Compensation

Running head: COMPENSATION
Compensation
Name of the University:
Name of the Student:
Author Note:

Compensation
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Pg.669
If I had been in place of Ms. Deb Allen, I would also have been very much depressed
to know that some of the employees who are not competent enough and are not having
enough experience as the rest of the members, but instead of continuing to be depressed and
finally leaving the job, I would have inquired the whole situation, and would have tried to
know what are the factors that are making these employees to get more, than the rest. There
sure can be other factors contributing for these employees to get paid more. We must always
look at situations objectively, and if I had actually learnt the fact that there are no such
reasons for these people to get paid more, then I would have reviewed the whole payroll
process and would have alter the payroll system so that should be a fair pay structure for all
(Gupta & Shaw, 2014).
According to the pay compensation model, the compensation process is influenced by
the economic, political, psychological and certain social factors of compensation, and these
concepts guide the pay structure of an organization. Along with these, there are certain other
factors that affect the pay structure model, and these are the law, the influence of the labor
union, and the culture or the organization and the people who are joining or have joined
(Gomez-Mejia, Berrone, & Franco-Santos, 2014). In certain cases, with the compassing
structure of the organizations, it is also seen that the organizations are bound to pay a certain
amount to the students whom they are directly hiring from the universities or colleges, in
those cases the pay policy varies.
If I had been the director of the company., and I was faced with the question of why
someone is being paid more than they deserve, then firstly, I would have cross- checked the
information, that whether Ms. Deb Allen had been come across the correct file, or there is a
glitch. It could be possible, that Ms. Deb Allen had not come across the correct file, and if she

Compensation
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actually had come across the correct file, then I would have reviewed the performances of last
six months of the employees, and would also have viewed the agreement files of these
employees, as the whole pay process is taken care by the HR of the organizations, therefore I
would have to have invested some time in order to get the correct information, regarding the
pay structure of these people, and as per the information that I would come across, after
having spoken to the senior HR manager of my organization, I would have provided either
explanation to Ms. Deb Allen, or I would have reviewed and restructured the whole pay
policy of the organization with proper explanation (Rahim & Daud, 2013). Even one
unsatisfied employee having doubts regarding the organizational conducts can become a
liability for the organization as a whole, ands at the same time, it should be understood that a
proper and fair pay structure is always beneficial for any organization (Newman, Gerhart &
Milkovich, 2016).
Pg. 670
Q.1. How can employers control labor costs?
Labor cost is the largest business cost, and, in order to reduce the labor cost, the
employers can undergo the following steps. Firstly, the labors can review the levels of
compensation provided to the employees, secondly, the companies can also focus on reducing
the employee turnover and also must focus on including the approaches of cross training thee
employees, which will enable the organizations to employ less and use the same employees
in various roles. The organizations can also change their operation timings in order to reduce
their expenses. Another important tool for lowering the budget is incorporating the system of
outsourcing into the business process (Noe et al., 2017). The organizations can also reduce
their prerequisites, for example, the health insurances, pension policies or the medical
policies. The organizations should also focus reducing the inter-departmental activities or