Visioning before strategizing

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Running head: VISIONING BEFORE STRATEGIZING

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VISIONING BEFORE STRATEGIZING

Visioning Before Strategizing

Khanh K. Nguyen

Capella University

September 25, 2019

Visioning Before Strategizing

Compensation is one of the most sensitive and crucial aspect of human resource management since adequacy or inadequacy has the capacity to either affect the company positively or negatively, the competitiveness of the company as a result of higher attrition rates, low commitment. Business premises and companies use compensation strategy as a tool for defining and managing their employee’s benefits and payments. Compensation is used as a tool of motivating the employees and it also attracts new employees. It includes all aspects of benefits of employee and should not be taken as a mere salary.it covers retirement benefits, health benefits and all bonuses. For new staff in a company, here are several principles which I will use as a human resource manager as a guide in compensation strategy. This paper will briefly explore a few of the compensation principles which can be applied by new companies which wishes to success.

The first compensation principle which I will use for a new company is the Internal and external equity. This principle requires that companies should pay their employees a compensation which is at least comparable to their competitors or the standards of the industry. This is referred to as external equity. (Aquila & Rice,2017). The second compensation principle which I will use in a new company is Performance orientation, this principle requires that compensation must be in commensuration with organization and individual performance. Performance linkage is important for creation of a work culture which is driven by performance (Shapiro, 2016). Markets usually change each and every time. Performing routine audits on salary will be of great importance in ensuring that salary ranges in a company reflect timely compensation trends. Auditing will determine how competitive our job is compared to other job and what the job market demand.it is paramount to keep a check in the changes trending of the markets. Failing to check the markets and keep up with the competition will make employee loss their value in the job market.

Having performance system

Having a well-structured performance record is important in such a way that it ensures that the employees in the company meet the corporate objectives and they can be evaluated on regular basis. This evaluation will make sure that the employees are highly competitive. This will paint a good image of our company (Prentice,2018).

The last compensation principle which I will use for a new company is Fostering employee development, this principle requires that compensation must be able to motivate employees to acquire, sharpen and also develop their skills as well as their competencies in conjunction with organizational requirements, innovations as well as changing technology.

References

Aquila, A. J., & Rice, C. L. (2017). Compensation as a Strategic Asset: The New Paradigm. John Wiley & Sons.

Prentice, R. (2018). Workers’ right to compensation after garment factory disasters: making rights a reality.

Shapiro, B. (2016). Using traditional narratives and other narrative devices to enact humanizing business practices. Journal of Business Ethics, 139(1), 1-19.