Effect of Various Compensation Methods and Benefit Programs
Not what you're looking for?
Questions-
1) Analyze the effect of various compensation methods and benefit programs on employees and organizations
2) Relate salary and benefit administration strategies to organizational culture and performance.
Purchase this Solution
Solution Summary
The solution discusses the effect of various compensation methods and benefit programs on employees and organizations.
Solution Preview
COMPENSATION METHODS AND BENEFIT PROGRAMS
Effect of compensation methods and benefit programs on employees and organizations
The following are some of the common compensation methods and the possible effects on the employee and the organization:
1. "Pay for performance" (piece rate) has been considered as the optimal compensation scheme (http://www.nber.org/papers/w16540). In this method, the employee is compensated on the basis of his level of performance. In effect, the higher the level of performance, the higher the pay that will be received by the employee. Correspondingly, a lower level of performance would mean lower compensation level.
This method is defined by Cherrington (1995) as a pay system that ties pay to performance levels.
This method may encourage the employee to focus on improving his level of performance because this would mean a higher level of pay. As a result, the employee would focus on improving his own performance but may sacrifice other aspects of his work or job such as fostering good relationship with peers or his superior.
Another possible effect on the employees is that they may tend to become individualistic - they may forget the concern for others. It would also be to the disadvantage of the employee if there is a limit on what the company is capable of producing because of constraints in resources. Given the circumstances, there would be a limit on the pay that the employee would be capable of ...
Education
- Bachelor of Science in Business Administration, University of the Philippines
- Master in Business Administration, Saint Mary's University
- Doctor of Philosophy in Education, University of the Philippines
- Doctor in Business Adminstration (IP), Polytechnic University of the Philippines
Recent Feedback
- "Excellent information thanks for the input"
- "Thank you"
- "Very thorough and informative. Thank you."
- "Good response. Very detailed"
- "This solution is excellent. Thank you"
Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Operations Management
This quiz tests a student's knowledge about Operations Management