation" focuses on the fact that the system of compensation is vital in the development of the necessary motivation. The success of the company depends on the ability to motivate and cater for the welfare of the employees…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.9% of users find it useful
The System of Compensation
Read Text Preview

Extract of sample "The System of Compensation"

Download file to see previous pages

However, merit pay has been used to develop a standard payment structure that is common and applicable to all employees (World at Work 60). Merit pay is described as pay for performance based on the results set on a standard operative module. It is an approach to compensation that rewards well-performing employees. It focuses on offering additional pay for the best-performing employees. Despite the challenges, the merit pay system has several advantages. First, it enables the employer to differentiate between high and low performers in the company.

Unlike profit sharing or bonus pay schemes, it allows the employer to differentiate between the performances of employees. While there are several programs and schemes developed to reward the overall performance of employees, merit pay offers compensation for strong performers. Merit pay allows the employer to recognize individual performance meaning to continue benefiting from the scheme the employee must be able to continue performing perfectly (Jiang, Xiao and Qi 67). Despite the numerous advantages of the scheme, it has been found that it does not offer a better support mechanism to the employees and the employer.

The failure to address the essential issues that may affect the performance of both the group and the individual makes the scheme ineffective. The scheme lacks accuracy affecting its ability to differentiate the ability of the individual employees. The success of the scheme has been reduced by the increasing dynamism in human behaviour and factors that affect performance. The merit pay structure is different and creates a serious challenge in managing workers. The use of the total reward system has taken over the development of compensation structures.

The total reward scheme is a program developed, by employers, to attract, motivate, and retain employees. The main focus of the program is to include everything the employee perceives to be value resulting from the employment relationships. The concept has been advanced tremendously through evaluation and restructuring of the process of rewarding employees. When developing a total reward system, analyzing the needs of every employee in the team (Jiang, Xiao and Qi 112). The development of a total reward scheme involves six steps with the first phase of the process in analyzing.

The process of analyzing the needs of the employees includes the examining of the current policies. After analysis, the design process will involve the determination of compensation and the compensation strategies that can be employed in the process. During the design process, all the available approaches in total reward schemes. After the design, of the total reward scheme, the development of the plan and operation strategy involves the use of various methods (World at Work 45). After the creation of the necessary plan and strategy, the plan must be communicated to the employees, so that they understand the reward scheme.

Additionally, communication in the company is vital because of the various reasons. Communication facilitates the development process and the reasons for promotion and wage level setting. The success of the total reward scheme will depend on various factors including the management design of the process (World at Work 213). The inclusion of all the factors that affect motivation and employee welfare will ensure that the total reward scheme is perfect. In conclusion, the total reward scheme is based on the inclusion of all factors affecting employee performance with the main support factor being communicated.

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Presentation paper Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Presentation paper Essay Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/management/1473233-presentation-paper
(Presentation Paper Essay Example | Topics and Well Written Essays - 750 Words)
Presentation Paper Essay Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/management/1473233-presentation-paper.
“Presentation Paper Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/management/1473233-presentation-paper.
  • Cited: 0 times

CHECK THESE SAMPLES OF The System of Compensation

The Role and Issues of Performance Management in Compensation Decisions

The paper "The Role and Issues of Performance Management in Compensation Decisions" proposes an innovative issue related to The System of Compensation in organizations.... The issue that will be discussed in this paper is the scopes and dimensions of performance management towards the enhancement of The System of Compensation with respect to a specified organization, Coca-Cola.... The Role and Issues of Performance Management in Compensation Decisions  Introduction The aim of the paper is to propose an innovative issue related to The System of Compensation within organizations....
7 Pages (1750 words) Term Paper

The Investment Idea to Extend the Services Area of East Nest Hotels

The paper "The Investment Idea to Extend the Services Area of East Nest Hotels" states that HR manager needs to provide sessions of discussion and effective communication among the staff to decide the strategies to approach the initiatives for organising fitness centres, inculcating profitability....
6 Pages (1500 words) Case Study

LEAN MANAGEMENT FEASIBILITY FOR PUBLIC ORGANIZATIONS

Lean Management is a comprehensive system of getting things done by learning from past experiences, eliminating unnecessary activities, costs, and expenses, and then continuously improving processes in order to do more with less resources as well as less wastages (Cole 2011, p.... This business report identifies lean management as one of the potent management tools, strategies, and process for the attainment of improvements in organizational performance, value, and financial benefits....
8 Pages (2000 words) Assignment

Business communication

Compensation scheme The System of Compensation is vital in the development of the necessary motivation.... The development of the various system of compensation has been marked with challenges except when developed from a set structure that covers all the issues affecting the organization.... The use of the total reward system has taken over the development of compensation structures.... Throughout the years, companies have struggled to develop compensation systems that cover the various issues of the employees and encourage fairness and transparency....
3 Pages (750 words) Essay

Business HR Research Paper

The major findings of the research showed that The System of Compensation of an organization determines the motivation of the employees towards their work and the skill of the employees of the organization.... Compensation Systems and Strategies Human Resources Date Abstract The objective of this paper is to provide discussions and arguments on systems and structures of compensation of employees with a view of human resource relations.... The paper talks about the different types of compensation and the differences that exist between them....
4 Pages (1000 words) Essay

Admin Law and Compulsory Purchase: Construction of Nuclear Power Station

he Planning and Compulsory Purchase Act 2004 is the most recent piece of legislation to have affected compulsory purchase orders and the law introduced major change in the use of compulsory purchase orders, though not The System of Compensation.... The Planning Act 2008 received royal assent in November 2008 and sets out major reform to the system for approving schemes of national importance, aiming to dramatically speed up the process. ... It can also be the date on which compensation monies are lodged at court, if no entry has been taken but Notice to Treat has been served. ...
13 Pages (3250 words) Case Study

Johnsonville Sausage

In the essay 'Johnsonville Sausage' the author analyzes the company, which was founded in 1945 when Ralph Stayers' parents purchased the company.... Over time they began retailing their product and built up a small business in Wisconsin.... Ralph Stayer joined the business in 1965.... ... ... ... The author states that the 1970s and 1980s brought tremendous growth to Johnsonville under the direction of second-generation Ralph Stayer, primarily through the growth of the wholesaling arm of the business....
3 Pages (750 words) Essay

Admin Law and Compulsory Purchase

he Planning and Compulsory Purchase Act 2004 is the most recent piece of legislation to have affected compulsory purchase orders and the law introduced major change in the use of compulsory purchase orders, though not The System of Compensation.... The Planning Act 2008 received royal assent in November 2008 and sets out major reform to the system for approving schemes of national importance, aiming to dramatically speed up the process. ... It can also be the date on which compensation monies are lodged at court, if no entry has been taken but Notice to Treat has been served. ...
13 Pages (3250 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us