Strategic Compensation Strategic Management - 980 Words

Strategic Compensation Strategic compensation is a component of successful strategic management in any competitive oriented organization. It refers to any payments made in cash or arranged benefits to an organizations employees. Unlike strategic decisions and plans which are undertaken by the top management, strategic compensation is a reserve of the human resource department. This is the department that deals with the deployment, training and payment of the labour force. The department undertakes all the necessary steps involved in coming up with the compensation plan and presents it to top management for approval and a go ahead(Larkinet al, 2012).. Like every other strategy, to come up with the best strategic compensation plan requires putting together a number of factors. The plan must be in line with the company’s overall organizations business strategy and it should aim at helping accomplish it. Secondly, it should put the company in its best position while it comes to competing with other orga nizations for the best persons in the labour market. Thirdly, it should help retain and preserve the company’s best employees as well as motivate them to continue desiring to steer the company to greater heights. As the compensation plan accomplishes this, it should also promote equality among the employees andtheir efficiency in performance. Consequently, the underlying laws as regards: the standards and relations of labour, promotion and maintenance of human rights, equalityShow MoreRelatedStrategic Management, Compensations And Employment Concepts Essay1660 Words   |  7 Pagesbeing an effective owner and manager. Understanding creativity, innovation, motivation, the strengths and weaknesses of employees, roles of management, and the different styles of leadership are all important functions of management. Also, a manager must understand the organization itself. 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