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Hire a WriterPay for experience and advancement is a payment scheme used by the human resources (HR) department to reward employees depending on their skills and level of professional qualification (Gerhart, 2016). To effectively control an organization's pension programs, HR employees must consider the system's function and model. Since technology has enabled businesses to improve productivity while hiring workers, the use of this system would save time and money by automation.
The Pay for Knowledge System's Justification
To assess compensation, the Pay for Information scheme considers knowledge and abilities. In the pay knowledge model, the HR personnel evaluates both jobs and develops a pay system in consideration of the pay theories and legal implications after assessing all he factors (Wilson, 2015). Then, the system lists jobs titles and ranks them in order of contribution to the organization. Job evaluation aids in determining fairness and equitable pay among employees (Wilson, 2015). Each compensable factor is weighted and compared to the benefits of the knowledge and skill to the company (Gerhart, 2016). The process ensures that workers receive a fair pay raise within their grade range. The score is then allocated to each job title to determine the highest to the lowest valued job. For example, based on the knowledge and skills required, a director of human resource is likely to be ranked above the marketing manager to receive a higher remuneration.
Benchmark High/Low Jobs
Contemporary organizations use job grades as the base for determining their employee’s pay. However, they should apply benchmark, which refers to the identification of employees’ roles and skills that knowledgeable parties can be estimate (Gerhart, 2016). The grades depend on the job sizing systems used by the company. In many cases, agencies prefer this technique for a small number of roles for every job title to minimize costs (Gerhart, 2016). Thus, the size of the benchmark is not a primary factor in determining its quality, but its ability to permit parties to assign individual roles in the organization’s job sizing structure.
Benchmarking process includes top positions in the organization, which has the director of human resources and marketing. Specifically, the HR personnel update the organization chart by evaluating the benchmarked roles and refining their selection. Overall, the benchmarking selection should commence with the common roles (Wilson, 2015). However, the roles and skills do not imply that they are more essential to the company, but serve a narrow function in aiding the directors to formulate a comprehensive group of differential and relativities.
Recommendations about Managing Future Compensation Increases
Contemporary, companies strive to manage dynamic changes in their compensation schemes. Barling (2014) asserts that gone are the days when firms used to give equal pay increases to all employees. Currently, modern organizations face many constraints in budgeting for workers’ benefits, compensations, and salary. Thus, they need an effective management system of their payments plans.
Other than the historic pay increase and variables of rewards, such as bonus, profit, and gain sharing, a company should plan. CORE Company should pay attention to the quality of work life rewards to manage future compensation increases effectively. Thus, when a group offers a variable pay rate of approximately six to eight percent in addition to the basic salary, the employees should post better performance (Long, 2014). In fact, the increase should motivate the workers to produce more.
Red – circle is the salary of the workers that are either above or below the pay range that is associated with the job under which the staff is incumbent (Long, 2014). Red circles emanate from the organization due to the prolonged tenure of the employees in the company whose annual salary increment eventually goes beyond the required salary range. The CORE Company is should cut the salary increase to reduce the occurrence of the red circles. The organization can also freeze the pay increase that is beyond the maximum allowed.
Green circles arise when the worker could have been employed at the minimum salary range (Long, 2014). Promoting an employee from a lower position to a higher rank in the organization results in pay rise of about 15 or 25 percent, which contributes to the green circles (Long, 2014). To this end, CORE Corporation should to increase its worker's salary to align with the individual’s performance. The approach is most suitable for organizations with a large budget. Additionally, it should gradually increase employees’ wages to the suitable level. This method is appropriate for organizations with the small budget.
Organizations are established on the basis of legal and ethical standards (Barling, 2014). Therefore, companies are supposed to be vigilant and be in a position to spot cases of immorality. One suitable recommendation for CORE Corporation is that it should develop a concrete mission statement and establish a strong code of conduct to reduce the possible constraint that infringes its legal and ethical standards. Moreover, the agency should also incorporate its policy into the performance management plan to hold workers accountable for their actions. The firm should also serve employees with forms enlisted with ethics policy that they should append their signatures to indicate that they understand the organization's corporate policy.
In summary, the Pay for Knowledge and Increases is a remuneration system that considers the educational development of employees. In prevents equal payment of employees because each has a different degree of contribution to the productivity of the firm. The system considers the relative increments in the educational skills of the workers before raising their basic pays by the specified percentiles. Apparently, the process is useful as it saves costs and time.
References
Barling, J. (2014). Knowledge work in organizational behavior.International journal of management reviews, 2(3), 287-304.
Gerhart, B. (2016). An empirical analysis of a skill-based pay program and plant performance outcomes. Academy of management Journal, 41(1), 68-78.
Long, R.J. (2014).Strategic Compensation in Canada, fifth edition. Nelson, ISBN 978-0-17-650968-2.
Wilson, M.C. (2015). Human Resource Systems and Sustained Competitive Advantage: A Competency-Based Perspective. Academy of Management Review 19(4), 699–727.
Appendices
Appendix 1
Fig 1.Pay Knowledge Model Used To Determine Compensation
Application
Scale I
Position Skill Requirement
Check the boxes below and
indicate if by ticking (√) if you
can perform the listed duty
Scale II
Employee Knowledge
Indicate by ticking (√) if you have the following skills
Department of Marketing
Director Of Marketing
Manages the marketing
and sales of
products and services
that meet customer needs
and will make a positive
contribution to the company’s
Financial performance.
In conjunction with senior
management, establishes the
appropriate price guidelines
For company products and services.
Evaluates current marketing
strategy and recommends
new strategy to the executive
Committee when appropriate.
Prepares sales forecasts for
Each fiscal year.
Prepares a departmental budget.
Evaluates current policies, procedures
and practices.
In conjunction with the Human Resources
Department, responsible for selection,
evaluation, and coaching of regional
managers and for ensuring that all sales
Staff receives proper training.
Liaises with other Department
Managers to ensure that overall
Corporate objectives are being accomplished.
Provides support to top management
in identifying strategic issues and
Trends are affecting the company.
Posses a university
Commerce or Business Administration degree
(marketing)
Master of Business
Administration
(marketing)
At least ten years
of experience in
marketing/sales
of technologies
with atminimum of
five years in management
Field.
Ability to develop
, supervise, and
Coordinate workers.
Ability to handle conflict
Ofinterest in the
Organization. Surpass departmental duties.
Superb communication
Skills.Ability to solve
problem in the
Organization.
Can cooperate with
managers in the same
the line in the organization.
Department of human resources
Director Of Human Resources
Ensure the acquisition, training,
retention, and motivation of
personnel needed by the
company to achieve its
Corporate goals.
Evaluates HR plan and
Organization Design.
Recommendation of current
HR polices to the executive
committee when
appropriate.
Preparation of the budget in
Department.Selection,coaching,
and assesment of HR goup.
Evaluates currentpractices, procedures
and policies.
Ensure compensation expenditures
Are effectively deployed in
The company.
Develop a suitable compensation
And reward strategy. Supervises
Implementation of approved
Polices and strategy.
Helping other departments
in navigating through HR
Problems and issues
Providing assistance to
senior officials in selecting
strategic problems and trends
affecting the company.
Possesuniversity
Commerce or
Business Administration
Degree (human resources).
Master of Business
Administration in human resources and Certified
Human Resources
Professional
(CHRP) designation.
Experience of ten
years in HR capacity
and a minimum offive years
in management and
technology industry
Coordinate, supervise,
And develop workers.
Handle conflict of
interest among workers. Surpass department performance.
Source: Gerhart (2016)
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