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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 hub, I shall define compensation and benefits along with their advantages for a company and its workers. 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 Compensation represents both the intrinsic and extrinsic rewards employees receive for performing their job. Together both intrinsic and extrinsic compensation describes a company`s total compensation system. Intrinsic compensation reflects employees` psychological mind-sets that result from performing their jobs. Extrinsic compensation includes both monetary and nonmonetary rewards. Organizational development professionals promote intrinsic compensation through effective job design. Compensation professionals are responsible for extrinsic compensation. [1] Intrinsic Compensation represents employees` critical psychological states that results from performing their jobs. Job characteristics theory describes these critical psychological states. This theory explains that employees experience enhanced psychological states (Intrinsic compensation) when their jobs rate high on five core job dimensions: skill variety, task significance, autonomy, and feedback. Following factors illustrate the influence of core job characteristics on intrinsic compensation and subsequent benefits to employers. Skill variety is the degree to which the job requires the person to perform different tasks and involves different skills, abilities, and talents. Task identity is the degree to which job enables a person to complete an entire job...
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