Minimum Wage in the United States Compensation is an important human resource management function in all organizations. Therefore, it is necessary to examine the effects of the recent minimum wage reforms on the workforce. There has been a call through grassroots movements for minimum wage reform across the United States. However, the opponents of this movement are wary of its effects on business as a whole, the economy, and other human resource functions, such as work schedule arrangements and other benefits.
To begin with, it is necessary to establish that employee compensation impacts both the management of employees and organizational effectiveness. Employee compensation is a tool aimed at improving organizational effectiveness by focusing on employee motivations and worker productivity. As described by Maslow’s Hierarchy of Needs, employees have an inherent desire for their physiological and safety needs to be fulfilled. This includes financial security, which is one of the most influential factors in individual’s motivations to work. Furthermore, individuals whose security needs is fulfilled are more likely to be a more productive worker. Therefore, it is necessary that these needs be fulfilled so workers can focus on their specific job duties. However, fair compensation does not ensure that an employee will be the most efficient worker. This is asserted in the Theory X and Theory Y, where there are two different employees that have different approaches to work.
To begin with, it is necessary to establish that employee compensation impacts both the management of employees and organizational effectiveness. Employee compensation is a tool aimed at improving organizational effectiveness by focusing on employee motivations and worker productivity. As described by Maslow’s Hierarchy of Needs, employees have an inherent desire for their physiological and safety needs to be fulfilled. This includes financial security, which is one of the most influential factors in individual’s motivations to work. Furthermore, individuals whose security needs is fulfilled are more likely to be a more productive worker. Therefore, it is necessary that these needs be fulfilled so workers can focus on their specific job duties. However, fair compensation does not ensure that an employee will be the most efficient worker. This is asserted in the Theory X and Theory Y, where there are two different employees that have different approaches to work.