General management operations
In an organization, there are various factors that are needed to be taken into consideration to keep all systems going. Starting from general management operations up to the most specific work involved in running the business or company, it is indeed visible that the human task force plays a fundamental role. The said human task force consists of employees that are needed to be dealt with properly through proper compensation. Compensations or payments are a form returning the employees’ services to the company.
Each company has its own compensation system that is apt for effective organizational undertakings. These compensation systems can either put the company in sky rocketing progress or in total status decline. From the article, there were three given strategic pay systems that may be implemented in the future for companies. But, it is still important to be critical in the implementation of such systems since there are risks involved if there will be any failure. The first payment scheme is the person-based system wherein the compensations are based from the employee’s knowledge and core competencies.
Somehow, it is reasonable enough to pay the employee based on the performance but it is of great difficulty to assess a person’s work
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The second payment scheme is through paying via multiple pay. This system uses variable pay and stocks as rewards. This pay system, according to the article, can be a substitute for loyalty but if it is a seniority-based form of rewarding, a conflict may rise in the workplace. It is undeniable that there are cases wherein the new ones have better potentials compared to those who have been staying for the company for a long time. So, difficulty in giving rewards can also exist.
Though some employees can be motivated by such rewards for excellent performances, variable pay and stock rewards might bring a different motivation to certain employees. They might only work for personal gain and not for the company’s goals in general. Sometimes, some employees may be seeking for more than just financial satisfaction. Some seek for satisfaction in the psychological and social aspects. This kind of employees usually value intrinsic rewards like handling bigger responsibility, personal development and exposure to new work experiences.
It would probably be better if there will be a balance between both extrinsic and intrinsic form of rewards. The last form of pay system is through individualizing the pay system. This system dwells upon which traits the company wishes to maintain or put focus on. The said system can only be applied to companies given that certain adjustments will be done. For companies that cater homogenous work force in which there is easy identification of which traits the company wants to maintain, there may be lack of adaptability.
As for those with diverse work force, a specialized role for employees or wanted traits must first be identified. And, it is hard to do such assessments since there is a wide range of tasks that need different traits. Reward strategies should be dynamic in order to have effective pay methods. But, this system is somewhat limited when it comes to flexibility. Pay systems are just one of the many factors that are needed to be valued in the workplace. It must be noted that there must be a good communication between the employer and the employee.
The perspectives of the two should be able to meet half way, even through reward systems. Also, the goals and objectives of the business or company must be well defined so it is easy to align it with what type of pay system to use. At the end of the road, what matters is that both the welfare of the employees and the company is given utmost importance. References: Suganda, A. (2009). Introductory Class. Introduction to Compensation Management, Retrieved May 25, 2009, from http://www. scribd. com/doc/14818428/Introductory-Class Robbin, S. (2003). Organizational Behavior . (10th Ed. ) Prentice Hall Inc.