Compensation

It refers to an approach whereby the human resource management in an organization provides monetary value to its employees in exchange for achieving the objectives of the company. Therefore, the company will try to do all it can to attract, retain and motivate employees through employing effective compensation management strategies. The different types of compensations employees receive include commissions, travel/meals/housing allowances, overtime pays, bonuses and merit pay (Kleynhans, 2006). Similarly, organizations typically ensure that their compensation systems have primary goals. The first goal is internal equity whereby the compensation system should provide a vivid definition of the relative worth of the employee’s job in the company. Second, external market entails the competitiveness of the company in relation to the outside market. Third, the compensation systems should recognize the employee’s contributions such as talent, experience, and performance. Fourth, the systems should adhere to the legal requirements such as pay discrimination laws, American with Disability Acts (ADA). The benefits from effective compensation include low absenteeism and turnover, increased motivation, and job satisfaction (Kleynhans, 2006).

Diversity

It refers to the human qualities that are different from what we have and also from the group we belong, but other people or groups have them. Besides, dimensions of diversity include race, educational background, income, gender, ethnicity, religious beliefs, work experience, physical qualities and age (Carbery & Cross, 2013). The human resource is responsible for managing diversity in the workplace by planning and implementing the systems to ensure that they maximize the benefits and minimize the potential disadvantages from diversity. The human resource management practice diversity in areas such as recruitment and selection. An organization needs to modify its recruitment strategies so that they can identify a diverse pool of qualifies candidates (Carbery & Cross, 2013). Second, in training and development, an organization should implement effective diversity policies on training, mentoring and development programs that will promote and retain employees. Third, organizations consider pay in diversity management. Pay equality is the reason for job satisfaction and motivation among employees. Reducing the payment gap between men and women is important. If an organization ignores diversity, it will experience consequences such as loss of productivity, increased complaints and legal actions, unhealthy tension, and loss of competent and talented employees.

Empowerment

Employee empowerment is a strategy that involves giving employees responsibilities that allows them to make confident decisions regarding their tasks without supervision. This strategy allows employees to make decisions at the lower levels whereby they have unique views about the problems the organization is experiencing at a given level (Deb, 2006). The human resource managers should use tools that include the following to empower its employees. They should share information with everyone, create autonomy and replace old hierarchies in the organization with teams that are self-managed. Through employee empowerment, both the organization and employee will benefit. It increases the creativity and innovation in an organization; employees benefit through increased job satisfaction and motivation, and it reduces the need for supervisions. The disadvantages of employee empowerment include reduced security because of sharing information, and it creates coordination problem within the organization because of the decentralization of the decision-making process.

References

Carbery, R., & Cross, C. (Eds.). (2013). Human resource management: A concise introduction. Palgrave Macmillan.

Deb, T. (2006). Strategic approach to human resource management: Concept, tools and application. New Delhi: Atlantic.

Kleynhans, R. (2006). Human resource management. Cape Town, South Africa: Pearson/Prentice Hall South Africa.

 
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