Compensation Assignment Example | Topics and Well Written Essays - 2000 words

Compensation - Assignment Example One would suspect that individual performance-based compensation (as opposed to a group performance-based compensation scheme) would have adverse effects on teamwork among employees. However, the study found that that the scheme ran at the company had no adverse effects on teamwork. Performance-based compensation, if well implemented, may lead to increased job satisfaction among the employees of an organization(Ismail, Raffiuddin and Mohamad 83). A study conducted in seventeen GIATMARA centers in Malaysia came to this conclusion. The study was rolled out in two stages. In the first stage, five experienced employees including two supervisors and three support staff were interviewed in depth at the GIATMARA headquarters in Kuala Lumpur. In the second phase of the study, questionnaires were administered to GIATMARA employees. The researchers set out to investigate employee participation in determining their pay and the extent to which the employees perceived their pay as adequate. The study concluded that a well-executed performance-based pay system leads to job satisfaction. A well-implemented performance-based pay system has at least two features: the employees participate in them and consider their pay adequate. Employee participation is achieved by encouraging employees in various job groups to take part in the design and administration of compensation systems. There is some evidence, albeit less compelling, that performance-based compensation could lead to higher employee retention(Dee and Wyckoff 26), presumably because of the job satisfaction that employees derive from these schemes. This was the verdict of a 2013 study by the National Bureau of Economic Research. The study sought to investigate IMPACT, the rather controversial system used by the District of Columbia Public Schools to evaluate and compensate teachers. The system stands out in that it proposes