Compensation Management

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

COMPENSATION MANAGEMENT1
Scenario 1:
With a precise understanding of the situation and the challenges faced by the vice
president of Human Resources, it is understandable that the company is facing significant
number of obstacles in the smooth management of the human resources in the company.
Being a manufacturing company, the impact of these challenges are observed to be severe.
Considering the management of the human resource in the programming area, it is visible
that the employees are arriving late to their job and that effectively increasing the concern of
the line managers. The late arrival of the employees at their job is playing a significant role in
increasing the concern of the line managers in distributing the tasks in an efficient manner
and at the same time, the tendency of the employees of coming late to their job is increasing
the consumption of time for the completion of the tasks (Persechino et al. 2013). Other than
this, the enhanced usage of the sick leave from the part of the employees is a major concern
for the managers of the company as that has the capability to affect the efficiency and
production of the company in a significant manner. Apart from this, the company is observed
to face the heat of the increasing employee turnover which is decreasing the sustainability of
the business performances of the company.
Considering the idea of vice president regarding the increment of the salary of the
programming staffs by 10%, it is evident that the effective management of the above
mentioned challenges faced by the HR department of the company will still be questioned.
Firstly, does the increment in the salary has the potential to help the employees in
coming to the organization at exact time?
Secondly, is the increment in the salary, the only required activity for the
improvement of the statistics of employee turnover in the company?

COMPENSATION MANAGEMENT2
Considering the above mentioned situation, the tendency of the employees of coming
late to the company is a clear reflection of the inappropriate organizational culture of the
company. Hence, the company has the necessity to improve the culture of the organization
with clear design of the employee code of conduct and at the same time, the management of
the company is required to monitor the compliance to the code of conduct amongst the
employees (SA 2015). The senior management of the company are required to take strict
action in any case of the violation of the code of conduct. This will certainly improve the
ability of the company in the effective management of the shift hours of the employees.
With a precise focus on the increasing number of sick leaves, it is understandable that
the employees are finding it difficult to manage their work stress in an efficient manner.
While a significant number of employees sending their sick application for inappropriate
reasons, certain number of employees are also there who actually faces the difficulty in
managing the job stress. Under such situation, the human resource department of the
company requires to focus on the implementation of the workplace health and safety policies
as that will be a better arrangement from the part of the company in the effective management
of the issue of sick leave.
Apart from this, the issue of the high employee turnover rate can be partially resolved
with the strategy of increasing the salary of the programming staffs. The human resource
department of the mentioned company is in need to introduce a rewarding plan which
includes the intrinsic and extrinsic rewards on the basis of the performances of the
employees. The parameters for the rewards plan are expected to be the quality of the services
of the employees and the production of the employees as that will be crucial for motivating
the employees. Considering the base of the recommendation, the Maslow’s hierarchy of
needs will be significant. With a precise focus on the mentioned model, it is evident that the
human resource managers of the company are required to identify the basic needs of the