Strategic Compensation and Bases for Pay
Strategic Compensation and Bases for Pay
1. Describe the three main goals of compensation departments.
The first goal in the compensation department is to attract and retain the best possible work force considering the resources of the organization, internal consistency. Internal consistency supports work flow, fairness and directs behavior toward organization objectives. It also consists of job analysis and job evaluation. Job analysis “is a systematic process for gathering, documenting, and analyzing information in order to describe jobs. Job analyses describe content of job duties, worker requirements, and sometimes the job context or working conditions” (Martocchio, 2011). Job evaluation is a useful technique, intended to assist trained and experienced staff to evaluate the size of one job relative to others.
The second goal in the compensation department is to motivate the work force to achieve a high level of performance, market competitiveness. Market competitiveness is based upon the results of compensation and market surveys. The result of the surveys gives a company the required information to make a formal decision on the competitors pay practices and how the compensation department is to compensate.
The last goal of the compensation department is to keep labor costs within the capabilities of the organization, recognition of individual contributions. Recognition of individual contribution allows the compensation department to pay employees based upon job performance, knowledge and credentials. Pay grades and pay range also falls under recognition of individual contributions.
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
The contextual influence that will pose the greatest challenge is Market influences. As of now the market is still unstable and the economy is still suffering. Market
1. Describe the three main goals of compensation departments.
The first goal in the compensation department is to attract and retain the best possible work force considering the resources of the organization, internal consistency. Internal consistency supports work flow, fairness and directs behavior toward organization objectives. It also consists of job analysis and job evaluation. Job analysis “is a systematic process for gathering, documenting, and analyzing information in order to describe jobs. Job analyses describe content of job duties, worker requirements, and sometimes the job context or working conditions” (Martocchio, 2011). Job evaluation is a useful technique, intended to assist trained and experienced staff to evaluate the size of one job relative to others.
The second goal in the compensation department is to motivate the work force to achieve a high level of performance, market competitiveness. Market competitiveness is based upon the results of compensation and market surveys. The result of the surveys gives a company the required information to make a formal decision on the competitors pay practices and how the compensation department is to compensate.
The last goal of the compensation department is to keep labor costs within the capabilities of the organization, recognition of individual contributions. Recognition of individual contribution allows the compensation department to pay employees based upon job performance, knowledge and credentials. Pay grades and pay range also falls under recognition of individual contributions.
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
The contextual influence that will pose the greatest challenge is Market influences. As of now the market is still unstable and the economy is still suffering. Market