Sign In
Not register? Register Now!
Essay Available:
Pages:
1 page/≈275 words
Sources:
1 Source
Level:
APA
Subject:
Business & Marketing
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 4.32
Topic:

The Continuum of Compensation Philosophies (Essay Sample)

Instructions:
describe the two ends of the continuum of compensation philosophies - entitlement and pay for performance. What are the advantages and disadvantages of each? Which of the two does your organization's strategies most resemble? source..
Content:

HUMAN RESOURCES: THE CONTINUUM OF COMPENSATION PHILOSOPHIES
Name:
Grade Course:
Tutor’s Name:
(01, October, 2010)

The Continuum of Compensation Philosophies.
Introduction
The continuum for compensation philosophy has two ends that most compensation lie, these are the entitlement philosophy and the pay for performance philosophy.
Entitlement Philosophy
The entitlement philosophy forms the beginning of the continuum. It makes an assumption that individuals that have worked for another year have an entitlement to a pay increase, this is without the consideration for the differences in performance .The employees of the organizations that have effected this philosophy receive automatic increases every year, these automatic yearly increases are termed as cost of living raises. However, these benefits are not tied to economic indicators and most of the organizations give the same percentage increases to their employees every year. The employees normally expect the bonuses to be a form of an entitlement since many of the organizations that are entitlement oriented are determined without a consideration of the operating results.
Pay for Performance Philosophy
This philosophy is based on the requirement that performance differences determine the level of compensation. The employees of the organizations that practice this philosophy are not entitled to yearly increases in the pay. The payment and the incentives are structured in way that they reflect the performance differences. Organizations that have effected this philosophy ensures that employees that have high performance standards have advancement in their compensation levels compared to the marginal performers. Group or individual performance determines the bonuses and incentives.
The advantage of the entitlement philosophy is that it leads to a stable work force. It has the disadvantage where it leads to low production levels. The pay f...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:

Other Topics:

  • Optional Benefits
    Description: The employees expect the benefits of social security and medical care. The majority of the employees are concerned about their future life during old age....
    1 page/≈275 words | 1 Source | APA | Business & Marketing | Essay |
  • Internship Programs at Marketing Plus
    Description: Internship Programs at Marketing Plus BUS 303 week 2 case. Dick Elders, CEO Marketing Plus Business and Marketing Essay...
    2 pages/≈550 words | 4 Sources | APA | Business & Marketing | Essay |
  • Leadership Skills and Group Management
    Description: The leader and the team members united give a clear indication that the leader and the style of leadership are effective...
    3 pages/≈825 words | 3 Sources | APA | Business & Marketing | Essay |
Need a Plagiarism Free Essay?
Submit your instructions!