Course Project Week 7

1933 Words May 8th, 2014 8 Pages
Course Project Week 7

By

Christina Johnson and Kenna Grace and Tonnet Slan

Presented to

Dr. Glenn Palmer
Compensation and Benefits

|Bank of America: |April 20, 2014 |

What is Compensation?

“Compensation represents both the intrinsic and extrinsic rewards employees receive for performing their jobs.” Martocchio, J.J. (2013) A Human Resource Management Approach. Compensation as most know is the hourly or annually paid. Compensation consist more of just hourly or annually pay. Organizations create monetary compensation process to reward their employees for their job performance. Monetary compensation is the core of
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Google has a pay for performance strategy. When utilizing the pay for performance program it should reflect: what fuels individual performance, what links individual performance and organizational performance, and how to effectively use performance goals to achieve short-term successes and long-term objectives while managing risk.

Fueling Individual Performance

Although the "pay" in "pay for performance" can refer to any of the more traditional components of reward programs, the organization should look beyond its current forms of compensation and consider whether additional approaches might work best in the long term.

Regardless of the diverse composition of the workforce today -- in experience levels, gender, location, work style, or any number of variables -- a solid understanding of what launches top-flight individual contributions will be essential to developing an effective pay-for-performance strategy.

Rewards that Resonate

To strike the right balance, leaders need to understand the behaviors of each employee group responsible for creating or preserving organizational value and use that knowledge to develop reward programs that encourage those behaviors.

Enhancing Performance while Reducing Risk

A performance-funded plan is an effective way to make sure that monies will be available to recognize employee achievement. This kind of funding mechanism can serve as an operational self-fulfilling prophecy