PORTFOLIO PROJECT Part 7 Essay Example | Topics and Well Written Essays - 1250 words

PORTFOLIO PROJECT Part 7 - Essay ExampleIn stakeholders opinion, it is the benefit granted to employees in exchange of the effort they begin made for the organization. One complete definition for compensation is that it is a method to deal with all kinds of rewards of employees in the make water system (Bomkamp, 2013). Compensation management as a HR function is signifi buttockstly valued in organizations. Managers believe that it is a function that engages employees to their work system. They recollect it as a function to ensure employees motivation in the work place. From a strategic point of view, compensation management is a planning power point for retaining employees. It is a planning process to organize qualified workers in the work system. It is a system that integrates workers with organizational culture and values. According to the contemporary literature, compensation is of devil major types - financial and non-financial compensation. Financial compensation includes direct wages and performance based salaries while non-financial compensation may include job rotation, job expansion, hierarchy promotions and other resourceful benefits such as health insurance, medical facility, house or transport facility. In organizational practice, financial compensations are designed in accordance to market trends, while non-financial compensations are flexible, as they can be changed or amended depending upon the financial position of the organization. Furthermore, the literature asserts that compensation can be for the short term and long term. For example, Google Inc. offers work time entertainment facilities to employees as short term compensation, and the other company - Scientific Games Corporation offers $9.1 million favourable parachute to the chairman of the office as long term compensation (Bomkamp, 2013, p. 2). The core objective of any reward or compensation is to retain employees and for that priming it has been noted that organizations actuall y determine compensations using flexible methods to ensure employee retention. Definitely, if compensations are successful to retain employees, the employee turnover will be lower and as a result the organizational performance will be improved. This is what any organization would like to achieve from its compensation policy that is to increase employee performance. When high levels of employee performances are achieved accordingly the company can expect higher efficiency and performance. The Challenge According to Joe (2011), accountants are in-charge of most of the technical work in an organization system (Martocchio & Joe, 2011). They have to conduct market research, prepare financial reports and bring revenue forecast, which is all a managerial level of task and operation (Martocchio & Joe, 2011). An effective compensation for accountants is one, which can justify with the accountants nature of work which involves high responsibility, major skill and effort (Singh, 2007). Defini tely, if an accountant gives his full effort, the knowledge and skill to his organization so the organization should acknowledge it by returning him back in the form of effective compensation. This is the challenge which most of the firms face while designing compensation for accountants, as they miss out the elements of fairness and equity at the time of compensating accountants (Martocchio & Joe, 2011, p. 20). Proposed Procedures for Accountants Compensation Management Market Assessment For designing effective