...Compensation Management: What is the role of compensation and rewards in modern organization? What are the advantages of a fair compensation system? Introduction: Compensation is an essential and universal component of the management process of every organization. Most organizations want to fulfill their mission, achieve their objectives and maximize return on their investment, particularly on their human capital. Doing so requires that their compensation philosophy, design, delivery and decisions be balanced, fair, focused, and understood by their employee and potential employee constituencies. Text: Role of Compensation and Rewards - An effective compensation system is about much more than base pay. It incorporates a wide range of elements, from the handling of raises and bonuses to providing benefits and offering non-monetary advantages such as learning opportunities and job security. In fact, focusing on a well-designed, comprehensive compensation package is often much more effective in improving business performance than simply increasing employees' base pay without regard for the broader picture. Compensation takes the forms of wages and benefits. The pay structure consists of:•Wages which are a monetary payment for services performed on an hourly basis for specified quality of labor (blue-collar worker) either an employee or employer (working for someone else). English: Abraham Maslow's hierarchy of needs Itali... English: Maslow´s Hierachy of needs English: This...
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...Compensation and Benefits: Definition and Importance Compensation, Benefits, Employee Benefits, fringe benefits, compensation and benefits Posted by Numan Nazir on Friday, 02/12/2010 12:07 am Human Resource Management (HRM) has never been as significant as it is today. Companies want to attract, retain and motivate brains to meet objectives. Today Humans are regarded as one of every company’s assets so they need to be efficiently and effectively managed. One of the tools companies use to attract, retain and motivate its people is Compensation Management. In this article, I shall define compensation and benefits along with their advantages for a company and its workers. Suppose, you own a boutique. Let’s call it myWear - or you can give it any name of your liking. You have hired three salespersons and a receptionist. The salespeople are responsible to look after the sales affairs. The receptionist's duties are to handle the cash and manage the account books. I shall refer to this illustration throughout the article. Compensation: Would the three salespersons and the receptionist work for free? No. They would, like us all, expect something in return. You must have heard a common phrase: Give and Take. You always have to give things to people in return to what you take from them. Compensation refers to this exchange, but in monetary terms. Compensation is the employer's feedback for an employee's work. It simply is the monetary value you would give to your four employees in...
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...ISSUES FOR COMPENSATION AND INCENTIVES MANAGEMENT: THEORETICAL APPROACH Ramunė Čiarnienė, Milita Vienažindienė Kaunas University of Technology, Vilnius Co-operative College For most people, pay is a primary reason for working. Indeed, compensation is at the core of any employment exchange, and it serves as a defining characteristic of any employment relationship. The study focuses on critical points of compensation and incentives management. The fundamentals of a good incentive program include the elements of vision, potential, communication and motivation and can be realized if incentive promises are fulfilled – by both employer and employee. The aim of the paper is to identify the most important attributes of compensation and incentives management. Research method is the analysis and synthesis of scientific literature, logical, comparative and graphic representation. On the base of analysis, authors of this paper present the model of incentive system for positive employee attitudes and behaviors. Keywords: compensation, employees, incentives, management. Introduction Compensation refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship. Pay may be received directly in the form of cash (e.g., wages, merit increases, incentives, cost of living adjustments) or indirectly through benefits and services (e. g., pensions, health insurance, paid time off). Programs that distribute compensation to employees...
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...any area of compensation and benefits Compensation and benefits are a set programs established by organizations that reward employees for the services they have rendered for the benefit of the organization. These programs are usually designed with several objectives in mind. Organizations establish these programs to motivate the employees into increasing their performance to their sheer best, attract the best employees to work for the organization, and extend the period which the employees will continue to offer their services, hence, help in retaining employees in the organization for a longer period. The employee benefits programs provided by organizations include life insurance, stock ownership plans, health insurance, vacation, leave, contributions to retirement plans and disability insurance. Benefits add value to the returns an employee receives for their contributions to an organization. Benefits are an addition to an employee’s payment. Benefits can be both intangible and tangible, benefits such health insurance, vacation, stock ownership plans, leave, and contributions to retirement plans are tangible. However, having a well-furnished and conducive office, getting appreciations from the boss, and receiving a promotion can be considered to be intangible benefits. Profit sharing or stock options are also considered as compensation in some instances. These types of compensations are usually provided in the form of executive compensation. Executive compensation is compensation...
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...people equally, provide compensation fairly and include all people regardless of their economic position, gender or race. Although diverse societies sometimes have difficulty when creating governing rules they profit from perspectives that may be unknown in a non-diverse society. The idea that all people have something unique to offer in our society must be protected. Protecting that concept will allow us to continue evolve, be focused on our future and learn from our past. Lack of diversity; the negative impacts Things that cannot be changed often affect how individuals are treated. It is not possible to change the color of one’s skin or one’s gender. In a diverse society differences are celebrated rather than punished. The current international landscape is quite diverse. Different peoples, roles and opportunities exist in different places worldwide. By contrast, a practice like racism negatively affects society by excluding individuals based on their ethnicity. It will be to our advantage to stop evaluating people based on things they cannot change and instead evaluate them based on their future and current capabilities. Diversity is the equal treatment, compensation, and inclusion of people from all groups. Equality of treatment Primarily, in a diverse society people from all groups are treated equally. When a female qualifies for a traditionally male position they are treated the same as their male counterparts. For example, some roles in the United States...
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...importance of human resources in an organization. This paper will show a correlation of the components associated with the process of recruiting, hiring, evaluating, and compensation of employees. These steps are vital in selecting the right person that will benefit the organization and its objectives. It will also inform the reader of the types of compensations and how organizations make those compensation decisions. Human Resource Management The role of Human Resource Management (HRM) has evolved throughout the years, shifting from personnel department to human resources. The move was part of the effort to recognize the significance of employees as a structural resource. This change was accompanied by a call that allowed human resources to become a strategic partner with leaders of businesses to make critical and significant decisions. The role of the human resource professional has evolved in a way that they are doing more than just routine employment duties. These professionals are skilled with the ability to handle any and all areas of human resources. Human resource management is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human resource deals with many concerns associated with people; such as compensation, hiring, performance appraisals, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. The areas...
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...IN UNITED KINGDOM............................................................................................................6 6SALARY IN GERMANY..........................................................................................................................8 7SALARY IN POLAND.............................................................................................................................8 8CONCLUSION.........................................................................................................................................8 BIBLIOGRAPHY.......................................................................................................................................8 Analysis 2 Introduction Compensation of employee is important and at the same time really difficult task. Important because it can contribute to growth efficiency and competitiveness in company. Difficult, because it arouses the most controversy and discontent of workers. An effective system of remuneration of employees enables to achieve the following tasks: - recruit and retain...
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...HRM 590 Final Course Project 10/21/2012 The role of a Human Resource department in today’s world is ever changing. Many years ago the Human Resource department was only there to file pre-employment paperwork, assist with benefits and process payroll. This may have been handled by a department that consisted of one or two company accountants that took on this role in conjunction with watching the company books. The role of a Human Resource department today includes many functions which include acquiring, developing, and retaining talent; aligning the workforce with the business; and being an excellent contributor to the business. The HR department now works directly with management teams throughout the company in an effort to help with strategy and the growth of the company. One very important aspect is talent acquisition. Having the right people in key roles within the company is vital to the success and growth. Performing this function includes preparing a job description, recruiting, setting compensation, and retention. In this paper I will go over the entire process. Method of Job Analysis When a new job is created or a vacancy occurs, it is the role of an HR representative to fill that void. In order to perform this function they need to first understand what role they are trying fill and what skills and responsibilities this new role would require. By conducting a job analysis they are able to further define any important elements of any job and then...
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...This case study will discuss the compensation strategy ‘Comparable Worth’. Along with an overview of the strategy comparable worth, we’ll discuss the advantages and disadvantages of this strategy. Lastly, with respect to the case study scenario outlined, we’ll discuss my recommendation of a ‘limited’ embracement of the comparable worth strategy. Comparable Worth Overview Comparable worth is a compensation strategy that has gained more traction in the public sector versus the private sector. It is meant to address wage inequalities between females and males. It is a process to re-evaluate wages for female role based jobs that are being paid at lower rate than for a similar male-based job. The belief is that women have been subject to a social process that results in them leaning towards employment sectors that are limited in terms of compensation. Further, that these jobs, despite requiring equivalent or more knowledge and often entail greater responsibility, are devalued, systemically. Examples of this are jobs like teachers, nurses, and other jobs centered around child care, that despite entailing a high degree of knowledge and responsibility, are paid at lower rates than say typical male role based jobs like a sanitation engineer or truck driver or other jobs that entail less demands. Thus, the strategy of comparable worth is a mechanism to examine these roles against similar roles and adjust compensation, comparative (Compensation Cafe. (2010, May 17). Comparable...
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...Business Solutions Compensation and Benefits Jerome Rutledge, Rahim Shadid, Sridhar Venugopal, Ursula Wester, and Cassandra Woods HRM 531 April 18, 2013 Carolyn Szlaga Purpose The purpose of this plan is to provide fair and equitable compensation for the individual(s) that will be performing the assistant project manager role at Westar Small Business Solutions. This plan clearly describes the total compensation that Westar Small Business Solutions will be providing to those performing the Assistant Project Manager Role. Eligibility This compensation plan applies to full-time, managerial employees performing the Assistant Project Manager Role at Westar Small Business Solutions. This plan does not apply to part-time or contract staff. Goals and Objectives Westar Small Business Solutions believes in the following compensation principles: * To provide fair and equitable compensation to employees. * To reflect the extensive educational and experience credentials required of Consulting Professionals as well as the value their roles bring to the organization. * To offer competitive pay and benefits, within the context of our industry to attract and retain the best talent possible. * To use compensation as a tool to recognize individual merit. * To provide performance-based incentives to encourage excellence and reward employees for his or her contribution to the achievement of organization goals. Compensation Components Total compensation at Westar Small...
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...Review of consumer protection measures in the travel and travel related services market in Australia including the role of the Travel Compensation Fund Submission by Australian Federation of Travel Agents April 2010 Contact Mr Jayson Westbury Chief Executive Officer, AFTA 309 Pitt Street Sydney NSW 2000 T: 02 9287 9900 E: afta@afta.com.au Without a travel agent, you are on your own AFTA submission to Ministerial Council on Consumer Affairs Review of consumer protection measures in the travel and travel-related services market including the role of the Travel Compensation Fund Page 2 AFTA submission to Ministerial Council on Consumer Affairs Review of consumer protection measures in the travel and travel-related services market including the role of the Travel Compensation Fund Who is AFTA? The Australian Federation of Travel Agents Ltd (AFTA) was founded in 1957 to: establish professional standards for travel agents; stimulate, encourage and promote travel; bring together those acting as intermediaries in the distribution of travel services; and build strong working relationships with suppliers and consumers of travel related services. AFTA represents approximately 70% of Australia’s travel intermediaries that control more than 90% of travel intermediary turnover. It also has a substantial base of associate members, representing non-intermediary sectors of the travel related services industry. Members are bound by AFTA’s Code of Ethics. AFTA represents...
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...The Role of Performance Management in Establishing and Maintaining Corporate Culture Performance management provides a large role in the establishment of a corporate culture and maintaining it, as well as observing the performance of the employees and provides the necessary positive and corrective feedback. “Performance management is considered the frame work of talent management, which encompasses all areas of HR that have to do with onboarding, developing, evaluating, and managing the workforce through all the normal cycles” (Kavanagh & Thite,2009, p. 341). This in turn is the connection that is developed between performance management and the company’s corporate culture, and it is dependent on the connection between management and employees. Performance management is connected with several other areas such as, recruiting, staffing, career management, etc., all which play a primary role in establishing and maintaining a company’s corporate culture. In order for an organization to maintain their culture they must find individuals that are willing and able to adapt to their culture as well as maintain and recruit other employees that can do the same. The Role of Compensation and Benefits in Establishing and Maintaining Corporate Culture Compensation plays an important role in establishing and maintaining a corporate culture. Compensation includes base pay, merit pay, short-term and long-term incentives. It also provides recognition awards, and the attraction/retention...
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...Presentation Overview Introduction Syllabus of Compensation and Benefits and PoA Methodology, Reference Text and Pre-read Evaluation Pattern and List of Assignments What is HR and HRD ? HR functions HR Philosophy and Approach for an Organization Human Resource Management Summary Tuesday, 29 July 2014 Self Introduction B. Sc. (Physics) and Masters in Administrative Management from JBIMS, Mumbai University IT experience across 3 organizations since 1985 Exposure in Manufacturing and Banking domains Career shift from technical to HR to operations Responsible for key client relationships and HR Currently working as Director for Nucsoft Ltd. Tuesday, 29 July 2014 Self Introduction Adjunct Faculty, Project Guide and Mentor at SIMSR Guest Faculty at FCRIMS, CIMSR, SSCMR and UBS Visiting Faculty for Compensation and Benefits at RIMSR, OIM, ITM, RGCMS and GNIMS Visiting Faculty for Organization Theory Structure and Design at RGCMS Visiting Faculty for Managing Change through Organization Development at SIESCOMS and OSB Visiting Faculty for Management Functions and Organizational Behavior at SIESCOMS and ITM Tuesday, 29 July 2014 About Nucsoft Started operations in Mumbai in 1994 Focus on BFSI Domain 350+ team and ISO 9001:2008 certified company Onsite/Offsite/Onshore/Offshore Software development and Production support Resourcing, Projects, Products and Solutions Major clients – Citi, HDFC Bank, Barclays...
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...Section O Implementation of Compensation Strategy It can be said that compensation is the “glue” that binds the employee and the employer together and in the organized sector, this is further codified in the form of a contract or a mutually binding legal document that spells out exactly how much should be paid to the employee and the components of the compensation package. Since, this article is intended to be an introduction to compensation management, the art and science of arriving at the right compensation makes all the difference between a satisfied employee and a disgruntled employee. Now that we have come up with a compensation strategy that we believe will be successful in years to come at Duplox, the next step is to implement the new compensation system as well as develop how we are going to continue the on going management of the new system. This involves some projections for the budget for the upcoming year as well as explaining and training employees on how to use the new system as well as their roles in the maintaining of the new system. First, upon exception of the compensation system that we have developed, a meeting will be held, first with the managers and directors. This meeting would be presented by our team of consultants explaining the changes that will be taking place. This would be more of a informative meeting giving the senior management a time to ask questions and understand their roles in the new system as well as understand how explain these...
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...2013 Discuss the minamata case [1973] and accompanying environmental litigation on the role of the law of tort in japan. After minamata, what are the litigations, how these cases change the role of law of tort in japan. Any wider impact and significance ? japan’s image etc. 2012 ‘The long running Minimata litigation exposes the weaknesses of Japan’s treatment of environmental pollution.’ Discuss. How weak was the law on environmental pollution. How it has changed since then. 2010 Consider the significance of the Minimata litigation on Japan’s approach to environmental protection. How the environmental protection has changed. How the cases come to court more. The contemporary enactments. “The Minimata litigation is an example of the failure of law and lawyers in Japan”. Discuss. How did the law and lawyers fail. Discuss the role of the courts in protecting human health and the environment in the light of the Minamata (1973) litigation. What was the role of the courts in protecting human health and environment in Minamata. After that, the cases that ensued, what role do courts play. And what about now. ------------------------------------------------- Introduction Pollution cases and product liability cases, where tortfeasors are major companies and the loss is widespread. The development of technology made atomic energy and various highly hazardous materials available. There are also medical malpractice...
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