Assignment 1.B.1 Identify the multiple stakeholders of the compensation system who are also those of the total rewards system, as indicated by Martocchio. Do you agree with the list? Expand on your reasons for your stand on this issue. Martocchio identifies five stakeholders of the compensation system and they are: employees, line managers, executives, unions and U.S. government. Line managers and executives will have their own pay directly affected by the compensation system. HR, and compensation professionals, provides important services to each of these stakeholders. Employees will work with compensation professionals to gain information on required training to advance to the next pay scale. Line managers should know how to properly complete performance evaluation of subordinates in order to pay them appropriately. Executives are employees and managers and also create the pay and benefit systems. For compensation professionals communicating and upholding different types of extrinsic compensation models that benefits both employee and organization is a very critical. Involvement with line managers would be another frequent activity; advising them of important compensations laws as well as suggesting ways to keep their employees motivated. I agree with the list suggested by Martocchio, and I would want to add shareholders of the company to the list. The shareholders of any company take maximum amount of risk by investing their money in the company. But shareholders get the dividend only in the event company makes profit every quarter. Hence some pay structure could be devised even for the shareholders. Source: Martocchio, J. J. (2013). Strategic Compensation. Upper Saddle River: Prentice Hall.
Assignment 1.B.1Identify the multiple stakeholders of the
compensation system who are also those of the total rewards system,
as indicated by Martocchio.Do you agree with the list? Expand on
your reasons for your stand on this issue.Martocchio identifies
five stakeholders of the compensation system and they are:
employees, line managers, executives, unions and U.S. government.
Line managers and executives will have their own pay directly
affected by the compensation system. HR, and compensation
professionals, provides important services to each of these
stakeholders. Employees will work with compensation professionals
to gain information on required training to advance to the next pay
scale. Line managers should know how to properly complete
performance evaluation of subordinates in order to pay them
appropriately. Executives are employees and managers and also
create the pay and benefit systems. For compensation professionals
communicating and upholding different types of extrinsic
compensation models that benefits both employee and organization is
a very critical. Involvement with line managers would be another
frequent activity; advising them of important compensations laws as
well as suggesting ways to keep their employees motivated. I agree
with the list suggested by Martocchio, and I would want to add
shareholders of the company to the list. The shareholders of any
company take maximum amount of risk by investing their money in the
company. But shareholders get the dividend only in the event
company makes profit every quarter. Hence some pay structure could
be devised even for the shareholders.Source: Martocchio, J. J.
(2013).Strategic Compensation.Upper Saddle River: Prentice
Hall.
