Compensation and evaluations have some Comparison and contrasting. Compensation is determined by work ethic(how you are evaluated). Compensation is something given back to an employee for time or money spent on employees behalf. Evaluation is when you are observed for your job performance what you deserve to earn. Compensation is more of a positive while evaluation is more negative.
The second type of compensation is non financial compensation.It refers to programs that are established by employers to satisfy employees in term of job content and job context.The examples of non financial compensation are job enlargement,job enrichment,job empowerment,autonomy,recognition and award. The financial compensation is the main reason and initial motivator for every employees thus fulfilling the physiological needs but the non financial compensation is what makes the job more interesting and
These theories are very important tools for developing compensation systems. According to Homan’s distributive justice or exchange theory and Adam’s equity theory, a major determinant of an employee’s productivity and satisfaction arises from the degree of fairness or unfairness that an employee perceives in the workplace, in comparison with others. The degree of equity is defined as a ratio of an employee’s inputs to outcomes, compared with a similar ratio for other employees. There is usually a fellow employee holding the same job in the same organisation. The key to understanding social comparison theories is the idea of perceived fairness.
JC Penney offers monetary compensation in form of wage by using the pay survey data to see if their employees are getting paid the market value base on their job responsibilities. Before JC Penney’s total rewards approach employees would be getting paid based on how long they have been working for JC Penney which would determine the wage of the employee. Another change reflects a total rewards approach by JC Penney offering benefits to its employees (chapter 11, page 406). JC Penney offers benefits to its employees by rewarding its employees for both current performance and continuing career growth. JC Penney rewards its employee’s base on their performance on the job and also for continuing growing with their
Employee engagement is closely link to the engagement with organization and the superior. Engagement with the organization is important in increasing the employee engagement, and it will build the trust, values and respect between employees and the organization (Custom insight, n.d.). In order words is how the company treated their employees. Whereas engagement with superior is specific measure of how employees feel about their superiors, included feeling valued, fairness, receiving feedback and direction. In other words, it mean the relationship between subordinates and superiors based on mutual values and respect.
Employee’s satisfaction with pay involves not only satisfaction with the salary received (monetary) but other important pay dimensions as well, such as benefits (non-monetary). Most of the Pay dimensions decisions are made by other persons higher in the hierarchy, such as managers, the level of fairness that employees perceive in his or her managers’ decision making should have a significant impact on their perceptions of and satisfaction with pay. Mangers also endorse organizational policies, standards, and norms, such that they filter of all this information to their subordinates, with whom they work very closely (Mayer et al. 2009. As a result of which more these managers are perceived to represent their moral integrity and fairness in their behavior, the more employees should believe that moral integrity and fairness guide the organizational decisions about
By correctly compensating employees and offering further pay incentives such as bonuses or paid time off, the company will suffer less from employee turnover, which will benefit their success in the long run. CNBC guest columnist Ron Volper summarizes how paying employees’ salary and incentives will positively impact an organization, “The companies with the highest employee morale and productivity pay a mix of salary and incentives. The salary compensates employees for performing all the tasks required of them and provides them with a consistent income.” This high moral and positive attitude for compensation will positively result in retaining good employees for the long run of their
such facilities enable the worker and his family to lead a good working life, family life and social life. According to labour Investigation Committee, “Anything done for the intellectual, physical , morale and economic betterment of the workers , whether by the employers by the government or by other agencies over and above what is laid down by law or what is normally expected on the part of the contractual benefits for which worker may have bargained. The whole field of welfare is one in which much can be done to combat the sense of frustration of the industrial workers, to relieve them of the personal and family worries , to improve their health , to offer them some sphere in which they can excel others and to help them to a wider conception of life. The welfare for Labours may also be provided by the government, trade unions and non government agencies . .
It is therefore important to compensate employees according to the market value in each individual country as well as keeping in mind cultural diversities when remuneration packages are structured. Job satisfaction can only exist when the interests of both the employee and the organization are in equilibrium. The organization relies on the manager to evaluate the value of the work performed by an employee, and with the interest of the s at heart, to determine the appropriate remuneration for this work. In order to offer the employee compensation which is competitive with other companies’ and appropriate for the employee’s duties, the manager needs to have an in-depth understanding of the real value of the work.MethodologyRESEARCH METHOD The research method consists of a literature review and an empirical study. Literature review The literature review focuses on the structuring of remuneration packages, fringe benefits and their impact on job satisfaction and engagement.
A manager should replace “I” with “WE” in all communication with employees as it will facilitate the development of an atmosphere of mutual trust and minimize the need to use penalties for default. POSITIVE EFFECTS- This principle helps to develop team spirit, improves performances, develop a sense of belongingness, increase in the level of cooperation. Fayol is of the opinion that a group contributes more than an individual.