HR Final

Identify and discuss the major issues in managing compensation with reference to relevant HRM literature STUDENT 'S NAME

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Summary : In today 's corporate field , when about two thirds of an organization 's worth is accredited to its intellectual resources and half of its intellectual capital value is attributable to its human resources (Donnell , Reagan , Kennedy Berkery , 2003 . Workforce management is the way to gain competitive advantage (Pfeffer , 1994 . The ability of a company to attract , motivate and retain the right human resource is the

most vital factor to become successful . The change in the external environment has also lead to a change in requirements and demands of the employees . The three drivers that change workforce are technological changes , demographic changes and globalization (Foot Stoffman , 1998 . Organizations are thereby looking for strategies to improve employees work life quality , so that the employees are more motivated to work and meet changing expectations (Burke Cooper , 2006 Strategic human resources planning is thereby the need of the hour (Steven Helen , 2004 . The compensation plan should be such constructed that it is holistic in nature so that it can serve the entire employee base . A properly planned compensation plan can have many benefits (Thompson , 2002 . A higher number of quality workforce can be tapped by the organization , the staff turnover can be reduced , reduce training cost for new staff , etc . In turn the organization will perform more efficiently and gain goodwill for keeping its employees happy

Introduction : Initial years of...