Discuss compensation and motivation in the context of human resource management.

Compensation is an important area of human resource management. Traditionally, recruiters did not view compensation as an essential element of employee motivation. Remuneration was simply considered payment for work done in the organization and not necessarily a means of increasing employee morale. Additionally, compensation did not include fringe benefits or additional payment that was not commensurate with work duties. Employees had to bear the burden of health costs, family upkeep, and retirement.

Several changes have occurred in the area of compensation and motivation. First, human resource managers now recognize the link between the two. Research shows that well-paid employees perform better at work. This is possibly because when they are paid enough to meet their needs, employees can fully focus on their work. Additionally, compensation takes multiple forms rather than just a basic salary. For instance, employees now enjoy a range of benefits, including life insurance, employer-financed vacation, paid time off, retirement benefits, and unemployment insurance. The compensation package in some firms has evolved to include payment plans such as stock options and profit-sharing.

Another change in the area of compensation is collective bargaining. Employees have the right to form a single unit and choose a representative who is charged with negotiating with their employer over the terms of employment. Independently, employees have low bargaining power, and employers are usually at an advantage. The collective bargaining process gives employees an opportunity for extensive negotiation. They can negotiate better wages, working hours, and working conditions. Workers can also opt to join trade unions where the union acts as an intermediary between them and the employer. Overall, compensation and motivation are currently more vital parts of human resource management than before.

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Academic.Tips. 2022. "Discuss compensation and motivation in the context of human resource management." October 9, 2022. https://academic.tips/question/discuss-compensation-and-motivation-in-the-context-of-human-resource-management/.

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