Foundation of a Compensation Strategy

Foundation of a Compensation Strategy

Introduction

Organizations are moving towards a dynamic, non-traditional, complex and environment-affected approach of doing business. Human resource is a competitive tool to work in a knowledge-based world. Inspiring human resource is the competitive tool and important source of an organization. In United States, the political-social-economic rift between socialism, capitalism, and communism has changed the pattern of income distribution.

Compensation Management is the performance-based remuneration system. It provides a sequential approach to recognize job requirements, employee knowledge and skills and performance related incentives for organization performance (Milkovich, 1987).

Discussion

Developing a Strategy

The foremost requirement for the organization ...