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The document discusses the three main goals of compensation departments identified by Martocchio: 1) creating and maintaining an internally consistent compensation system, 2) maintaining market competitiveness, and 3) recognizing individual contributions. To achieve the first goal, compensation professionals use job analysis and evaluation. They achieve the second goal through strategic analysis and compensation surveys. Finally, pay structures are defined to recognize differences in employee contributions through different pay grades and ranges. The goals of compensation departments are deemed appropriate as compensation helps retain employees by making them feel valued and secure.

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51 views1 page

Test

The document discusses the three main goals of compensation departments identified by Martocchio: 1) creating and maintaining an internally consistent compensation system, 2) maintaining market competitiveness, and 3) recognizing individual contributions. To achieve the first goal, compensation professionals use job analysis and evaluation. They achieve the second goal through strategic analysis and compensation surveys. Finally, pay structures are defined to recognize differences in employee contributions through different pay grades and ranges. The goals of compensation departments are deemed appropriate as compensation helps retain employees by making them feel valued and secure.

Uploaded by

amcuc
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Assignment 1.C.

1
Martocchio mentions three main goals of the compensation department. As this course expands in content we will be
discussing these goals more specifically. For now comment on the appropriateness of these goals.
What is your understanding of these goals and how they can be achieved?
Martocchio identifies three main goals of the compensation department as: to create and maintain internally
consistent compensation system, to maintain market competitiveness and to recognize individual contributions.
Compensation professionals use job analysis and job evaluation to achieve internal consistency. Then
compensation professionals build market-competitive compensation using the results of strategic analysis and
compensation surveys. Strategic analysis allows professionals to see where they stand in market based on
internal and external factors. Whereas compensation surveys enables professionals to obtain realistic views of
competitors pay practices. Next professionals define pay structures which represents pay rate differences for
jobs of unequal worth and the framework for recognizing difference in employee contribution. As part of pay
structure professionals group jobs into different pay grades with defines pay ranges.
As we know employees are the main pillars that hold a firm and without them, the company will definitely close or
become obsolete. In view of this fact, it is therefore necessary to come up with a conclusive plan so as to ensure
that the employees are happy by way of compensating them. Any prospective employee of a given company will
most definitely carefully analyze how the firm treats its current employees. It is therefore always advisable to have
a compensation department that undertakes the same. Compensation helps to maintain employees in that they
feel a sense of belonging. It is very hard for an employee to leave a company if it has proper compensation
mechanisms. He or she feels safe in the work environment since all the risks that might occur are covered by the
compensation plan. Compensation departments also serve to motivate employees. When any given employee feels
secure in his or her job, the feeling of motivation sinks in naturally. Companies that do not have compensation
departments always find it difficult to keep their employees since they do not feel safe in the workplace. Therefore,
the three main goals of compensation departments are very appropriate.
Source:
Martocchio, J. J. (2013). Strategic Compensation. Upper Saddle River: Prentice Hall.

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