Albason, Ieden

BSBM – HRDM 3A

As an HR student that are aspiring to be an HR manager someday the pay

model of G.T. Milkovich and J.M. Nemwan in 2002 really helps us understand more
on compensation and benefits of an employee. While studying the Pay Model, the
compensation system relates on consistency, competitive performance, and the
contribution of employees.

There are four pillars or policy the Pay Model is based first are the Internal
Alignment where it aligns the salaries for similar jobs as well as the rewards to
different kinds of work. There are techniques that can ease and help us reach the
objectives on these models. Like Work Analysis where as an HR employee I need to
identify the positions and how important the task is given to the employee. As for
Description I will analyze the duties and responsibilities of the job given by the
organization so the employee performs the job successfully and be compensated
right. On Evaluating or Certification it helps me ensure that the wages or salaries pay
on each position in the organization will remain competitive to other firms. On Internal
Structure I will examine and determine the difference in work and skills for the
different pay rates.

In Competitiveness it is about planning on becoming competitive enough

compared to what competitors are offering. We need to offer sufficient compensation
for a potential employee to have them and keep them. In Market definitions technique
that are within here it is the duty that I need to do so I can compete with other
organization for the right and best compensation for the employees in surveys as an
HR personnel my goal is to have the answer of our employees if they are
compensated right through guided questions. As for Policy lines technique that I will
be using to compensate and pay a level that a company set its pay compared to
others. Lastly is the Pay Structure technique being an HR on a organization I must
know how to define each individual and the job role is compensated based upon their
effectiveness in that role.

These techniques are used with the objective of efficiency based on

performance, quality, customers and stockholders, and cost.
 Contribution is about how important the performance of the employee is.
Strong employee contribution means that incentives and rewards are based on what
the employees add. On seniority based as an HR personnel I will check on
employees years of work and may compensate to be a tenure employee and have a
loyalty award. In Performance-based it is a method I can use where I can
compensate the employee on the work they do instead of paying a salary or hourly
wage. Another technique is merit guidelines where I can put criteria that are set to
reach by the employee so that he\she will be compensated accordingly through
performance. Incentive programs this technique that I can be use to promote
productivity and efficiency of the workforce but it can also use to enhance employee
recruitment. All of this technique leads to fairness that are the main goal on these
part of the pay model.

The final component of the Pay Model is administration. The system has to
work well enough to achieve the objectives, and it also needs to be adaptable to
react to new requirements that can result to new regulations or new salary objectives
for the organization. Costs are the techniques where as an HR representative I can
help the organization by checking keenly each of the employee’s compensation.
Communication is a technique that can help everyone especially HR personnel every
concerns must be guided with a proper solution so that there will be no problems. By
change as a technique, employees changes their performance, job requirements and
eventually positions I must see to it that every changes must be compensated
accordingly. Evaluation is a technique that I will be using to evaluate employees and
pay or compensate them to their respective contributions to the organization. All of
these techniques are leading to the objective of becoming compliance.

These are the technique that is a structured way of how compensation

systems should be organized.