Setting the Stage for Strategic Compensation and Bases for Pay - Assignment Example

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Name Surname Professor Name Subject 14 January 2012 Setting the Stage for Strategic Compensation and Bases for Pay Introduction: The departments of human resources in any organization involves strategies for their compensation and bases for pay to the employees since they prove to be significant for the betterment of the employees as well as their services to the organization…
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Setting the Stage for Strategic Compensation and Bases for Pay
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Download file to see previous pages The present study focuses on the setting of the stage for strategic compensation and bases for pay in organizations, by answering five questions in association. Question 1: Describe the three main goals of compensation departments. Solution: The primary stakeholders for an organization’s compensation packages include the employees, the management or the executives, and the government. Thus the three main goals of the compensation departments in an organization are associated with satisfaction and gain advantages from these three above mentioned sources (Compensation’s Role in Human Resource Strategy, 22). The first and most important goal that the compensation departments have reflects on keeping the employees of the organization satisfied such that they perform efficiently and with sincere concerns working towards the achievement of the organizational goals. Secondly the concern of the department is associated with the management and executive teams since these individuals are the experts of the organizations and need to be retained for future endeavors. ...
Thus the three primary goals of the compensation department could be learnt from the above section of the study. Question 2: Describe the contextual influence that you believe will pose the greatest challenge and the contextual influence that will pose the least challenge to companies’ competitiveness and explain why. Solution: A company’s competitiveness and the level of competitive advantage that it gains over its competitors depend significantly on the performance of the employees of the organization. However, with the changing world of businesses and the market trends that determine the level of competition, the compensation systems have also significantly altered and modified. This in other words reflects the influences of the contextual factors in association with the competitiveness of an organization. The most important factor that seems to influence the compensation program is the determination of the wage rates for the employees. High wage rates on one hand increases the cost of the company and thus the prices of the goods reflecting on decreasing financial performances for the company; on the other hand, it guarantees the gain of competent workforce. Thus this factor poses the greatest challenge for an organization. The factor that poses least challenges in the present times include the determination of wages according to the geography or industry, since now the satisfaction of the employees influence more depending on the needs of the organization. Thus strategic compensation system has become significantly necessary in the planning for wages within organizations (Kim, 2-5). Question 3: Describe when subjective performance evaluations might be better (or more feasible) than objective ...Download file to see next pagesRead More
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