Task 1Selected area: Compensation 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 worthy, 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 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.
Task 2: Customer Need Assessment FormHow long have you been associated with our company? What is most enjoyable about our company’s HR compensation policies? What is the least enjoyable about our company’s HR policies? Do you consider our compensation plan to be average quality? High-end? Low-end? What do you consider to be special about our HR approach as regards compensation? What would you like to be featured in our human resource practices? What do you consider to be the primary customer service experience in our compensation policy? Are our human resource functions offering the kind of experience you need? What do you feel is our unique human resource policy practice? Do you think there are any misconceptions about our compensation plan that you would like to be addressed? Task 3: Compensation Legislations to be observedThere are numerous legislations that may apply to compensation.
However, most of these legislations are subject to change or amendment depending on the powers and interests of the jurisdictional authority that enact them. Each territory in Australia has its own legislative body governing employee compensation for both public and private companies.
The Workers Rehabilitation and Compensation Regulations 2010 (WRCR 2010) is an important legislation that spells out numerous obligations that organizations should observe as part of their compensation policies. This legislation has numerous sections which cover a wide area of compensation issues including benefit packages, payment of levy and insurance of employees against liabilities (Balnave, 2007). In addition, the legislation gives legal protection and grants workers the right to join unions for the purpose of collective bargaining or other mutual protection. Historically, most of Australia’s compensation legislations have been pegged on the need for collective bargaining.