Compensation Essay Example | Topics and Well Written Essays - 500 words

Compensation - Essay Example These wages are augmented by bonuses that are commensurate with the contributions the employee makes to specific projects or even their own entrepreneurial developments (â€Å"Facebook beats google†, 2012). The best fit and best practice approaches constitute different perspectives. The best fit approaches argues that compensation pay should be aligned with the organization’s strategy and values. The challenge these becomes finding the ‘best-fit’ between the strategic approach and compensation. These practices are contrasted with ‘best practice’ approach that argue there need not be a best fit between strategy and approach, but instead a universal approach to compensation in the organization. A customer service-agent that manages issues that arise between buyers and sellers at the online marketplace Half.com. These management practices occur over the telephone and through e-mail. Notably, there are over 2,000 emails a day to sort through. It is indicated that this information does not become tedious as the emails are of constantly different varieties. In terms of further information needed, it is necessary to consider what occurs when the issue cannot be resolved, as well as the extent that the employee is under pressure from Half.com to determine a best fit solution. 5. The compensable factors in paying my boss more than me are that he has a higher knowledge set and deeper managerial experience. This increases his organizational value as he is able to oversee crucial aspects or operational difficulties. This is further understood in terms of organizational contributions. While it is possible for the lower tier workers to make tangible contributions to organizational value, compensation is on a best fit spectrum so that the higher the individual is on organizational spectrum, the higher their value is the organization. This results in the higher compensation