Which Meaning of Compensation Seems Most Appropriate from...

Which meaning of compensation seems most appropriate from an employee’s view: Return, reward or entitlement? Compensation and Benefits remain as an invaluable tool to attract, motivate and retain qualified candidates. Compensation refers to the wages and other non-financial forms of compensation that an organisation pay to employees for the work they do. Compensation can be given out to employees in the form of pay, incentives, and benefits for performing their job. A total compensation and benefits package aids the organisation in increasing and maintaining the individual’s and team’s morale, encourage motivation towards peak performance, achieve internal and external equity, and increases employees’ loyalty to the organisation.†¦show more content†¦Financial rewards, especially those given on a regular basis such as bonuses, profit sharing, etc., should be tied to an employees or a groups accomplishments and should be considered pay at risk in o rder to distance them from salary. By doing so, a manager can avoid a sense of entitlement on the part of the employee and ensure that the reward emphasizes excellence or achievement rather than basic competency. Merit pay increases, then, are not part of an employee reward system. Normally, they are an increase for inflation with additional percentages separating employees by competency. They are not particularly motivating since the distinction that is usually made between a good employee and an average one is relatively small. In addition, they increase the fixed costs of a company as opposed to variable pay increases, such as bonuses, which have to be re-earned each year. Finally, in many small businesses teamwork is a crucial element of a successful employees job. Merit increases generally review an individuals job performance, without adequately taking into account the performance within the context of the group or business. Types of Reward Programs include: Variable Pay, Bonu ses, Profit Sharing, Stock Options, Group- based reward systems, Bonuses are generally short-term motivators. By rewarding an employees performance for the previous year, they encourage a short-term perspective rather than future-orientedShow MoreRelatedWage and Salary Chapter 112487 Words   |  50 PagesMilkovich−Newman: Compensation, Eighth Edition Front Matter 1. The Pay Model  © The McGraw−Hill Companies, 2004 Chapter One The Pay Model Chapter Outline Compensation: Definition, Please? Society Stockholders Managers Employees Global Views—Vive la diffà ©rence Forms of Pay Cash Compensation: Base Cash Compensation: Merit Pay/ Cost-of-Living Adjustments Cash Compensation: Incentives Long-Term Incentives Benefits: Income Protection Benefits: Work/Life Focus Benefits: Allowances Total EarningsRead MoreCompensation Management9389 Words   |  38 PagesCompensation Management Q1.a. What is the role of compensation and rewards in modern organization? What arethe advantages of a fair compensation system? Ans1a. Role of Compensation and Reward in Organization: Compensation and Reward system plays vital role in a business organization. Since, among four Ms, i.e Men, Material, Machine and Money, Men has been most important factor, it is impossible to imagine a business process without Men. Land, Labor, Capital and Organization are four major factorsRead MoreOverview of Hrm93778 Words   |  376 Pagesintend to work in HRM or not, most of these elements will affect you at some point in your career. Either you will be working with some organizations or having people working for you, in both cases you will be dealing with people. To be understandable and lively means that we need to communicate you. We start every chapter with learning objectives. The most important thing you will get out of this course are the basic skills required to succeed in today’s environment which are, you must be able to communicateRead MoreHuman Resources Management150900 Words   |  604 Pagesthe seven major categories of HR activities. Identify the three different roles of HR management. Discuss the three dimensions associated with HR management as a strategic business contributor. Explain why HR professionals and operating managers must view HR management as an interface. Discuss wh y ethical issues and professionalism affect HR management as a career field. ââ€"  ââ€"  ââ€"  ââ€"  ââ€"  3 HR TRANSITIONS HR Management Contributes to Organizational Success More effective management ofRead MoreThe Relationship Between Job Satisfaction and Absenteeism in a Selected Field Services Section Within an Electricity Utility in the Western Cape31415 Words   |  126 Pagesof companies, more attention is being given to reduce workplace absenteeism and its cost. Most research has concluded that absence is a complex variable and that it is influenced by multiple causes, both personal and organisational. Job satisfaction has been noted as one of the factors influencing an employee’s motivation to attend. Studies on the relationship between absenteeism and job satisfaction seem to be inconsistent. Some research has found no correlation between these two variables whereasRead MoreThe Impact of Economic Meltdown on the Nigeria Banking Industry (a Case Study of Intercontinental Bank Plc).13502 Words   |  55 Pagesemployee productivity in the Nigerian banking system using the August 14, 2009 CBN intervention into commercial banks (as a result of the meltdown originating from unsecured credits and poor bank management in the Nigerian commercial banking system) as a benchmark to analyze the effects. Data was collected from journals, interviews and direct data from specific units of the bank. The appraisal of the staff of Intercontinental Bank was used to assess performance under the first hypothesis. The second hypothesisRead MoreBvcvv56336 Words   |  226 Pagesstart of the examination in which to read the questions. You are strongly encouraged to use this time for reading only, but notes may be mad e. You then have three hours to complete the paper. You must not start writing your answers in the booklet until instructed to do so by the supervisor. Mark allocations are shown in brackets. Attempt all 6 questions, beginning your answer to each question on a separate sheet. Candidates should show calculations where this is appropriate. 2. 3. 4. 5. 6. Read MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 Pages10.5/12 ITC New Baskerville Std Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within text. Copyright  © 2013, 2011, 2009, 2007, 2005 by Pearson Education, Inc., publishing as Prentice Hall. All rights reserved. Manufactured in the United States of America. This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrievalRead MoreDeveloping Management Skills404131 Words   |  1617 PagesWeidemann-Book Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text. Copyright  © 2011, 2007, 2005, 2002, 1998 Pearson Education, Inc., publishing as Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458. All rights reserved. Manufactured in the United States of America. This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproductionRead MoreOrganisational Theory230255 Words   |  922 Pages. Organization Theory Challenges and Perspectives John McAuley, Joanne Duberley and Phil Johnson . This book is, to my knowledge, the most comprehensive and reliable guide to organisational theory currently available. What is needed is a text that will give a good idea of the breadth and complexity of this important subject, and this is precisely what McAuley, Duberley and Johnson have provided. They have done some sterling service in bringing together the very diverse strands of work