Question

Understand how and why compensation systems might vary across nations.

Answer 1

Ans.
As we know that Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness.
To achieve the higher performance compensation is needed. For this purpose, organizations must be able to successfully manage all components of compensation, including base pay, incentive compensation, rewards, stock options, and benefits. Total compensation management allows for consistency and fairness in pay across the sales organization. It also encourages behaviors that execute strategic goals by using fair, equitable, and understandable targets.
Compensation is different in various organization because it depends on organization's environment, culture, technology, political and legal system, demographic environment etc. Compensation is a primary motivation for most employees. People look for jobs that not only suit their creativity and talents, but compensate them both in terms of salary and other benefits accordingly. Adequate rewards and compensations help in attracting a quality workforce, maintaining the satisfaction of existing employees, keeping quality employees from leaving and motivating them for higher productivity.
In order to achieve performance, organizations have to design and implement a competitive total compensation plan.
Synygy’s total compensation management solution enables organizations to use data on all components of pay to accurately measure costs and execute total compensation strategy. Organizations can set and adjust components of compensation across the whole sales organization using corporate guidelines and budgets. With an integrated approach, companies can consolidate disparate sources of data to set and adjust compensation based on criteria such as objective achievement, quota attainment, and performance evaluations.