Discussion 1:  Discuss the general goals of an organization’s compensation system, including how a compensation strategy works to support the organization’s business strategy.  Respond to at least two

Discussion 1: Discuss the general goals of an organization’s compensation system, including how a compensation strategy works to support the organization’s business strategy. Respond to at least two of your fellow students’ postings.

Respond to two classmate’s post

Classmate 1 post: The general goal of an organization’s compensation system is to motivate employees, attract the best employees, and to retain the employees best suited for a specific fob or task. The compensation system also helps an organization to stay in compliance with the pay laws that was set forth by government. In today’s work environment many individuals are wanting to work in an organization that will compensate them for the job duties or task that they are performing within the organization. Many compensations systems include both the intrinsic and extrinsic rewards that an employee can receive for performing certain duties or task according to their effort to achieve the duty or task, the skill that they have to do the duty or task, and the responsibility they have in the organization. The business strategy in an organization involves working with the Human Resource department in order to help develop a compensation plan that will bring in the right employees. Also the business strategy works with the Human Resource department by helping the organization to grow with an effective compensation system. Organizations offer compensation in order to retain the right individuals for employment, this is a very intense system. Organizations must develop a compensation system that is much better than their competitors.

Reference

Martocchio, J.J. (2017). Strategic compensation: A human resource management approach (9th ed.). Retrieved from htttppss://content.ashfordedward

Classmate 2 post:

An organization’s compensation system is made up of both intrinsic and extrinsic rewards that employees get for performing their job and for the membership as employees (Martocchio, 2017, Section 1.1). While intrinsic rewards are important (which come from a personal feeling of satisfaction and believing your job matters), compensation professionals tend to focus more on the extrinsic aspects that center around monetary (pay) and non-monetary (ie. benefits) rewards (Martocchio, 2017, Section 1.1). Ultimately, the goal of the compensation system is to provide a total compensation package, both monetary and non-monetary, that attracts and keeps top talent while also allowing the business to remain competitive.

Over time, the compensation strategy has worked to support the organization’s business strategy as well. The business strategy refers to the “planned use of company resources – financial capital, equipment capital and human capital – to promote and sustain competitive advantage” (Martocchio, 2017, Section 1.1). Of these resources, HR, and therefore compensation specialists, focus on the human capital aspects, which are the employees within the company. Compensation professionals support the business strategy by integrating the goals of compensation with the goals of the organization and seeks to add value by expanding both its strategy and high-level corporate participation (Martocchio, 2017, Section 1.2). What this means is that the plan and structure in which employees are compensated for their work must be in line with the overall organization and goals and must work to support the goals. For example, if a company claims to be the leader or best at something, the compensation plan needs to be able to support his as well otherwise the highly-skilled employees that are required to support this statement may look elsewhere, which will impact the company’s ability to remain competitive.

Martocchio, J.J. (2017). Strategic compensation: A human resource management approach (9th ed.) [Electronic version]. Retrieved from htttppss://content.ashfordedward

Discussion Two: Discuss the various factors that influence a company’s competitive strategies an…