Personnel and Organization Policy

Personnel and Organization Policy

Personnel and Organization Policy

Many organizations in the United States compensate employees on the basis of work performed. Compensation is different from the payment. Compensation includes financial returns and benefits that employees receive as part of their employment. This compensation policy has far reaching effects on the competitive advantage of a company. Employees who are entitled too much work receive much compensation than those who are allocated little work.

Many organizations have adopted this policy since a profit company cannot pay more than its output. However, this policy does not favor companies dealing with professionals since many educated people believe that they should be compensated on the basis of education level (Deb, 2009).

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For firms to be able to compensate their employees on this concept and obey the federal legislation as well, they must categorize male dominated jobs with the female dominated ones. After doing so, they should equalize the male payment with the female payment independent on the nature or the quality of job. This strategy is not only effective in promoting effective compensation policies, but also elimination sex and gender discrimination in the society.

Caruth, D. L., & Handlogten, G. D. (2001). Managing Compensation (and Understanding it Too): A Handbook for the Perplexed. New York: Greenwood Publishing Group,.
Deb. (2009). Compensation Management. India: Excel Books India.
Mello, J. (2014). Strategic Human Resource Management. London: Cengage Learning.

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