Research Paper on "Compensation and Non-Compensation Dimensions"

/>Direct compensation is a typical rewards-based approach, whereby positive job performance is rewarded with financial incentives, such as bonuses, or promotions. Indirect compensation might include a worker being allowed to do his or her own independent research on the job, receiving generous family leave, or having greater job security (as in the case of teachers with tenure and civil servants).

Q6. Identify and explain short-term incentives and long-term incentives and the importance of each in a compensation strategy.

Most compensation packages contain both short-term and long-term incentives. However, depending on the nature of the position, one may be emphasized more than the other. In a highly volatile field like sales, short-term monetary bonuses for strong sales figures are likely to be motivational for workers. In a teaching position, where the teacher is likely to want to remain in the job for many years, having long-term benefits like tenure after several years, or guaranteed pay raises, may be more motivational for that specific employee.

Q7. Explain and describe the importance of the 5 steps (Perform a job analysis, write job descriptions, evaluate jobs, design and perform a pay survey, develop a pay structure.) in how organizations determine the base pay for workers in all types of jobs.

Performing a job analysis determines what duties, skills, and qualifications are required for a job. Job descriptions create employee expectations as to how and if they can perform the job's duties. Evaluating jobs determine if employees are successfully performing needed functions. A pay survey attempts to ensure that the job is fairly compensated relative to other jobs in the marketplace and at the organization, and setting a pay structure formalizes the job's compensation in relation to other jobs.

Q8. Briefly explain the Sarbanes-Oxley Act and its impact on executive compensation management.

The Act's mandated public disclosures of financial information could act as a disincentive to provide publically unpopular generous executive compensation packages.

Q9. Describe various kinds of pay-for-performance programs and the situations in which such programs may be preferable.

Some pay for performance programs, such as sales bonuses, reward performance on projects or short-term gains, while others reward overall performance for the organization, as measured over time or through more subjective performance reviews.

Q10. Compare strengths, weaknesses, and opportunities for various kinds of performance appraisal programs.

Short-term programs may not build employee loyalty in the long-term but can boost production more rapidly; long-term rewards programs may not have the same immediate effects as short-term programs but can reduce workplace turnover. They also have the value of consistency; while more subjective performance reviews can be impressionistic and create the perception of favoritism, but allow the organization to reward more indefinable qualities in high-performing employees.

Q11. Please explain how to recognize differences in compensation opportunities for employees in different jobs and at different levels in the organization.

Compensation opportunities can be recognized by 'auditing' job duties, such as additional responsibilities performed by the individual that can be rewarded, by a trait-based profile of workers, which… READ MORE