Question

Part A-C I’ve completed. Just having difficulties with the final portion. This is based on a hospital setting.

Part A:

Analysis should reference sources of information for job analysis, job evaluation, pay design, and pay levels

Part B:

Students will conduct an analysis on the current state of the compensation system and address pay-for-performance and benefits. Reference should be made to individual and group incentives, performance appraisals, legally mandated benefits, options benefits, and benefit determination process.

Part C

conduct an analysis on the current state of the compensation system and address the compensation of special groups including executives, role of unions in compensating the employees, any international compensation, and any other extraordinarily compensation elements that impact this organization. Reference should be made to these different factors that impact the organization

Final

Since you will have researched the current compensation system in parts A - C, your final course project will be a plan that outlines your recommendations for each of the discussed elements (e.g. structure, benefits, etc.). For example, perhaps through your unit research you have discovered that your selected organization has some incredible variances in pay. You would include in your final project the suggested changes that you would recommend. These suggestions need to be supported with scholarly research. This is a great opportunity to evaluate the costs of compensation, compensation management, the different classifications of the workforce, etc.

Answer 1

At the outset, there is a lot of information that needs to be assumed for answering the final part of the question. For one, I don’t know what your findings in parts A to C are and hence it will be difficult for me to align it with final part. Anyway, I will attempt to give you a theoretical approach to ensure effective compensation in a hospital setting.

There are essentially two approaches to compensation management.

1. Traditional approach: This is more raw of the 2 approaches, wherein organizations assess the employees performance and also collects data from the market in terms of standard packages being offered. Based on the collation of these 2 data sets, compensation is offered.
2. Total Rewards Approach: In this approach, the stress is more on the individual and not entirely on the job description. Incentive plans, team bonuses and such components fall under this approach.

Strategic Compensation Planning

Paying wages that are too high might keep your employees happy; however prove to be a huge expense burden on the company books. The reverse could cause high attrition rates. Compensation disparity can spell similar doom for the proper functioning of an organization. Hence, compensation planning is a critical success factor for any business entity.

Traditional Compensation System

In the traditional style of pay design, it was assumed that people worked for money and that a person’s job does not have any other value associated with the employee. Under such a school of thought, besides monthly salaries, pension benefits were at best an additional feature that was offered.

New Age Compensation System

With the emergence of behavioral science theories and also a general evolution in industry dynamics, industry experts have realized that jobs can have other additional benefits for an employee as well (those that fall under social and psychological needs). The theorization of Maslow’s pyramid further strengthened this belief. With this, the following steps are generally taken to implement an effective compensation system.

1. Conduct salary surveys
2. Through job evaluation, determine the worthiness of each position
3. Group similar positions into pay grades
4. Price each pay grade using wave curves
5. Develop the wage structure
6. Frame wage administration rules
7. Employee appraisal