Compensation Straegy Research

What factors can influence organization's past traditional and present reward strategy changes ? What is reward management strategic principle to employment relationship? employees needs to pay tangibles ( salary, wage, cars, educational, holiday allowance etc.) or/and intangible ( recognition, career development growth etc.) rewards to employees aim. Individual balance to achieve tangible output, sales and/or intangibles loyalty, service performance, commitment. Hence, reward management forms the employment relationship, if an HR manager is to succeed in successfully managing the employment relationship, he/she will have to do well in reward management.The reward management principle includes simplicity, it must be easily understood by everyone in the organization, fairness and equitability, every component of the system must be justifiable applied. This element is arguably the most challenging to implement and is the cause of most reward management related problems, such as strike, turnover, dissatisfaction etc. Hence, an attractive communication and training to the low skillful labour to have chance to upgrade high skillful which is needed, a participatory chance is effective one should ideally be negotiated and agreed between management and employees.In fact, traditionally companies have always adopted the base pay strategy. It pays the legal minimum wages and salaries. However, it does not adequate in new work cultures and in terms of attracting, retaining and motivating top performers for strategic purposes, but still very commonly for lower level employees. The new reward strategic options include as below:1.Knowledge and skills based strategy, because of the proven relation job performance, organizations have sought to encourage continuous skills development by trying it to rewards. A organization simply varies its pay structure according to one's level of knowledge and skill ( job evaluation systems. It can define which skills, it values and will pay for and must have a supportive training and development strategy. It is based pay with an equal base pay and a variation based on skills and knowledge. It may be costly in the short-term, but it is beneficial from a knowledge HR base through increased productivity and quality of product.2.Performance based ( varied pay based structure strategy), employees should be rewarded only for the value they create. A company will reward employee in the same grade variably depending on each employee's performance.3.Incentive based pay structure strategy, it measures but being different in that it focuses on group performance rather than individual performance. The starting point in strategy is to define group performance targets, such as productivity sale volumes or profitability.