Compensation Management Thread

Running head: COMPENSATION MANAGEMENT THREAD
Compensation Management Thread
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Compensation Management Thread
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What are the four policy issues in the pay model? What purposes do the objectives in
the pay model serve?
The four policy issues in the pay model are, internal alignment, external
competitiveness, employee contribution and the management of the pay system. The internal
alignment refers to the contribution of the jobs and skills in order to achieve the objectives of
the organization. The external competitiveness refers to the comparisons of the pay structure
in between two organizations, which makes an organization to increase its pay structure.
Employee contribution refers to the performance of the employees that contribute in the pay
structure. Lastly, the management of the pay system, refers to the managing of the human
resources which will be reviewing the pay process of the employees (Birkland, 2015).
However, among these four issues of the pay model, the most important ones are the internal
alignment of the pay structure and the external competitiveness, as they motivate the structure
the most.
The basic objectives of the pay structure includes the efficiency, fairness and
compliance of the pay structure to the laws and regulations that govern the whole system. The
efficiency is correlated with the performance, quality, and dealing with the customers and the
stakeholders. Fairness refers to the process of taking the decision and the practice of ethics in
the conducts of businesses. The compliance refers to complying with the laws and
regulations. The pay model also includes the changes in the law structures. The pay structure
also includes the combining the objectives and the efficiencies of the employees into the pay
structure (Noe et al., 2017). Therefore, as can be seen that the major objective of the pay
structure is the success of the pay system that is being practiced in an organization.
Theresa Hilliard
Forum 1