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Primary Components of Compensation Management

In: Business and Management

Submitted By dllawhorn
Words 1709
Pages 7
Primary Components of Compensation Management
By: Desteni Lawhorn
HR434 Compensation Management
Park University
Submitted: April 24, 2011

Too much focus on trends and hot topics. Not enough focus on customizing programs and processes to address real needs. People have programs looking for an application rather than analyzing the issue and then determining what's the best program or process. Too many start at the end and work toward the beginning. Logically they should start at the beginning.
-Bruce Ellig Compensation management is more than just remuneration to appeal or retain capable employees, it is the leverage an organization utilizes to obtain, and retain its human capital and provide competitive positions within the organization. Recently, Human Resource departments have focused on the latest compensation trends or are geared toward rewards without merit, relevance or fit. This is a common mistake as compensation management should be focused on primary components of job analysis, pay structure and salary surveys. Human Resource departments must apply these fundamentals in the compensation management system in order to integrate well in an organization. Compensation management affords an organization the ability to reward superior execution and maintain the top employees in a particular field that contribute to the overall success and profitability of an organization. Through utilization of the basic fundamentals, organizations can visibly assess the employee’s performance and make compensation decisions that benefit both employee and employer. According to Richard Henderson’s 10th edition Compensation Management in a Knowledge Based World, “Job analysis is the process of carefully observing and appraising a job and then recording the details of the work performed.” It is important to remember that job analysis analyzes the job and not the...

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