Rwt1 Essay

3261 Words Sep 17th, 2014 14 Pages
Business Research Report
Compensation Systems

Assessment Code: RWT1
Student Name: Diane Smith
Student ID: 337372
Date: October 7, 2013
Mentor Name: Christina Wright

Table of Contents
Executive Summary 3
Introduction 4
Research Findings 5
Finding Number 1 5
Finding Number 2 6
Finding Number 3 7
Recommendations 8
Conclusion 9
References 10

Executive Summary Compensation represents monetary pay for performance. It is a very important component to our manufacturing company’s Human Resource system. Our 120 employees are the heart of our business. We depend on their knowledge to help our company reach its goals. Therefore, we researched a variety of compensation strategies, which you will read below, that
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There are many ways to motivate individuals within the work place. Raising their base salary does not always equate to higher motivation and increased productivity. Fair compensation should address the intrinsic and extrinsic needs of employees. Intrinsic is the psychological part of wages. When employees perform their jobs they want to be recognized and acknowledged for their contributions to the company. This does not necessarily mean higher wages. We need to find a structure that rewards employees according to their contribution. We are looking for a compensation structure that will motivate employees. When employees are motivated they tend to behavior in a manner that is more productive (Cummings, 1978 pp 90-98). Then, there is extrinsic part of compensation which does include monetary rewards. While this is important, it must be distributed based on many factors. This research will find solutions that will benefit our business and the employees. Secondly, this research will help us create a compensation program that will be competitive in our industry and reduce turnover. Toyota states that before they build cars, they build people. To achieve this you must have groups that share the company goals, make sure team members goals are aligned, the measurements are fair to all, hold the members of a team accountable for their results, and provide recognition. (Wilder, 2012)

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