Administration human resource management that is most important

Administration
compensation is one of the areas of human resource management that is most
important because compensation policy that good, programme and their effective
implementation is important to get, maintain and develop human resource of the
organization get effective decision from them. It involves selection, design,
development and programme flow designed to implementing compensation policy or
incentive through pecuniary reward. Coast determined wage and salary
administration as follows: “wage and salary administration refer to
establishment and strong policy implementation and employee compensation
practice. It includes such areas as job evaluation, salary study and wage,
analysis relevant organisational problems, development and wage structure
maintenance, set rule to control salary. Wage payment, incentive, profit
sharing, wage alterations and adjustments, surcharges, compensation cost
control and items other related”. Wage traditional concept and salary administration
emphasising on the only wage determination and wage structure in organisation
settings. In simple words, “administration compensation is a systematic
procedure to create structure compensation good.”

Reward
system in contemporary world, reward to performance and success that are better
is more than real achievement itself. Indeed, when global financial crisis
show, reward is everything for bank because they fight for betting that more
reckless and increase risk. Because incentive system that is disabled, reward
perceived as final prize that greater than process real winner. Therefore,
reward management should be viewed within the context what correct and only
reward and what reward that is unbalanced. Point here is reward that should
vindicate performance and does not exceed them. What we mean with this is good
to reward to doer that high for his excellent performance but do not reach
where to catch up reward, the individual will be careful with wind and bear
behaviour that is unethical.

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