functions of compensation
Functions of compensation
Fernández (2002) identifies four functions of compensation:
The compensations are an excellent way to keep together the goals and values of an organization with the motivation and performance of workers, because the compensation is a communication way between employees and the organization
If the compensation has a designed properly, this indicated that the company wants as a result the employees adjust the performance and the work, but if the work is rewarded.
The relationship between the organization´s goals, motivation and performance of individuals, linked by the compensations, it is the role of strategic alignment.
The design of compensation must guarantee the performance of people is directed to what the company expects, because the idea is to link performance with overall business strategy. It is essential to have performance indicators to replace subjective assessments and uninspiring effects on the motivation of individuals
Fernández (2002) identifies four functions of compensation:
- Strategic Alignment
The compensations are an excellent way to keep together the goals and values of an organization with the motivation and performance of workers, because the compensation is a communication way between employees and the organization
If the compensation has a designed properly, this indicated that the company wants as a result the employees adjust the performance and the work, but if the work is rewarded.
The relationship between the organization´s goals, motivation and performance of individuals, linked by the compensations, it is the role of strategic alignment.
- Internal Equity
- External competitiveness
- Performance Management
The design of compensation must guarantee the performance of people is directed to what the company expects, because the idea is to link performance with overall business strategy. It is essential to have performance indicators to replace subjective assessments and uninspiring effects on the motivation of individuals