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Case Study - Essay Example

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Compensation management enables balancing out the relationship between work and employees by providing the employees with monetary and…
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Download file to see previous pages A good compensation management system helps an organization provide the employees with proper return for their efforts and contributions. Employees feel driven to try harder to achieve the specific standards tied to particular levels of compensation by the organizational management. Compensation management system makes the organizational systems transparent and induces a constructive and productive competition among the employees to make the best out of their capabilities considering their specific roles and positions within the organization. When employees are aware of the prerequisites to be considered eligible for a certain level of compensation and/or benefits, their tendency to work in mutual collaboration and harmony is optimized because their irrational judgments and perceptions about favoritism from the top management for specific employees are sidelined. Moreover, every employee is respected for whatever he/she is getting because his/her level of compensation is a reflection of the employee’s inherent skills, education, and competencies. An efficient compensation management system inculcates a motivation in the less skilled and inexperienced employees to make the best use of their time and resources to acquire the skills needed for professional growth. In such a work culture, employees feel driven to interact with one another more and learn from each other.
Organizations need a competency based compensation system. To achieve this, it is imperative that the top management clearly establishes limits and boundaries for all positions in the organization so that there is no overlapping of responsibilities, and so that every employee clearly knows what he/she needs to deliver in order to be considered eligible for particular benefits. Employees are the most important resource of any organization. An efficient competency based compensation system is necessary in order to attract the most talented and competent workforce. People ...Download file to see next pagesRead More
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