Saturday, 8 December 2012

Web Based Compensation and Planning


      Compensation is the total amount or money pay to employee and employer in return for work performance as required. The examples of compensation are bonuses, profit sharing, overtime pay, recognition rewards and checks and also sales commission. Compensation is one of the HRM topics, the organization needs to use the compensation system to in their administration. The basic compensation system includes base pay, merit pay, short-term and long-term incentives, perquisites, recognition awards and attraction or retention awards. Compensation programs must also meet federal and state statutory and regulatory requirements. The Fair Labor Standards Act (FLSA) differentiates exempt workers and non-exempt worker.
The compensation data inputs in system include internal (jobs, people and organizational units), external (market survey data, information on rewards system) and generated data. Typically the most organization provide each employee with an “Annual Compensation Report”. That is the total amount of money spent by the organization on the employee, including money spent wages or salary, incentive pay, and the cost of benefits paid for by the organization.
The primary data from compensation is a payroll. The manager preparing budget draws on compensation data as they project costs over the next budget period. This data are sent to federal, state and local agencies, including taxing agencies, labor department, and other units tracking wage data.
For the strategic planning compensation, the organization focuses on performance and knowledge their employee. The implication using web based compensation is an easy to access, become a good relationship between employee and employer and also can avoid the employee jump in another company.
            The web based planning for system implementation the organization can choose several steps for the implementation process. Here have a several authors about the steps of the implementation process. According Rampton, Turnbull and Doran (1999), they develop 13 steps in the implementation process. According Jessup and Valacich (1999), they develop 5 steps, but they focus on the system side of the process.  Here is several steps of the planning process whereby the manager using in their organization. The process includes Project Managers, Steering Committee or Project Charter, Implementation Team, Project Scope, Management Sponsorship, Process Mapping, Software Implementation, Customization, Change Management, and also Project Evaluation.
            The benefit for organization is a easy to use whereby that intentionally lack any complex features, quick implementation whereby, just take a few minutes to setup, flexible delivery model and also easily to interchangeable with Microsoft Project files.

            References:
                  1.      http://humanresources.about.com/od/glossaryc/g/compensation.htm
4.      Kavanagh, M. J., Thite, M., & Johnson, D.R. (2014). Human resource information system: Basic, application, and future direction.


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