(Student’s Name)
1. The four main objectives of a pay model are Efficiency, Fairness, Compliance and Ethics. These objectives facilitate the adherence to basic standards in relation to organizational performance, employee costs, behaviors and attitude, and the rules and regulations. Also, the internal, external and employee equity are the main areas of concern of a pay model.
2. Total compensation can be understood as all the costs that the company incurs to compensate its employees. The key objectives in arriving at total compensation are base pay, performance pay, intrinsic and extrinsic rewards and merit pay.
3. An organizational strategy which is in proper alignment of the compensation programs of the company enables the employees perform at their best and stick to the organization for a longer time.
4. Compensation should lead to a positive change in the employees. It should be rewarding enough so as to ensure the feeling of responsibility among the employees towards the organization. The compensation should not be dissatisfactory which could make the employees consider other organizations to work for.
5. Pay structure depicts the various heads under which the entire compensation is segregated. The key components include fixed composition, variable composition and deferred composition.
6. Job analysis is carried out with a view to identify the job duties and responsibilities in detail. The methods for job analysis include observation, interview, activity logs, questionnaire, etc.
7. The organizations can have their own benchmarks which to differentiate between levels. Such benchmark considers the similar pay structures offered in similar industries for similar employment standards.
8. The key stakeholders with the compensation decisions are employees, managerial staff and the organization itself. As the depending upon the satisfaction derived from the compensation, the employees would offer their loyalties and render services to their supervisors and to the organization.
1. Belcourt, Monica. (1999). Managing Human Resources: Second Canadian Edition. Toronto: Thomson Nelson.
