Motivation and compensation

It is a procedure which motivate people to give their best to the organisation through the utilization of intrinsic (recognition, achievement, responsibility) and extrinsic (work scheduling, job design, appraisal based incentives) rewards.

1. Job design: Organising tasks and responsibilities towards containing a productive unit of work is known as job design. The basic purpose of job design is to integrate the requirement of employers to suit the requirements of an organisation.
2. Work scheduling: Organisations ought to realise the significance of scheduling work to motivate employees through shorter work week's flexi-time, job enrichment, work sharing and home work assignments. Employees have to be challenged at work and the job itself ought to be one that they value. Work scheduling is an effort to structure work, incorporating the physiological, physical and behavioural aspects of work.
3. Motivation: Combining forces that permit people to behave in definite ways is an integral aspect of motivation. People ought to have both the motivation and the ability if they are to perform at a high level. Generally managers try to motivate people through correctly administered rewards (financial and non-financial).
4. Job evaluation: Formally Organisations determine the value of jobs through the procedure of job evaluation. Job evaluation is the systematic procedure of determining the relative worth of jobs to establish which jobs should be paid more than others within the organisation. Job evaluation helps to set up internal equality between several jobs.
5. Performance appraisal:   After worker has been selected for a job, has been trained to do it and has worked on it for a period of time, his performance must be evaluated. Performance evaluation or appraisal is the procedure of deciding how employees perform their jobs. It is a method of evaluating the performance of employees at the workplace and normally includes both the quantitative and qualitative aspects of job performance. This is a and objective and systematic method of evaluating work-related potential and behaviour of employees. This is a process that involves communicating and determining to an employee how he or she is ideally performing and establishing a plan of development.

 The appraisal process consists of six  following steps: (1) establish performance standards along employees; (2) set measurable objective (manager and employee); (3) measure actual performance; (4) compare actual performance with standards; (5) discuss the appraisal along the worker and (6) if necessary initiate corrective action.

1. Compensation administration: Compensation administration is the procedure of dividing how much an employee should be salaried. The vital goals of compensation administration are to design a low-cost pay strategy that will attract, inspired and retain competent employees-which is also perceived to be reasonable by these employees.
2. Incentives and benefits: Additionally to a basic wage structure, most of the organisations today offer incentive compensation depends on actual performance. Unlike incentives, advantage and services are offered to all of employees as needed by law including social security, workmen's compensation, insurance, welfare amenities etc. Organisations have been offering a plethora of other reimbursement and services as well as a means of 'sweetening the pot'. (Employee stock  options, anniversary gifts, birthday gifts,  paid holidays, club membership)