Compensation is one of the fundamental responsibilities of an HR department, wit

Question

Compensation is one of the fundamental responsibilities of an HR department, with the ability to offer a compensation package that attracts and retains employees serving as a key to obtain the talent to pursue dramatic organizational goals.

In a well-written paper, address the following aspects related to an organization’s compensation program:

Explain the need and rationale for a compensation philosophy.

Propose a compensation philosophy that may be applicable and utilized for a Fortune 500 company.

Finally, discuss the principal types of monetary, or core, compensation and when it may be most applicable to use one type of compensation over another.

Your paper should meet the following requirements:

Be 3-4 pages in length

Include at least two scholarly sources that support your position as stated in this assignment

Explanation / Answer

Primarily there are two types of methods used since ancient time to get the work done from the the subordinate or other people. One is greed and other is fear.

HR is primarily responsible to check the type of method used in various functions of the organization to get the work done to meet the organizational goal.

It is universally accepted that to have a healthy working culture in the organization and to keep all employees more productive its necessary to have a positive energy behind the force.

Thus various motivating schemes and compensation practices have been developed and implemented to meet the above goal.

The commonly used policies in the most Fortune 500 companies are :-

- Flexible Payment : - This policy is commonly used in Target related jobs, wherein there is a fixed and flexible component of salary. The flexible part of the salary is linked with the performance of the employee. This helps to motivate the employee to achieve the targeted numbers.

- Bonus and Gift : - Apart from flexible pay, generally the employees are offered Quarterly or Yearly incentives on completion of particular task or if the organization meets the decided goal. These incentives ranges to big monitory benefits to small gifts to appreciate the day to day tasks.

- Employee Equity Scheme : - Top executives that are key responsible persons for achieving the organizational goal are often offered shares in the company to have sense of ownership in the company. These share are given at the time of joining or on some special occasion as decided by the top management.

- Promotion and Job enrichment : - This is most commonly used tool and practiced in almost all professionally managed organizations to motivate the employees. Every employee wants to grow in position and in salary over a period to time. This tool best serve the purpose.

Apart from the above discussed, the employers uses other methods like Job rotation, sending the employees to the tour, arranging family union parties, etc.

This helps keep the team motivated and performing.

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