How do you explain the role compensation plays in the achievement of organizational goals. Can you please analyze the impact of compensation decisions on external and internal stakeholders, including the effectiveness of managers and employees. Draw conclusions based off of data collected from organizations.
Please give personal experiences also to help break-down these questions.© BrainMass Inc. brainmass.com April 3, 2020, 3:00 pm ad1c9bdddf
Please see response attached. I hope this helps and take care.
Let's look at these questions individually to see what we can come up with:
1. How do you explain the role compensation plays in the achievement of organizational goals?
Compensation strategies and goals are indeed part of the overall organizational mission, and therefore one of the preset strategies intended and formulated to meet the mission and vision of the organization. It is one strategy to meet the goals of the organization, mainly by making decisions that increase the likelihood of retaining and recruiting effective and efficient human resources through provisions of competitive compensation program strategies (and ones that meet employees demands - which are many and discussed later).
For example, the compensation goal and strategy (decision) would probably be formulated something to the effect of providing adequate compensation to all employees in order to retain and recruit highly trained professionals to meet the overall organizational goals. To meet these compensation goals, the corporation will, thus, be relating corporate philosophy (mission and vision statement) and financial goals (available resources and capabilities) to pay strategy formulation (one compensation method); decisions which will be made by the external and internal stakeholders (i.e., how much can we pay our staff and still be within the reasonable range for our stakeholders, etc.). For example, compensations goals and strategies, both short term (to pay competitive wages to retain and recruit high quality workers, etc.) and long term (i.e. to provide compensation packages that retain and recruit high quality workers) are one means to meeting the overall organizational goals that are preset and formulated to meet (by some of the internal and external stakeholders) the overall mission and vision of the organization.
Where am I going with this? Let's look at an example.
For example, St. Joseph's hospital mission is about providing compassionate care. It will thus formulate organizational goals to meet this overall vision for the organization. One of these goals would be a compensation strategy, such as to retain and recruit high quality professionals, mainly through the development and implementation of a competitive and effective compensation program in order to retain and recruit the best practitioners (http://www.stjosham.on.ca/sjhh/default.htm). In other words, it plays a major role in the achievement of organizational goals. Said another way, the impact of the quality of the compensation system on the organization's goals and the ability of the organization's ability to retain and recruit high quality staff is positively related. That is because professional and other staff are drawn to employees and organization with attractive and competitive compensation packages (that meet their needs and demands - see list below), and also, research suggests a strong relationship between retaining high quality workers and the attractiveness of the compensation package. And, the more effective and proficient the staff base, the more likely the organizational goals will be met in a timely and efficient manner. Thus, the role of compensation strategy has a high impact on organizational goals and, ...
The role that compensation plays in the achievement of organizational goals is explored, as well as the impact of compensation decisions on external and internal stakeholders, including the effectiveness of managers and employees. Examples are provided.