Compensation Management Custom Essay

Compensation Management

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Reply to 2 these 2 posts.  Attempt to draw a parallel between these individual posts. Minimum of 2 external references for each response

Here is the textbook:

Martocchio, J. (2015). Strategic Compensation: A Human Resource Management Approach. Upper Saddle River: Pearson Education, Inc. (textbook)

#1 Robbie Davis

Performance Appraisal Process

Conducting Performance Appraisals as mentioned in our text, is a company’s way of telling employees what is expected of them and how well they are meeting these particular expectations. Mostly, businesses set general guidelines for employees to follow, and then the employee should be acknowledged for following these particular guidelines. Many companies decide to conduct to performance appraisals to gather information on the how the employee performance ranks against other employees.            One way that Performance Appraisals could be used within a company is to provide monetary bonuses to employees that meet goals and expectations. HR Managers and other direct supervisors should be able to come up with numerous ways to measure the employee’s job performance. It has been clearly shown that employees perform better when they feel appreciated and acknowledged for a job well done. McCarthy (2000) mentions that “By focusing on specific job-related issues, there is less likelihood of the reviewer being swayed by irrelevant information such as personality or personal background. It can also prevent situations where the employee is unfairly rated on issues that are out of his or her control” (pg.23) When applying this particular knowledge of performance appraisals, management would then can be confident in the fact that the appraisals that are completed are done correctly and without any  bias.  After now having more information from our reading on this particular human resource function, there are many different issues that can come along with performing employee appraisals. In relation to this week’s readings, there are always going to be challenges when it comes to making sure that employee performance appraisals are done correctly and without any type of bias. Washington (2008) mentions that “Hidden bias also can leave employers vulnerable to shifting demographics. Labor estimates show U.S. employers will face a shortage of skilled workers by 2010, and organizations that allow hidden biases to infiltrate personnel decisions won’t succeed” (pg. 8). No company can perform these types of performance analysis without having some form of bias. HR managers and other managers alike should be using the scripture to help guide the companies process of performing these analysis. Titus 2:7-8 states “In everything set them an example by doing what is good. In your teaching show integrity, seriousness 8 and soundness of speech that cannot be condemned, so that those who oppose you may be ashamed because they have nothing bad to say about us” (ESV). Another scripture that could be easily related to employee performance appraisals is Proverbs 11:3. The verse states  “The integrity of the upright will guide them, But the crookedness of the treacherous will destroy them” (ESV). This particular verse warns of any type of crookedness on both the employee and organizations part. Not only should the organization make sure that the guidelines that are set when providing criticism is that it is done in a manner that is not hurtful. These organizations should make sure that everyone has the same guidelines to prevent the obvious bias that can occur.


McCarthy, J. (2000). Performance evaluations. Journal of Property Management, 65(5), 22-25. Retrieved from

Washington, M. L. (2008). Detecting bias in performance appraisals (Order No. 3313794). Available from ProQuest Central; Sociology Database. (304393951). Retrieved from

#2 Gladys Hanson

Wage law and wages constitute an important part of business in countries all over the world. Even within the United States, wages can differ between States. According to Sabia, Burkhauser & Hansen (2012) “In 2004, the New York State legislature voted to raise the state minimum hourly wage by nearly 39 percent, from $5.15 to $7.15. The wage increase was implemented in three phases: from $5.15…from $6.75 to $7.15 on January 1, 2007.” (p. 351).  In looking at this assessment, it becomes obvious that New York has a way of calculating its wage increases steadily over course of a few years. Although there is no comparison with another states, it can be implied that New York’s law deals with its own needs and does not necessarily fit with Pennsylvania or Massachusetts.  As a result, a company moving States would need to make this assessment before going. Sabia et al (2012) highlights the importance of seeing importance differences in wages approaches, even within the United States.

In the same vein, US companies cannot arrive in a country without knowing how pay is conducted. According to Martocchio (2015) one of the key difference between major countries, specifically the U.S. and India, is the amount of “government sponsored benefits offered in those countries” (p. 335).  Government sponsored benefits can also refer to the benefits that companies are mandated to provide to the employees. For even more specificity, Canada and Mexico will be analyzed. Although both countries border the US but have largely different ways of pay. According to Luce (2015) “in Mexico, a tripartite body of government, employer and union representatives set a daily minimum wage.” (p.73). In this reference, the author points to the fact that the pay scale in Mexico is different because they have a daily minimum wage which may spill into the amount of hours a person could be. On the other hand, Canada “possess a statutory minimum wage law…Alberta currently had the lowest minimum wage rate (i.e. $9.75) the highest rate (i.e. $11.00) can be found in Nunavut” (Martocchio, 2015, p.336). In comparison to Mexico, Canada has a more specific with the amount that people can get paid. On the contrary, Mexico has a daily minimum wage. Thus, demonstrating a difference in how different countries believe pay should be given.

Aside from the physical wages, the idea of an intrinsic compensation should also be considered. Intrinsic compensation is defined as “the employee’s psychological mind-sets that result from performing their jobs” (Martocchio, 2015, p.3). In other words, intrinsic compensation deals with the idea that employees enter into a task with certain expectations and mindsets. These mindsets can affect how they view the jobs they have been given. On the other hand, extrinsic compensation focuses more on monetary compensation (p.3). In other words, how does a company approach motivation without the use of wages? In different countries, wages may not be enough and companies will need to assess the importance of both intrinsic motivations. All in all, wages differ in various countries but that is not the only consideration. Aside from how these wage structures are different, companies must also assess how wages differ and how to keep workers happy aside from this.


Luce, S. (2015). $15 per hour or bust: An appraisal of the higher wages movement. New Labor Forum (Sage Publications Inc.), 24(2), 72-79. doi:10.1177/1095796015578919

Martocchio, J. J. (2015). Strategic compensation: A human resource management approach (8th). Upper Saddle River, NJ: Prentice Hall.

Sabia, J. J., Burkhauser, R. V., & Hansen, B. (2012). Are the effects of minimum wage increases always small? New evidence from a case study of New York State. Industrial & Labor Relations Review, 65(2), 350-376.

My Thread

Based on this week’s readings, this discussion board will seek to compare how compensation schemes within a company always compare to strategic compensation and analyse weaknesses in the current compensation models while at the same time pinpointing methods which can be used to ensure that women and middle-income workers are elevated in their compensation strategies to bolster equality and fairness in the workplace. Further, this discussion will also seek to analyze the role compensation models play in motivating employees within an organization.

Compensation schemes

Disparities which exist in compensation schemes

The first topic which I would like to learn about and extensively include the compensation schemes used in different business organizations both in the US and across the globe. This is because there have been huge disparities in the amounts of payments workers take at home as shown in the case of Enbridge were the CEO was paid $8.1 million in bonuses in 2011 despite the company causing a big oil spill in the Pacific Ocean (Nikiforuk, 2016). Therefore, compensation schemes used by different companies have therefore created a puzzle since members of the management have been known to earn over 100 times the salary of that if their lowest paid workers which seeks to show the inequalities which exist in most organizations while at the same time providing important insights which can be used b organizations to streamline their payment policies, eliminate inequality and provide fair compensation schemes for all their workers in order to improve efficiency, employee retention rates and employee loyalty (Gupta, 2015).

Therefore getting to understand the compensation schemes used in different business organizations will provide great insights on the tools used to rank companies as some of the best organizations to work with while at the same time pinpointing how transparency, openness, and accountability have played a big role in elevating these organizations to those distinct places and help in identifying weaknesses which exist in the current compensation models to indicate areas where they can be improved on (Negash, Zewude, & Megersa, 2014).

Incentives which can be used to promote fair schemes

Further, the subject matter will also seek to indicate areas where huge disparities exist between male and female employees working in the same capacity who receive different remuneration packages while at the same time outlining measures which could be taken like creating effective legislation systems to abolish unequal pay in the workplace and ensure that everyone receives equal pay (Gupta, 2015). This will, therefore, seek to show how the compensation schemes adopted by different organizations always benefits companies by increasing the employee’s morale thus improving the productivity and efficiency of the workforce.

In addition, by effectively analyzing the compensation packages offered by companies, the subject matter will offer important insights on the incentives which can be used to increase the productivity, efficiency, and loyalty of most employees. These includes incentives like providing health insurance, offering pay bonuses and paid levels to all employees within the organization and providing sound retirement benefits through 401k Plans. Thus by analyzing the role incentives play in motivating the workers within the company and looking for ways to improve talent retention through providing fair compensation schemes will go a long way towards ensuring that organizations are the best places to work in and thus making the role of the HR division be simpler. Further, adopting incentives increases the appeal an organization has both at home and abroad making employees willing to work for these organizations since they have the core characters of an organization which cares about the welfare of their employees (Negash, Zewude, & Megersa, 2014).


Gupta, P. (2015). Equal pay, gender wage gaps and “constantly moving goalposts”: Review of 40 years of research – Journalist’s Resource. Journalist’s Resource. Retrieved 18 October 2016, from

Negash, R., Zewude, S., & Megersa, R. (2014). The effect of compensation on employees motivation: In Jimma University academic staff. Basic Research Journal, 32(2), 17-27. Retrieved fromhttp://http//

Nikiforuk, A. (2016). Enbridge Execs Got Big Pay Raises After Continent’s Costliest Pipeline Spill | The Tyee. The Tyee. Retrieved 19 October 2016, from

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