Reward can be characterized as remuneration and compensation given to employees in return for their services (Torrington Et al, 2014). Compensation shapes a significant subset of the complete rewards and contains those components that can be esteemed in money related terms (Jiang Et al, 2009). Compelling compensation technique regularly supports the achievement of the business as it is considered as one of the vital components to draw in and propel human capital. Herzberg attests that lacking compensation is one of the key components causing disappointment among employees.
Table of Contents
1. INTRODUCTION
2. Different Methods of Remuneration Packages given to Employees
2.1 Performance-related pay scheme
2.2 Profit-Sharing
2.3 Piece-Based Remuneration
2.4 Skill-Based Pay
2.5 Flexible and Fringe Remuneration
3. CONCLUSION
Research Objectives and Topics
This paper aims to critically examine various worker compensation strategies and assess their role in strategic Human Resource management, highlighting key advantages and disadvantages to determine if specific approaches are universally effective.
- Analysis of performance-related pay schemes and their impact on motivation.
- Evaluation of profit-sharing models and their influence on organizational commitment.
- Investigation into piece-based remuneration and its applicability to manual labor.
- Assessment of skill-based pay and flexible benefit structures for talent retention.
Excerpt from the Book
Performance-related pay scheme
As the name recommends, performance-related compensation plans reward employees by connecting the degree of remuneration with the exhibition of the employees (Perry, Engbers, and Jun, 2009). Common instances of performance-related compensation incorporate rewards, commissions and deferred considerations. One of the vital focal points of performance-related remuneration is that it gives a successful method for compensating by recognizing great and helpless entertainers (Torrington Et al, 2014). Different favourable circumstances of performance-related compensation are expanded motivation among employees to improve execution, pull in and hold superior workers and skilled people, and at last improve corporate performance (Torrington Et al, 2014).
In any case, exact proof features that performance-related compensation has frequently been incapable (Frey and Osterloh, 2012). Frey and Osterloh (2012) additionally feature that the connection between the expansions in performance-related compensation and corporate execution has stayed frail. Performance-related compensation is additionally censured for actuating employees to take useless choices, as it goes about as an incitement for employees to face more noteworthy challenges which could put an association's endurance in question (Frey and Osterloh, 2012).
Summary of Chapters
1. INTRODUCTION: Outlines the definition of compensation, its importance in human capital management, and the core objective of analyzing various remuneration strategies.
2. Different Methods of Remuneration Packages given to Employees: Detailed examination of five specific compensation models, discussing their mechanisms, benefits, and drawbacks regarding employee motivation.
3. CONCLUSION: Synthesizes the findings, noting that while various strategies exist, they must be aligned with employee needs and motivation levels to be effective in the long term.
Keywords
Compensation, Remuneration, Employee Motivation, Performance-related Pay, Profit-sharing, Piece-based Remuneration, Skill-based Pay, Flexible Benefits, Fringe Benefits, Human Resource Management, Organizational Performance, Maslow, Herzberg, Labour Retention, Strategic Management.
Frequently Asked Questions
What is the primary focus of this paper?
The paper focuses on the critical examination of various remuneration strategies and their effectiveness in motivating employees and achieving organizational goals.
What are the central themes discussed?
The core themes include performance-related pay, profit-sharing, piece-based remuneration, skill-based pay, and flexible/fringe benefits.
What is the main research objective?
The objective is to reveal the key advantages and disadvantages of different compensation methods to determine if one strategy is superior or if a combination is required.
Which scientific theories are utilized?
The study primarily utilizes Maslow's hierarchy of needs and Herzberg's motivation theories to evaluate the psychological impact of different rewards.
What does the main body of the work cover?
The main body provides a detailed analysis of specific compensation plans, contrasting their perceived benefits with empirical evidence regarding their actual effectiveness.
How would you characterize this work with keywords?
Key terms include Compensation, Employee Motivation, Performance-related Pay, Profit-sharing, and Human Resource Management.
How does the author view the effectiveness of performance-related pay?
The author highlights that while it is designed to reward high performance, empirical evidence suggests it can lead to negative behaviors and often fails to provide long-term motivation.
What is the significance of the "Flexible and Fringe Remuneration" chapter?
It discusses the shift toward personalized benefits that offer employees choice, noting that while they improve commitment, they also increase administrative costs and complexity for the organization.
Does the author suggest a single best compensation method?
No, the conclusion indicates that no single strategy is perfect and suggests that businesses should combine monetary and non-monetary rewards based on the specific needs of their employees.
- Arbeit zitieren
- Jeff Anim Boateng (Autor:in), 2020, The Various Methods of Remunerating Employees, München, GRIN Verlag, https://www.grin.com/document/963240
