Generally there are three forms of profit sharing plans that are cash plans, deferred plans and third one is the mix of both cash and deferred plans. (Coates, 1991, p
Since, in traditional plan the benefits are accumulated from the start of the job whereas in cash balance plan the benefits are counted for the current year so the employees might lose their previous profits. (Elliott, Kenneth & Moore, 2000, pp
5- Job Feedback refers to the organizational procedure of letting employees informed about their performance at job regularly. (Hackman & Oldham, 1976, p
Jack will also have to discuss the pay policies with Harold and Emily so that to design the job's pay structure accordingly. (Morrow, 2012) For the post of scientists, Jack will have to survey the markets that how much are the competitors paying at this position
Like if the plan bears loss, still an employer has to pay to the employee. (Moukawsher & Walsh, LLC
Hewitt Associates Research found that the double digit earning companies have more number of committed employees as compared to the other lower earning companies. (Paths, 2004) Family and Work Institute's National Study of the Changing workforce showed the results that the employees who are facilitated with flexible work schedules are more engaged in their work and ready to work dedicatedly any time they are required at job
Though there are countries where cost of living is lower than the home country but still increase in the base pay is to be made. (Sims & Schraeder, 2004) When an employee moves to another country along with the family then a manager must consider the needs of the family
It becomes difficult for the company to manage the individual profits regularly. (Watson, 2000) 4A
Compensation Management Organizations can also effectively develop when strategic and tactical compensation issues are adequately addressed by the management. An organization's management has to recognize and integrate long-term strategic objectives with short-term tactical requirements (Henderson, 2006)
It is therefore the prerogative of corporations to pay income taxes to keep federal governments running. Failing to do so can possibly put an organization at crossroads with tax collecting agencies like the Internal Revenue Services (IRS) which may jeopardize an organization's operations (Peck, 1982)
However, it is very difficult to measure with precision the degree of satisfaction people get from any work related activity they engage in. In order to motivate employees who work exceptionally well, employers may device some forms of monetary rewards that are given in appreciation of their hard work (Gomez-Mejia & Balken, 1992)
Compensation system has eight dimensions whose components help in understanding and appreciating the complexity of the system in a modern organization. The first dimension: pay for work and performance, includes money that is provided in the short-term that allows employers to pay for and contract for payment of desired goods and services (Henderson, 2006)
If a worker is being paid less than others who are doing the same work, it may be seen as unfair. The equity assessment process is complex, it is not only the work itself that is considered, other influencing factors are also considered, where aspects such as seniority, qualifications, experience and competency are also included in the internal equity assessment (Adams, 1965)
Employees that are satisfied are likely to demonstrate a number of positive behavioral characteristics, compared to employees with a lower level of satisfaction, including a high level of productivity and great commitment to their employer. There are many influences on job satisfaction, and models such as Maslow's hierarchy of needs and Hetzberg's hygiene factors, indicate that pay satisfaction is a key component, and while money alone may not always be a motivator, it has the potential to undermine the employment relationship if an employee does not see the amount they are paid as being fair (Buchanan and Huczynski, 2010)
Where employees feel they are being paid fairly, other factors may be used to motivate improve performance and job satisfaction, but if an employee feels they are not being treated fairly, the potential to create job satisfaction in other ways is severely limited. When employees assess the pay their receiving a key aspect will be that of fairness (Henderson, 2006)