A union may try to improve wages and working conditions in order to be consistent with a comparable union whose members are paid higher (Samson and Daft, 2002). 3) Changing how people think about inputs or outcomes: According to research, people may alter perceptions of equity if they are unable to change efforts or outcomes (Samson and Daft, 2002). Thus, individuals may unnaturally increase the status attached to their jobs or distort others’ perceived rewards to ensure equity. 4) Leaving: Individuals who feel they lack equity in the work place may choose to quit their jobs rather than bearing the inequity of being underpaid or overpaid. They may seek balance of equity applying for new jobs.
Compensation is the value of work of employees according to the agreement between employer and employee. (Benham, 2011) It helps to play the most effective role in organization to reduce the employee’s dissatisfaction, and also to motivate and the better performance of employees. So, it is very important to have a good compensation plans. According to Maslow’s hierarchy of needs suggests that people have similar types of needs from low level basic to the need for achievement like job satisfaction and fulfilment being the best motivating
Dynamic performance evaluation approach: The goals of various entities were broken down to individual goals for both delivery and behaviour. This linked employees behaviour to Statoil’s values by weighing employees performance and how they abide by the firm’s values equally
One is based on traditional view, that is satisfaction that will occurs only to the performance of the job. This means efforts in a job lead to Rewards, which results in a certain level of satisfaction . another proposition says that, both satisfaction and performance is only with the wage and rewards. Various studies indicate that to a certain extent job satisfaction affects employee turnover, and consequently organization can gain from lower turnover in terms of lower hiring and training costs. Also this
JOB EVALUATION AND COMPENSATION MANAGEMENT Job evaluation is the process of systematically determining the relative worth of jobs to create job structure for the organization. The evaluation is based on a combination of the job content, skills required, value to the organization, organizational culture, and the external market. This potential to blend the organizational forces and external market forces is both the strength and a challenge of job evaluation (Milkovich & Newman, 2005). It is essentially a comparative process. Job evaluation is the most effective way of determining internal pay relationships.
That is why it can be considered as the indicator of the quality of Strategic Human Resource Management in an organization. Good and properly designed appraisal system, not only vital basis of successful employee performance, but it will aid the management by providing useful and valuable information for other strategic human resource functions. For instance, it helps in employee training and development decisions, compensation decisions and human resource planning. Basically, there are two types of parameters are used in performance appraisal. Objective measures which are directly can be quantifiable.
For example, if employees feel they are being compensated unfairly, they may restrict their efforts or leave the organization, damaging the organization’s overall performance. Internal Equity “Internal equity exists when employees in an organization perceive that they are being rewarded fairly according to the relative value of their jobs within an organization”. Another way of stating this is to say that a person’s perception of their responsibilities, rewards and work conditions is seen as fair or equitable when compared with those of other employees in similar positions in the same
Internal and external consistencies are analysed with a specific end goal to decide pay levels. 3. Job evaluation helps in bringing harmonious relation between labor and management Job evaluation brings harmony and good labor relation through eliminating wage inequalities within the organization. This will help organizations a lot. Harmony and good labor will profit the organizations.
Other important elements such as the social environment and reward system are also influencing the satisfaction derived from the job position (Alblas & Wijsman, 2011). If these several factors are assessed as unpleasant, the result might be poor performance. However, there is a way to change the results from the ‘job satisfaction assessment’. A way to do this is by taking into consideration whether
• To learn the different ways that Riverside Housing adopts for ensuring maximum employee satisfaction. Significance of the Research Employee satisfaction depends on whether the company meets the needs of the employee and how it motivates him. The most common consequence of satisfaction with working conditions, management policies and relationships with colleagues is employee loyalty to the company as a whole. To understand the importance of job satisfaction, employers should take into account economic factors (Lapierre, et.al, 2008, 98). The cost of losing or replacing a single employee can be huge.