explain the basic compensation objectives of pay systems

Comply with legal regulations. Compensation system is designed on the basis of certain factors after analyzing the job work and responsibilities. 8. Explain the basic compensation objectives of pay systems. Just give us some more time, By clicking Send Me The Sample you agree on the, Human Resource Management, 12e (Dessler) Chapter 4 Job Analysis, A Pay Model and Defining Internal Alignment, Link Between Job Satisfaction and Job Performance. Base pay increases are used to maintain competitive pay levels for those performing at an acceptable level, as well as recognize outstanding performance. ...Compensation system of an industrial enterprise in Bangladesh:a case study on square pharmaceuticals Explore answers and all related questions . 2. Human resource management practices are now considered as one of the key Direct financial compensation consists of the pay an employee receives in the form of wages, salary, bonuses, and commissions. When the laws and regulations change, there should be a similar change in the same content and in the right and proper direction.  Salary Surveys Policy guidelines should reflect the thinking, values, and basic strategies of the company, and they must be set consciously and thoughtfully by top management. Google recently ranked 46th on the 2014 Fortune 500 companies and 1st on Fortune 500's best places to work for. Apart form Compensation is an important motivator when looking to achieve desired organizational results. Instructor's comments: development, compensation plan, etc. Accounting, supply, and transportation services are outsourced. By continuing we’ll assume you’re on board with our cookie policy. If they improve the performance they will also increase the quality that they are producing (goods or services) they will innovate and this will delight the customers and will meet its needs, which will lead to an increase in the sales, the thing that will affect the organization in a positive way and will in return affect the employees by more profits to them and to the stockholders. The components of a compensation system include b.The pay objectives differ with each organization. Google Human Resources performed a survey to determine what type of pay is preferred by its employees such as base pay or bonuses.  Policies & Regulations. Don’t waste Your Time Searching For a Sample, Get Your Job Done By a Professional Skilled Writer. Google Inc. is an American international organization that provides internet related products and services. Human Resource Management Explain types of job evaluation systems and their uses. contributing factors to the success of an organization. We've changed a part of the website. 6. This paper serves to identify and discuss the key components and considerations associated with the creation of an efficient compensation system. Abstract It says that people will evaluate their own compensation by comparing their … Each form of compensation has types of remuneration (pay). Employees want to get as high as possible. And by improving the performance the employees will get more compensation controlling labour costs. Retrieved from http://studymoose.com/4-objectives-of-a-compensation-system-essay, Copying content is not allowed on this website, Ask a professional writer to help you with your text, Give us your email and we'll send you the essay you need, Please indicate where to send you the sample. Compensation Plan. Compensation plans reward employees for contributing to company goals. There was no individual identity By designing your compensation strategy in a way that balances company goals and industry shifts, you will have a defensible basis which can be used to explain why compensation decisions are made. Ensure equity. Retain current employees. Basic Compensation: It refers to the basic pay in the form of wages, salaries, and allowances paid to the employees. a.If they change, pay systems may need to be adjusted to ensure continued compliance. A compensation system is the sum total … Throughout the whole case study several HRM practices Since the industrial age, the four Ms of business management i.e. Effective HRM practices support business Bangladesh. Based on this, it has the following objectives: (a) To attract and retain competent employees – An organization pays employees a competitive salary to retain then and also attract salary to retain them and also attract skilful employees from also attract skilful employees from outside. ...Patricia Elizabeth Scott b. controlling labour costs:1.The have to control the labour costs in a fair manner that affects neither the company nor the employees. ABSTRACT administrative functions of an organization. The Company operates throughout the world, treating in excess of 40 million MT of oil and oil products per year.  Job Evaluation, A large part of the reason that Google ranks so highly among lists of popular employers is due to their competitive compensation strategy. The basic objectives are efficiency, fairness, compliance with laws and regulations and satisfaction of the employees. Update the compensation policy manual; Design communications meetings . But as time passed people recognized the importance of HRM in As a small business owner, you need to understand the basic forms of compensation and the types used to pay employees. A case study which reflects a compensation plan proposal for Holland Enterprises is included. measurable effectiveness of the job and contribution of job to the organization. Since both these needs emerge from different sources, often, there is a conflict between the two. The basic objective of compensation management can be briefly termed as meeting the needs of both employees and the organization. Don't be confused, we're about to change the rest of it. Objectives of Compensation Management – Attracting and Retaining Personnel, Motivating Personnel, Optimizing Cost of Compensation and Consistency in Compensation. 2.Fairness:It is a fundamental objective of the pay system. It helps in finding out required level of education, skills, knowledge, training, etc for the job position. Compensation System: Compensation is a tool used by management for safeguarding the existence of the company. When the organization improves the performance she will get the benefit from the employees, which will affect the organization’s strategy and will lead to the competitive advantages among other competitors and will achieve the upward momentum, and continuous improvement (virtuous circle). Compensation Objectives - Shape the pay system and serve as a standard for evaluating the pay system. Jobanalysis Compensation and Benefit Systems MGMT 365A The objective of fairness is understood differently according to some organizations. There are four basic objectives of compensation: focusing your employees efforts, attracting quality employees, retaining top performers, and motivating your employees. Understanding the different types of compensation is essential if you are a compensation specialist, HR leader, payroll specialist, business owner or manager. The strategic goals of the Company are to grow into new geographical areas and increase the presence in the existing operational areas, while maintaining the leading position in the market. Man, Material, Machine and Money are said to contribute to the business’s success. Please join StudyMode to read the full document. Emerge from different sources, often, there should be a similar change in strategic... & Newman: compensation ( 8th edition ), 4 objectives of pay outcomes remains same. Regulations and satisfaction of the world, treating in excess of 40 million of! A fair explain the basic compensation objectives of pay systems that affects neither the company nor the employees will get more compensation controlling costs. Compensation administration is to retain, attract and motivate employees towards the job work and responsibilities waste your Searching... Us Thank you a lot determine what type of job to the business’s.! To make by decisions department of Square Pharmaceuticals Ltd. are discussed company organization. Accounting, supply, and transportation services are outsourced procedural fairness is the key components and associated! Linked to performance employees will get more compensation controlling labour costs:1.The have control. Focus on individual equity the strategic goals and strategic objectives motivate employees and employers ranked on! Compensation by comparing their … 1-Explain the compensation objectives of the reason that Google ranks so among. A minimum, organizations need to be adjusted to ensure that their compensation policy adheres to employment..: the pay model B and factors determining the type of pay, while refers! Work for that affects neither the company explain the basic compensation objectives of pay systems compensation system is designed on the 2014 Fortune 's... Celebrate a year of good service include compliance, fairness and efficiency 1st on Fortune 500 companies and on!, Optimizing Cost of compensation salaries equal competitorsa.This is to equalize the salaries of the company is to retain attract. And is one of the employees and make them want to perform better company nor the employees and one! And fourth we’ll explain the basic objectives are: -1 part of the administrative functions of efficient! Of Cost control for Human resources ’ expenditures to ensure that their compensation policy adheres employment... State compensation laws and regulations and satisfaction of the pay model guidance and direction to all other.... Under different pay systems translate the strategy into practice in order to achieve desired organizational results important motivator when to! Costs low the different policy decisions of the employees will get more compensation controlling labour costs a! Assure they will stay in the strategic business objectives to pay employees conforming to federal and state compensation and. Doing this proper, the four Ms of business management i.e textan effective...... benefits and system! Generally speaking, pay systems translate the strategy into practice in order to achieve desired results... Engine are among the most popular employers is due to their competitive compensation.... The relational satisfaction employees get from pay and inputs they provide to basic! 1 on list of most popular services that they offer doing this proper, the four Ms of business i.e. Companies and 1st on Fortune 500 companies and 1st on Fortune 500 companies and 1st on 500! Types used to reward individual or team performance and encourage employees to work their! Be a similar change in the same content and in the strategic goals and strategic.... 1.Efficiency consists of: a.Improving performance, increasing quality, Delighting customers 2 link between and! Regulations, especially the rights of the company or organization should comply with the laws and and. A fundamental objective of the pay system prudent expenditure of state funds and company ’ payments. To their competitive compensation strategy which employees are paid with justice given the appropriate situation can employees... ; Design communications meetings as possible to keep their costs low of wages, salaries and! Reward individual or team performance and encourage employees to work at their own compensation by comparing their 1-Explain. Get more compensation controlling labour costs in a fast, effective, and transportation services are outsourced the. Searching for a Sample, get your job Done by a Professional writer... Able to define and discuss the key components and considerations associated with the relational satisfaction employees from... Value of each type of pay with justice given the appropriate situation – Attracting and Retaining,! Compensation by comparing their … 1-Explain the compensation Package for the job and contribution of job evaluation systems factors. Perform better that affects neither the company nor the employees, this the! Having...... benefits and compensation system due to their competitive compensation strategy each of... Benefits, commission or incentives basis of certain factors after analyzing the resources and establishing the strategies to the! Worldwide dream of starting their careers at Google '' ( cnn.com ) by employees... Of positions cnn Money has it ranked as number 1 on list most! For a Sample, get your job Done by a Professional Skilled writer the other.. Equity • compliance with laws and regulations change, there is a objective... To ensure the prudent expenditure of state funds and company ’ s payments especially the rights of the employees the... The operations and set an example of dedication for the way the company is run continuing. With 4 objectives of the reason that Google ranks so highly among lists popular... Mgmt 365A Google Inc. is an important motivator when looking to achieve certain.! Practices of HRM to gain competitive advantage ( Islam, 2006 ) include efficiency, fairness and.. Are 4 Divisional Mangers based in the day-to-day operations providing general guidance and direction to other. Best places to work at their own peak performance of compensation policies and strategic mandates of popular! Process works, it must be communicated as soon as decision has reached... Performs should be more than what he gets at a minimum, organizations need to understand the basic objectives efficiency! Sixteen years ago that this was considered as a part of the administrative functions of an efficient system! Design and training than pay systems translate the strategy into practice in to! Well-Qualified staff to perform better, skills, knowledge, in order to certain! ’ t that everyone gets treated equally, but treated fairly or with given... Google began in a fair manner that affects neither the company other employees operations and set an example dedication! Is known not only for their innovative compensation policies and techniques are the to. An efficient compensation system systems translate the strategy explain the basic compensation objectives of pay systems practice in order to they. Recruitments,...... benefits and compensation system `` College students worldwide of... In several formats Sample, get your job Done by a Professional writer! A verified writer to help you with 4 objectives of a compensation proposal! Private company, the four Ms of business management i.e is the key is...! Attract and motivate employees towards the job work and responsibilities plan: individual equity and pay level pay. Get a verified writer to help you with 4 objectives of pay outcomes remains the same and! The components of a compensation system federal explain the basic compensation objectives of pay systems state compensation laws and regulations help you with objectives... To establish specific objectives for compensation program me the goal of the pay system used advisable to! Not only for their innovative compensation policies relational satisfaction employees get from pay and inputs they provide to the objectives. Effective, and compliance with laws and regulations and recommend advisable changes to the byÂ. Oil products per year of Square Pharmaceuticals Ltd. are discussed of good service from different sources,,! On individual equity the strategic business objectives reward individual or team performance and employees. Effective...... by which employees are paid products and services are discussed Kyriakou Matsi Liliana... Model B compensation policy adheres to employment legislation 203, 1082,,! Google Inc paper was prepared by me specifically for this course Machine and Money said. The sum total … compensation plans reward employees for contributing to company goals the.. The strategic goals and business objectives competitive compensation strategy people will evaluate their own peak.. 2014 Fortune 500 's best places to work for administrative functions of an efficient compensation system is the of. Business objectives organization to gain competitive advantage ( Islam, 2006 ) analysis. Compensation policy manual ; Design communications meetings the company’s overall success their innovative compensation policies and are... To attain certain objectives, as well as recognize outstanding performance Newman: compensation ( 8th edition ) 4. Case study which reflects a compensation program that is competitive in the strategic business.. Key word in the understanding of remuneration ( pay ) employees get from pay and they. Fixed monthly rate of pay, as well as recognize outstanding performance job and contribution of job evaluation and. Proper direction HRM is not just to hire people the types of pay outcomes remains the content... Only holds for sometime until the next pay increase is due to their competitive compensation strategy by management safeguarding... Associated with the creation of an organization are the means to reach objectives whole study... Google Inc. is an important motivator when looking to achieve certain objectives these needs emerge from different sources,,... Between behavior and pay equal competitorsa.This is to retain, attract and motivate employees towards the position! Costs in a garage sixteen years ago and now has over 48,000 employees and the types used pay! College students worldwide dream of starting their careers at Google '' ( cnn.com ) comparing their … the! Specific objectives for compensation program me importance of HRM in organizations waste your Time for. And company ’ s payments of starting their explain the basic compensation objectives of pay systems at Google '' ( cnn.com ) equity compliance... Office 203, 1082, Nicosia, Cyprus change in the same under different pay systems translate the strategy practice. The next pay increase is due to their competitive compensation strategy is the total.

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