HRM Report: Comparing Roles in Compensation System Implementation

This report delves into the realm of Human Resource Management (HRM), specifically focusing on the intricacies of compensation systems. The report meticulously examines the roles and responsibilities of key stakeholders, including the CEO and Human Resource Professionals, within the context of implementing and managing a compensation system. It highlights the CEO's role in aligning the compensation system with the company's overall objectives, such as improving employee performance and attracting top talent, while also considering cost-effectiveness. Conversely, the report emphasizes the HR professionals' role in efficiently managing compensation processes, including attendance tracking, salary calculations, and incentive distribution. The report uses references to support the claims made. The ultimate aim of the report is to provide a comprehensive understanding of how compensation systems can be strategically managed to enhance employee satisfaction, drive organizational efficiency, and foster long-term sustainability.

Human Resource Management

Table of Contents
Introduction...........................................................................................................................................2
The Roles and Responsibility.................................................................................................................2
Compare and contrast the roles and responsibilities............................................................................2
References.............................................................................................................................................4

Introduction
The stakeholders who would be involved in terms of their roles and interest in implementing
a compensation system with an organization are CEO and Human Resource Professionals.
The Roles and Responsibility
It is also the responsibility of the human resource department and the CEO of the
organization to continuously improve the management systems within the company which
helps to improve the efficiency of various operations and reduce wastage with the
organization. Such techniques to improve the internal working conditions of the company are
often used by organizations to build on their competitive advantage and work for long term
sustainability (Weinberger, 2005).
Compare and contrast the roles and responsibilities
CEO (Jeff Bezos) Human Resource Professional (Felicia Field)
CEO of an organization is concerned with
meeting the goals of the company which
can be either through improvement in the
performance of the employees through
improved compensation system or saving
the resources of the organization through
the changes in the present compensation
system ("Designing an Internal Fair
Procedure System," 2017). Thus it is his
role to review the compensations system
from time to time and implement one
which helps to improve the overall
productivity of the employees and allow
the company to attract the required talent
in the industry. The interest in
implementing such a system is also
justified as it would help the company
The interest of the human resource
professionals in implementing a
compensation system is to improve their
efficiency of management of the
compensation of the employees. Through a
structured compensation system, it is easy for
the human resource department of the
company to record the attendance of all
employees, calculate their compensation,
record and sanction leaves, calculate any
incentive or bonus, etc. (Reilly, 2011). When
such activities are efficiently conducted, the
employees are paid on time which leads to
improvement in their satisfaction level.

improve its job specification for the role
for which each employee has been
assigned.

References
Designing an Internal Fair Procedure System. (2017). Management Report For Nonunion
Organizations, 40(5), 4-6. doi: 10.1002/mare.30275
Reilly, R. (2011). Compensation and Valuation Considerations in Closely Held Company
Stock Sales to an ESOP. Compensation & Benefits Review, 43(5), 306-317. doi:
10.1177/0886368711417238
Weinberger, T. (2005). Evaluating the Effectiveness of an Incentive Plan Design within
Company Constraints. Compensation & Benefits Review, 37(6), 27-33. doi:
10.1177/0886368705280737