web folio 2: WEB BASED COMPENSATION AND PLANNING

Early 80s and 90s, organization used paper-based on planning of compensation to their employees. This is because web based compensation still not existed and HR Department faced difficulty to record and review the compensation for each of employees. But nowadays, it is easier because HR Department just click items that related with the compensation by using web-based compensation. Organization must ensure that their web-based compensation is effective because it is essential for control labor costs, increase employee productivity and improvement quality of services.  

According Kavangah et al. (1990), compensation systems includes base pay, merit pay, short-term and long-term incentives, perquisites, recognition awards and attraction or retention awards. So, HR Department must coordinate and organize all of this compensation systems based on positions of each employee. This is because different positions of the employees have different types of compensation. Other than that, organizations more give recognition that focuses on non-monetary rewards to their employees such as recognition of “best employee of the month” or have a lunch with top management.

By using web-based compensation, HR Department easier to collect, record, control, evaluate, utilize and distribute compensation data and information. Besides that, employees also can review the compensation data to know their payment or salary in every month via Internet. This is because amount of salary that employees received are different each month based on their over-time hour payment, profits of sales, performances, productivity or bonuses.

So, HR Department is responsible to make sure that salary of employees is match with those criteria.  They also can cut their time to sit in front of computers during entering all the compensation data of each employee because information can be updated using real-time data.

In addition, web-based compensation contains a lot of information regarding compensation planning and implementation such as plan configuration, modeling and budgeting, plans review and approval, and data related to payment of employees. Other than that, web-based compensation has current information about compensation policies, program description, and new compensation forms and also employees can get further explanation by requesting the question via online Internet to the HR Department.

Web-based compensation incorporated with other department in the organization, if the data and information related to HR Department. For an example, HR Department can detect the information of employee attendance or performance appraisal to make sure is equivalent changes with their compensation. Furthermore, managers can online via Internet to review the compensation reports of each employee and also view the compensation plans and budgeting to make comparison between budgeting with actual spending.

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BIBLIOGRAPHY

Liang, X. (2001). Transforming Compensation Management Practices through Web-Based Enterprise Technologies.

Michael J. Kavangah, M. T. (1990). Human Resources Information Systems.