...NOVEMBER 05, 2015. ABSTRACT This report will cover compensation systems, some advantages and disadvantages of compensation benefits, comparable worth, and some polices. The information will be used to further understand all topics discussed and addressed for management's purpose. KEYWORDS: Compensation systems, advantages and disadvantages of compensation systems, benefits, comparable worth, compensation policies INTRODUCTION This report is to review Compensation and all related information to better understand the advantages and disadvantages of different compensation systems. Compensation and or the benefits worker's get are a reflection of the organization's value of the worker’s worth, and to the position or the duties required to accomplish the job duties. Compensation could and should provide motivation for the worker or applicant to perform to the best of their abilities, not simply clock in and clock out. WHAT IS COMPENSATION The meaning of compensation is as followed, a fundamental component of employment and a critical issue for management and policies set in place. It traditionally refers to wages of employment, to include base pay or salary, bonus or incentives, benefits, and non-cash compensations. Organizations need to set and communicate clear principles by which workers are paid. In the least, they should ensure compensation policies adheres to employment standards and legislation. Some compensation elements governed by regulations are Minimum wage...
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...Compensation System (UCBL) Course Title Human Resource Management Course Code MGT (341) Prepared for Mr. Monzoor Morshed Adjunct Faculty Department of Business Administration University of Information Technology and Sciences Prepared By Md. Rayhan Razib Md. Shahriar Ahned Md. Golam Rasul Md. Rajib Hossain Md. Md najrul islam Date of submission: July 26, 2012 Letter of Transmittal July26, 2012 MD. Monzoor Morshed Adjunct Faculty Department Of Business Administration University of Information Technology and Sciences Subject: Submission of term paper. Dear Sir, With due respect it is my pleasure to present the term paper entitled Compensation System in (UCBL). While preparing the report I have tried my level best to focus closely on the topic and try to focus most complete and updated information available. I strongly...
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...United International University Course: Employee Appraisal and Compensation Course Code: HRM-634 Submitted to: Dr. Durgadas Bhattacharjee Submitted by: Tahreen Naheen ID: 112 141 001 Section: A Date of Submission:24.08.2015 Term Paper On Compensation System in an Industrial Enterprise in Bangladesh A Case Study of ‘Ha-Meem Group’ (Clothing Manufacturer) Introduction Compensation is the most important fuctions of human resource management. The present study aimed at exploring differences between the public and private sector industrial enterprises of Bangladesh with respect to overall status of compensation practices. Employee compensation is defined as the all forms of pay or rewards going to employees and arising from their employment. It is important both for employees and employers. Sound compensation can attract, motivate and retain competent employees of an organization. Compensation once determined should not remain same for years. It should be reviewed and changed after certain period through proper pay survey. Ha-Meem Group, a Bangladeshi clothing manufacturer, is leading supplier of readymade garments and denim fabric in the world. They are one of the top clothing companies in Bangladesh. The company produces some of the most fashionable denim fabrics and garment products and owns one of the most comprehensive...
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...Designing Compensation Systems and Employee Benefits Compensation 1 Describe the differences between job analysis and job evaluation and how these practices help establish internally consistent job structures. A job analysis is a step-by-step specification of an employment position's requirements, functions, and procedures. Just as a seed cannot blossom into a flower unless the ground is properly prepared, many human resource management (HRM) practices cannot blossom into competitive advantage unless grounded on an adequate job analysis. A job evaluation is the process of analyzing and accessing the various jobs systematically to ascertain their relative worth in an organization. Job is evaluated on the basis of their content and is placed in the order of their importance. To achieve internal consistency, a firm's employees must believe that all jobs are paid what they are "worth." In other words, they must be confident that company pay rates reflect the overall importance of each person's job to the success of the organization. Because some jobs afford a greater opportunity than others to contribute, those holding such jobs should receive greater pay. For instance, most would agree that nurses should be paid more than orderlies because their work is more important; that is, it contributes more to patient care, which is a primary goal of hospitals. Compensation 2 For pay rates...
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...Compensation and Benefits System of Microsoft MGMT 365 February 23, 2014 Compensation and Benefit System of Microsoft Microsoft was founded in 1975, and is the worldwide leader in software, services, and solutions (Career). Microsoft is proud to offer great products and employ outstanding people. Previous Microsoft CEO, Steve Ballmer once said, “There are many things that are true about Microsoft. We have big goals, big dreams, and big aspirations for the future. We are both competitive with our products and in the way we attract and retain talent. For me, the most important factor is competition for talent, because I know our success comes from the people who work here” (Foley). Listed at number 76 on Fortune Magazine’s 2012 “100 Best Companies to Work For”, the survey lists the average annual pay for salaried position as $132,023, and for hourly as $61,245 (Fortune). The most common salary job is Software Development Engineer, and the most common hourly job is Business Support (Fortune). There are currently 100,932 employees worldwide, with 59,197 of those employees being in the United States (Career). As with any company, Microsoft works hard to provide a compensation and benefit system that will attract and retain quality employees, while also choosing incentives and perks that will set them apart from competing firms such as Google, Apple, Oracle, and Facebook. According to Microsoft’s website, they are widely recognized as a leading company for offering...
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...Competency based Compensation system- As strategic HR Critical Review Komal Sarwar 4172 Human Resource Management Submitted to: Ms. Tehzeeb Amir Submitted on: 13th Oct’ 2012 Introduction and Overview of the article: The article that was provided was based on the compensation plans that an organization creates according to the capability and competency of its employees. It states the path that the organizations have taken to change how the traditional compensation plan were formed in the older days to the strategy they now apply to allot the compensations and incentives to the employees. Compensation management is one of the most important function of the organization, keeping in mind both the parties, as it gives a push of motivation to the employees towards their work and commitment towards the organization, making them work more effectively and efficiently. The draft gives an overview of what competencies are. Competency is actually the whole process on how things are done, rather than the outcome or result. It relates to the value that is added by each individual while performing any given task. It is further elaborated that there are three key categories of competency i.e. (a) organizational competency, that acts as a key factor in the success of an organization, making it competitive by figuring out the strengths and working more efficiently to enhance it; (b) job related competency, they vary from organization to organization, and from one task to another...
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...employees, you have been asked to evaluate different compensation strategies that are available for adoption within your organization. Compare and contrast at least three compensation strategies and determine recommendations for how they may be implemented within your organization. Name: Henry Rivera I.D. #: 000318961 Reference Title Finding #1 Godfrey, W. (2013, January). Compensation Strategy for Success. Prezi. Retrieved from http://prezi.com/j9k9_m_2qiwn/compensation-strategies-for-success/ Sager, Suzanne. (2011, September). Merit Pay Most Often Used in Compensation in Public and Academic Librarians. Library Worklife. Retrieved from http://ala-apa.org/newsletter/2011/09/01/merit-pay-most-often-used-in-compensation-for-public-and-academic-librarians/ Ojimba, E. (2004, November 15). Salary Basics – Developing a Strong Compensation Strategy. Salary.com for Business. Retrieved from http://www.salary.com/Small-Business-Advice/advice.asp?part=par410 Finding #2 McGladrey. (2011). Lessons from Recession Increasing Focus on Incentive Compensation Programs. Retrieved from http://mcgladrey.com/Perspective/Lessons-from-recession-increasing-focus-on-incentive-compensation-programs University of Wisconsin – Green Bay. (2013, April 9). Compensation Philosophy. Retrieved from http://www.uwgb.edu/hr/documents/CompPhilosophy0401.pdf Finding #3 Gerhart, B., Milkovich, G.T., & Newman, J.M. (n.d.). Compensation Strategy. Answer, McGraw Hill. Retrieved from http://mhanswers-auth...
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...Total Compensation Methods Paper Total Compensation Methods Paper In all businesses, a company needs to make sure that their turnover ratio is maintained while, at the same time, keep their best employees. Compensation and benefits are just two ways that a company can do such things. The company must know what each individual is looking for at the same time. Not all employees want the same thing. Some employees want the steady 40 hour 5-day a week salary job, while others may want 4-day weeks and more paid time off. By providing a proper balance of all items such as compensation, benefit programs, and salary, the administration of the company can keep their excelling employees and may not have to worry about a huge turnover ratio. Compensation Methods “Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction.” (HR Guide to the Internet) In this type of economy, many businesses will start to freeze wages and stop giving their employees any type of compensation. However, this may hurt the employee morale. By giving out a reward for an excellent job performance at times, a company could see a bigger profit in this rough economy. There are a few different types of compensation methods. These methods include but are not limited to the following: • Commission • Overtime • Bonus • Expense Allowances ...
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...Bailey DeVry University Professor: Patricia Meunier-Muenks HRM-430-67386 Compensation & Benefits Compensation Challenges for Wisconsin Electric April 16, 2016 Executive Summary The point of this paper is to look at the compensation challenges inside of Wisconsin Electric (WE Energies) and make a pay methodology that will benefit the organization, as well as the representative. With the steady change in today's business world, to have an upper hand makes it troublesome for managers to pull in and hold the most skilled representatives. Recognizing the organization's compensation procedure guarantees the organization offers the right pay and pay increases in compensation to keep top employees. When we hear the word compensation we consider paying a worker for their work performed, however, there is substantially more to compensation. Compensation and benefits, "incorporates not just compensation, but also the direct and indirect rewards and advantages the representative is furnished with consequently for their commitment to the organization. To decide compensation, companies should build up a pay and compensation program that diagrams a fair process for repaying workers" ("Compensation and Benefits," n.d.). This approach is a critical piece in helping HR to deal with staying aggressive and successful in the worldwide business sector. All through this paper we will talk about the compensation and benefits methodology of WE Energies and recommendations on the most proficient...
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...What are the strengths and weaknesses of the compensation system (they focus indirect compensation instead of higher salaries) Cirque du Soleil is providing the alternate to shrinking circus industry and called circus of the future. It was based on the blue ocean strategy and still after 25 years it is considered as blue ocean industry. It is based on the unique concept and creativity and maintains the quality and consistency over more than 2 decade. It performs five continent and more than 90 cities. Cirque du Soleil was founded in 1984 and grown from 73 employees in 1984 to now they have around 5000 employee. The biggest challenge for them is to maintain and attract these special tenanted employees or I should call them performer with competitively low wages. Cirque believes its unique approach to managing a worldwide workforce that runs the gamut from acrobats to administrative staff suits its business approach. Cirque adopted the unique approach to manage their workforce which is not totally based on higher salary. There compensation system is based on low salary but better benefits. They valued the noneconomic benefits like training in different places and different technique, good food which feels like home, shuttle services to work from home. Cirque motivates their employee towards their work where employees work with passion. Every employee feels like working in very specialized and unique place like Red Sox and Disney world and feels proud performing every night....
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...COMPENSATION AND BENEFITS AUTHOUR: Joseph J. Martocchio PUBLISHER: Pearson Education International DATE: 2011 ISBN-13: 978-0-13-254706-2 1. Table of Content (Building Internally Consistent Compensation Systems) Introduction 124 Determinants of Internal Consistency 125 Job Analysis 125 Steps in the Job Analysis Process 126-129 Job Analysis Techniques 131 O*NET 131-137 Job Evaluation 137 Compensable Factors 137-139 Job Evaluation Process 139-140 Job Evaluation Techniques 140 The Point Method 141-143 Alternative Job-Content Evaluation Approaches 144-145 Alternatives to Job Evaluation 145-146 Limitations to Internally Consistent Compensation Systems 146 2. Why I selected this Book: HRMN 330 Course Requirement 3. Theme (Key Quote): “Internally consistent job structures formally recognize differences in the job characteristics that enable compensation managers to set pay accordingly.” 4. Abstract: The purpose of this book is to provide knowledge of the art and science of compensation practice and its role in promoting companies’ competitive advantage. Compensating employees represents a critical human resource management practice: without such companies cannot attract, retain nor motivate best qualified employees. 5. Introduction Internally Consistent Compensation Systems define the relative value of each job when compared with all jobs within the organisation...
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...CPDC The CPDC (Cost per Double Click) designates the amount paid to the affiliate for a click on a link or on an advertiser's graphic element, followed by another click on the advertiser's site. CPM CPM stands for cost per thousand impressions (M is the Roman numeral for a thousand). This means the advertiser pays for every thousand times the advert loads on the publisher’s page. This is how a campaign is normally priced when brand awareness or exposure is the primary goal. The advertiser and the publisher negotiate a fixed amount that the advertiser will pay for every 1,000 times an ad is shown. CPM is a very simple payment scheme, assuming the two parties can agree on a method for counting impressions. There are often stipulations in the agreement, such that the ad can only be shown on certain pages of the publisher’s site, or can only be shown on pages with a limited number of other ads. In a CPM relationship, the publisher is primarily concerned with maintaining a high-quality audience that has well defined interests or characteristics. The advertiser is primarily concerned with creating a message that will be noticed by their target audience, because they pay for the impression whether or not the user actually sees the ad. In general, the more knowledge a publisher has about a particular audience, the higher the CPM that can be charged, because the advertiser is able to more clearly know who their message is being delivered to. One prominent...
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...Performance appraisal systems and their impact on employee compensation. Daniel Schroder MBA 533 Human Resources Saint Leo University Professor Michael J. McCabe J. D. In any organization, employee compensation and benefits are a sizable percentage of the cost associated with running a business. Although most employees would consider themselves under paid, most companies would consider their employees as being fairly or even over compensated. The determination of employee compensation and benefits is often based on factors such a seniority, dependability, and quality and quantity of the work performed. The decision of which employees will receive higher compensation, and how much the increase will be is often determined by many factors. The overall profitability of the business, the individual productivity of the employee or department, a across the board cost of living increase, and often the factors are nothing more than the suggestions of a manager or the owner of the business. In many small businesses these simple systems for compensation determination may be fine, and individual needs of the employee may be just as big a determining factor as any other reason related to performance. In larger businesses it is important to design, implement, and maintain a performance appraisal system, as well as a system that compensates its employees based on the outcomes of the appraisal system. A well designed employee appraisal system should include an evaluation by the...
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...Critically discuss the claim in the above mentioned passage that the most significant trend is the move away from guaranteed compensation to performance related compensation. What are the implications to the organization’s human resource management effectiveness? 3 Performance-Based Remuneration: 3 Guaranteed Variable Salary 4 From guaranteed compensation to performance related compensation. Why? 4 b) Provide a concise overview of how an organization can ensure that its compensation strategies are able to support it strategic objectives 5 • Increased skill and flexibility in the workforce 5 • Reduction in traditional demarcations 5 • Increased efficiency 5 • Tangible benefits for workers in return for changes in working practice. 5 c) Provide a set of arguments to support the view that executive pay should be linked to company performance 6 d) What are the advantages of linking employee pay to performance? 6 Provide a 'felt fair' system of rewarding people according to their contribution 6 Higher performance within the organization may result 7 Provides a tangible means of recognizing achievements 7 People understand the performance imperatives of the organization 7 Link between extra pay and extra performance is clear 7 Conclusion 8 References: 8 Introduction In this assignment I will discuss about compensation and benefit management and many aspects of it and how they can affect an organization and about their influences. a) Critically...
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...COMPENSATION MANAGEMENT Compensation Management is an integral part of the management of the organization. Compensation Management contributes to the overall success of the organization in several ways. To be effective, the managers must appreciate the value of competitive pay, their human resources, and have an investment view of payroll costs. It is of prime importance for an organization to maintain pay levels that attract and retain quality employees while recognizing the need to manage payroll costs . importance Labour therefore expects to have fair share in the business/production process. Therefore a fair compensation system is a must for every business organization. The fair compensation system will help in the following: * An ideal compensation system will have positive impact on the efficiency and results produced by employees. It will encourage the employees to perform better and achieve the standards fixed. * It will enhance the process of job evaluation. It will also help in setting up an ideal job evaluation and the set standards would be more realistic and achievable. * Such a system should be well defined and uniform. It will be apply to all the levels of the organization as a general system. * The system should be simple and flexible so that every employee would be able to compute his own compensation receivable. * It should be easy to implement, should not result in exploitation of workers. * It will raise the morale, efficiency...
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