Page 105 - Appreciating Organization's Biggest Assets

the organization’s legislation on their motivation. According to
the construction of employee McCaffery and Harvey, there are six
compensation packages, this remark main justifications for structuring
reflects the opinions of many compensation packages and
managers in the corporate sector. maintaining fringe benefits.
Managers have the power to decide • It’s the Law: Because it
on significant business matters that is mandated by law, some fringe
can have an impact on millions of benefits must be provided. In the
rupees (Lai, H-H.,2011), they are US, Social Security, Medicare, and
not always in a position to alter Family and Medical Leave are all
the composition of compensation required by the federal government.
packages for their staff. The majority Unemployment insurance and
of compensation packages are based workers’ compensation are
on market-related data, raising the mandated by every state. Only
question of whether or not these a few states have laws requiring
market-related benefits accurately health insurance coverage and non-
represent the contribution that a occupational temporary disability
particular person contributes to an benefits.
organisation (Lai, H-H. ,2011).
• Duty to deal with unions:
Managers today don’t think their Under federal labor law, almost every
organization’s compensation plans possible employee perk qualifies as a
are successful in achieving the goals “required subject for bargaining.”
for which they are held accountable As a result, employers are unable
(Lai, H-H. ,2011). The majority to reject union proposals or impose
of managers’ primary controllable unilateral benefit coverage changes
operating expense is salary. during collective bargaining.
Employee compensation may be a
powerful instrument for achieving • Competition: Even the
the best corporate outcomes if it is majority of small organizations
effectively handled. When managers now provide their employees
or staff criticize the company’s benefit plans, even if they merely
compensation or incentive plans, it’s include paid time off and employee-
common to believe that the issue is paid insurance. A corporation
financial. However, there are other using a “all cash” pay programme
factors that inspire people besides would undoubtedly suffer from
money. Jensen and McMullen a competitive disadvantage in the
report says that some persons labour market.
claim that money has no effect on

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