Web-Based E-Compensation - Research Paper Example

Web-Based E-Compensation Introduction E-compensation is a resolution for managing reimbursement programs for workforce either individually or by groups through compensation planning, managing and reporting activities. E-compensation offers human resource managers the tools to model salary, drives performance and also enables managers to make cash and non-cash plans, which strategically spend compensation dollars. It also enables human resource managers to improve business process, increase productivity, lower cost of ownership and manage human resource operations effectively. Human resource managers can use the Internet to access the total work force compensation information and also third party benchmarking. They can conduct salary surveys, which they can use for requesting salary changes by using e-compensation software tool. Advantages and Disadvantages of Using a Web-Based Compensation Tool versus a Client-Server Based System One of the benefits of using web-based tool is that the computerized approach replaces tiresome manual procedure; hence making any reimbursement program very easier to administer and it is virtually free of error. Secondly, this system does not require installation and any updates; thus saving a lot of time for managers. The web-based compensation can be accessed from anywhere using the Internet connections and the standard browser; thus saving time for managers. The data for this tool can be stored remotely and it takes a little disk space. On the other hand, client-server based would require a manager to manager to maintain, implement, and formulate policies, as well as, processes for maintaining the security and integrity of the sever or the client database by resolving any database problems. However, one of the drawbacks with web-based compensation tool is that of the poor user experience due to performance challenges and browser constraints. Secondly, the remote server can be compromised and this is a disadvantage because private information can be disclosed easily to another party. Moreover, the web-based compensation tool requires Internet connections and this can be a limitation since lack of Internet connection can hinder the server from accessing information. Even though access to the Internet connections is increasing, it is still not everywhere; thus it may hinder server form easy access to information. On the other hand, in case of the client-server based, the client-server requires the user to be on the local network because the software is accessed through using the local network. The business entity has to invest in a remote for better access such as having PC everywhere in order to enable the user to access the software. Lastly, accessing the software by using the local network connections is imperative because it can create realistically swift response and self-sufficiency from the Internet. In my opinion, the client-server based or stand-alone PC-based system would be the most effective for offering the most value to stakeholders in an organisation because of varied reasons. One of them is that this tool offer high security to the server; thus employing it in an organisation can enable stakeholders to access their private information effectively. Secondly, the client-server based provides set-ups and can be altered without disturbing the clients; hence, it is an effective system for offering valuable services to the client. Moreover, the user and the client can share files effectively though web browsing, use of emails or chatting rooms, and lastly, client-server is typically desktops, which are less costly because they can enable the stakeholder to access information even from remote areas as long one is connected to the local network. The Use of e-Compensation Tools in the Job-Evaluation Process Every employee should receive fair compensation for the work done in order to create harmony with the human resource managers in the workplace. Therefore, this can be achieved through effective job revaluation process in order to examine the job content, job value and the compensation for the job done. In this case, technology play significant roles nowadays in organisation; thus use of e-compensation tools has become widely used to evaluate the work in order to enable manager make significant compensation plans. E-compensation device play considerable roles in payment preparation, information generation of workers and reporting about the cash flow. Noe & Noe (2012) reveal that job evaluation helps HR managers to propose remuneration equity for all tasks performed; this is after the job has been evaluated; thus, each employee is assigned to appropriate salary group and the corresponding range of salary. Therefore, use of e-compensation tolls can help HR managers to generate compensation plans without making errors and accomplish work within the stipulated timeframe, as well as, establish the internal equity. The e-compensation software enables the HR managers to store large amount of data in the software and the information can be stored safely. Benefits and Drawbacks of a Centralized Approach to Managing Merit Pay Programs Compared To a More Decentralized Approach One of the benefits of centralized approach is the ability of the association to closely organize merit pay programs because the top managers can be able to offer a uniform set of merit pay policies and effective procedures that should be followed across the organisation. Secondly, low risks of conflicts are experienced within the organization; thus managing merit pay programs is done successfully, and lastly, the top managers are able to adapt to minor changes or problems arising over the merit pay programs because the top business executive may possess efficient skills requisite for managing all aspects of merit pay programs. However, one of the disadvantages is that the decision over the merit pay program would not be reached faster. This is when using centralization approach instead of decentralization approach, where decision is reached faster. Gomez-Mejia, Balkin & Cardy (2010) argue that decentralization approach in organisation is effective because it enables organisation to reach a required decision faster and effectively. Secondly, technical constraints may arise and technical barriers many be immense in a centralized organisation structure. Organisation units whose systems are centrally controlled are likely to create technical barriers across the organization structure. This will create an immense problem over the merit pay programs; hence, financial constraints may arise because the top managers may either be too busy or no one would have the confidence to undertake the necessary co-ordination tasks. Lastly, there is also partial ability to meet the desired needs of the users and too much time is consumed. The top HR managers will not be able to respond faster to any compensation issues and there will be less flexibility to cope up with the internal or external changes. Types of Integrated Analytic Features That Are Needed For Compensation Planning and Decision Support in e-Compensation Systems One of the incorporated systematic features necessary for reimbursement planning and decision support is the compensation alert. This automates the notification process and delivers access to activities when they are needed; therefore, the changes are submitted and routed for approval, and secondly, compensation desktop for managers is also another tool required for making compensation plan; this helps the HR managers to make immediate and conversant decisions on the way one will distribute group funding budgets. Moreover, the e-compensation desktop for HR managers have an inclusive account for compensation of labor force overtime, and lastly, e-compensation account is also the other analytical feature and this enables the managers to swiftly obtain the salary progression of a worker. HR managers can review the base salary history of employees and their cash, as well as, non-cash variable compensation awards; thus enabling them to make compensation plans effectively. Barriers That Prevent Organizations from Realizing the Potential of Web-Based Internal Equity Tools and Approaches to Overcome Those Barriers One of the barriers is poor communication within the organisation and this will prevent the organization from realizing the significant of using web-based tools. Web-based technology has become rapidly incorporated in organisation structure but many organizations have failed to achieve effective business performance because of poor internal communication. Internal communication is as a significant aspect that holds the entity together; hence creating effective business performance (Tropman, 2001). Therefore, one of the approaches to overcome internal communication barrier is to promote effective communication internally within the organizational structure. Effective communication is vital because it will enable the employees and the staff members to realize the significant of the web-based internal equity tool in the organisation. Secondly, cultural barriers can also thwart the organisation from realizing the important of web-based equity tools in an organisation. Many HR managers fail to implement a culturally knowledgeable organisation; hence impacting the effective business performance in an organization. Therefore, building a culturally competent organization structure is vital for overcoming cultural barriers. HR managers should develop a culturally competent working environment and this is through developing culture of policies, programs and incorporates particularly cultural values, norms and beliefs in the organization structure. Culture can create significant issues in case it is not well communicated and taken into consideration. Therefore, managers should ensure that they build a strong cultural competitive environment in order to enable them achieve organizational success. Lastly, lack of internal environmental scanning may result to varied organizational problems, which may contribute to organizational issues. However, developing a diagnostic tool approaches for carrying out internal environmental scanning practices in the organisation is vital. Internal environment scanning is imperative and this takes into consideration assessing the internal environment and acting in pursuit of achieving effectively the organizational objectives. This process is made possible through business intelligence process; hence creating awareness of environmental practices. Therefore, managers should hire business intelligent experts to conduct internal environmental scanning and offer guidance in identifying avenues of progress. Recommended Strategies That HR Managers Can Use To Evaluate the Quality of Market Data That They Receive From Outside Sources One of the effective strategies that HR managers can employ in evaluating the quality of market data received from outside is through carrying out surveys. Conducting survey is one of the significant and first steps that will enable the managers to collect relevant information on quality of market data. The management team should take significant roles of designing survey in an organisation (Sobh & Elleithy, 2013); therefore, to ensure that the surveys are successful, the HR managers should deliver summary of workforce feedback and maintain strict survey confidentiality. Secondly, it is recommendable to use benchmark salary studies in evaluating the quality of market data received from outside sources. Benchmark salary studies can enable HR managers to determine the competitive range of the company in relation to the outside labor market. Lastly, use salary grades and this can be done through reviewing market data and slot into salary grades in order to determine in case they are matching. The HR managers should review the salary grades and match it with the salary survey in order to offer effective statistical outlay, which is based on the required market average. References Gomez-Mejia, L. R., Balkin, D. B., & Cardy, R. L. (2010). Managing human resources. Upper Saddle River, N.J: Pearson/Prentice Hall. Noe, R. A., & Noe, R. A. (2012). Human resource management: Gaining a competitive advantage. New York: McGraw-Hill Irwin. Sobh, T. M., & Elleithy, K. (2013). Emerging trends in computing, informatics, systems sciences, and engineering. New York, NY: Springer. Tropman, J. E. (2001). The compensation solution: How to develop an employee-driven rewards system. San Francisco: Jossey-Bass. Read More