Compensation Strategies And Practices

Introduction In an organization the compensation strategies and practices are very important to the employees. Based on our group discussion and researches, we had found that the different author use different definition to interpret the meaning of compensation strategies and practices. The successful compensation practices depend on a organization ability to develop and implement systematic training program (Mello 2002; Lundy and Cowling 1996: Martocchio 2009). Compensation is total of all the rewards provided to employees in return for services.(R.wayne Mondy). Compensation strategies are related to various key organizational variables such as psychological contract, affective organizational commitment, and turnover intention.(Aggarwal and Bhargava2009). Compensation can separate to direct financial (wages, salaries, bonuses, commissions), indirect financial compensation (medical leave, retirement plans, life insurance and etc) and the last is nonfinancial compensation (satisfaction that a person receives from the job itself or from the psychological and/ or physical environment in which the person works). Our significant of the study is to determine the compensation strategies and practices influences the employees. The employees’ performances are very important to the organization because they will influence the organization reputation and prospect. Besides that, the compensation to the employees will make them more motivation in their current job and increase their performance. Furthermore, the employees’ practices also important in an organization because the employees’ skill and knowledge can measure the job go on smoothly and properly. Thus, it is important for us to do a research what factors will actually influences employees’ performance and how can lead the every organization can effectively and efficiency makes a good decision and achieves their organization goal. Through our Human Resource Management assignment group discussion, we found out

References: 1. Briefcase to Backpack LLC. (2012). How Sabbaticals Benefits Companies and Individuals. Retrieved from http://b2b.meetplango.com/2009/04/how-sabbaticals-benefit-companies-and-individuals/ 2 3. Colgate-Palmolive Company. (2012). Benefits and Compensation. Retrieved from http://www.colgate.com/app/Colgate/US/Corp/WorkWithUs/WhyColgate/BenefitsCompensation.cvsp 4 5. Gallup, Inc. (2012). How to Keep Talented Staff. Retrieved from http://businessjournal.gallup.com/content/1189/how-keep-talented-staff.aspx 6 7. Hr-guide.com. (1999). HR Guide to the Internet: Compensation: Incentive Plans: Profit Sharing. Retrieved from http://www.hr-guide.com/data/G444.htm 8 9. Kwak, J. (2009). Wall Street Pit: The importance of Compensation. Retrieved on July 9, 2012 from http://wallstreetpit.com/4653-the-importance-of-compensation 10 11. Mondy, R. W. (2010). Human resource management (11th ed.). Upper Saddle River, New Jersey: Pearson/Prentice Hall. 12. PayScale. (2009). PayScale- Compensation: Why is HR Important? Retrieved on July 10,2012 from http://blogs.payscale.com/compensation/2009/04/why-is-hr-important.html 13 14. The Savvy Freelancer. (2012). Sabbatical Leave for Freelancers: Necessity or Fantasy? Retrieved from http://thesavvyfreelancer.com/management/freelancers-sabbatical 15