Complications Of Compensation

In order to compare employee satisfaction by division (independent variable) and examine employee attitudes, we compared the mean differences between the following dependent variables: the Minnesota Satisfaction Questionnaire (MSQ), the pay satisfaction questionnaire (PSQ), Job Descriptive Index (JDI), the work itself (JDIW), supervisors (JDIS), Job Descriptive Index of Co-Workers (JDIC) and promotions (JDIPRO). Additional dependent variables regarding employees sentiments towards performance appraisal

Considering the information that has already been presented, one should know that employee satisfaction rates cause raised customer satisfaction. This is the main reason companies would feel the necessity to keep their own employee satisfaction at an above-average standard. In addition, there is a book by Dr. Noelle Nelson, an internationally respected psychologist, that refers to a specific example of employee satisfaction and company profit’s direct relationship. Nelson associates her overall claim (that companies can make more money by making their employees happy) with an Alcoa example. Alcoa is the world’s leading producer of aluminum. The company’s CEO, Paul O’Neil, decided his main focus for his employees was their safety. He did this because he had become aware that his employees’ main concern was work-related accidents. Before he had even attempted to improve the safety within the workplace, there had been one accident a week, per plant. After he had improved the working conditions, several of the plants went years with no accidents. However, this was not Nelson’s main point of her example. Her main point was that after O’Neil left the company just over ten years later, Alcoa’s annual income had increased by 500%. This real-world example illustrates the direct, proportional relationship between employee satisfaction and high

The challenges of an organization can influence the performance of an organization from a satisfaction with pay (Gomez-Mejia, Balkin, & Cardy, 2016, p. 296). The employee salary within an organization is a huge cause for turnover of employees (p. 296). First, the topic of employee salary is of great importance for the current and potential workforce (Lee & Lin, 2014, p. 1577). In addition, employees that have the perception on receiving lower compensation that others within their market will lack in performance and have a desire to leave the organization (p. 1577). In retrospect, the regular evaluation of compensation within the organization is vital to the reduction of employee turnover (p. 1577).

Organizations that are serious about making improvements are going to have to deal with the issue of job satisfaction. Job satisfaction can be best described as the positive feeling that an individual has about their job resulting from an evaluation of the job’s characteristics (Robbins & Judge, 2009, p.31). It would seem natural to think that job satisfaction would have a positive correlation with successful organizations. What impact does job satisfaction have on an organization? Research will show that there are not only internal effects from performance related issues, but also external effects that impact customer satisfaction.

A recent survey conducted by Mercer Consulting Firm found that salary is the reward component most profoundly appreciated by employees; however, just 55 percent are happy with what they earn. When employees believe, they are being paid short of what

After conducting a study of information gathered from their human resources ConAgra, discovered that salary is not one of the top items when it comes to job satisfaction, as a matter of fact compensation was not even among the top 10 items. Their discovery is comparable to

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

In the competitive market where corporations vie for customers, customer satisfaction is an integral element of the organizational business strategy. Wal-Mart customers’ satisfaction ratings have powerful effects on the organization’s bottom line. If Wal-Mart’s customer satisfaction rate drops, this tells the organization that there are problems in areas of the organization that affects the customer satisfaction rating. Wal-Mart will have to correct these problems to ensure the organization customer satisfaction rate improves. A drop in satisfaction ratings for the organization affects sales and profit. Wal-Mart always ensures that their customer satisfaction rating is high enough to keep current customers and to attract new customers. Customer satisfaction is the key element of Wal-Mart to exist in this modern day world of business with such a diverse society.

There are five major components of job satisfaction, one being monetary benefits (Ghillyer 2010). According to Ghillyer (2012) an employee’s behavior towards their pay may affect their work performance. The issue that arises with employee motivation is that management is unable to satisfy all (Ghillyer 2010). This becomes an even larger problem when employees being joining unions, resigning and being frequently absent (Ghillyer 2010).

After analyzing this organization, it is apparent to that job satisfaction should be a priority for management. Job satisfaction can be best understood as a positive emotional state resulting from a perceived satisfaction from one’s job (Locke & Lathan, 2007). Employee satisfaction is an important retention strategy based on the knowledge that a satisfied employee is more effective in completing their duties, more productive, and seldom contemplates alternative employment. Achieving a goal of a high employee satisfaction rate consist of implementing compensation and reward strategies mentioned prior. It should be emphasized that employees, regardless of industry respond in a positive manner to positive recognition. Positive recognition can be achieved with more than compensation and rewards. Creating an atmosphere where employees feel like their ideas and opinions matter can be just as effective as monetary and non-monetary rewards. A routinely exchange of ideas

Although research generally confirms that pay-for-performance plans can influence greater outcomes, it is unclear how effective different pay plans are relative to each other (Park, 2012). Like most things in business, compensation is something that requires evaluation, study, assessment, strategy, modeling and integration.  Achieving a pay for performance culture does not happen without paying attention to the behaviors, activities, rewards and motivations that have to be linked and reinforced through a well engineered and successfully executed process.  Actually if that process does not tie rewards to shareholder financial objectives, employ the proper mix of compensation elements, result in meaningful dollars, embrace performance that employees can impact and are effectively communicated and reinforced, then the results it produces will likely fall short (Vision Link Advisory Group, 2013).

Personal characteristics of workers also has an impact on job satisfaction. Job satisfaction increases age. Whites have greater job satisfaction than non-whites. The level of education is slightly negatively related to job satisfaction. If personal skills and abilities are not required by a job, job satisfaction decreases. When a person is more adjusted personally, they will be more satisfied with work. Most of all having a job with decent and fair wage may be the most important variable to job satisfaction. High job satisfaction is associated with low turnover and low absenteeism and with high commitment. Although the evidence is not conclusive, high job satisfaction is associated with high performance and prosocial behaviors.

In this essay, I will explore the relationship between the level of employee satisfaction and employee production. Firstly defining and explaining satisfaction and job performance as these variables are difficult to define, and a clear definition is critical for assessing the relationship between them. Secondly I will discuss some of the most significant studies in this area of research. I will then analyse various factors which determine the correlation between these two variables, focusing on the attitude-behaviour relationship as this gives an insight into how a higher level of satisfaction may link to greater production. Finally I will look into a set of different models which propose variations to the job satisfaction-performance

To understand the concept of job satisfaction the research has identified two aspects of it, they are, the facets satisfaction and overall satisfaction (Cherrington,1994; Fields, 2002). Individuals can be satisfied or dissatisfied with their overall job (Ironson, Smith, Brannick, Gibson, & Paul, 1989) and with specific job facets, such as the level of pay, promotion opportunities, co-workers, working conditions and supervision, contingent rewards, benefits, nature of work, or communication (Spector, 1997; Locke, 1976; Smith, Kendall & Hulin, 1969). The evidence shows that distinctive job facets such as pay satisfaction, opportunities for promotion, relationships with co-workers and supervisors have significant effects on job satisfaction (Ting, 1997; Ellickson & Logsdon, 2002; Pohlmann; 1999). The overall satisfaction is considered in terms of good salary, compassionate supervisors and co-operative co-workers. Conversely, the job dissatisfaction derives for instance form low pay or incompetent supervisors. Therefore, the feeling of overall satisfaction or dissatisfaction depends on the intensity and frequency of positive and negative experiences with job (Cherrington, 1994; Ironson, Smith, Brannick, Gibson, & Paul,

In order for the service employee to deliver on the customer’s expectations, the company (or management) must provide the necessary resources to fulfill the duties of the job. The success of the firm is also supported by the internal customers, also known as employees, and the satisfaction of these employees can influence the service encounters with external customers (Gremler, Bitner & Evans, 1994). It is imperative that management of the company delivers to the expectations of the employees in order to fulfill business goals and objectives.