Assignment Cm 2004

8/10/2019 Assignment Cm 2004

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COMPENSATION

MANAGEMENT (BMCM5103)

ASSIGN !N" $ % & '()*

INSTRUCTOR : DR. ILHAAMIE ABDUL GHANI

AZMI

S"+,!N" NA ! - SI"I AIS.A. %IN"I A,NAN


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Contents

No table of contents entries found.


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Abstr !t

The practice of good human resource management and job satisfaction staff can help to motivate

them and provide resources people in the success of all activities undertaken to achieve

organizational goals. This study aims to determine the level of human resource management

practices that specializes in management compensation and wage payment system from the

perspective of public and private sector workers were 30 questionnaires were given. The findings

showed that the practice of human resource management at the level of ' atisfactory'. !ive

recommendations were presented to the administrator of the companies in "alaysia to improve

e#isting practices to a higher level.

INTRODUCTION

$%f you pick the right people and give them the opportunity to spread their wings & and put

compensation and rewards as a carrier behind it & you almost don t have to manage them .

- Jack Welch

Human resource management is the integration and coordination of resources human to

effectively move toward the desirable goal within an organization (Zaidatol !oo "ay !ooi#

$%%&'. ost of us would have heard the term )com*ensation in the conte+t of getting *aid for

the work that we do. ,he work can be as *art of full time engagement or *art time in nature.

What is common to them is that the )reward that we get for e+*ending our energy not to

mention the time is that we are com*ensated for it.

ccording to atten (/00/'# are all forms of com*ensation# *ayment or gratuities given to

all categories and levels of em*loyees in an organization. 1ewards are *aid to workers in the

organization of work as business firms# government agencies# hos*itals# schools# military

organizations and others. ilkovich 2ewman ($%%3' say# com*ensation is defined as all forms

of financial returns and tangible benefits and services or clearly received by the em*loyee as an


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integral *art of the em*loyment relationshi*. ,he ob4ective of the com*ensation system is to

reward em*loyees in a fair and commensurate with their efforts and as traction to maintain an

efficient and effective work.

5om*ensation consists of two forms of financial com*ensation and benefit theorganization. !inancial com*ensation such as *ensions# insurance # 6ducation# travel and various

ancillary facilities including dental care and maternity leave. 5om*ensation in the form of

benefits that the organization is divided into two monetary items such as safety insurance and

*aid holidays. While the non-monetary benefits are to im*rove the 7uality of life for em*loyees

such as maternity leave# leave further education# children8s services center and counseling

services.

T"# R#s# r!" M#t"$%$&$'

,his study was conducted on 9% res*ondents consisting of /3 males and /3 females.

1es*ondents were workers in the *ublic and *rivate sectors. 7uestionnaires were distributed to

them. they have to answer the 7uestion then give their suggestions to im*rove the com*any8s

com*ensation management in alaysia.

Ob #!t*+#s O, T"# St-%

:b4ective of this study was to e+amine the effectiveness of com*ensation management system in

the organization to motivate em*loyees# sustaining them to continue to serve effectively in the

organization.


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STUD REPORT

;ased on studies that have been made# a total of /3 res*ondents involved male e7uivalent

of 3%< and another /3 res*ondens consists of women who are also e7uivalent to 3%< of the total

res*ondents. they consist of *ublic sector workers and *rivate sector# among the factors that

leads me to target the *ublic and *rivate sectors as a sub4ect of study# was to com*are the

com*ensation and *erformance management reward system between the *ublic and *rivate

sector.

s noted# the *ublic sector is the service-oriented sector# while the *rivate sector was more to the

*rofit organizations and com*anies. thus# through this study# we can see the *ers*ective of both

staff sector wage system im*lemented where they are working.

A. D#/$'r "*! *2%*2's

C" rt 1 S#!t*$2 A

;ackground *ie chart shows the *ercentage of res*ondents where =% *er cent of female

res*ondents than male res*ondents is >% *ercent. ,his is because the res*ondents among men

harder than women interviewed.


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C" rt 4 S#!t*$2 A

ie chart shows the *ercentage of res*ondents em*loyment sector# where *rivate sector workersthan *ublic sector em*loyees ie 3&< (/& *erson' and >9< (/9 *erson'. this is because *ublic

sector workers hard to find as busy with various activities# such as attending courses and

briefings.

A'# N-/b#r O, R#s $2%#2ts P#r!#2t '# ( )$%-$3 years old /$ >% *eo*le# then a neutral of 9 *eo*le. While as many as /% *eo*le who

agreed and // res*ondents who strongly agree.


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ccording inder (/00@'A Work motivation is a set of energetic forces that originate both

within as well as beyond an individualBs being# to initiate work-related behavior and to determine

its work related behavior# and to determine its form# direction# intensity# and duration.

,hus# many of the res*ondents agreed that the continued *ayment of an annual bonuseach year can increase their motivation to work in the organization. ,his is because each

em*loyee will always be ho*eful and ha**y to work when thinking they will gain reward end of

each year# in addition to a monthly salary.

3. %$ $- 'r## t$ 'r 2t !$//*ss*$2s t$ 2 %%*t*$2 & 8$r7 t" t $- %$ ,$r t"# !$/ 2

;ar gra*h above shows no res*ondents strongly disagree and disagree related

commission fee to be *aid by the com*any for further work are given. res*onses# > were neutral

in this res*ect# while the rest agree and strongly agree with the commission by the com*any to

em*loyees.

,his is because the ma4ority of them think the em*loyee is entitled to wages or commission oneach additional work they do for the com*any. ,his will make them feel a**reciated and

valuable to the com*any. ne+t they will be more motivated to work and do not feel ignored by

em*loyers. therefore# the em*loyer should discuss the *roblem of reasonable remuneration to

workers through *roductivity for the benefit of the com*anies and their em*loyees


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9. D$ $- A'r## T" t A&& C$/ 2*#s N##% T$ Est b&*s" A S st#/ O, R#+#2-#

S" r*2'

;ased on the fact that this fourth# almost all res*ondents agree and strongly agree with a *rofit-

sharing scheme between the com*any and em*loyees. through this a**roach# all em*loyees will

work diligently certainly further enhance the *roductivity of the com*any. With this *artnershi*#

the em*loyee will also feel res*onsible in increasing the com*any8s revenue# because each such

ac7uired com*anies also benefit them.


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5. D$ $- A'r## T" t T"# C$/ 2 S"$-&% Cr# t# A P S st#/ B s#% O2 C$st O,

L*+*2' A% -st/#2ts E/ &$ ##

ll res*ondents agreed and strongly agreed with the awarding of salary based on the cost of

living. ,his is a very im*ortant re7uirement for all em*loyees regardless of em*loyment sector#

es*ecially the lower income grou*.

Covernment of alaysia has introduced a minimum wage system# the setting of

minimum wage workers based on the current cost of living. 1ising cost of living# *articularly the

*rice of daily necessities rising# *ressures and difficulties also give the low income grou*#

es*ecially those living in urban areas.


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B. HUMAN RESOURCES OUTCOMES

1. M$st #/ &$ ##s r# *2t#r#st#% $2& *2 t"#*r $82 ; 8*t"$-t r#' r% t$ $t"#rs

;ased on the gra*h above# a total of five *ersons of the res*ondents strongly disagreed

and > *eo*le who disagree with the statement that em*loyees are only interested in their salaries

without taking cognizance salaries of other em*loyees. for their knowledge of the salary of other


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em*loyees are able to *rovide them the information they receive *ayment differences. ,his is

im*ortant to assess the e+tent to which 4ustice em*loyer against an em*loyee.

total of five res*ondents are neutral# while nine of whom seven res*ondents agreed and

strongly agreed. ,his is because there are some of those who were satisfied with *ay# becausetheir wages insufficient to meet the needs of even their e+*ectations. Hence they do not want to

be taking cognizance salaries of other em*loyees.

4. E/ &$ ## s t*s, !t*$2 %# #2%s #2t*r#& $2 t"# /$-2t $, r#!#*+#%

,here are 3 *eo*le of res*ondents do not agree that em*loyee satisfaction de*ends on the fees

they receive. ,he ground is not enough finance to make em*loyees feel satisfied# but the

em*loyer must give encouragement in the form of mental and emotional su**ort# such as giving

awards and recognition to em*loyees.

While the ma4ority of them agree and strongly agree with the statement of an em*loyee will be

satisfied with the *ayments they receive. ;ecause the cost of living increased need ade7uate

financial resources to en4oy a comfortable life .


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3. It *s /$r# + &- b t$ t"# !$/ 2 t$ r#8 r% #/ &$ ##s< 2##% ,$r ! s" !$/ #2s t*$2 t" 2 t"#*r

2##% ,$r !"*#+#/#2t.

Cra*h shows# there are two *eo*le that res*ondents strongly disagreed and & *eo*le who do not

agree# some of the factors they do not agree is because of their recognition of achievements

em*loyers are also an im*ortant element for em*loyee satisfaction# no doubt the finance charge

is also very im*ortant# but it needs to be aligned along the achievement of recognition by

em*loyers.

Cra*h also shows the number of // *eo*le agree and /% strongly agreed with cash com*ensation

from the em*loyer to the em*loyee. as noted# com*ensation in the form of cash is highly desired

by many em*loyees of the em*loyer# because a large *art of their life8s *roblems can be solved

with money.


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9. T$ s t*s, t"*s /$t*+ t*$2 /$2' #/ &$ ##s; / 7# /#r*t *2!r# s#s 2% *2!#2t*+# 8 r%s 8*&&

/ t!" t"# +#& $, $b #r,$r/ 2!#.

9 of res*ondents disagreed with the statement above# neutral $# and the ne+t /$ *eo*le agree and /9

strongly agreed. based on this statement# many *eo*le strongly agree that to motivate em*loyees# the

em*loyer must make a merit increase em*loyee and also *rovide incentive *ayments to em*loyees to

im*rove their work *erformance.

5. T"# %#s*r# t$ b# s##2 s r#s $2s*b $r #rs$2s *2 !" r'# *2 $r' 2*= t*$2s 8*&& #,,#!t

/$t*+ t*$2 2% $b #r,$r/ 2!#

Cra*hs show that many res*ondents who agreed that the sense of res*onsibility within the

organization able to increase em*loyee motivation and *erformance.


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RECOMMENDATION

5om*ensation is all remuneration received by em*loyees on the work of the em*loyee in

the organization. 5om*ensation can be either *hysical or non-*hysical# and must be calculated

and *rovided to em*loyees in accordance with the sacrifice that has been given to the

organization and the com*any where he worked.

5om*any to *rovide com*ensation to workers first *erform the calculation *erformance

by creating a fair *erformance a**raisal system. "uch systems generally contain each em*loyee

assessment criteria which have# for e+am*le ranging from the number of 4obs that can be

com*leted# the *ace of work# communication with other workers# behavior# knowledge of the

4ob# and so forth.

,he em*loyee may calculate *erformance and sacrifice themselves with com*ensation. ?f

em*loyees are not satisfied with the com*ensation they get# then he can try to find another 4ob

that better com*ensate. ?t is 7uite dangerous for the com*any when com*etitors hire D hi4ack

em*loyees who were not satisfied because it can leak confidential com*any D organization.

Cood com*ensation will give some *ositive effects on the organization D com*any as follows

belowE

a. Cetting good 7uality em*loyees

b. "*ur workers to work harder and achieve brilliant achievement

c. Fure 7ualified a**licants than vacancies

d. 6asy administration and im*lementation of the legal as*ects

e. Has an advantage over a com*etitor D com*etitors

,he conce*t of em*loyee com*ensation and benefits cannot be discussed in a vacuum. Garious

studies have established that salaries and benefits are closely related to 4ob satisfaction ("t. Fifer#


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/00>'A and 4ob satisfaction can bring about motivation which in turn affects em*loyee 4ob

*erformance and organizational commitment.

?n order to im*rove com*aniesB nature of wage systems# more to cash com*ensation# they may be

able to useE

/. ;asic rate system. ;asic rate systems are straightforward but may not *rovide incentives to

individual workers. nder basic rate systems a worker is *aid in relation to a given *eriod of

time - an hourly rate# weekly wage or annual salary. Cenerally this rate is the established rate for

all workers in one category# but there are often incremental scales which allow for *rogression#

*erha*s as additional e+*erience and skills are obtained. ;asic rate *ay systems relatively sim*le

and chea* to administer and allow labour costs to be forecast with accuracy# they lead to stability

in *ay and are easily understood by the workforce and who will be able to more readily *redict

and check their *ay. However# basic rate systems do not by definition *rovide direct incentives to

im*rove *roductivity or *erformance. 2evertheless em*loyers may *refer to o*erate sim*le basic

rate systems and im*rove the design of 4obs# so that the 4ob *rovides the necessary interest#

motivation and satisfaction and basic systems may be criticised by individual workers# who wish

to see their own abilities s*ecifically rewarded.

$. ?ncentive schemes for individuals. individual *ayment schemes include *ayment by results#

*iecework and bonuses# work measurement (including measured day work' and a**raisal and

*erformance related *ay or other individual ty*es of scheme include market-based *ay# which

links *ay to what is available outside the organisation# and com*etencyDskills based *ay# which

offers the o**ortunity for higher reward based on the ac7uisition and utilisation of additional

skills and com*etencies. :n an individual basis this may be via *ayment by results ( ;1'


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e+am*le# bonus# *iecework# commission# work-measured schemes and *re-determined motion

time systems# measured day work ( IW' or a**raisalD*erformance related *ay. any sectors of

em*loyment use *ay systems that contain direct links to individual *erformance and results#

sources by# cas dvisory ;ookletE **raisal 1elated ay for more detail on these schemes#

$%%3.

9. ,rends in *ay structures. ay structures are often used in con4unction with *ay systems to

develo* fle+ibility and an increased knowledge in the workforce of the organisation8s business

needs. any organisations are moving away from traditional managementDworker demarcationsand are 8harmonising8 their *ay systems (and often other terms and conditions'# or negotiating

8single status agreements8 with the workforce. ,hese can hel* with any issues of e7uality.

:rganisations are increasingly looking at ways to im*rove business *erformance and need to

develo* *ay structures and systems which *romote the ac7uisition of skills# increased fle+ibility#

greater awareness of business re7uirements and *rovide a strong link between individualDteam

*ay and the overall well-being of the organisation. 5onse7uently# there has been a shift in

em*hasis from valuing the 4ob towards valuing the individual. ,his has led to the develo*ment of

*ay structures which are less hierarchical and have *ay systems attached to them which reward

individuals according to their contribution towards individual or cor*orate goals# sources from#

1eward anagementE handbook of remuneration strategy and *ractice by rmstrong and H

urlis for a detailed descri*tion of broad-banding.

1egardless of the effects of legislation on salaries in general# com*ensation continue to be

influenced by several factors that are *roducing some im*ortant trends in com*ensating workers.

:ne of such trends is aligning wages to the organizations goals. :thers include tailoring


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com*ensation to the needs of em*loyeesA better salary# and *ay e7uity (!isk $%%/'. Garious

e+isting theories to su**ort this argument have been identified and one of such is the

1einforcement theory which is *ro*ounded by ;.!. "kinner. ,his theory holds that individuals

can actually be motivated by their work environment when it is *ro*erly develo*ed. Hence#

rather than considering internal factors such as attitudes# feelings# im*ressions and other

cognitive behaviour# em*loyers should kee* on making *ositive changes in the e+ternal

environment of the organization. ?t em*hasizes the im*ortance of a *erson8s actual e+*erience of

a reward# and the im*lication of this for com*ensation management is that high em*loyee

*erformance followed by a monetary reward will make future high *erformance more likely.


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RE ERENCES

Seiler/ !0 (1230 4iece 5ate vs0 "ime 5ate- "he !6ect of Incentives on!arnings0 "he5eview of !conomics and Statistics/ 7ol0 889*:/ *8*;*)))0 4erformance 4ay and 4roductivity0 American !conomic5eview/ 7ol01)9':/ (*38;(*8(0

?ementerian Sumber anusia0 >))20 4=@S0 abatan 4erhubungan4erusahaan alaysia/?S - 4utrajaya0

?ementerian Sumber anusia 9>))))>-2* r$,.8$r% r#ss.!$/>4010>11>4?>& 2'7 "@-2t-7@t*2'7 t@/$t*+ s*@% & /@

$r' 2*s s*>
http://uniprof.wordpress.com/2010/11/29/langkah-untuk-tingkat-motivasi-dalam-organisasi/http://uniprof.wordpress.com/2010/11/29/langkah-untuk-tingkat-motivasi-dalam-organisasi/http://uniprof.wordpress.com/2010/11/29/langkah-untuk-tingkat-motivasi-dalam-organisasi/http://uniprof.wordpress.com/2010/11/29/langkah-untuk-tingkat-motivasi-dalam-organisasi/

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