Reflection on Pay Model and Compensation Strategy (Article Sample)

PERSONAL REFLECTION ON COMPENSATION
STUDENT NAME:
STUDENT ID:
DATE:
REFLECTION ON PAY MODEL AND COMPENSATION STRATEGY
Throughout the course I was able grip a lot of issues. I can now be able to make effective use of the pay model in practice. As alleged by Bloom & Michel (2002) pay model advances and helps assess compensation. The described compensation as the financial and tangible gains both cash and non-cash that employees get as part of their employment. They assessed it form a policy perspective, technique, and objectives. Form their work I have been able to gain a deeper understanding of compensation. I now know that the main objective has been to ensure improved efficiency, as well as fairness. The management on realisation of the high agency costs that employees have to undergo, the compensate them. Although they cannot be able to offer enough compensation, rewards are an important motivator. According to Wowak & Hambrick (2010) compensation need to be made attractive. It needs to be embraced by all employees so that they can appreciate it. I realised that through the package, the firms will have to undergo through a heavy cost. But they are able to leap more since the employee are motivate thus increasing their productivity. They get more conscious of quality which has an advantage to the company. Most firms have offered compensation in form of salaries, commission, bonuses, benefits, stock options and merit pays. This compensation packages in most cases are combined and none is offered as a stand-alone in most firms. Form this I learnt that firms need to assess the most efficient way of releasing a compensation package that leaps highest benefits.
Getting deeper into the issue of compensation. We now shift gears to looking at the compensation strategy. According to Wowak & Hambrick (2010) a strategy gives direction to a firm as it carries all the plans that need to be achieved within a given time period. I learnt that “failure to plan is planning to fail” is a practical saying. Since no firm is started with an objective to fail or lose all its employees to other, they all plan to endure the difficulties and thus succeed. This gave meaning to what a compensation strategy really meant. To me it is a plan that carries all actions that need to be undertaken to enable a firm succeed in retaining its employees. It is also a resource management tool since no wastages will be allowed. People will work within the time frames provided, and this to me is what I would call efficiency. Different units will have goals to achieve, and together will achieve the corporate goal. To me this appears like a road map to success, as well as achievement of strategic goals. For achievement, a compensation systems need to be put in place. Employees need to be sensitized and customers need to get quality. From my understanding the strategy will give direction to the kind of compensation that is best. Ability, motivation, and opportunities, can all be realised through an efficient working plan. Proper compensation need to be put in place. The best plan need to add value to the firm and needs to be competitive. To me this would be a plan of increased employee retention, and motivation to work.
REFLECTION ON JOB ANALYSIS AND DEFINING INTERNAL ALIGNMENT
According to Qi et.al (2008) internal alignment works within an organisation where employees evaluate the work of other employees who are to be compensated for their level of commitment. With this am left thinking of what would happen if employees are jealous if each other, or when others don’t carefully assess the work of others. But come to think of it, employees know each other much more, and thus can easily identify each other capabilities more easily. I think that having a good evaluation structure is key so that a firm can reduce the impact of personal interests. It is important to asses both internal and external factors. This way a best compensation plan can evolve. I realise that a compensation plan should not only stress o employee motivation, but should also put the interest of the firm at heart. According to the pestle model by Pelham (2002) a firm should assess all factors and the business environment to ensure that the compensation plan is sustainable. I have learnt that internal alignment is an important facet to the compensation plan that would be offered to employees. I thus think it is important to have an alignment that is effective and that not only lead to employees satisfaction, but one that ensures fairness and achievement of a firm’s objectives.
Shifting gears to job analysis, I have learnt that analysing jobs is crucial to development of a good compensation package. According to Harvey (1991) job analysis starting from its description and specification is important. I take this as the best formula towards reducing agency conflict between the management and employees. Bringing to the table all necessary information to defining all aspects of the job, will help identify all aspects and necessities to describing a good compensation