Recommendation regarding the compensation system of Henderson

Running head: HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENT
Name of the Student
Name of the University
Author Note:

1HUMAN RESOURCE MANAGEMENT
Date: 5th June 2019
To: CEO of Henderson Printing
From: Hired Consultant (Name of the Student)
Subject: Recommendation regarding the compensation system of Henderson
Henderson Printing is known to be manufacturer of accounts books, ledger and various kind of
account books which are used in business. The organization is located in Halifax, where the
annual sale of the organization is found to be around 12 million (Tan et al., 2018). George
Henderson believes the fact that the high-quality of products are manufactured. The organization
makes use of high quality grade paper, binding materials and cover stock. This particular aspect
has led to production of high price and cost. The owner of the organization aims in providing
high-level customer service (Bagheri et al., 2017). The organization is focusing on making
products to the specification of customer as per their request. In the beginning days, therewas
around 80 number of people, and majority of them work in production. The organization comes
up with few number of supervisor who can oversee the production. The responsibilities are not
clearlyspelt out, but the supervisor often contradicts with each other. There is no kind of system
available for overall scheduling of production. The organization comes up with various kind of
salesperson that travel in the Atlantic region. George focuses on becoming benevolent employer.
The owner believes the fact that they cannot provide any kind of formal benefits for its
employees (Olabode, Yinusa & Oludele, 2019). George does not have any kind of formal system
concerning pay and takes up all the payment related decision at the very moment. At present, the
owner of the organization gives raises to the employee based on his mood and relation with
employees. The owner of the organization understands the fact that the good employee of the
organization needs to be recognized. The owner of the firm provides bonus to the employees

2HUMAN RESOURCE MANAGEMENT
based on the given profit. It is completely based on the overall contribution to the organization.
In this firm, long term employees tend to receive much larger bonus in comparison to the new
employees. In this firm, longer-tenured employees are considered to be very much productive
(Nirala & Saha, 2017). The owner itself distributes the bonus cheque on the day before
Christmas. The owner of the firm has retired at the age of 60 in following year and is planning to
turn the business to his daughter.
Compensation can be stated as a term that provides exchange between employees and
organization. It aims to provide a list of things in return for the given thing (Noe et al., 2017).
Compensation issues are considered to be confidential and mainly governed by the preference of
individual employers. In the present competitive world compensation policies are very much
transparent. Employees can make their choice depending on the compensation packages (Balci &
Hocaoglu, 2017). Proper kind of balance between cost of compensation and retaining employees
in this printing firms has become as one of the biggest priority. The goals that are suggested by
the present strategy of George are
Compensation: It can be stated as the remuneration which is received by the employee
that can result in return of contribution that has been given to the organization. Compensation
management can be stated as an organized practice which is needed for providing balance
between work and employee (Duncan & Malini, 2016). It mainly comes into picture as a result
of both monetary and non-monetary compensation to large number of employees. Compensation
is merely inclusive of various kind of payment that can arise from employment. The best part of
theorganisation is compensation management, which is needed for retaining the most important
and worthy assets. Compensation management is known to be complex process that requires
precision, and if not carried out properly then it can lead to employee dissatisfaction (Duong et