As
I know, the compensation is the most complex topics in human resource
management. This is because some organization faces a lot of difficulties and
complexities when creating and administering the compensation systems. In order
to help with that, now they are turning to use the technology to make it easy.
As we know, the advanced of the technology are giving a lot of benefits to us. For
example, all processes in compensation such as designed, communication and
management of payment are moving toward Web application. This is because the
employee can easily get information without having a problem.
Based on the presentation in the
class that has been presented by my friends, what I can understand is there are
two element in the web based compensation which is the fixed compensation and
the variable compensation. The fixed compensation includes based pay, merit
pay, promotion adjustment, specific knowledge, skill and abilities,
recognition, or retention awards. This based pay or fixed pay is built around
two processes which are job evaluation and market benchmarking. On the other
hand, the variable compensation includes the element of bonuses, commission,
individual and group incentives plan and productivity gain sharing programs.
The application that included in the
web based compensation is the benefit management, payroll, the job evaluation,
salary survey, incentive plan, compensation consultant, and salary planning. From
my understanding, this application will help the manager or the organization to
pay for the top performer. Beside that, this web application will increase the
effectiveness of accurate information provided for the employee. In addition,
it also enables planning and budgeting of employee salary and may increase the
payment of their wages.
From the information that I get from
Dr Roya, this system can give some implication to the organization which is E-Compensation
and E-Benefits seem to be the strategic integration of HRM with the (revised)
company strategy, structure and culture. Beside that, the utilization of Online
Compensation and Benefits Subsystems will assume an active role for line
management and employees in implementing the strategies, policies, and
practices.
At the end of the class, as always
Dr Roya will gave us some activities. For each group, we need to answer the
case study in the textbook. This case study is about how the Grandview global
financial service manages their compensation system of their employee. They
need to overcome the problem and come with the solution to implement the web
based system. From this topic, I become more understand about the role and function
of human resource information system in supporting this compensation and
benefits process.
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