The paper "Action Plan for Implementing Compensation Policies" is an outstanding example of a management assignment. Compensation is an important Human Resource (HR) management function through which organizations manage their employees. In order for an organization to motivate and develop skilled employees and receive its money’ s worth, it should ensure that its compensation system is aligned with the long-term strategic objectives and goals (Scullion, 2001). Not only is it important for organizations to link compensation to overall strategic goals and objectives, but it is important that the compensations system is aligned with the organization’ s long term HR strategy.
For many businesses, ignoring the compensation system can be deleterious to organizational performance. This is because, it can be laborious and expensive for an organization to hire employees, reinvigorate the energy and motivation level of the workforce and buy back the trust of current employees (Zilber, 2002). Thus, failure to address the issue of compensation can have detrimental impacts in the short term and long term. Some of the most important services that can be provided through compensation in typical organizations include payroll administration, performance appraisals, reward and recognition, wage comparisons, job descriptions and developing incentive pay policies.
Zilber (2002) has noted that successful organizations do regular evaluation and planning of their compensation systems. Because compensation has a visible and direct impact on employees, it is necessary for HR persons to provide clear messages to employees regarding how compensation decisions are made (Truss & Gratton, 1994). This way, organizations can cultivate high levels of employee motivation and job satisfaction, which in turn result in improved organizational performance. To develop sound compensation systems, it is important for HR managers to view the issue of compensation from multiple dimensions taking into consideration both the employee and the employer’ s interests.
Balnave, N 2007, Employment Relations in Australia, New York, John Wiley & Sons.
Brewster, C 2001, HRM: The comparative dimension. In J. Storey (ed.), Human resource management: A critical text (pp. 255–71), London, Thompson Learning.
Clark, T., Grant, D. & Heijltjes, M 2000, Researching comparative and international human resource management, International Studies of Management, 29(4), p. 6–23.
Kamoche, K 1996, Strategic human resource management within a resource-capability view of the firm, Journal of Management Studies, 33(2), p. 213–33.
Monks, K & McMackin, J 2001, Designing and aligning an HR syste, Human Resource Management Journal, 11(2), p. 57–72.
Purcell, J 2001, The meaning of strategy in human resource management. In J. Storey (ed.), Human resource management: A critical text (pp. 59–77), London, Thompson Learning.
Scullion, H 2001, International human resource management. In J. Storey (ed.), Human resource management: A critical text (pp. 288–313), London, Thompson Learning.
Truss, C. & Gratton, L 1994, Strategic human resource management: A conceptual approach, International Journal of Human Resource Management, 5(3), p. 663-686.
Zilber, T 2002, Institutionalization as an interplay between actions, meanings and actors: the case of a rape crisis center in Israël, Academy of Management Journal, 45, pp 234-254.