Compensation And Human Resource Management

2215 WordsSep 9, 20149 Pages
Compensation and Human Resource Management Introduction The Human Resources Division provides aid to planning required, retaining the flexibility to cope with unforeseen situations. There remains, however, understood that, within of its powers, each manager is also responsible for the preparation the resources necessary to establish the company. Having a vision, mission, objectives and clearly defined procedures are based and guidance for staff working in the company does the work (Armstrong & Taylor, 2014). There is a question that always comes up, and is: how do people produce more? How to motivate them to produce quality products and services in competitive response times? The answers to these questions are many, but the most…show more content…
This basic principle of balance between costs and ability to attract/ retain professionals is to guide the design of any system of compensation (Bryant & Allen, 2013). If a company strives to control costs based on continuously contain the wages of their workers encounter difficulties in making offers sufficiently attractive to potential candidates who want to incorporate. Furthermore, will risk the loss of valuable professional if the market moves that listed the higher wages for the same degree of responsibility and competence. Conversely, if a company continuously strives to raise wages by above the market certainly get easily attract good professionals very satisfied and will you have in the template, but eventually will be available at difficulty competing with their products and services on the market if their costs are significantly higher than those of its competitors (Seabury et al., 2011). An imbalance between the two factors, wage cost and attractiveness / retention still being in dangerous principle long-term competitiveness and survival of the company, may be desirable, however, at some stage in their evolutionary development. An example would be the company needs to enter an area geographical, in a mature market, and its implementation requires the hiring of local professionals (Canavan, 2014). The company will tend to offer more attractive wages may during the first years of implementation assuming of course that does not
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