COMPENSATION AND PERFORMANCE MANAGEMENT
Compensation is stated as a kind of reward that is awarded to the employees, in return for their excellent performance···
Critically evaluate the importance of the compensation system to an organization.
Compensation is stated as a kind of reward that is awarded to the employees, in return for their excellent performance. It is awarded to the employees to make them feel acknowledged and to make them feel more motivated so that they can cater to more productive results. Compensation is a way through which an organization can value and appreciate the diligence and hard work of the employees.
译文：问题 1 财务管理
薪酬是对员工的一种奖励，以回报他们的出色表现。 奖励给员工是为了让他们感到被认可并让他们感到更有动力，以便他们能够获得更高效的结果。 薪酬是一个组织可以通过它来重视和欣赏员工的勤奋和辛勤工作的一种方式。
IMPORTANCE OF COMPENSATION
Compensation is a very important scheme for any organization as it motivates the employees and makes them feel acknowledged for their efforts. It also allows the employees to stay at the organization.
- Compensation is of utmost importance for any organization because it is a scheme or a type of policy to compensate the employees for their hard work and efforts that they dedicate to the organization (Rousseau, 2008).
- By compensating the employees, the organization induces in them great motivation, and it also makes them feel important at the organization, and their dedication increases due to compensating them.
- It creates a positive and healthy working environment in the organization, and it also reduces the labor turnover, it allows the employees to work with utmost passion and devotion.
- It also assists in the job evaluation process, and by this, the organization will be able to attain more achievable and effective standards.
- It also enhances the working morale of the organization, and through this, the satisfaction of the employees remains constant, and they feel obliged to the organization.
- Compensation is also very important to the organization because it helps them in abiding by the laws of laborers settled by the government law, and it also creates ease in managing and coordinating the employees and their performance.
- With the help of compensation, the organization can also increase employee engagement and this helps the organization in enhancing organizational performance and it also helps the organization in attaining organizational goals (Wysocki, 2009).
- Compensation can also help the organization in maintaining a sustainable environment, and this can induce greater creativity and productivity in the organization.
COMPONENTS OF COMPENSATION
- Wages and Salary
- Incentives and Paychecks based on an Employee’s performance
Fringe and Perquisites
ADAM’S EQUITY THEORY RELATION WITH COMPENSATION
Adam equity theory could be analyzed in terms of the formation of compensation policy. As with this theory we could assess that not only paycheck and other policies can help in the employee engagement and his motivation. But the most substantial factor according to this theory is the provision of fair treatment among employees. And they should be treated equally without any discrimination and biasness.
The theory helps in the formation of a compensation scheme by providing the rationale that every resource in the organization must be divided among the employees based on equality. And they should be dealt with fairness. Each employee should be compensated according to his worthy performance.
This theory also states that when an employee is under-rewarded or over rewarded, he can feel discomfort in the working environment. This can disturb the organizational performance along with the work sustainability and due to this. The organization fails in the attainment of organizational goals.
The equity theory gives the ration behind the formation of a compensation scheme. And it provides the justification why is it necessary to compensate an employee with equality and also provides the justifications regarding the equal distribution of assets of the organization among employee. It also provides the benefits that the organization can face after the successful implementation of this theory in the formulation of the compensation scheme.
马斯洛的需求层次理论与制定补偿方案非常相关。提供给员工的各种福利属于马斯洛层次结构的不同需求。如果我们根据薪酬结构来评估马斯洛层次结构，则是最低级别。其中负责的心理需要涉及到员工健康工作的基本权利。以及舒适的工作环境，在那里他们可以利用并获得人类所需的所有必需品。例如水、空气和舒适的工作环境。如果为员工提供了保证员工安全的工作环境，则可以从薪酬方案的角度分析马斯洛层次结构的第二个层次，即安全。哪里不害怕以不公平的方式终止（Taormina 和 Gao，2013 年）。然后可以根据补偿方案来分析下一个层次的马斯洛需求层次。员工开始与他的老板和同事建立有意义的关系。在这个阶段，可以分析员工想要更好、更协调的工作环境的需求。马斯洛层次结构的最后一个阶段被称为自我实现，在这个阶段员工应该获得大量的报酬。这意味着在这个阶段，他的努力得到了很好的补偿。并为他提供全职的永久工作，使他可以毫无畏惧地工作，并有很大的动力。
Evaluate the importance of salary surveys in gaining competitive advantage.
IMPORTANCE OF SALARY SURVEY
Employees are the most substantial component of any organization. And organizations spend around 50-80 percent of total generated revenue on the compensation and other advantages that are provided to the employees (HANSON, 2009). An independent and well-researched salary survey can be the most critical and influential factor of the compensation scheme and a salary survey can provide the following benefits to the organization and can assist the organization in gaining competitive advantage.
Proper conduction of salary surveys can allow the organization to keep up with the ongoing market trends, and with the help of gather data in salary survey, the organization can judge what the other organizations are paying to their employees to make them stay at their firms. This will be advantageous for the organization as it will provide them with the data of other organizations through which they can analyze what to include in their compensation packages for the employees to maintain their employee engagement.
An organization that conducts a proper salary survey for the generation of compensation policies minimizes the chances of getting caught in price-fixing. If the organization does not conduct a salary survey it will miss the reputable market data of different firms and it will be only dependable on the internet data which is not reliable. It is also advised that the company should adhere to the Safe Harbor guidelines while conducting the salary survey to maintain the integrity and safety of data.
译文：问题 3 财务管理
员工是任何组织中最重要的组成部分。组织将大约 50-80% 的总收入用于为员工提供的薪酬和其他优势（HANSON，2009 年）。独立且经过充分研究的薪酬调查可能是薪酬计划中最关键和影响最大的因素，薪酬调查可以为组织提供以下好处，并可以帮助组织获得竞争优势。
Almost 50-80 percent of the total generated revenue is spent by the company to compensate and provide benefits to their employees. The company needs to conduct annual salary surveys, even if it cost them a small price because this can ensure the protection and safety of their large investments, and it also provides them with the chance to maintain a market competitive incentive.
- JUSTIFIABLE DECISION MAKING
With the help of salary surveys, the organization can make sustainable and sound decisions as the information and data collected in salary surveys help in formulating a good and market competitive compensation for the employees. Salary surveys also provide the organization with a lot of options that will help them in devising various components of the compensation, and in the end, they will end up making defensible compensation schemes for their employees (SPIE, 2013).
公司几乎将 50-80% 的总收入用于补偿和为员工提供福利。 公司需要进行年度薪酬调查，即使花费他们很小的代价，因为这样可以确保他们的大笔投资的保护和安全，同时也为他们提供了保持市场竞争激励的机会。
Critically evaluate the uses of Job Analysis and Job Evaluation in developing a compensation system.
Job analysis is one of the most important factors that help in the successful analysis of compensation schemes. Job analysis is used in the compensation scheme to devise compensable factors and aspects related to the employee’s job. With the help of job analysis, the employers can analyze the nature of the job and what effort is needed to fulfill the tasks related to the job.
And based on that the employee is compensated (Faesal and Lukito, 2019). The more effort he put in the job, the more there is a chance of increment in the compensation. Job analysis helps in determining the working environment, responsibilities, tasks, and duties related to the job and according to these factors, the employee is compensated.
译文：问题 4 财务管理
工作分析是帮助成功分析薪酬方案的最重要因素之一。 薪酬计划中使用工作分析来设计与员工工作相关的可补偿因素和方面。 在工作分析的帮助下，雇主可以分析工作的性质以及完成与工作相关的任务需要付出什么努力。并以此为基础向员工支付报酬（Faesal 和 Lukito，2019 年）。 他在工作中付出的努力越多，薪酬增加的机会就越大。 工作分析有助于确定与工作相关的工作环境、职责、任务和职责，并根据这些因素对员工进行补偿。
The job evaluation process is needed for the evaluation and comparison purposes pertinent to the nature of the job. It helps the manager in analyzing the worth and the complexity of the job in comparison to the other job. It is a type of systematic evaluation that helps the HRM department in evaluating the worth of the job in comparison to the other jobs offered by the organization, based on the complexity of the job the employees have compensated accordingly (Secapramana, Patricia and Nugroho, 2019). The four important and major factors for the process of job evaluation that helps in the formulation of compensation policies are:
- Job Classification
- Job Ranking
- Comparison of Factor
- Point Factor
为了与工作性质相关的评估和比较目的，需要工作评估过程。 与其他工作相比，它有助于经理分析工作的价值和复杂性。 这是一种系统评估，可帮助人力资源管理部门根据员工相应补偿的工作的复杂性，评估工作与组织提供的其他工作相比的价值（Secapramana、Patricia 和 Nugroho，2019 年） ）。 有助于制定薪酬政策的工作评估过程的四个重要因素是：
Faesal, H. and Lukito, H., 2019. INFLUENCE OF JOB ANALYSIS (JOB ANALYSIS) ON EMPLOYEE PERFORMANCE AT PT. HAYATI PRATAMA MANDIRI WEST SUMATRA. JURNAL STIE SEMARANG, 11(1), pp.93-101.
HANSON, D., 2009. EMPLOYMENT & SALARY SURVEY. Chemical & Engineering News, 87(10), pp.36-40.
Rousseau, S., 2008. Enforcement Aspects of Conservation Policies: Compensation Payments Versus Reserves. SSRN Electronic Journal,.
Secapramana, L., Patricia, H., and Nugroho, E., 2019. Job Satisfaction, Job Fairness, and Job Evaluation as an Initial Step of Reward Management System Development: The Implementation of Quality of Work Life Concept. Asia Pacific Management and Business Application, 008(02), pp.73-88.
SPIE, 2013. Job satisfaction high, SPIE salary survey says. SPIE Professional,.
Taormina and Gao, 2013. Maslow and the Motivation Hierarchy: Measuring Satisfaction of the Needs. The American Journal of Psychology, 126(2), p.155.
Wysocki, P., 2009. Corporate Compensation Policies and Audit Fees. SSRN Electronic Journal,.