The organizational structures operate with the help of establishing effective and efficient social exchanges with the employees who will have major responsibility of running the business well into the future, and both of the parties have to enjoy mutually constructed satisfaction and happiness from the resultant agreement of the employment (Agrawal, 2009). The companies bear certain risks when they have to hire newbie, and therefore, they have to keep the average wage rate of the similar jobs in other organizations in view, and the candidate’s specific professional experience would receive proper weight in this regard as well (Tinker, Merino & Neimark, 2010). The companies have to balance the importance and value of the job to the cause of prolonging its strategic survival, and all of the factors discussed in the preceding section of the report would integrate themselves in order to create a viable job offering that will evaluate various economic and professional aspects of the deal (JordaÌfo & Emilio, 2010). However, the managers have to analyze the ethical side of the employment contract in order to create increasing sense of contentment in the workforce, and with the passage of time, the managers’ attitudes towards the underlying organizational ranks have come under academic microscope, and the strategic leadership has acted quite severely towards those officers whose behaviors led people towards leaving.
Background and Objectives
The human resource management is emerging as a multidimensional concept, and therefore, managers have to take into different subscales of the construct so that they can manage the compensational side of the organizations effectively. This study will use Maslow’s Theory of Needs in order to identify various professional requirements of the employees. The investigative effort would apply sophisticated method of detailed literature review, and the key findings would be summarized in the later section of conclusion. However, this paper could not have decided to use quantitative methods because there is a pile of academic resources available those this work has analyzed in order to guide human resource managers about the techniques those they can use to enhance their professional effectiveness to say the least.
The application of strategic management in the context of human resources is necessary, and therefore, the relevant managers have to select people who have personalities those can align with the organizational goals and objectives. The companies have to take care of familial, social and monetary needs of the human resources in order to create heightening levels of organizational commitment in their minds.
The shared and participative management is a unique and proven method of motivating the workforce because the element of teamwork would cause the managers to work alongside with the underlying ranks, and the mental energy would flow from top to middle management and then, the plans start to develop into the shapes of tangible realities both in financial and strategic terms. According to Steve Jobs, the managers have to consider collective competency levels of the workforce as a real and traditional source of competitive advantage, and the learning companies will ensure their survival at strategic grounds because they will keep on moving from one commercial product development to another while the competitors will continue to catch their breath every now and then.
The study will review the existing literature on compensation in order to offer the readers with congested conclusion at a later stage.
In the given set of circumstances, the companies have to posses people who do not face and create difficulties while working in the teams, and the modern employees are not only seeking lucrative job opportunities in financial terms, but they have to see the degree of enjoyability that they can derive from the potential performance of their intended organizational roles.
The managers have to entertain nonmonetary needs of the workers as well, and they have to offer profit sharing regimes so that the workers cannot have the reason to think of themselves as slaves who are working in order to enrich strategically distant stakeholders. On the other hand, the latest version of organizations has to promote the people by keeping their competency levels in view, and one wrong decision in this regard would create a jolting effect that the managers would not be able to control (Luetge & Jauernig, 2014). The prevalence of bitter emotions such as jealousy, anger, and disappointment would create problems such as theft and dishonesty on the workplace. In other words, the companies have to take and sponsor measurable steps in order to prevent the workers from going through the feeling of psychological contract breach, and the human resource management department has to fulfill the promised mental goods to the workers so that they cannot have the feeling of despair.
The companies have to hire an onboard counselor who can intervene on a timely basis in order to cause psychological issues to wither away from the mental screens of the workforce. The family conflicts and issues have an overwhelming ability to interfere with one’s professional capabilities, and therefore, the managers have to confront an importability of mental services as a formal organizational department. The compensation as a concept evolved into a multidimensional one with physical and psychological magnitudes, and therefore, the management cannot possibly escape the reality that would feature ever demanding employees because they have realized their nature as a set of internal stakeholders, and they have to value medical pose of their roles in the organization, and therefore, the managements have to follow OSHA’s formally established rules and regulations those deal with the biomedical quality of the workplace, and the human resource managers have to ensure that the employees have received additional pay against the work they performed in a hazardous environment. In addition, the companies have to integrate risk management in the due process of establishing compensation for a specific role in the organization. The management has to revisit the strategic importance of the jobs while going through a significant change that the external environment is imposing on the business, and the companies have to proportionately cut salaries in order to readjust the cost structures.
However, the management has to offer bonuses based on the individual performance of the relevant employee, and the basic pay scale will not be disturbed in this regard, but the provision of the bonuses will experience changes according to the quality of recent roles of the employees in the creation of profits both in short and long term perspectives. The companies do not have the option to tease the workers a great deal because this may lead to heightening levels of turnover in the organizations, and the managers have to act proactively in order to continue to offer meaningful rewards so that the organizational commitment in the workforce can receive an adequate level of stimulation.
The managers have to hinder the development of too much confidence in the employees because under the influence of such a powerful inventory, the workers will develop an urge to have their own businesses, and the company will initiate to lose participants in the abovementioned scenario as well.
The art and science of compensation management is not a simplistic one, and therefore, the leaders have to remain awake to the dynamically changing needs of the employment. This study is inclining towards establishing the need for every type of the commercial entity in the world to have a culture that leading technological companies such as Microsoft and Google have. Human dimension of the organizational science have to practice creativity in order to guide the process of economic development, and therefore, the creative thinking needs an informal and unrestricted social climate that should have a profound characteristic of teamwork present within the organizations so that the managers and employees can work together in order to have new and unconventional products at their hands to sell.
The compensation is nothing more than a means to have people working for a certain fiscally active collective that develops products and services those the masses buy in order to have value, and every action in the process of manufacturing would be performed by humans, and their efforts will create financial performance of each department. The inspirational strength of leaders will play a significant role in terms of motivating people in the direction of prolonging their relations with the employer, and the personality of Steve Jobs had that effect on the people who did not have the courage to leave one of the great managers in the world, but the senior employees had to take the way out after witnessing the death of the founder of the most innovative company ever built on the face of Earth. On the other hand, human development is a source that creates base for organizational one, and according to Steve Jobs, he had people who worked day in and day out to create a temporary competitive advantage, and the professional engagement of the humans working at the company revalidated the edge over the competitors repeatedly, and Apple thrived by creating and selling differentiated products and services so the compensational regime has all the aspects those Maslow’s theory of needs discusses. The employees require having money in order to meet their basic consumer wants, and they also have a social circle, and finally, they seek to fulfill higher purpose during their lives as well. The company has to entertain every angle of compensation so that the employees cannot find a reason to leave, and they will at one time posses the urge to have their own organization, and the managers have the ethical duty to let the dreamers go.
This paper has considered and proven the concept of compensation as a multidimensional one, and therefore, human resource manager has to take care of each relevant area in order to develop an effective compensational plan and implement that across the entire organizational system. The employees’ efforts should have a visible balance with the monetary benefit they receive from the companies. Secondly, the workers have socialization needs those can only be fulfilled if they have the opportunity to engage alongside with their leaders. Thirdly, the workers have to get promotions on timely basis, and they have to have challenging jobs in order to avoid boredom at work. The concerned manager has to take all of the abovementioned factors into account before deciding on compensational levels of various roles.
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