Compensation: Theory, Evidence, and Strategic Implications - Article Example

For most organizations, the largest expense on the item of the payroll of an employee is related to compensating the employees. Thus, this is an expense that affects the effectiveness and efficiency of the organization. The compensation programs need to be well orchestrated to ensure that all the desired effects are realized at both top and bottom. This includes the managers and the employees.The inherited problem that can be associated with compensation plans is the lack of motivational effect that is desired.

In addition, the plans to not focus on the attention on desired behaviors. Another inherited problem if is not retaining the key people in the government. If the compensation plan is overly complex this can be regarded as an inherited problem. Another inherited problem is if the goal of the compensation plan is unclear.The compensation plans depicted in these articles seem not to be good for business. One needs to have some sort of experience with various compensation plan models. But, the top government official should not take advantage of the employees.

They should use compensation plans to motivate the employees. These are problems that we face at our workplace on a daily basis the top manager manipulates the compensation plans that do not work well for every employee (Gerhart 90). Financial transparency is a feature that has not been achieved. In order to deal with these problems, the compensation plan should be redesigned and be easily understandable for everybody to design. Transparency of all the financial data should be made available for all the members of the organization.

All the bonuses on the compensation plan should be carefully evaluated.