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Advantages of Fair Compensation System

 

Advantages of Fair Compensation System:

 

A fair compensation system is a must for every business organization. The fair compensation system will help in the following:

If an ideal compensation system is designed, it will have positive impact on the efficiency and results produced by workmen.

Such system will encourage the normal worker to perform better and achieve the standards fixed.

this system will encourage the process of job evaluation. It will also help in setting up an ideal job evaluation, which will have transparency, and the standards fixing would be more realistic and achievable.

Such a system would be well defined and uniform. It will be apply to all the levels of the organization as a general system.

The system would be simple and flexible so that every worker/recipient would be able to compute his own compensation receivable.

Such system would be easy to implement, so that  it would not penalize the workers for the reasons beyond their control and would not result in exploitation of workers.

It will raise the morale, efficiency and cooperation among the workers. It, being just and fair would provide satisfaction to the workers.

Such system would help management in complying with the various labor acts.

Such system  would also bring about amicable settlement of disputes  between the workmen union and management.

The system would embody itself the principle of equal work equal wages. Encouragement for those who perform better and opportunities for those who wish to excel.

    

 

 References

 

Armstrong, Reilly, P, & Brown D, (2011),”increasing the effectiveness of reward

management,” Employee Relations, Emerald Group, (33), 2, 106-120.

 

Bourne,M, kennerley,M, & santos,F,M, (2005), “ managing through measures a study of

impact on performance,” Journal of Manufacturing Technology Management, (16) 4, 373-

395.

 

Helgesen, O, nest, E, & volsund, T,(2008),” Marketing perceptions and business performance

implication for marketing education, Marketing Intelligence & Plannin, (27) 1, 25-47.

International Letters of Social and Humanistic Sciences Vol. 52 103

 

 


Comments

  1. Anushka JayasekaraJanuary 27, 2021 at 8:28 PM

    Having a clear compensation system will help an organization to decide the best use for its compensation funds.

    ReplyDelete
  2. Ganga PathirajaJanuary 30, 2021 at 8:15 PM

    Clear understanding and awareness about the compensation system would be an advantageous factor for employees before arising any legal situation.

    ReplyDelete

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