Chapter 1
1. The key part of Total compensation Plan is to provide employee benefits. Provisioning of benefits is an elaborate process that considers how the employee fits into the organization’s hierarchy. Living standards and other demographics also greatly influence the benefit plan. For example, the benefits provided to the manager of an organization are somewhat different to the benefits of employees working under him.
2. Entitlement mentality originates from less pay. Employees develop a desire for bigger compensation when they are paid less by their organization. Sufficient monetary awards is one way to reduce the feeling of entitlement among workers as both are inversely proportional.
3. From employer’s perspective, fuel benefits are
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Any decision making process, in this case, planning for employee benefits, requires a thorough and detailed information gathering and study procedure. External information is derived from various sources like economic and market considerations, policies of government, benefit plans of competitor organization and foreign direct investment. Internal information refers to the current financial position of the company, its current head count of employees, etc. In my opinion, economic conditions are an important factor among external information sources and financial security of the organization in internal information …show more content…
The unregulated, informal and undrafted contract that exists between the employer and the employee is called Psychological contract. This contract keeps the employee faithful to the organization. The organization in return provides rewards for the employee’s dedication and hard work. The entire concept of Psychological is based on the belief of mutual benefit. The organization expects certain quality of work, mannerism, etc. from the employee. On the other hand, the employee expects fruitful and rewarding returns from employer.
4. The benefits provided by the employer to its employees have consequential impacts on the Psychological contract. Benefits lead to employee satisfaction and deepen a sense of fealty towards the organization. From the employer’s perspective the expectations in the quality and quantity of work increase. If the employer doesn’t provide the expected benefits or if the employee is not able to deliver to the organization’s expectations, in such scenarios the contract appears to be violated and can result in negativity and decline in productivity of
Abstract There are some companies that believe employees are simply just that employees, no matter what their titles may be they are mere employees. These companies require their employees to take of the business and do work that they are paid for regardless of what it takes to get it done. In some cases though if companies do not word work contracts properly it could cost the company a lot of money. This is something Family Dollar Stores found out when their store managers filed a lawsuit against them and won. What may have been clear to the company was not to its’ employees, the store managers so they filed a lawsuit against the company to get paid overtime money they felt they had earned.
It is human nature to look out for one’s individual self-interests. This vested interest is what minimizes unjust treatment by other parties and ensures success. Leverage is priceless when presented with an unfair employment scenario. In the case of an employer and employee relationship, too much power on either side can quickly become detrimental. Balancing this power is no easy task and holds no single solution. In this essay, I will propose that the contract at will, or employment at will, is one viable solution that can legitimately benefit both the employer and the employee. My view on this issue is one that is often the minority, as there has been a significant amount of criticism over the contract at will. In a society that is fearful of large and overly powerful corporations, the idea of at will employment can seem absurd to some. Many people believe the contract at will is an easy attempt for corporations to abuse their power against the working man. My arguments that follow will demonstrate how just-cause requirements are not always in the best interests of employees. My defense will include many of the points made by Epstein and other scholars, as well legal cases and my personal opinions. Through the use of the contract at will, I will argue that employment operations can become more efficient and equitable for all parties.
I often use Physiological contract with people for example with a friend I see as a good friend I am adhering to a mutual respect, equal effort to make time to meet up, trust, and for them to be there for me when I may need them. Psychological contracts serve to bind individuals and organisations together and fosters commitments.
Bennett-Alexander, D.; Hartman, L (2012) Employment Law for Business 7th Edition. New York, NY. McGraw-Hill Companies Inc.
During recent years, the principle and practice of employment at will has been under attack. Employment-at-will has been a fixture in the United States employment law since the Industrial Revolution in the late 1800’s. In the simplest and earlier state, employment at will meant that an employee who worked for an indefinite period of time worked at the will of the employer. Absent a contractual provision to the contrary, either party could terminate the employment for any reason. At least 55% of all employees and managers in the private sector of the workforce in the United States today are “at-will” employees (Radin & Werhane, 2003). On the surface, employment at will appeared to be a neutral doctrine fiving both the employer and the employee a way out of an undesirable employment relationship. However, the doctrine in practice worked to the benefit of...
Many employees when looking for a job or deciding whether to stay with their current employment often considers the employee benefits the company offers.
We often hear people complain about how many people these days have a sense of entitlement, but have we ever stopped to ask why people end up feeling entitled? It is said that the number of people with a sense of entitlement is on the rise. A sense of entitlement means someone feels entitled to special privileges and is often considered a negative aspect of a person’s character. Everyone, at some point in life, has a sense of entitlement, so in the following paragraphs we will explore some of the causes of this event. One possible cause of a person’s sense of entitlement involves how their caretakers decided to raise them.
You need to write an essay related to the development of an employee’s psychological contract. This essay is designed to widen your knowledge of this particular facet of the employer-employee relationship. Hence, you are required to widely research the concept of psychological contracts and write an essay that discusses the construct. Details of what is required within this assignment will be discussed in class.
Psychological contract is the unwritten contract that illustrates a set of expectations exists between the individual and the organisation (Sonnenberg et al, 2011). Svensson & Wolven (2010) point out that it can be a relationship between the members of a group, the people who work in the same company, department or organisation, several groups or parties in an organization, etc. It includes the work performance requirement, job security, training, potential development, compensation and subside. Psychological contracts are the mental representation based on belief or perception, so it may help the employees and employers get rid of a complicated employment relationship. For instance, the employees and employers may understand very clearly about the terms and conditions and what they have been agreed upon. The perception of each individual is very important and essential (Ekelund et al, 2010, 1438). Thus, when they work in a high competitive group, it could motivate them to implement their work consciously. Combined with a few exceptions, some researches cite that psychological contract is only regarding to the employee–manager relation and the term that mostly...
Employee benefits coordinator play a significant role in Human Resource Management. Employee Benefits coordinators are responsible for assisting with employee benefits, maintaining employee data base, managing all insurance billings and maintain employee files, sick pay, vacation and retirement. This study explores the importance of employee benefits to corporations, government agencies and non profit organizations. This paper also researches the effects on the management team and on individual employees’.
The Human Resource topic that we selected is to analyze the benefit programs of four major airlines. Benefits are important to employees as well as their families, and can be a powerful recruiting tool. Benefits also play a major role in managerial decisions and wise benefit choices can have a long-term impact on the quality of life. Some characteristics of a sound benefits program are, they must have clear specific objectives, they must allow for employee input, they must be responsive to societal and environmental change, provide for flexibility, and there must be clear communication with employees. One of the main challenges that companies face are the overall costs of these benefit programs to the companies themselves, as well as staying competitive in hopes to attract high quality employees. Almost 40% or $14,678 per employee is spent on benefit programs per year.
The organization is able to manage a high coverage of risks at relative low costs owing to the availability of highly skilled personnel in the company’s team of employees. This benefit also brings about another advantage of easing the financial burden of the organization (Johnson, 2016). Besides, effective employee benefit system offered by the organization could improve the general productivity. This benefit is attributed to the fact that employees tent to be more effective when they are given assurance of job security. In addition, workers become more productive when they and their families are given the desired security by the employer. The other benefit to the organization if it employs an effective compensation and benefits system entail benefits from premiums (Wayne, Shore, M., Bommer, & Tetrick, 2002). These premiums are typically tax deductibles as corporate expense. As such, a company that has an effective compensation and benefits system is likely save extra money for other
Formalized compensation goals serve as guidelines for managers to ensure that wage and benefit policies achieve their intended pur¬pose. The more common goals of compensation policy include to reward employees’ past performance, to remain competitive in the labor market, to maintain salary equity among employees, to motivate employees’ future performance, to maintain the budget, to attract new employees, and to reduce unnecessary turnover. It is important for the organ...
A compensation package includes salary but also includes other non-salary benefits such as: health-care benefits, 401(k) plans, PTO (paid time off) and other perks. Businesses often utilize experienced Human Resources professionals to review, update and create salary scales and compensation packages for new hires. The total compensation package is often used as means of attracting employees who will complement the organization and should be consistently reviewed, acting as an incentive for retaining qualified staff. “Organizations that are not able to develop competitive pay scales along with strong compensation packages, face the risk of a competitor offering a more attractive package, which can result in employee turnover” (Dias, 2011, pg.
Holland Enterprises is on a new strategic direction, to attract and retain the most talented employees and to reduce turn over. Human resource department has came up with a new compensation plan. In the propose compensation and benefits system plan , I will explain a new compensation plan for Holland Enterprises, also I will explain the components of the compensation and benefit system plan in order to attract and motivate employees to be productive . In order for the compensation and benefits system plan to be operational, the package should include a necessary level of compensations to fulfill basic needs, equity with the external labor market, equity within the organization (Henderson, 2006).