Compensation and benefits

CHAPTER 3
RESEARCH METHODOLOGY
Introduction
The chapter begins with an introduction that explains the research framework. The intention of this study is to analyze the relationship between compensation and benefits and others independent variables towards the employee turnover. Then, it proceeds about the hypothesis development. The theoretical framework and hypothesis development examine the relationship between dependent variable and independent variables. Next, it goes to data collection methods that consist of primary data and secondary data collection. Next, the size and number of respondents and sampling method will be explained. After that, it goes to the data analysis method for qualitative and quantitative data in this study.
Research Framework
Since all the variables are being determined, the factors that cause the employee turnover in the working place will be developed through the framework. In this framework, it will consist of dependent variable and independent variables only. The independent variables are compensation and benefits, organization cultures, supervisor, job analysis and characteristics, and career development. On the other hand, the dependent variable is employee turnover that deeply discuss in this research. All the independent variables are being measure with the relationship with employee turnover.

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Hypothesis Development
In this study, I will be using the null and alternate hypotheses. Null Hypothesis states a definitive and an exact relationship between two variables whereas it states the population correlation between two variables are equal to zero or that the difference in the means of two groups in the population is equal to zero. In broad-spectrum, the null statement is expressed as no relationship between two variables or no difference between two groups. The alternate hypotheses however is a statement expressing a relationship between two variables or indicating difference between groups (Sekaran, 2003).

Hypothesis 1: Compensation and benefits

The review of literature had provided an insight to us that compensation and benefits may influence to employee turnover in real working environment. Lack of recognition and lack of competitive compensation systems are some reasons for employee turnover in the organization, (Abassi and Hollman, 2000). Hence, the hypothesis of compensation and benefits had been developed in order to determine the relationship between it and turnover among the employees in the real working place. However, we have an expected result of the compensation and benefits no matter for direct cash or non-direct cash do have significant relationship towards the employee turnover.
H0: The compensation and benefits should positively influence to employee turnover.
H1: The compensation and benefits should negatively influence to employee turnover.

Hypothesis 2: Organization Culture

The review of literature had provided an insight to us that the organization culture may influence to employee turnover in real working environment. Tharp, (2009) examined that the culture of an organization extremely influences its countless decisions and actions. Employees think, feel, and act are quite often unconsciously regarded to a company’s prevailing ideas, values, attitudes, and beliefs. Hence, the hypothesis of organization culture had been developed in order to determine the relationship between it and turnover among the employees in the real working place. However, through this research, we have an expected result of the organization culture in term of different cultural, social, religious and economic set-up, large and capable workforce do have significant relationship towards the employee turnover.
H0: The organization cultures should positively influence to employee turnover.
H1: The organization cultures should negatively influence to employee turnover.

Hypothesis 3: Supervisor

The review of literature had provided an insight to us that the supervisor may influence to employee turnover in real working environment. Emotional support from supervisors and self-esteem mediated the impact of stressors on stress reactions, job satisfaction, commitment to the organization and intention to quit, (Mellor, Moore, & Loquet, 2004). It is recommended that to restructure intention to quit and in turn reduce turnover, managers need to actively keep an eye on workloads and the relationships between supervisors and subordinates. Hence, the hypothesis of supervisor had been developed in order to determine the relationship between it and turnover among the employees in the real working place. However, through this research, we have an expected result of the supervisor in term of different supervisor-subordinate relationships do have significant relationship towards the employee turnover.
H0: The supervisors should positively influence to employee turnover.
H1: The supervisors should negatively influence to employee turnover.

Hypothesis 4: Job Analysis and Characteristic

The review of literature had provided an insight to us that the job analysis and characteristic may influence to employee turnover in real working environment. According to McCormick, 1979, the job analysis is a process of obtaining information about jobs. The employees will do observation in order to obtain some information based on their job characteristic. Hence, the hypothesis of job analysis and characteristic had been developed in order to determine the relationship between it and turnover among the employees in the real working place. However, through this research, we have an expected result of the job analysis and characteristic in term of different information that observe based on their job characteristic respectively do have significant relationship towards the employee turnover.
H0: The job analysis and characteristics should positively influence to employee turnover.
H1: The job analysis and characteristics should negatively influence to employee turnover.

Hypothesis 5: Career Development

The review of literature had provided an insight to us that the career development may influence to employee turnover in real working environment. Lack of meaningful work and opportunities for promotion significantly affected employees’ intentions to leave an organization, (Miller and wheeler, 1992). . Hence, the hypothesis of career development had been developed in order to determine the relationship between it and turnover among the employees in the real working place. However, through this research, we have an expected result of the career development in term of different opinions to the job position and opportunities that been offered do have significant relationship towards the employee turnover.
H0: The career developments should positively influence to employee turnover.
H1: The career developments should negatively influence to employee turnover.

Data Collection
According to Sekaran, (2003) data can be composed in a diversity of ways, in different setting-filed or lab and from different sources such as primary and secondary. Data collection methods can be comprised as interviews- faces to face interview, telephone interview, computer-assisted interview and interview through the electronic media; questionnaire that are either personally administrated send through the mail or electronically administrated; observation of individuals and proceedings with or without videotaping or audio recording and multiplicity of other motivational techniques such as projective test. Interviewing, administrating questionnaire and observing people and phenomena are the three main data collection methods in investigation research.
Based on the study of Sekaran, (2003), a questionnaire is a pre-formulated written set of questions to which respondents record their answers, usually within rather closely defined alternatives. However, questionnaire can be administrated personally, mailed to the respondents or electronically distributed. Therefore, I will focus in administrating questionnaire in collecting my data during my study.
Sekaran, (2003) stated that the main motive of using personally administrated questionnaire is it can collects all the accomplished feedbacks with a short period of time and any uncertainties that the respondents might have or any matter could be clarified on the spot. Apart from that, administrated personally questionnaire is the best device in collecting data from large group of people compared to other tool. Therefore, personally administrated questionnaire will be utilized through my study because it is extremely efficiency in making the data collection.
Furthermore, questionnaire can be arranged in open-ended or closed ended question when distribute to the employees. Sekaran, (2003) stated that open-ended questions allocate respondents to answer them in any way they prefer. On the other hand, close-ended question would request the respondents to answer their choices among a set of alternatives given. In this project, close-ended questionnaire will be selected in getting opinions from all the employees regarding my study topic. It is been preferred is due to it assisting the respondents to make fast decisions to choose any the several alternatives before them. Yet, it also assists to code the information easily for the following analysis later.
Other than that, scale is also one of the vital issues in the data collection section. Sekaran, (2003) stated that scale is a device or instrument by which individuals are distinguished as to how they diverge from one another on the variables of interest to my study. Besides, there are four essential types of scales such as nominal, ordinal, internal and ratio and each form have their own rating technique. There are dichotomous scale, category scale, likert scale, nominal scale and so on.
Moreover, after bearing in mind and analyzed the purpose of my study, likert scale is chosen to scrutinize how strongly subjects agree or disagree with statement on a 5 point scale with the successive anchor such as strong disagree represented by number 1, disagree represented by number 2 and so on. Sekaran, (2003) stated that the responses over a number of items tapping a particular concept on variable are then summated for every respondents and this is one of the ratings in the interval scale.
However, the questionnaires will cover some aspects to analyze the respondents’ opinion. The section was considered to construct the portfolio of the respondents; those included their gender, age, education level, company name, and year and so on. Nevertheless, the questionnaire also will be reviewed the general factors which is the independent variables such as compensation and benefits, organization culture, supervisor, job analysis and characteristic and career development as demonstrated in Figure 3.1. However, English language will be selected to distribute questions in the questionnaire sheet due to the basis of it is the international language for local and foreigner employees.
Sources of Data
All data can be attained from primary or secondary sources. Sekaran, (2003) examined that primary data defined as information that attained first hand by researcher on the variable of concern for the specific purpose of the study. In contrast, secondary data can be referred to information gathered from the sources that already subsisted.

Primary Data

The primary data can be gained through the respondents in this study when they contributing their opinions towards factors in influencing the turnover rate in their real working place. Besides on that, all the data that gained through the survey are considered as primary data such as the questions and any doubts that ask by respondents during their answering period towards my personally administrative questionnaire session. All the queries that ask by respondents are categorized to first hand data. Therefore, all the collecting data can be send and use as data analysis and aid to make the conclusion in flowing part.

Secondary Data

Sekaran, (2003) has stated that secondary data can be used as an instruction for us in assisting my research towards the study topic. The secondary data always been taken by somebody in order to do as new purpose. The secondary data can be categorized as several sources in our study such as books, periodicals, government publication, abstract, the media, article, magazine and reports as well as journals that regarding the issue of how the compensation and benefits ways in minimizing the employee turnover. Hence, saving time and cost acquiring information are the fundamental and advantages in using secondary data. Thus, it is significant to refer to the sources that offer current up-to-date information.

Population
According to Sekaran, (2003) population can be defined as the entire group of people, events or things of interest that researcher desires to examine. The population of this research covered the employees in diversified industries and we interested in explaining and drawn a conclusion of the factors that cause the turnover among the employees that work in different industries.
Sampling Method
Sekaran, (2003) examined that sampling is the procedure of selecting an adequate number of elements from the population, so that a study of the sample and an understanding of its properties or characteristics would make it for us to simplify such properties. Self-evident is the main reason to facilitate in using a sample rather than collecting data from the entire. There are hundred even to thousand numbers of elements during the investigation. Therefore, it would be practically impossible to collect all the data and examine every single of elements in the research. The time, cost and other human resources are extremely constraint even if it were possible. Study of sample rather than the entire population is also sometimes likely to create more reliable result.
Sekaran, (2003) discussed that there are two major types of sampling designs which is probability and non-probability sampling. The fundamentals in the population have some known chance or probability of being selected as sample subjects in probability sampling. Meanwhile, the elements do not have a known pre-determined chance of being selected as subject in non-probability sampling. Probability sampling designs are conducted when the representativeness of the sample is vital in the interests of wider generalization. Besides, when time or other factors, rather than generalization are become critical, non-probability sampling is commonly be used.
Moreover, probability sampling will be focus in designing our sampling in order to deal with the motive of interests of wider generalization towards employee turnover issue. Sekaran, (2003) stated that probability sampling can be categorized into simple random sampling, complex probability sampling, systematic sampling, cluster sampling, single stage and multistage cluster sampling, area sampling and also double sampling.
Nevertheless, there are some advantages and disadvantages in every sampling method. Therefore, we decided to choose cluster sampling as our sampling method in this research project. In this study, Sekaran, (2003) discussed that cluster sampling can be explained as grouping the members at random chosen group. When some of the groups with intra-group heterogeneity and inter-group homogeneity are established, then a random sampling of the cluster or groups can ideally be done and information gathered from each of the members in the randomly chosen clusters.
It has its own advantages and disadvantages as well. The advantages are reduced costs, simplified the file work and the administration is more convenient. In contrast, since subsets of the clusters are more homogeneous than heterogeneous so its disadvantages are the least reliable and efficient among all probability sampling designs. Nevertheless, in conducting a cluster sampling toward the employee turnover, all the employees will be cluster into different industry, level of seniority as well as their department. Therefore, by randomly sampling the cluster, we would able to draw conclusion in our study.
Pilot Testing
The first round was conducted on two employees in certain industry (one male and one female). Based on that feedback from this first round, some questions were rephrased to be more clarify. The second round of pre-testing was conducted with three other employees (two females and one male). They found the questions generally clear, thus, the questionnaire was deemed ready for data collection and analysis process.
A pilot test was conducted on the preliminary questionnaire to confirm the factors that lead to employee turnover. The questionnaire was distributed to several people in order to get their feedback. Two rounds of pre-testing were conducted in the study.
Data Analysis
s we have mentioned before, the data was collected through personally administrated questionnaires. There is 100% result in the collection of the questionnaires while it were filled and collected with the presence of the researcher. After collecting the questionnaires, the data will be analyzed after being transmit to Microsoft Excel spreadsheet. The following step is the data in Microsoft Excel spreadsheet will import into Statistical Package for Social Science (SPSS). In this method, we will able to derive a result or priority of the respondents place on each factor after the data organized and analyzed by the SPSS software.
Yet, reliability testing will be conducted in testing the consistency and stability of the responses that had been collected. Moreover, demographic profile analysis will be examined as well. In addition, description statistics analysis such as means, standard deviations and variance were gained for the interval scale independent and dependent variables will be conducted and as well as setting up a ranking table for the independent variables by allocating the sequences of highest to lowest mean value.
Furthermore, the call for the use of Pearson Correlation analysis has been using in testing the hypothesis part to investigated the relationship between the independent variables and dependent variable. Besides that, the linear regression analysis also will be conducted in order to model the function of the independent variables, corresponding parameters and an error term through equation.
 

Compensation Strategy In Translation

Seems its a big deal to make up the loss of idiomatic expressions in translating idioms from one language to another one. How can translators come up with this problem?
Considering an English novel as the source document and its Persian translations as the target text, we mean to answer this question. Extracting idioms and non-idioms from the first chapter of J. D. Salinger’s “The Catcher in the Rye”, is the first step to start. Then we made a comparison of gathered information with their Persian translations by Najafi and Karimi for the next stage.
Following compensation strategy by adding target language idioms somewhere in the translated texts by the Persian translators, is an open door to manage the idiomatic loss in their translations.
This indicates that, if in any case it’s not possible to translate a source language idiom as an idiom in target language, the translator can compensate the loss of the idiom by adding a target language idiom to places where there initially was a non-idiom.
Key words:
English Idiom, Persian Translation, Translation Strategies, Compensation Strategy, Source Text (ST), Target Text (TT), Source Language (SL), Target Language (TL).
Introduction:
Translation is generally explained as a process in which the translator transfers the meaning of a SL text into TL under the circumstances of preserving the content and accuracy of original text, as far as it is possible.
Where there is no equivalent for a SL idiom in the TL, the translator gets throughout compensation strategy to fill this incurred gap. The more skilled the translator is, the better will be the translation.
If you are enthusiastic to this issue as we are, this is the paper you can refer to and take your answer.
Theoretical Background:
Translation
Bell (ibid.: 6) argues that “a total equivalence between a source language text and its translation is something that can never be fully achieved. “
According to Bassnett-McGuire (1980: 2), the aim of translation is that the meaning of the target language text is similar to that of the source language text, and that “the structures of the SL will be preserved as closely as possible, but not so closely that the TL structures will be seriously distorted.” In other words, the source language structure must not be imitated to such an extent that the target language text becomes ungrammatical or sounds otherwise unnatural or clumsy.

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Idiom:
Idioms are the major and natural part of all languages as well as a prominent part of our everyday discourse. Idioms are such a normal part of our language use that we hardly even notice how vastly we use them in our everyday speech and writing. English is a language full of idioms, so, learners of English should be aware of their nature, types, and use.
Using many idioms in English language is one of the aspects that makes it somehow difficult to learn for a Persian learner. They can be used in formal style and in slang.
“Idiom is defined as a group of words which have different meaning when used together from the one they would have if you took the meaning of each word individually (Collins Cobuild dictionary, 1990 edition).”
Indeed, the meaning of idiom can only be inferred through its meaning and function in context, as shown in the examples below (from Fernando, 1996).
“bread and butter, as in `It was a simple bread and butter issue’ (see further below); bless you, which is usually used in the context of cordial expressions; go to hell, which indicates that there is a conflict among interlocutors in an interpersonal contact; In sum, which indicates relations among portions and components of a text.”
Idioms are a set of phrases have different meaning from its individual parts of the phrases. Sometimes it is hard to recognize the meaning of a phrase just by knowing the meaning of the words including in it e.g. “paint the town red” is a phrase which has a meaning other than the meaning of its words separately, it means “having a good time!”
Moon (1998, p.4) claims that “idiom denotes a general term for many kinds of multi‐word expressions whether semantically opaque or not.”
Some traditional theories of idiomaticity assumed that “idioms are frozen, semantic units that are essentially non-compositional (Hambin & Gibbs, 1999, p.26).” However, “there have been a number of semantic classification systems proposed since 1980 for rating the composition of idioms which basically give differing names to the same concepts (Grant & Bauer, 2004).” Fernando (as cited in Liu, 2003) developed a scale by which to categorize “idiomatic expressions and habitual collocation” into 3 categories: pure (nonliteral), semi literal, and literal (p.673).
1. Pure Idioms. Fernando defines pure idiom “as a type of conventionalized, non‐literal multiword expression (Fernando, 1996, p.36).” “Pure idioms are always non literal, however they may be either invariable or may have little variation. In addition, idioms are said to be opaque (Fernando, 1996, p.32).” For example, Let the cat out of the bag (to reveal a secret or a surprise by accident).
2. Semi‐idioms. “Semi‐idioms may have one or more literal constituents and one with non‐literal sub sense. Therefore, this type of idioms is considered partially opaque (Fernando, 1996, p.60).” For example, middle of nowhere (a very isolated place).
3. Literal idioms. This sub‐group of idioms has limited variance. They are less complicated than two other groups. Moreover, literal idioms are considered to be clear as they can be interpreted on the basis of their components. For example Coming out (to exit; to leave the inside of a place).
Translating Idioms:
working with English, the translator may easily recognize if an idiom violates `truth conditions’, as in `it is raining cats and dogs’, `storm in a teacup’, ‘jump down someone’s throat’, etc. It may be hard to recognize, if the idiom is not of this nature, and translators may just think of it as an ordinary expression, with the consequence of either losing its tone or losing its meaning.
There are two sources which may cause misinterpretation:
The first possible source is that there are idioms which can mislead readers/users; they do not sound idiomatic at all, but at a closer look, careful readers would find the ‘hidden’ idioms.
An example given by Salinger in “The Catcher in the Rye” is `got the axe’ in the following text:
“The manager warned me, but I didn’t notice, so I got the axe.”
On the first look, readers may interpret it in terms of a person who took an axe and wanted to do something with it like cut a tree but at a closer look, a careful reader may find out that means “to lose the job”.
The second source of misinterpretation occurs when the words in an idiom have equivalents in the target language (i.e. in Persian) but with totally different meaning. Another good example given by Salinger is the idiom:
“for the birds”.
“Winter weather is for the birds.”
At first it may be understood that this sentence means winter weather is good for the birds but it makes no sense because the meaning is really different and it means “worthless; undesirable”.
Strategies used translating idioms
Idioms are culture bound and this is another challenge for the translator to transfer the exact meaning and content of SL idiom into TL idiom perfectly.
For the sake of solving these difficulties the translator may apply a strategy.
Using the appropriate method in this process, the translators can get over the difficulties easily and it is valuable and useful for their works.
Mona Baker, in her book In Other Words (1992), defines the following strategies for translating idiomatic expressions: 1) using an idiom with the same meaning and form, 2) using an idiom with the similar meaning but different form, 3) by paraphrase, 4) by omission.
(1) Translating an idiom with the same meaning and form:
The first translation strategy by Mona Baker is translating TL idiom similar in its form and meaning to the SL idiom.
For example: Tooth and nail ((Ø¨Ø Ú†Ù†Ú¯ Ùˆ دندØÙ†
(2) Translating an idiom with the similar meaning but different form:
Another strategy suggested by Mona Baker is translating a SL idiom into TL idiom the same meaning but different form. In this case, the translator does not preserve the lexical items and translate as a semantic equivalent.
For example: Acid tongue in her head. (زبØÙ† نیشدØری دØشتن)
(3) Translation by paraphrase:
The most common strategy in translation of idioms is paraphrase. Translators often cannot translate a SL idioms as a TL idiom, therefore they use the paraphrase strategy by using a word or a group of words in TL exactly related to the meaning of that idiom in SL which may be a non-idiom.
Newmark (1988, p.109) “says that while using this strategy not only components of sense will be missing or added, but the emotive or pragmatic impact will be reduced or lost. Still, paraphrase is usually descriptive and explanatory; sometimes it preserves the style of the original idiom as well.”
For example: On tenterhooks. ((مثل Øينکه روی تØوه آتش بØشم
(4) Translation by omission:
According to Baker (1992, p.77) “omission is allowed only in some cases: first, when there is no close equivalent in the target language; secondly, when it is difficult to paraphrase; finally, an idiom may be omitted for stylistic reasons.” “This strategy is not used very frequently. In fact, it is not approved by many scholars and some of them do not include it among other translation strategies (Veisbergs, 1989).” However, sometimes it’s impossible to translate a SL idiom into TL, so the translator may use another strategy called compensation. In this strategy the translator omit an idiom and may put another idiom elsewhere in the TL text by preserving the effect of SL idiom.
Compensation Strategy:
Compensation is a strategy most definitely worth considering, while it can be used as one possible strategy for dealing with idioms and quite an effective one for compensating the loss caused by translating. Therefore, in order to preserve the idiomaticity of the original text and to avoid the mentioned loss, many translators resort to compensation in translating idioms as their final but workable strategy. That is when an idiom is not possible to be translated into TT, a translator’s last effort is to compensate an idiom by omitting that and putting an idiom in another place, by preserving the usage effect of idiom in the ST.
“Nida and Taber (1969) mention that, whereas one inevitably loses many idioms in the process of translation one also stands to gain a number of idioms (p. 106).” Baker (1992) indicates that in compensation, a translator may leave out a feature such as idiomaticity where it arise in the ST and introduce it somewhere else in the TT (p. 78).
In support of this idea, Newmark (1991) suggests that “all puns, alliterations, rhyme, slang, metaphor and pregnant words can be compensated in translation.” Though he further adds that, “compensation is the procedure which in the last resort ensures that translation is possible” (pp.143‐144).
Theoretical framework
We agree with Lorenzo, M. et al., in that “the first step a translator must take is to clearly define his objective before producing a translation which is as true as possible to the original text.” One of the aspects of Hans Vermeer’s concept of skopos (1989:227) is “the establishment of a clearly defined objective or purpose for translation;
Any form of translation, including translation itself, may be understood as an action, as the name implies. Any action has an aim, a purpose.”
The word skopos is a technical word for the aim or purpose of translation.
Nida’s Dynamic Equivalence
In the process of translating idioms, the translator may face many difficulties which is not a simple task to overcome.
The major problem is the lack of equivalence in the process of translation. It would be desirable if a translator could find a TL idiom which is the same as that in structure and content of SL idiom. Anyway every language, both source and target, has its own idioms and it may be hard to find the precise source equivalent in the target language.
The definition of dynamic equivalence is initially given by Eugene A. Nida in his book “Toward a Science of the Translation” (Nida, E.A., 1964:161). Nida is an American translator, scholar, teacher, leader, influencer, conceptualizer, innovator, and influential theoretician. Nida argued that “there are two different types of equivalence, formal equivalence and dynamic equivalence. Formal equivalence deals with the message, in both form and content whereas dynamic equivalence translation is based on the principle of equivalent effect.”
The translator is not concerned with the source language message, but rather with the dynamic relationship.
Dynamic equivalence connects the target language and culture in order to make messages comprehensible to target language receptors. For instance, if we translate a phrase like ‘ two hemorrhages apiece ‘ literally into Persian, it will produce a nonsensical meaning for the Persian receptor. Idiomatic expressions may not seem understandable when translated from one language to another. In such cases the equivalence counterpart ” ” خونروش دو قبضه can be used to make it understandable to the receptor. In this view the translator has brought an equivalent which the original author most likely meant.
Method:
Corpus:
The study is based on a contrastive comparison between the two Persian translations of
The Catcher in the Rye by Muhammad Najafi and Ahmad Karimi. In this study we tried to achieve which of these translators has followed the compensation strategy in his own translation, and whether they have been successful in this process or not.
Gathering the data:
Collecting the data, of course, is as important as other stages (like conclusion) and even more important. Because the more accurate the gathered data is so, the more favorable the result will be.
Focusing on the process in this study, we long to explain the steps in data collecting, respectively. At the earliest step, we extracted English idioms and non-idioms from the first chapter of the novel, then found their Persian equivalents from two Persian translations by Najafi and Karimi of the same novel. We aimed to know whether English idioms are translated into Persian idioms or not and whether English non-idioms are translated into Persian idioms or not. Then we read the aforementioned translated chapter by two translators several times to clarify if they may be idioms. We looked up English idioms in Idioms Oxford Dictionary, although we had difficulty in recognizing the exact idiom at first.
On the other hand, as we are Persian students, it was not hard to find Persian idioms as difficult as English idioms, anyway. But on non-idioms, we considered the most English phrases or sentences which translated as idioms in TL.
Maybe you ask why we chose this novel. As you know, of course, this novel is rich in idioms and it makes the work for researcher to access the idealistic results easier.
Then we counted the idioms and non-idioms in both original text and its Persian translations by two translators.
Table 1. Total Number of Idiomatic and Non-Idiomatic Translations of the Salinger’s Idioms
J.D. Salinger’s Idioms
Total
Translation
Najafi
Karimi
44
Idiomatic
22
18
Non- Idiomatic
22
26
In this table, we calculated the total numbers of English idioms (N=44) which is translated by translators, either idiomatic or non-idiomatic. As you can see, here, Najafi translated more English idioms (N=44) into Persian idioms (N=22) than Karimi. We guess, this table will confirm our claim that Najafi has translated much more skilful than Karimi, because he got use of compensation strategy by adding more Persian idioms than Karimi. Anyway, our purpose is not to compare persons and is just to determine if there is any use of compensation strategy in each of these translations.
Table 2. Total Number of Idiomatic and Non-Idiomatic Translations of the Salinger’s Non-idioms
J.D. Salinger’s Non-Idioms
Total
Translation
Najafi
Karimi
42
Idiomatic
42
26
Non-Idiomatic
0
16
This table also illustrated that Najafi translated 42 English non-idioms out of 42 as idiomatic. On the other hand, Karimi translated 26 English non-idioms out of 42 as idiomatic. This table shows how Najafi and Karimi have functioned in translating non-idioms into idioms. By total non-idioms, we mean those which translated as idioms by Najafi and it will be our criteria for counting Karimi’s idioms and non-idioms.
Table 3. Total Number of Different Data Extracted from Both Translations and the Original Text
Data
J.D. Salinger
Najafi
Karimi
Idiom
44
64
44
Non-idiom
42
22
42
Total
86
86
86
This table confirms that Najafi has translated the novel more idiomatic (N=64) than Karimi (N=44).
Classifying the Data:
After extracting and counting the total idioms in both original text and its translations, it revealed that translators had applied 3 different translation strategies for idioms. These strategies were:
Translating English Idioms into Persian Idioms
Translating English Idioms into Persian Non-idioms
Translating English Non-idioms into Persian Idioms
Analyzing the Data:
In this stage, we analyzed the whole collected data and calculated frequency and the percentage proportion of each strategy in the same translations. The results are shown in the tables below;
Table 4. Frequency and Percentage of Idiom’s Translation Strategies Applied by Najafi
Strategy
Frequency
Percentage
Translation of idiom with idiom
22
50
Translation of idiom with non-idiom
22
50
Total
44
100
Table 5. Frequency and Percentage of Idiom’s Translation Strategies Applied by Karimi
Strategy
Frequency
Percentage
Translation of idiom with idiom
18
40.90
Translation of idiom with non-idiom
26
59.10
Total
44
100
Table 6. Frequency and Percentage of Non-Idiom’s Translation Strategies Applied by Najafi
Strategy
Frequency
Percentage
Translation of non-idiom with idiom
42
100
Translation of non-idiom with non-idiom
0
0
Total
42
100
Table 7. Frequency and Percentage of Non-Idiom’s Translation Strategies Applied by Karimi
Strategy
Frequency
Percentage
Translation of non-idiom with idiom
26
61.90
Translation of non-idiom with non-idiom
16
38.10
Total
42
100
Table 8. Percentage of each Applied Strategies in both Translations
Strategy
Najafi
Karimi
Translation of non-idiom with idiom
100
61.90
Translation of non-idiom with non-idiom
0
38.10
Total
100
100
Results:
The results show that both translators, Najafi and Karimi, have applied three strategies in translating idioms: translating English idioms with Persian idioms, translating English idioms with Persian non-idioms, translating English non-idioms with Persian idioms, and translating English non-idioms with Persian non-idioms.
One of the translators, Najafi, used more frequently the first and the third (translating English idioms and non-idioms as Persian idioms) strategy in his translation, on the other hand, the latter translator, Karimi, used the second and the last (translating English idioms and non-idioms as Persian non-idioms) strategy more often.
Discussion and Conclusion:
As mentioned before, it’s hard to translate a SL idiom into TL idiom regarding the accurateness and the faithfulness of SL into TL.
In this stud, out of 44 extracted idioms from J.D. Salinger’s novel, 22 (50%) of the expressions have not been translated as idioms by Najafi. In the same case, Karimi has translated 18 (40.90%) of the idioms with Persian idioms and the remaining 26(59.10%) idioms have been translated non-idiomatically. This imbalance between the total number of idioms and their non-idiomatic translations causes a loss of idiomaticity in the Persian translated texts. Some of these idiomatic losses have been compensated for elsewhere in the text, since the translators have replaced some English language non-idioms with Persian idioms. By this strategy, Najafi has added 42 idioms and Karimi has added 26 idioms to their translations. We recognized that there’s not the exact contrast in numbers of idioms in two languages(SL,TL), but it’s very common in translation. The translators were somehow successful here in compensating idiom gaps in the TL. Furthermore, they compensated those non-idiom expressions in the original context to function better on their translations.
Compensation strategy is considered here as the best to translate idioms, non-idioms and figure of speech as well.
 

Performance & Compensation Plan Analysis

The Case Topic:

Vitality Health Enterprises has had a successful operation in the past. After experiencing some “let up” in performance and results, the Executive Manager is looking to make improvements. As part of the overall improvement effort, the Performance Plan that had been in place (the Old Plan) has been assessed for effectiveness and a New Plan has been constructed. The case affords you the opportunity to analytically assess performance and compensation plans and their impact on Job Satisfaction and Loyalty and Commitment. _____________________________________________________________________________________

Question 1.

What are the basic purposes of a Performance & Compensation Plan and how it is expected to impact organizational outcomes?

 Performance and compensation plans serve the following purposes: to provide a structure for the assessment of  employees’ job performance to provide guidance for compensation increases, to set and define goals for employee performance expectations, to promote communication between managers and their staff regarding performance, to motivate and encourage employees to perform successfully, to retain the best employees, and to promote the continued success and competitiveness of an organization.  Ideally, performance management systems should be in effect throughout the year, with clear and ongoing communication and feedback between managers and their employees, as opposed to taking place as an annual process (Pulakos, et al., 2004).  Companies who provide performance feedback on a regular basis foster an environment of trust between management and employees because the employee is more likely to be clearly informed of performance expectations and has ongoing opportunities to make adjustments to improve performance and to meet or exceed expectations.  Keeping employees engaged with the organization and aware of the importance of their contributions promotes the organization’s success, which is an important goal of a performance and compensation plan.

Question set 2.

What were the main problems with the old system? How did it impact Job Satisfaction and Commitment?

 There were several problems with the old system that impacted job satisfaction and commitment, and that worked against the goals of Vitality Health to increase the productivity of the product engineers in the R&D department:

Lack of accurate performance rankings by managers due to their fear of disrupting their team work culture.

Lack of distinction between high, medium, and low performers led to more productive employees feeling undervalued by management and increased bad morale among good employees.

Too many rating options (13) to choose from made it hard for managers to determine where employees fit into the ranking.

The point system and peer group comparison ratios used for salaries and raises could result in less salary increase over time for consistently high performing employees.

Job satisfaction was impacted by the problems with the old system because the top talent felt that there was no recognition given to them for performing well since there were employees performing less productively who were given the same or even higher raises, leaving top performers feeling unappreciated and devalued, according to the Vitality Health case study.  This led to some of the more talented employees leaving Vitality Health for other opportunities.  Additionally, there was no incentive for productive employees to keep performing at high levels because it had no effect on their compensation not their underperforming peers’ compensation.  In addition to losing their top talent, Vitality was faced with the lesser performing employees more likely to stay with the company, which worked against the company’s goal of achieving a high performing R&D team.

 Commitment was also affected by the old system because when employees feel unappreciated and undervalued they are more likely to want to seek employment elsewhere, and they are less engaged in the work that they are doing.  Colquitt, et al. (2019) discussed three kinds of commitment to an organization that an employee may have:  continuing to work at a company because you want to, need to, and ought to (p. 64).  The types of commitment that are most affected by the old system are “want” and “need” since some employees may “need” to stay with the company for the salary they make, but they may not be committed to the goals of the organization if they are unsatisfied, and some employees will not “want” to stay with the company if they have a choice to seek employment elsewhere and are unsatisfied with their current employment, and will also not likely be committed to the goals of the company if they are seeking to leave.  Since the goal is to retain top talent, it is necessary to focus on ways to engage employees and ensure that they feel valued and appreciated for their contributions to the organization, or these may be the employees that are lost to competitor companies or who learn to disengage in their current jobs because they are not recognized appropriately for their performance.

Question set 3.

From the case information, explain how the Old system aligned with company goals? Why might this be important to the Plans effectiveness?  

The old performance management review system sought to align with the company goals of becoming a more agile and competitive organization by cutting costs, reducing inefficiencies, and tracking employee performance.  Additionally, the old system aligned with the organization’s goals by trying to find ways to retain their top talent, but fell short in part because it focused only on financial pay.  Neely (2007) discussed the importance of internal motivation with jobs that have a complex and knowledge learning nature, such as those of product engineers, where the use of financial rewards as incentive for motivation is not recommended as the sole way to recognize employees for their contributions (p. 444).  In addition to financial rewards, Neely (2007) recommended fostering an environment for such employees where they are supported in meaningful work that they have responsibility for outcomes, hold accountability to mutually agreed-upon goals, and have open lines of communication with managers and teams of co-workers (p. 443).  Internal motivation for R&D employees is inspired by being engaged in meaningful work and by understanding how their performance contributes to the big picture of success of the organization.

It is important to align performance plans with a company’s strategic goals so that employees’ work contributions fit into the big picture of the organization’s overall success.  Without tying into the company’s strategic goals, it becomes difficult to elicit buy-in from employees and managers to any performance plan, and without their buy-in, managers and employees can undermine the system, which is what happened at Vitality, rendering it ineffective.  Managers only selected one or two ratings out of 13 to assign to most of the employees, which disallowed the possibility of identifying the strong from the weak performers.  As a result management did not have the opportunity to leverage any strategies with the high and low performing employees to cultivate the employees’ growth and improvement for the betterment of the organization’s future success.  With no visibility of the true talent or underperformers in the company, it is difficult to know where to focus your attention in attracting, recruiting, and retaining talent, and managing out the underperforming employees.

Question set 4.

How well do you think a forced distribution rating provision in the New system achieves objective and equitable performance assessments? And, do you recommend its use at Vitality Health? Why or why not?

 In designing a performance rating system for Vitality that aligns with their goals and that is well-received by its employees and managers, it is important to understand what motivates R&D employees to perform well.  While some employees are motivated by pay increases, others may need a combination of pay and other forms of compensation and opportunities in order to perform at their best.  According to Suff, Reilly, and Cox (2007), research scientists and product engineers, who contribute to an organization by creating products and solutions and solving problems, fit into an employee category who are satisfied by a combination of financial and non-financial compensation. Non-financial compensation can take the form of training and research opportunities to stay on top of what is current in their field.  It is also critical to understand how R&D employees work and the nature of the work that they do, which is less measurable and more complex than sales number metrics in the work of salespeople.

Question set 5.

How does the New system impact Job Satisfaction and Commitment? What are the major shortfalls of the New system?

One of the major shortfalls of the new system is that a forced distribution system puts the focus on the performance the individual employee rather than on team performance, which works contrary to the goals of Vitality Health to motivate their R&D team to create new products.  This could also lead to individuals being rewarded even though their departments may not have reached goals and deadlines that they were accountable for.  Andersen (2012) cited an example that shows in forced ranking, even if most of the team were top performers, only some of the team would be allowed a top ranking, which is not only detrimental to motivation, but drives individuals against each other as they vie for a top ranking, leading employees to not support their co-workers and does not promote success for the team.  This creates a culture within the company where employees focus on competing against each other instead of working together to compete as an organization against other companies, and is detrimental to the success of the organization (Allen, 2012).

An additional shortcoming according to Lipman (2012) is that the majority of employees are fit into the “average” category to indicate that they are meeting expectations, which in an adult mindset is equivalent to a “C” rating, which can be demotivating.

Another shortfall of the new system is the way that it was implemented. There was a management comment that asked where the training for using the new system was as it was confusing and overwhelming to adopt the new forced rating system.  If proper training had been provided, there would have been opportunity to elicit buy-in from the managers who put it into practice, which would be critical to the successful understanding and adoption of the new system by Vitality Health (Marty, 2019).

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Managers were able with the new system to save higher rankings for other employees by automatically assigning a non-ranking to any employee who had been there less than 1 year, which both did not allow for recognition of high performing new employees in the first year, or did not motivate new employees to contribute for the 1st year.  Since a new employee received a non-ranking regardless of performance, it had the same result as not being held accountable for performance in year one. 

References

Allen, F.  (2012).  The terrible management technique that cost Microsoft its creativity.  Retrieved from https://www.forbes.com/sites/frederickallen/2012/07/03/the-terrible-management-technique-that-cost-microsoft-its-creativity/#9d94031e03ac

Andersen, E.  (2012).  The management approach guaranteed to wreck your best people.  Retrieved from https://www.forbes.com/sites/erikaandersen/2012/07/06/the-management-approach-guaranteed-to-wreck-your-best-people/#2a7d0b325743

Lipman, V. (2012). The pros and cons of forced rankings: A manager’s perspective.  Retrieved by https://www.forbes.com/sites/victorlipman/2012/07/19/the-pros-and-cons-of-forced-rankings-a-managers-perspective/#5b3d2fc470b6

Marty, J. (2019). Vitality health: A better corporate management health system to retain topo talent.  Retrieved by http://chloemarty.com/johnmarty/vitality-health.pdf

Neely, A.  (2007).  Business performance management, 2nd ed.  Cambridge University Press, NY.

Pulakos, E., Mueller-Hanson, R., O’Leary, R., & Meyrowitz, M. (2004).  Building a high-performance culture: A fresh look at performance management.  Retrieved from https://www.shrm.org/foundation/ourwork/initiatives/resources-from-past-initiatives/Documents/Building%20a%20High%20Performance%20Culture.pdf

Suff, P., Reilly, P. & Cox, A.  (2007). Paying for performance: new trends in performance-related pay.  Retrieved from https://www.employment-studies.co.uk/system/files/resources/files/mp78.pdf

Public vs. Private Sector Employment Compensation and Benefits

Abstract

Employees have the ability to make or break a company. The labor force and the products and services a company offers make up the most important parts of a company or agency. Both public and private sector entities invest in the employees in benefit and compensation plans. Public sector agencies typically have a base compensation package that is offered to any and all company employees, which includes bas pay, retirement, sick, vacation, and holiday pay, and partial or full tuition reimbursement. Private sector entities sometimes offer base pay plus commissions and bonuses as well as fitness programs, paid leave, company parties, company perks, and a mechanism for moving up within the company. Public sector jobs are often seen as more secure than private sector jobs, but private sector often pays better than public sector.  Depending on a person’s desires, dreams, hobbies, family demographics, education, employment history, and location, an employee typically knows whether they want to make a career in public or private sector jobs. Depending on the compensation and benefits package, an employee then determines which entity they wish to work at. Compensation and benefits are part of a company’s overall business strategy.

Public vs. Private Sector Employment Compensation and Benefits

 Employers seek to hire the best candidates and most qualified employees. Because of this, they offer compensation and benefits to attract the best employees. Public sector agencies are often not able to offer as much money as private entities, however, are sometimes more secure employers and offer better retirement and benefits packages. Private sector companies sometimes offer commissions in order to provide incentive for employees to perform at optimal levels. Employees weigh their employment choices based on their goals, beliefs, needs, and desires. Compensation, benefits, and incentives are some of the most important determinations that are considered in deciding whether to work for a particular employer. The total compensation an employee receives includes pay, insurance, sick and annual leave, paid holidays, tuition reimbursement, retirement, training, and any other incentives employees receive in exchange for working for an employer. Some employers offer meals, fitness programs, retreats, and many other incentives as well.

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 Private sector employers are often able to offer better compensation packages than public sector employers. This is because public sector employers have to answer to their benefactors, which include the citizens of the city, state, or nation which provides funding for the organization. Every dollar must be justified. Although public sector employers do not pay as much or offer as many benefits, they typically pay for all employees to have holidays off, generous sick and annual leave, and affordable insurance programs. They also offer tuition reimbursement at a lot of public sector jobs. Some private sector jobs offer these benefits as well as bonuses, company picnics, Christmas parties, and attractive benefits such as company cars and use of a company jet. Employers invest into attractive compensation packages in order to attract and retain the specific types of employers they want and need according to their objectives as a company. A tool to becoming and remaining competitive in any sector or industry is the retention of the best employees. Employees are a company’s best asset.

 Without reliable, hard-working, loyal employees that perform at the level necessary for the success and continuity of the company, the company will not survive regardless of the products or services offered. Both private and public sector employers know the value of a good workforce. “Compensation programs based on the performance of an entire organization (i.e., organization-level incentives such as profit sharing and gain sharing) have been found to be able to improve employee morale, increase productivity and contribute positively to company financial performance” (Chen & Wang, 2018). A company’s performance is directly correlated to the employees’ morale, productivity, and performance. One incentive that is often adopted by both private and public sector companies is flex scheduling to allow for a good work-life balance.

 When individuals have a healthy work-life balance, they are more likely to operate at ideal performance levels. When employees operate at optimal performance levels, the company benefits. Part of a business strategy in a restaurant operation for example, is to increase sales and turnaround time for all customers and food orders. The more orders that are processed in a small amount of time, the more money a company makes and ideally, the more customer loyalty that will be gained. Speed and accuracy are both important within the restaurant industry. The same, however, is true in public sector agencies such as tax collection agencies. Employees must be very accurate and process a large amount of work and data in small amounts of time. Both in the restaurant and the public tax collection agency, speed, accuracy, and loyalty is necessary.

Turnover costs a company recruiting, training, and retention costs. Research has shown that it costs a company more to lose employees than to retain them. Turnover costs must be avoided whenever possible to save a company money (Michael, Davidson, Timo, & Wang, 2010). Job satisfaction and organizational commitment have a lot to do with turnover rates. “Pay, communication, social integration, routinization, role overload, promotional opportunity, training, supervisor and co-worker support, and distributive justice also have a significant impact upon turnover” (Michael, Davidson, Timo, & Wang, 2010). The key to employee retention is to initially offer and implement a compensation and benefits package with is desirable and then to equip the employees with all the tools necessary to do their job well. All of this is part of a company’s strategic plan initiation and execution. Employees use the same reasons to accept employment, stay at a particular employer, and quit a job. If they are happy and feel adequately compensated, they typically perform well and stay at a job. If they feel they are not being compensated adequately, they will not perform well and will not stay employed (Michael, Davidson, Timo, & Wang, 2010).

Restaurants typically pay salary to cooks and managers, whereas servers, hosts, bartenders, and bussers are paid hourly. Managers may also receive bonuses for meeting sales levels. Servers typically make a few dollars less than minimum wage because they also receive tips, although this may vary among companies. As long as between the hourly pay and tips, employees make at least minimum wage, employers are within their rights. There are federal and state labor laws which every employer must abide by (Antwi, Moriya, & Simon, 2013).  Within the last US President’s time in office, there have also been laws implemented regarding an employer’s mandatory offering of company health insurance. Employers are also sometimes required to offer unemployment insurance and overtime pay (Antwi, Moriya, & Simon, 2013). As with many laws, there are restrictions, rules, laws, and exclusions pertaining compensation. In public sector jobs, a license may determine the compensation for individuals. If an individual holds and Engineering or Surveying license and works for a Federal job, they make more money by law than when they are working in other jobs.

“A thorough understanding of internal incentive structures is critical to developing a viable theory of the firm, since these incentives determine to a large extent how individuals inside an organization behave” (Baker, Jensen, & Murphy, 1988). Although the article cited is dated from the 1980’s, it still rings true today. Employees behaviors directly reflect how they feel about their work environment and compensation at work. A lot of individuals work long hard hours and the only thing that keeps them working is knowing they feel needed and appreciated through compensation and intrinsic as well as extrinsic incentives.

Intrinsic and extrinsic incentives have been studies for many years. These are a large part of Human Resource Management and compensation at entities both in the private and public sectors. Restaurants offer free food and flexible shifts as well as pay based on performance. The faster and friendlier a server is and the more shift they decide to work, the more money they will make. Some public entities offer free clinics to employees as well as paid voting time and use of company cars and resources. These benefits could be classified as intrinsic or extrinsic in nature. Intrinsic incentives are incentives that are classified as being motivation to do something based on internal beliefs (Benabou, & Tirole, 2003). Extrinsic incentives are rewards such as bonuses, flexible schedules, days off, and profit sharing. Extrinsic incentives are often offered to ensure employees strive for greatness (Benabou, & Tirole, 2003). Intrinsic incentives are internal goals within individuals that are rooted in education, training, and values. The Human Resource staff are trained to utilize both intrinsic and extrinsic motivation and incentives to ensure employees operate at optimal performance. The ability to strategically implement incentives into compensation and benefits packages is part of the overall plan a company must have in the overall company strategic plan.

In the absence of pay for performance plans, such as at public sector jobs, there are other incentives that are part of compensation, though not monetary in nature. These include praise from superiors and co-workers, implicit promises of future promotion opportunities, exclusive training opportunities, travel, feelings of self-esteem that come from superior achievement and recognition, and current and future cash rewards related to performance (Baker, Jensen, & Murphy, 1988). Compensation, as previously mentioned, takes many forms.

The ability to lead groups and make a difference is also a compensation mechanism in public sector jobs. For an individual to feel as though they are making a big difference and impacting the lives of others for the better is non-monetary incentive to work for an entity. Companies, such as non-profit or public sector use this as a recruiting mechanism to obtain highly qualified individuals who believe in intrinsic rewards. It is important to look at the bigger picture when comparing compensation and benefits within an organization. This may lead to better retention of quality employees. When there are committees within companies and employees have the ability to lead these committees, this is also incentive to work hard and become leaders of others. This is imperative to a company’s success (Michael, Davidson, Timo, & Wang, 2010).

Research programs, technology, equipment, and support from management are also benefits which employees see as incentives to work for various programs and entities. For example, a scientist is more likely to work for less pay if they have access to research programs they are interested in and equipment that will allow them to grow and succeed in their positions. When employees are not equipped with the necessary tools they need to be successful in their positions as part of their benefits in employment, they are less likely to stay in their positions and more likely to look for employment elsewhere (Benabou & Tiroule, 2003). Training is also a benefit in that employees want growth and promotion and the best way for them to acquire this is through employer provided training. Some employers pay for employees to stay up to date with the continuing education credits.

Both private and public sector employers know the value of compensation and benefits in attracting and retaining employees which will support their values, mission, beliefs, and protocol. Finding licensed qualified employers is a difficult task. In order to effectively acquire and retain these employees, their needs and wants must be met. Employment is essentially a contract. The employee receives pay and benefits in exchange for hard work and dedication. Employees have the ability to boost sales, retain customers, meet goals, and engage in practices which are aligned with the company. A company’s success is highly dependent on the employees’ morale and hard work.

When an employee feels valued and adequately compensated for their work and contributions, they will do their best and assist in the overall success of the company. Tools, training, equipment, and materials all contribute to whether or not an employee will be successful in their position and these are all non-monetary compensation for an employee. Bonuses and commission are pay for performance mechanisms. Paid vacation and sick leave are monetary benefits which are offered to both public and private sector jobs. Compensation and benefits are of utter importance in the strategic planning of the Human Resource Management aspect of any company regardless of the sector in which they operate.

References

Antwi, Y. A., Moriya, A. S., & Simon, K. (2013). Effects of federal policy to insure young adults: Evidence from the 2010 affordable care act’s dependent-coverage mandate. American Economic Journal: Economic Policy, 5(4), 1-28. doi:10.1257/pol.5.4.1

Baker, G. P., Jensen, M. C., & Murphy, K. J. (1988). Compensation and incentives: Practice vs. theory. The Journal of Finance, 43(3), 593-616. doi:10.1111/j.1540-6261. 1988.tb04593.

Benabou, R., & Tirole, J. (2003). Intrinsic and extrinsic motivation. The review of economic studies, 70(3), 489-520.

Chen, L., & Wang, J. (2018). Business strategy, compensation policy and innovation performance: A behavioral perspective. Compensation & Benefits Review, , 88636871879842. doi:10.1177/0886368718798423

Michael C.G. Davidson, Timo, N., & Wang, Y. (2010). How much does labour turnover cost? International Journal of Contemporary Hospitality Management, 22(4), 451-466.

 

Evaluation of Compensation & Benefits in High Tech Industry Businesses

The purpose of this paper is to analyse and evaluate the best practices in compensation and benefits adopted by organisations in the high tech industry. High technology companies incur a high cost due to retention and recruitment of human resources and thus design of suitable compensation programs are important to their bottom lines.
We studied literature to understand the view of academia on the best compensation and benefit strategies in high technology industry. To understand the application of these strategies we selected three ‘fortune 1000’ firms Microsoft, IBM and Netflix and compared their current compensation strategies with the recommended best practises.
It was observed that best practices in high technology firms are primarily based on performance priorities to encourage key contributors. However each firm had a customised approach in developing a compensation strategy keeping in view employee needs, business goals and organisation environment. Firms with aggressive performance goals, followed exclusive incentive based compensation plans, while some firms chose to adopt a more holistic reward system.
In conclusion this paper highlights that compensation strategies should be built with a ‘best-fit strategy’ rather than ‘best practice strategy’ in mind. There is no one – size – fits all strategy which should be applied to an organisation.
Introduction
“Compensation refers to all forms of the financial returns and tangible services and benefits employees receive as part of an employment relationship.”
(Milkovich, Newman and Gerhart, 2010). As per the 2007 Emerging Workforce Study by Spherion Corp. (HR Trendbook, 2008), both monetary compensation and non-financial benefits comprise the key factors of compensation which lead to retention. Compensation programs are measured in terms of general pay effectiveness, contribution to organizational goals and are used as recruitment tools and finally used as a motivational and retention tool (Balkin and Gomez-Mejia, 1987).
Meiyu Fang (2004) states that since the high technology industry has higher investments and higher returns than contemporary traditional manufacturing firms. These high technology companies were selected for the study because human resources costs are a major expenditure in such firms and thus design of compensation programs important to their bottom lines.
This essay endeavours to understand the best compensation and benefits strategies that high performing organisations in the high technology industry have undertaken.
Summary and Analysis of literature
Key Elements of a compensation plan
Milkovich, Newman and Gerhart (2010) suggest a four step strategy for development of a compensation strategy. HR professionals should begin by assessing total compensation implications on business strategy, competitive dynamics, employee and union needs, organisation culture and values. The next step would involve mapping a total compensation strategy keeping in mind the firms’ external competitiveness, internal alignment and employee contributions. Only then should the final implementation of strategy be done and followed by a continuous re assessment of strategy. The challenge is to find a compensation plan which is the best fit with the business strategy in the given environment. The literature (Milkovich, Newman and Gerhart, 2010, p. 53) goes on to recognise that some organisations however would prefer a ‘best practise’ strategy than a ‘best-fit’ strategy.
Compensation in High technology Industry
High technology firms are characterized by (i) a high proportion of scientists and engineers (ii) geographic concentration (iii) high expenditures on research and development aimed at products which are at the cutting edge of technology; (iv) rapid technical innovation; (v) a very small/specialized labour market for scientists and engineers, resulting in high attrition rates (vi) entrepreneurship, since several of these firms are led by entrepreneurs who get financial support from venture capitalists. (Balkin and Gomez-Mejia, 1985)

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It is imperative for high technology companies to focus on productivity, high quality and profit performance. A study done by Sibson and Company in the year 1982-1983 on different compensation program designs adapted by 66 high technology firms to understand whether financial rewards help an organisation perform better had divided the companies into two groups ; 24 companies that designed their compensation plans based on performance priorities and 42 that did not.
It was seen that companies who designed their compensation programs based on performance priorities did significantly better. These were categorised as the ‘best performing ‘ companies while the others as ‘poor performing companies’. These performance priorities may include profit performance, employee contribution & community responsibility, responsiveness to customers and technical excellence. Compensation programs are seen to reinforce these priorities throughout the organisation. Organisations that did not perform well were seen to lack direction, employees were not linked through common performance goals and their overall financial performance fluctuated.
Better performing organisations had adopted the following methodologies to reflect their performance priorities. They considered pay as a foundation to design incentive plans. These companies allocated incentives on group performance whereas poor performing companies rewarded incentives based on individual performance. They also used special award programs to recognise employees for noteworthy contributions to the company. Best performers were also seen to include a combination of stock and non stock plans that integrate short term incentive plans as part of the long term compensation strategies, where as poor performers were seen to focus only on stock type incentives. The study successfully pointed out that designing compensation plans based on performance priorities directly benefited the company’s financial performance.
This study also proved to be a guideline for high technology companies to adapt proven compensation practices. Such as every organisation should enforce performance priorities that reflect the culture of the organisation. They should evaluate current compensation plans to reinstate these policies and identify changes if required. Lastly the long term – short term components of compensation should also be aligned with the performance priorities of the organisation. (Schuster , 2005)
Compensation in global organisations: Best Fit Strategy
Such a strategy is practised in fortune 500 firm – Microsoft. Microsoft’s compensation strategies are seen to have evolved over time. Prior to year 2000, a majority portion of the pay packages consisted of stock options but after the dotcom crash the company graduated from stock options to a combination of merit pay increases, annual bonuses and restricted stock units. Managers found this approach very cumbersome and therefore Microsoft adopted an integrated system to clearly connect rewards to performance. The integrated approach included performance reviews where employees received ratings from their managers based on achievements of goals/commitments, long term performance records and behaviour with peers and managers. Based on these ratings the employee is then awarded bonus, merit pays or RSU’s. In addition to the system Microsoft also introduced a portal allowing employees to analyse the shifts in compensation based on their performance, thus ensuring that the whole process of compensation was clear and transparent. With the incentive based system it was found that employees were more satisfied with respect to compensations. By rewarding results and achievement of goals, rather than increasing compensation based on seniority or time, employees are encouraged to perform better and benefit a company.
However, when studying the literature we found that every organization is unique. There is no one-size fits-all framework for compensation management (Rumpel and Medcof, 2006). The stress is on the best -fit compensation strategy which is effective in achieving organizational goals.
A contrasting opinion by Rumpel and Medcof (2006) discusses a holistic approach to rewards which goes beyond the strong focus on pay and benefits, a hallmark of traditional compensation practices. Technology firms like IBM have now moved to approaches where rewards include opportunities for learning, quality work environment and development.
IBM’s new practices for achieving higher employee productivity focus on flexible working hours, cutting voluntary turnover with training opportunities, and increasing employee engagement through a robust performance management system which is integrated with the monetary compensation system to fetch optimal results for the reward system in totality.
IBM has a four pronged approach of:

Pay includes “direct financial items, such as variable pay, incentives, base pay, monetary recognition programs and stock and equity sharing programs”(Rumpel and Medcof, 2006).
Benefits include “indirect financial rewards, such as health/welfare benefits, retirement /savings plans, vacation and other paid time off”(Rumpel and Medcof, 2006).
Learning and Development includes “programs for employee development and career training, supporting performance management and succession planning systems”(Rumpel and Medcof, 2006).
Work Environment “includes programs and practices related to organizational climate, such as diversity and organizational culture initiatives, performance support, work/life balance such as flexible working arrangements, elements related to organizational reputation, elements related to challenging and interesting work and the quality of relationships with colleagues.” (Rumpel and Medcof, 2006)

Such a diverse set of rewards, provided by IBM, caters to diverse employee needs. It manages reward expectations and reduces overall turnover rates and costs.
It goes without saying that for any compensation strategy to work, it must take into account which rewards are valued by employees and ask whether these rewards are likely to achieve the desired retention and motivation effects. If the rewards offered don’t attract the employees, or they are unaware of their availability, then the desired behavioural effects may not occur irrespective of whether they have been linked to the organizational strategy. Further, for organizations where employees are primarily drawn to monetary compensation, such comprehensive rewards will definitely not be the most cost-effective approach. (Rumpel and Medcof, 2006)
Another noteworthy example of a distinctive style of compensation management is that of Netflix- a fortune 1000 company. Netflix has faced fierce competition from Apple and Amazon in its early stages and has managed to stay afloat due its talented employees. Contrary to the companies focussing on developing compensation strategies, the founder of Netflix, Reed Hastings, has successfully inculcated the culture of freedom and responsibility where in the company adopted some unique employment practices that were meant to attract, retain, and motivate employees. Among these practices was an unconventional compensation system features such as exorbitant salaries, unlimited vacations and allowing employees to structure their own compensation packages .Most companies provide compensation packages with a predetermined combination of cash and equity-based awards, but Netflix allowed its employees to request their own combination of preferences. In return Netflix expected employees to have ultra high performances. Therefore Netflix managed to retain the best talent by giving employees a choice on their compensation requirements. In line with this aggressive policy Netflix would let go of employees who failed to perform with high severance packages. ( Conlin,2007)
Conclusion
Compensation is an important and powerful tool used by organisations to influence motivate, retain and recruit employees. When the compensation strategy is in tune with organisational strategy and developed after understanding of employee needs, there can be far reaching benefits. A suite of benefits built to cater to globalized and diverse work force is key to the organisations in the 21st century. Given the nature of the industry selected for discussion in this paper, High Technology, where highly skilled human resource is critical, compensation plays a key role in reducing employee turnover. In our exploration of various literatures for the best practises of compensation programs, we found that each organisation identified specific strategies based upon their business goals and employee needs and organisation environment. The importance of using a ‘best -fit’ strategy instead of ‘best-practise’ strategy is clear.
 

Pay-for-Performance: Does Compensation Motivate Behavior?

Abstract

Organizations have been increasingly using monetary incentives to find solutions that can effectively motivate employees regarding behavior and performance. It is upon the particular company to control the performance by knowing what best motivates its employees to produce the best results. In the modern business environment, organizations have prioritized compensation as one of the critical concerns playing a critical role in the objectives and goals achievement. Through the motivation, companies have preferred compensation. This includes; pay for performance, rewards, incentives, and positions to ensure that the management expectations of the employees are met. Thus, the effort exerted by an employee dramatically depends on the motivation. This essay examines in detail the concept of pay for performance in reflection to the compensation plans adopted by management of most organizations. This has given a long time belief to the fact that financial incentives best motivate the organizational performance. The discussion on the pay for performance in this essay brings out how it drives behavior in the organization.

Pay-for-Performance: Does Compensation Motivate Behavior

Since the industrial revolution began, the primary concern of organizations has been using monetary incentives to find the solutions that can effectively motivate employees. It is upon the management of the particular company to control the performance by knowing what best motivates its employees to produce the best results. In the modern business environment, top organizational managements have prioritized compensation as one of the critical concerns playing a critical role in the objectives and goals achievement. Through the motivation, companies have preferred compensation. This includes; pay for performance, rewards, incentives, and positions to ensure that the management expectations of the employees are met (Hamel, Roland, & Campbell, 2014). Thus, the effort exerted by an employee dramatically depends on the motivation. The concept of pay for performance reflects the compensation by management that is commensurable with the value that the employees can deliver to the customers. This has given a long time belief to the fact that financial incentives best motivate the organizational performance. The discussion on the pay-for-performance in this essay brings out how it drives behavior in the organization.

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Research by economists and other experts claims that any good management must have the pay-for-performance as an essential element. As it is a general belief among the managers that employees who are motivated and productive are the primary engine behind the success of the organization. The success though does not consider the size of the company, the corporate strategy, and the industry. However, very fundamental questions arise on the determination of the kind of performance to receive the pay and how the compensation motivates the employees. This requires the crucial roles of the management in the organization. Pay-for-performance can either be the bonuses paid to the individuals after assessing their performance or rewards for organizational-wide incentives. With this support, many are content that pay-for-performance has the most substantial influence not only on the performance of the employees but it also motivates their behavior.

There is a general belief that employees get motivated to improve their working to enhance performance when they get something they want in return. This then considers the application of the motivation theory to understand how the pay-for-performance plan has the impact on the employee’s behavior and the subsequent performance (Park, 2008). The fact that employees look forward to getting something for the extra effort they commit to their working, it is possible to say that the particular thing is what motivates them. This can best be explained from the perspective of the expectancy theory. This perspective explains how the performance-based pay impacts the employees’ perception improvements about their expectancies and instrumentalities. With the performance-based compensation, the employees should see the  likelihood that they will ultimately achieve the value reward if they put extra effort into their work (Park, 2008). From the theory of expectancy, it is the desirability of the pay increase that would determine the performance of the employee as well as the likelihood ahead of the employee. The employee having such perspectives in mind would often do something different with the intention of achieving what he/she expects based on the pay-for-performance.

When employees are exposed to the to the pay-for-performance compensation plan, the future state of cognition of the interest to designers of this plan is created in the minds of the employees. This is accompanied by the emotions and feelings that are attached to this potential future state of the employee (Gilbreath, & Harris, 2002). The employees develop that vision about the future state that they have, with the additional positive emotions and feelings that come unto them upon contemplating upon it. This situation the employees find themselves in would be a significant boost to the effect of the performance-based-pay that the management of the organization may be hoping to achieve. Ultimately, the employees will find themselves in a particular line of working or when carrying out their duties in a way that they are affected by the emotion and the feeling of the potential future state of the pay-for-performance (Gilbreath, & Harris, 2002). As this system gets adopted in the organization, employees will tend to behave this way throughout their stay in the organization making it part and parcel of their behaviors.

In another way, the motivation of the pay-for-performance compensation plan towards the employee behavior can be viewed from the goal-setting perspective. It is possible for the employees to get themselves committed to achieving the performance goals if the performance-based pay is practical and appealing to them. As much the organizations have the general and broader goals that bind all the stakeholders, organizations may also want the employees to have their own specific purposes. This is beside the employees’ motivation to work hard. Research indicates that a considerable number of organizations already had the bonus reward system specifically for those employees who achieve some specific goals. Thus, from the perspective of the performance goal, the company will offer the contingent pay if the employees attain a particular purpose. This has been influenced by the belief that employees would commit themselves to achieve the specific goal in addition to their time and full attention. This will become a habit for the employees and a driving force towards their working and response in the workplace hence influencing their working behavior.

In a different view, employees themselves find the pay-for-performance a driving force towards them setting spontaneous and higher goals to achieve. There has been a general argument that when the pay-for-performance is considerably larger, employees find a necessary strength to set performance goals at a higher level that they never thought of in the first place (Herzberg, 2008). This will be a success story of the party of the management which had initiated the compensation plan for its organization. An explanation to it is that goals positively affect the performance of an organization. If there is something worthy that influences the best way that employees work then they are goals. By coming up with their own goals, employees get reminded of what they need to do, give them clear direction on how to do it, and show the employees the end of it all and the benefits (Herzberg, 2008). Although the phenomenon of the automatic goal setting is new and has not received enough research deserved, the area is up-and-coming. This is the cause because of the potential the phenomenon has towards influencing the excellent working by the employees in the organization. The same has been found on the effects that pay-for-performance has on the employees setting higher goals.  As a result, from this perspective, it can then be argued that the performance-based-pay to employees has a salient reaction on how employees perform. Employees could then get encouraged on how to plan, deliberate, and cognize thus becoming their habit.

Roles and responsibilities have also been crucial factors in the organizations that shape how the employees behave towards their work. Researchers have found a strong relationship between the role clarity and the organizational behavior. Subsequently, pay-for-performance has been found to play a role in improving the role clarity in the organization (Deckop, Mangel, & Cirka, 2011). This is possible since the pay-for-performance can clarify job responsibilities, measures, and standards. The accomplishment has been among the top benefits that performance-based pay manage within the organization. Once this has been achieved, every employee will get to understand the role to be handled by each making it easier for them to work. Ultimately this becomes a behavior among the employees since they know what they attend to on a daily basis hence motivation towards their behavior.

Therefore, in total, the pay-for-performance compensation system is vital especially when it comes to influencing the employees to have a perception that the work effort they are putting in will help them achieve the financial reward sometimes in future. This is true since the pay-for-performance system tends to increase the interest the employees have in pursuing a job till its final accomplishment. The pay-for-performance to achieve a particular performance that will have the significant impact on the behavior of employees depends on its success.  This is regarding giving direction to the employees towards maintaining their initial intention on the work as well as the required motivation to do the job effectively. Thus, the leadership and the management of the organizations need to put a lot of focus and interest on the pay for performance compensation plan due to its importance towards enhancing the employees’ behavior.

References

Deckop, J. R., Mangel, R., & Cirka, C. C. (2011). Getting more than you pay for: Organizational citizenship behavior and pay-for-performance plans. Academy of Management Journal, 42(4), 420-428.

Gilbreath, B., & Harris, M. M. (2002). Performance-based pay in the workplace: Magic potion or malevolent poison?. The Behavior Analyst Today, 3(3), 311.

Hamel, M. B., Roland, M., & Campbell, S. (2014). Successes and failures of pay for performance in the United Kingdom. The New England journal of medicine, 370(20), 1944.

Herzberg, F. (2015). One More Time: How Do You Motivate Employees? Retrieved September 3, 2018, from https://hbr.org/2003/01/one-more-time-how-do-you-motivate-employees

Park, S. (2008). The relative effects of pay-for-performance plans on future performance.

 

Evaluation of Holland Enterprises’ Compensation and Benefits

Holland Enterprises are a firm that employs 3,500 employees. On the other hand, since 2010, the firm has lost 25% of its staff. As a highly regarded human resource consultant hired to review, analyze, and revise the compensation and benefit system utilized by the city’s largest employer. The exit interviews indicate in which the primary reason a majority of these employees have resigned is given that the compensation and benefit system that is said to be unfair and uncompetitive in the marketplace. “The goals of a compensation package are to ensure internal and external consistency, attract high-quality talent, motivate and retain current talent, and to meet the company’s legal requirements”, according to Compensation and Benefits: Aligning Rewards With Strategy (2016). In this paper, I will give a description of how an effective compensation and benefit system contributes to organizational effectiveness. Next, an explanation of the principal components of my revised compensation and benefit system for a large-scale organization as well as a recommendation for each component. Lastly, my provision of a clear and convincing argument to the already skeptical top managers of this organization to increase their compensation and benefits expenses. In essence, an effective compensation and benefit system designed and implemented in light of attracting and retaining the most talented employees for the company long-term success.

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A compensation and benefits philosophy will create a framework for consistency for Holland Enterprises employees. This formal statement will contribute to Holland Enterprises effectiveness in view of attracting, retaining and motivating employees. In order to develop an effective compensation and benefits philosophy is typically by my human resource consulting in collaboration with Holland Enterprises’ executive team. According to What is a compensation philosophy? What should be included in a compensation philosophy?, “The philosophy is based on many factors, including the company’s financial position, the size of the organization, the industry, business objectives, market salary information, the level of difficulty in finding qualified talent, and the unique circumstances of the business” (SHRM, 2019). Holland Enterprises’ financial position shows strong growth but needs to improve its profitability. The size of Holland Enterprises 750 to 3750 employees, since 2010, the company had lost 25% of its staff. Holland Enterprises is part of the advertising and marketing industry. Within mind, business objective to engage with potential/existing customers and succeeding in advertising, publishing, technology, data and Web products and services they provide. Holland Enterprises’ market salary information shows it is on target for now and maintain its position. The level of difficulty in Holland Enterprises finding qualified talent with Baby Boomer retiring and Millennials now making up the majority of the workforce. Lastly, the unique circumstances of Holland Enterprises that the company have is the high employee turnover rate that slowly lowering their productivity in the company. Must be remembered that compensation philosophy should be reviewed periodically and updated based on current factors affecting the Holland Enterprises business. Altogether, compensation philosophy will prevent wage inequality, boost employee retention, increase productivity and loyalty to serve as an extension of Holland Enterprises’ value.

The principal components of my revised compensation and benefit system for a large-scale organization are using a pay philosophy. “A consistent pay philosophy gives [Holland Enterprises] and [the employees] a frame of reference when discussing salary in a negotiation” (Salary, 2018). This written document will outline and contribute to Holland Enterprises effectiveness in view of attracting, retaining and motivating employees. In order to develop an effective compensation and benefit system by my human resource consulting with conducting research internally. The three main components of compensation and benefits system are the following: base pay (i.e. salary), incentives pay and benefits. Creating a pay structure architecture (pay grades, pay ranges, and pay width) will ensure employee base pay is competitive with other organizations. Pay grades define the amount of pay an employee will receive general by the level of responsibilities performed with a job. Particularly by the job description of the position, the authority exercised by the position and the length of time an employee has performed the job in an organization. Pay range is “[defines] the range of pay established by employers to pay employees performing a particular job or function”, according to How Does a Salary Range Work? (2019). Generally minimum pay rate, maximum pay rate and series of mid-range opportunities for pay increases for an employee performing a particular job or function. Pay width is affected by market pay rate research conducted internally by HR or utilizing sites like salary.com or payscale.com. These additional demographic and market factors determine “the number of [candidates available to perform a specific job the employer’s region, competition for employees with the needed skills and education and the availability” (Heathfield, M.S., 2018).

 An incentive is a plan monetary (i.e. cash) or non-monetary (i.e. gifts or travel) awards are tied to the achievement of specific objectives that have been communicated to the employees and pre-determined by the organization. Those monetary and non-monetary incentives influence employees’ behaviors to reach specific objectives to work towards. A bonus is not expected pay usually in cash or sometimes in cash equivalent (i.e. equity). So, it is generally decided after the fact to one, a group or all employees based on criteria by management to reward past achievements. Mostly to “reaching a specific profit or some important milestones for the organization or in a totally discretionary manner” (Bardot, S., 2012). A form of payment an organization can offer employees to partake in ownership of an organization is called equity compensation. Stock options, performance shares, and restricted stock are different forms in which available as equity pay. Equity pay is based on two factors which are internal and external. Internal equity is the comparison of positions within a business to ensure fair pay. Holland Enterprises employees felt unvalued and left due to finding out how much other employees earn through the internet or word of mouth. Employees must perceive that he or she are paid fairly compared to their other coworkers. Equity pay is the comparison with other competitive pay structure. Holland Enterprises ought to operate in a highly competitive environment in order to retain their employees and to decrease their high employee turnover rates. The goal of the use of benefit packages is to be competitive with other organizations. It has to meet regulatory a fiduciary requirement with the legal, labor and financial advisor in making plans for the improved benefits package. Holland Enterprises must understand health insurance, dental and vision insurance, retirement plans, life insurance, tuition reimbursement, and other perks are determining factor for job candidates. Whether to accept a position with an organization or a current employee who is considering leaving. Overall, Holland Enterprises compensation and benefits systems ought to make sure base pay (i.e. salary), incentives pay, and benefits are met with the employee’s needs on the condition that it also addresses the constraints of the organization’s budget.

Holland Enterprises’ must consider increasing their compensation and benefits package expenses in regard to having a high employee turnover issue. Limiting the resources and investment in employees have already affected your business bottom line. By losing good short-term and long-term employees of not being appreciated and recognized for their work. The unequal and substandard wages, of course, motivate some employees quit, but to have an ineffective compensation and benefit system in place will cause further legal problems. Cost to replace the vacant position with recruiting and training new employees due to high turnover will be expensive. The state unemployment tax will also increase due to high employee turnover too. Ultimately, committing to spending more on leadership development, innovative training solutions and better training programs with economic changes will decrease employee turnover.

By all means, implanting a compensation philosophy and pay philosophy will explain the “why” behind employee pay and create a framework for Holland Enterprises. It will contribute to Holland Enterprises to attract, retain and motivate employees for long-term success. An effective compensation and benefit system contribute to organizational effectiveness overall. A large-scale organization such as Holland Enterprises is recommended to have me to review, analyze, and revise the compensation and benefit system following three components (i.e. base pay (i.e. salary), incentives pay and benefits). Together with a clear and convincing argument to the already skeptical top managers of this organization to increase their compensation and benefits expenses to reduce their high employee turnover rate. All in all, an effective compensation and benefit system ought to replace in effect, of attracting and retaining the most talented employees for long-term success.Bottom of Form

References

 

Compensation techniques for 50 Gbps Duobinary System

Abstract
In this paper, the performance of duobinary system is analyzed by using different dispersion compensation techniques. The dispersion compensation techniques tested are Pre Compensation, Post Compensation and Mix Compensation. These techniques are applied to duobinary system, which operates at a bit rate of 50 Gbps. It is found that for 50 Gbps system, Mix Compensation technique shows better performance matrices like quality factor (i.e. 7.54 at 25 km)and bit error rate (i.e. 7.52e-15 at 25 km) as compared to other techniques.
Keywords: Mach-Zender Intensity Modulator (MZIM), Single Mode Fiber (SMF), Q-factor, Bit Error Rate (BER), Low Pass Filter (LPF)
Introduction
For higher data rates, research in optical communications is being constantly driven by requirements. At a minimum bandwidth cost, Fiber Optics has reorganized the data communication technology by examining the limits of high speed network accessibility for the end users [1]. In high speed optical communication system duobinary modulation is a valuable solution that provides the better spectral efficiency and minimizes the performance degradation due to the nonlinear effects and dispersion [2–4]. Due to the promptly growing capacity requirements for long distance transmission, fiber optic communications are advancing into higher bit rate enabled [5]. To increase the capacity of system and to reduce the performance degradation caused by transmission impairments, systematic investigation is essential [6]. Duobinary formats are known for their high tolerance to residual chromatic dispersion and low spectral occupancy [7]. These features make them very attractive for both high spectral efficiency and high data rate. For high speed systems, Duobinary signaling has become an essential transmission format as the broadband networks and the bandwidth requirement has increased. By selecting suitable pulse shaping, the selection of optical modulation format has become an essential standard in any high speed link design. This optical signal pre-distortion based pulse shaping increases the dispersion tolerance related performances considerably [8, 9].

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In long distance transmission systems, Fiber chromatic dispersion is one of the most severe limiting factor. If the fiber transmission length exceeds several tens of kilometers, dispersion effect can cause intolerable amounts of distortions that ultimately lead to errors. Therefore it is necessary to use dispersion compensation devices such as dispersion compensating fiber (DCF) [10, 11] to overcome dispersion effect and consequently decrease the nonlinear distortion. In this study, we propose three DCF compensation scheme, pre-compensation and post-compensation scheme. Simulation studies show that mix compensation scheme is the best. It can greatly reduce the influences of the fiber nonlinearity and increase the transmission distance greatly
System Setup
Duobinary Transmitter is designed with laser diodes, filters, modulators and all components which are essential to build an optical network. This simulation is carried out to observe the comparative study with various compensation techniques in the presence of chromatic dispersion. Duobinary signal is launched over DCF SMF spans of 5 km and 25 km each for post, pre and symmetric compensation schemes. Duobinary modulation is achieved by driving an external Mach-Zehnder intensity modulator. MZIM has three inputs, one for laser diode and other for data from the channels. It converts the electrical signal into optical signal. On the receiver side the output of the Lorentzian optical filter a photodiode converts the optical signal into an electrical signal an electrical low pass Bessel filter follows the PIN photodiode. This has a cut-off frequency 193.41449 THz. Finally at the output of the low pass filter visualization tool called Scope, BER estimation Q meter. It is an optical or electrical oscilloscope with numerous data processing options, eye display and BER estimation features. The system setup of 50 Gbps duobinary transmission with pre, post and symmetric compensation techniques is as shown in figure below.

Fig. 1 Duobinary system with Post Compensation technique

Fig. 2 Duobinary system with Pre Compensation technique

Fig. 3 Duobinary system with Mix Compensation technique
Pre-compensation scheme achieve dispersion compensation by place the DCF before a certain conventional single-mode fiber, or after the optical transmitter. Post -compensation scheme achieve dispersion compensation by place the DCF after a certain conventional single-mode fiber, or before the optical transmitter. Mix compensation scheme is consist of post-compensation and pre-compensation
Result and Discussion
To evaluate the performance of 50 Gbps duobinary system several measurements for Pre, Post and Symmetric compensation techniques were taken. The quality factor versus transmission distance is as shown in Fig.4. The graph shows that the performance of pre, post and mix compensation is compared by varying the distance from 5 to 30 km.

Fig.4 Quality Factor vs Transmission distance
Fig.4 depicts quality factor versus transmission distance graph. It is observed that by increasing the transmission distance from 5 to 30 km, Quality factor is decreasing. The variation in Q factor is 22.26 to 5.67 for mix compensation, 19.47 to 4.84 for post compensation and 14.04 to 4.69 for pre compensation. It is observed that maximum quality factor is shown from mix compensation technique i.e. 7.54 (at 25 km transmission distance) as compared to post and pre compensation techniques which is 6.33 and 6.12 respectively.

Fig.5 Bit error rate vs Transmission distance
Fig. 5 shows the transmission distance vs bit error rate graph. The variation in BER from different compensation techniques is 4.05e-72 to 8.20e-8 for mix compensation, 4.61e-58 to 6.57e-7 for post compensation and 4.50e-45 to 4.48e-5 for pre compensation. This simulation result shows that at 25 km transmission distance, the minimum bit error rate value is obtained by mix compensation technique which is 7.52e-15 whereas the bit error rate value for post and pre compensation technique is 3.04e-13 and 1.75e-10 respectively.

Fig. 6 Quality Factor vs Input Power
Fig. 6 display the influence of signal input power on the performance of duobinary system. From the graph, we can find that as the signal input power increases, quality factor increases upto certain limit, after which it starts falling. This can be understood from the fact that for low powers, the performance of system improves with the increase in input power. However, at higher powers, the wavelengths tend to overlap each other causing more dominance of non-linear effects and thus reduce the quality factor. From the graph it also concluded that the quality factor of mix compensation is greater than the other two kind of compensation techniques.
Conclusion
In this paper, we investigate the behavior of Pre, Post and Mix compensation techniques on the basis of quality factor and bit error rate at 50 Gbps system and conclude which compensation technique perform better. From the comparative performance analysis for different compensation techniques, it is found that mix compensation is better than pre and post compensation techniques for long haul communication system. It may also be concluded that for lower laser input power, quality factor is better for all compensation techniques.
References

X. Zheng, F. Liu, and P. Jeppesen, “Receiver optimization for 40-Gb/s optical duobinary signal,” IEEE Photon. Technol. Lett., vol.13, pp.744–746, July 2001.
Yogesh Chabra, R.S.Kaler,”comparison of various compensation techniques at high bit rates using CSRZ formats,” Optik (Stuttg),121(9), 813–817, 2010.
Dewra, Sanjeev, and R. S. Kaler. “Performance evaluation of an optical network based on optical cross add drop multiplexer”,Journal of Optical Technology, 2013, pp. 502-505.
Barnoski, Michael, ed. “Fundamentals of optical fiber communications”, Elsevier, pp. 109-133, 2012.
S. L. Jansen, G.-D. Khoe, H. de Waardt, S. Spalter, C. J. Weiske, A. Schopflin, S. J. Field, H. E. Escobar, and M. H. Sher, “Mixed data rate and format transmission (40 Gb/s NRZ, 40 Gb/s duobinary, 10 Gb/s NRZ) using mid-link spectral inversion,” Opt. Lett., vol. 29, no. 20, pp. 2348–2350, Oct. 2004.
W. Kaiser, M. Wichers, T. Wuth, W. Rosenkranz, C. Scheerer, C. Glingener, A. Farbert, J.-P. Elbers, G. Fischer, “SPM-Limit of duobinary transmission”, pp. 22-28, Sept. 2000.
Debabrata Sikdar, Vinita Tiwari, Yajnaseni Saha, V.K. Chaubey, “Investigation of modulator chirp and extinction ratio in different RZ- and NRZ duobinary transmitter modules for performance optimization”, vol. 124, no.13, July 2013, pp. 1411–1414.
K. Yang, S. Ou, K. Guild, H.-H. Chen, “Convergence of Ethernet PON and IEEE 802.16 broadband access networks and Its QoS-aware dynamic bandwidth allocation` Scheme”, IEEE J. Select Areas Commun. 27, 2009, pp. 101–116.
H. Kim and C. X. Yu, “Optical duobinary transmission system featuring improved receiver sensitivity and reduced optical bandwidth,” IEEE Photon. Technol. Lett., vol. 14, pp. 1205–1207, Aug. 2002.
Debabrata Sikdar, Vinita Tiwari, V.K. Chaubey, “Optimized transmitter module for NRZ-duobinary in long-haul optical transmission link”, vol. 124, no. 17, September 2013, pp. 2597–2601.
P. Pecci, S. Lanne, Y. Frignac, J. C. Antona, G. Charlet, and S. Bigo, “Tolerance to Dispersion compensation parameters of six modulation formats in systems operating at 43 Gb/s,” in Proc. Eur. Conf. Optical Communication, Rimini, Italy, 2003, pp. 528–529.

 

Impact of Compensation on Employee Morale

Compensation

  Compensation is a major motivating factor in any organization as it directly affects the morale of the employee. As a result, it enables them to work more diligently. In any organizations, the employees are considered among the essential assets, and as such, it is important for them to be motivated so that they can aid the organization towards its success. Fairness is critical towards the compensation of employees as it encourages them to work harder to be success of an organization. A debate has been stirred on what individuals consider as fair in an organization, and the argument is based on the employer and the employee perspective (Surienty et al. 406). These arguments differ as individuals have different opinions on strategies that should be employed in compensating employees in an organization. The company that will be taken into consideration is Lowe’s Home Improvement Inc.

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  In my perception, I believe that a company should offer equitable and fair compensation to all its employees. Equity refers to the comparison that employees make in wages that other employees who work in similar categories receive in the organization. Employees believe that equity is important in an organization as most of them is motivated by receiving equal wages. However, fairness refers to the ability of the employer to treat every employee equally in terms of their pay.

Compensation in an organization is very vital for several reasons. Compensation in an organization plays a significant role as it motivates the employees to remain in the organization. Furthermore, proper compensation also allows the organization to attain its objectives and goals more easily as no time is wasted by frequently train employees as most of them remains the work setting (Lo, May-Chiun 420). Lastly, compensation allows Lowe’s Home Improvement Inc to develop an effective cost structure which allows them to compete more efficiently and effectively in the company markets.

Several compensation plans can be employed in the compensation of the employees of an organization. In Lowe’s Home Improvement Inc there are different forms of compensations that are provided to the employees. The different forms of compensation that employees are provided are salary, bonus, discount, benefits, etc. Lowe’s Home Improvement Inc employees earn hourly based on their rank. Often, part-time cashier can earn $10-$11 dollars an hour. A for a full-time employee can earn approximately $15.80 dollars depending on the position. Other benefits are offered to both the full time and the part-time employees of Lowe’s. Some of these benefits that the employees in Lowe’s Home Improvement Inc get include hospital cover and housing benefits.

Most of the employers compensate the employees either through the work that they have done. This is what is known as wages. On the other hand, the employer can come into a contract with the employee where a salary is offered to the employee regardless of the amount that these individuals perform in an organization. In many organizations, the decisions to compensate employees is based on the employer. In Lowe’s Home Improvement Inc, most of the compensation is in monetary form as individuals believe money guarantees fairness and equity.

 Both employers and employees have diverse perceptions of the compensation of employees. Most of the employees believe that their organizations provide them with equitable compensation when they are involved in carrying out similar tasks. Employees believe that any form of compensation is it salary, wages, benefits, bonus, covers should be offered with fairness. In some instances, some employees who have the same education with their colleagues and working at similar job groups are compensated more than the others (Swart and Kinnie 175). This is an unfair act and has been attributed to several reasons.

One of the major causalities that employees perceive as the major factor that causes unfairness in compensation is sexual advances. For example, it is common to find women who have befriended the superiors in organizations earning more than their counterparts who perform similar work. Generally, compensating individuals more than the others on the basis of their sexuality is an injustice.

 Another perception that employees have is that individuals working in similar sectors in an organization should receive the same form of compensation. For example, a cashier in Lowe’s Home Improvement Inc may feel that it is right for them to be compensated on a similar wage or more than what other individuals in different organizations are offered (Swart and Kinnie 168). Earning less than what is the common compensation in a market may be a demotivating factor and, in some instances, it may lead to the organization to lose some of its employees to other companies.

Another perception that employees in the organization feel that they should be compensated for their loyalty. Employees that have worked for so long in the organization feel that they should be rewarded so that the employee can be maintained on the basis of their skills. The employee feels that the organization is benefiting since they offer specialized training to the employer. With the skilled labors that these employees offer, the company has enhanced productivity and as such as more profit is obtained.

Last employees feel that at times, they invest most of their times towards the success of an organization. For example, an employee working in Lowe’s may be required to leave late from work as they may be required to take care of arranging the stuff that have been received in the stores. As a result, compensation will be very critical towards motivating the employees (Rimiet al., 538). In this case, the employee can be motivated by providing them with houses that are near to the store or offering them with transport allowance.

Employers also have a different perspective on the compensation strategy. In many instances, many employers believe that compensating employees should be on the basis of the ranks, and in most cases, individuals who are in high ranks in the job earn more than their counterparts. For instance, in Lowe’s Home Improvement Inc, it is very common that a cashier earns less when compared to their supervisors. Furthermore, most of the employers also have a perception that the employees should earn on the basis of their education level. It is very common for employees working at a similar level to be compensated differently on the basis of their level of education.

Employers also believe that the compensation in the form of bonus to be offered to the employees that are fully employed by an organization. For instance, it is very common that most of the part-time employees do not get similar benefits as full-time employees. For example, bonuses are offered to all the full-time employees, while part-time individuals do not receive the bonus (Sanders and Yang 206). Furthermore, in many organizations, most of the employers compensate part-time employees with less pay as compared to their full-time employees. As a result, the majority of the part-time employees feel that there is an act of injustice towards them.

Lastly, there is a perception that is coming up among the employers where individuals are rewarded on the basis of how hard they work. For example, some employers may only compensate one individual working in a group with other individuals. Although most of the employees find it as an act that is unfair, employers argue that it is a strategy to identify the best employee so that the other employees can be motivated towards working diligently so that they can receive the bonus or the benefits (Sanders and Yang 208).

Several measures may be taken in place to change the different perception that the employees and the employers have towards compensation system so that the individuals can be on the same page. For instance, the employer can come up with a strategy to compensate all the individuals working as a group rather than compensating only one individual. However, this measure may be altered if the employers feel that a specific employee is working hard towards ensuring that the company succeeds. These employees should be offered with bonuses such as a paid vacation. Lastly, the employer should ensure that they provide a safe environment for the employers to work as these will reduce the extra cost incurred in compensating for any accidents.

Employers and employees have different perceptions when it comes to the compensation system. Most employees feel that they should be compensated on the basis of fairness and equity. However, employers have different compensation plans. For instance, employers feel that rewarding on the basis of merit is a good compensation system. Therefore, it is vital for the employer and the employee to come up with a compensation system that will favor both parties.

Works Cited

Lo, May-Chiun. “Quality of Work Life and Turnover Intention: A Partial Least Square (PLS) Approach.” Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, vol. 119, no. 1, 2 Feb. 2014, pp. 405–420, ideas.repec.org/a/spr/soinre/v119y2014i1p405-420.html. Accessed 12 July 2019.

Rimi, Nadia Newaz, and Yusliza Mohd Yusoff. High Commitment Human Resource

Management Practices and Employee Outcomes, HR Attribution Theory and a Proposed

Model in the Context of Bangladesh.& quot; Information Management and Business               Review 5.11 (2013): 538.

Sanders, Karin, and Huadong Yang. “The HRM Process Approach: The Influence of Employees’ Attribution to Explain the HRM-Performance Relationship.” Human Resource Management, vol. 55, no. 2, 24 Jan. 2015, pp. 201–217, 10.1002/hrm.21661. Accessed 12 July 2019.

Swart, Juani, and Nicholas Kinnie. “Managing Multidimensional Knowledge Assets: HR Configurations in Professional Service Firms.” Human Resource Management Journal, vol. 23, no. 2, 8 July 2012, pp. 160–179, 10.1111/j.1748-8583.2012.00197.x. Accessed 12 July 2019.

‌Compensation

 Compensation is a major motivating factor in any organization as it directly affects the morale of the employee. As a result, it enables them to work more diligently. In any organizations, the employees are considered among the essential assets, and as such, it is important for them to be motivated so that they can aid the organization towards its success. Fairness is critical towards the compensation of employees as it encourages them to work harder to be success of an organization. A debate has been stirred on what individuals consider as fair in an organization, and the argument is based on the employer and the employee perspective (Surienty et al. 406). These arguments are different as individuals have different opinions on strategies that should be employed in compensating employees in an organization. The company that will be taken into consideration is Lowe’s Home Improvement Inc.

 In my perception, I believe that a company should offer equitable and fair compensation to all its employees. Equity refers to the comparison that employees make in wages that other employees who work in similar categories receive in the organization. Employees believe that equity is important in an organization as the majority of them are motivated by receiving equal wages. On the other hand, fairness refers to the ability of the employer to treat every employee equally in terms of their pay.

 Compensation in an organization is very vital for several reasons. Compensation in an organization plays a significant role as it motivates the employees to remain in the organization. Furthermore, proper compensation also allows the organization to attain its objectives and goals more easily as no time is wasted to frequently train employees as the majority of them remain the work setting (Lo, May-Chiun 420).  Lastly, compensation allows Lowe’s Home Improvement Inc to develop an effective cost structure which allows them to compete more efficiently and effectively in the company markets.

 Several compensation plans can be employed in the compensation of the employees of an organization. In Lowe’s Home Improvement Inc there are different forms of compensations that are provided to the employees.  The different forms of compensation that employees are provided with are salary, bonus, discount, benefits, etc.  Lowe’s Home Improvement Inc employees earn hourly on the basis of their ranks. On an average, part-time cashiers can earn $10-$11 dollars an hour.  A for a full-time employee can earn approximately $15.80 dollars dependent on the position.  Other benefits are offered to both the full time and the part-time employees of Lowe’s.  Some of these benefits that the employees in Lowe’s Home Improvement Inc get include hospital cover and housing benefits.

 Most of the employers compensate the employees either through the work that they have done. This is what is known as wages. On the other hand, the employer can come into a contract with the employee where a salary is offered to the employee regardless of the amount that these individuals perform in an organization. In many organizations, the decisions to compensate employees is based on the employer.  In Lowe’s Home Improvement Inc, most of the compensation is in monetary form as individuals believe money guarantees fairness and equity.

 Both employers and employees have diverse perceptions of the compensation of employees. Most of the employees believe that their organizations provide them with equitable compensation when they are involved in carrying out similar tasks. Employees believe that any form of compensation is it salary, wages, benefits, bonus, covers should be offered with fairness. In some instances, some employees who have the same education with their colleagues and working in similar job groups are compensated more than the others (Swart and Kinnie 175). This is an unfair act and has been attributed to several reasons.

 One of the major causalities that employees perceive as the major factor that causes unfairness in compensation is sexual advances.  For example, it is common to find women who have befriended the superiors in organizations earning more than their counterparts who perform similar work. Generally, compensating individuals more than the others on the basis of their sexuality is an injustice.

 Another perception that employees have is that individuals working in similar sectors in an organization should receive the same form of compensation. For example, a cashier in Lowe’s Home Improvement Inc may feel that it is right for them to be compensated on a similar wage or more than what other individuals in different organizations are offered (Swart and Kinnie 168).  Earning less than what is the common compensation in a market may be a demotivating factor and, in some instances, it may lead to the organization to lose some of its employees to other companies.

 Another perception that employees in the organization feel that they should be compensated for their loyalty.  Employees that have worked for so long in the organization feel that they should be rewarded so that the employee can be maintained on the basis of their skills. The employee feels that the organization is benefiting since they offer specialized training to the employer.  With the skilled labors that these employees offer, the company has enhanced productivity and as such as more profit is obtained.

 Last employees feel that at times, they invest most of their times towards the success of an organization. For example, an employee working in Lowe’s may be required to leave late from work as they may be required to take care of arranging the stuff that have been received in the stores. As a result, compensation will be very critical towards motivating the employees (Rimiet al., 538).  In this case, the employee can be motivated by providing them with houses that are near to the store or offering them with transport allowance.

 Employers also have a different perspective on the compensation strategy.  In many instances, many employers believe that compensating employees should be on the basis of the ranks, and in most cases, individuals who are in high ranks in the job earn more than their counterparts.  For instance, in Lowe’s Home Improvement Inc, it is very common that a cashier earns less when compared to their supervisors.  Furthermore, most of the employers also have a perception that the employees should earn on the basis of their education level.  It is very common for employees working at a similar level to be compensated differently on the basis of their level of education.

 Employers also believe that the compensation in the form of bonus to be offered to the employees that are fully employed by an organization.  For instance, it is very common that most of the part-time employees do not get similar benefits as full-time employees.  For example, bonuses are offered to all the full-time employees, while part-time individuals do not receive the bonus (Sanders and Yang 206).  Furthermore, in many organizations, most of the employers compensate part-time employees with less pay as compared to there full-time employees. As a result, the majority of the part-time employees feel that there is an act of injustice towards them.

 Lastly, there is a perception that is coming up among the employers where individuals are rewarded on the basis of how hard they work. For example, some employers may only compensate one individual working in a group with other individuals. Although most of the employees find it as an act that is unfair, employers argue that it is a strategy to identify the best employee so that the other employees can be motivated towards working diligently so that they can receive the bonus or the benefits (Sanders and Yang 208).

 Several measures may be taken in place to change the different perception that the employees and the employers have towards compensation system so that the individuals can be on the same page. For instance, the employer can come up with a strategy to compensate all the individuals working as a group rather than compensating only one individual. However, this measure may be altered if the employers feel that a specific employee is working hard towards ensuring that the company succeeds. These employees should be offered with bonuses such as a paid vacation. Lastly, the employer should ensure that they provide a safe environment for the employers to work as these will reduce the extra cost incurred in compensating for any accidents.

 Employers and employees have different perceptions when it comes to the compensation system. Most employees feel that they should be compensated on the basis of fairness and equity. However, employers have different compensation plans. For instance, employers feel that rewarding on the basis of merit is a good compensation system. Therefore, it is vital for the employer and the employee to come up with a compensation system that will favor both parties. 

Works Cited

Lo, May-Chiun. “Quality of Work Life and Turnover Intention: A Partial Least Square (PLS) Approach.” Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, vol. 119, no. 1, 2 Feb. 2014, pp. 405–420, ideas.repec.org/a/spr/soinre/v119y2014i1p405-420.html. Accessed 12 July 2019.

Rimi, Nadia Newaz, and Yusliza Mohd Yusoff. High Commitment Human Resource Management Practices and Employee Outcomes, HR Attribution Theory and a Proposed Model in the Context of Bangladesh.& quot; Information Management and Business Review 5.11 (2013): 538.

Sanders, Karin, and Huadong Yang. “The HRM Process Approach: The Influence of Employees’ Attribution to Explain the HRM-Performance Relationship.” Human Resource Management, vol. 55, no. 2, 24 Jan. 2015, pp. 201–217, 10.1002/hrm.21661. Accessed 12 July 2019.

Swart, Juani, and Nicholas Kinnie. “Managing Multidimensional Knowledge Assets: HR Configurations in Professional Service Firms.” Human Resource Management Journal, vol. 23, no. 2, 8 July 2012, pp. 160–179, 10.1111/j.1748-8583.2012.00197.x. Accessed 12 July 2019.

 

Literature Review on Compensation & Benefits

INTRODUCTION
Overview
This chapter serves as the introduction part of this research, which addresses the core value of the research. Here, the overview of the relationship between the compensation and benefits and the job satisfaction among the university staff will be discussed in the well-manner.
Background of Study
Forty years ago, University of Malaya is the only one university in Malaysia. In today fast moving world, education is become very crucial for the young generation. Nowadays, there was many new public or private universities occur in the market. There were twenty public universities and eighteen private universities in Malaysia. There are become more and more competitors in the higher education industry and students have more choices when they want to enter to the university. The current trends for students choosing the universities are not depended on the outlook but they will choose the universities which have good academics performance and quality. Therefore, to attract more students and compete with others universities, each university must increase their competitive advantages.

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Thanks to the internet and the accompanying high speed of communications, nowadays technological and services differentiation is no longer a key to competitive advantage in higher education industry. So, what the main reasons to make some university more successful than others? What is the key competitive advantage in today globalize world? The answer is employees. In a university, university staff is played an important role to run the day to day operation of the organization. University with talented and motivated staffs will offer outstanding service to their students. This will increase the university performance and likely to pull the university ahead the competitors, even if the services offered are similar to those offered by their competitor.
According to Tang, Roberto, Toto & Tang (2004) from United States and Spain, job satisfaction is an affective reaction to a job that results from the incumbent’s comparison of actual outcomes with those that are desired or expected. Job satisfaction of the employees is just as important as customer satisfaction in terms of the organizational performance. Therefore, employers must make sure all their employees are satisfied with their job. But, how to make sure the staffs are motivated? How to ensure the staff are satisfied with their job? Here, the compensation and benefits is the key to those questions.
Nowadays, compensation and benefits are one of the fastest changing fields in Human Resources, as many company are continue to investigate various ways of rewarding employees for increase their job satisfaction and their performance. Here, compensation refers to all forms of financial return and tangible services and benefits employees receive as part of an employment relationship, which includes topics in regard to wages or salary programs; for example, salary ranges for job descriptions, merit based programs, bonus based programs, commission based programs, long term or short terms incentives programs, and etc. Besides, employee’s benefit includes the allowances, income protection, life insurances, life balance, vacation, and etc. Benefits are forms of value, other than payment, that are provided to the employee in return for their contribution to the organization, that is, for doing their job.
Why the compensation and benefits is so important for all the employees? The answer is compensation is the main sources of employee’s financial security. As we know, everyone is works in expectation of some rewards; employees may see compensation as a return in an exchange between employer and themselves, as an entitlement for being an employee of the company and as a reward for a job well done. Besides, compensation is a motivator for employees. Now, people look for a job that not only suit their interested and talent, people also look for the salary and the other benefits which the company will be offer, for example, life insurance, incentive, allowances, SOSCO, EPF and etc.
Besides, in the economic downturn, based wages is become very important sources to employees for living. Therefore, if the employers give higher salary to their staff, this will be motivates them to perform well and they will more satisfy with their job. By doing so, the employees will know that the company is appreciate their contribution and their efforts are noted by management.
Problem Statement
As mention earlier, there are many new public or private universities occur in market. To compete with other competitor, each university must increase their competitive advantage. The key competitive advantage is employees. Therefore, the issues of the employee job satisfaction become very important for the employer. There are many factors which can influence job satisfaction among university staff, for example, job security, compensation and benefits, opportunities to use skills and feeling safe in the work environment. But, this research just will investigate the influence of compensation and benefits towards job satisfaction among university staff.
For a university, there are many staffs to cover and the employer does not really understand what their staffs need. It is impossible for taking all employees’ compensation and benefits throughout the firm into consideration to set up the reward system. This is because different department staffs have different needs. For example, for lecturer the flexible working hours and higher bonus will be more favoured by them. But, for the marketing department the flexible working hours and more incentives and allowances will be favoured by them.
Compensation and benefits is a primary motivator for employees. Nowadays, people look for a job not only suit their creativity and talents, but compensate them- both in term of salary and other benefits-accordingly. (Enotes.com, 2008) Therefore, when the problems occur to the compensation and benefits of the staffs are going to have impact on employee’s job satisfaction. When the staffs receives the salary less than he or she expected, he or she will feel that he or she is not appreciated by the university and what he or she did is meaningless. So, the staff will feel job dissatisfaction and less motivated by the university. According to the Society for Human Resources Management report, job dissatisfaction can contribute to multiple organizational problems and has been associated with increased levels of turnover and absenteeism, which ultimately cost the organization in terms of low performance and decreased productivity. (SHRM, 2009) Thus, employer must ensure that the compensation and benefits system is fair and equitable to all the staffs and understanding the system. By doing so, employer can create a real job satisfaction and motivate their employees.
Besides, research has shown that both getting less than you want and getting more than you want leads to large discrepancies between desires and outcome and eventually leads to low job satisfaction thus to low quality if working performance. (Rice, Bennett, & McFarlin, 1989) Hence, desires play an important role in assessing if increasing income impacts an individual’s job satisfaction and work performance. Moreover, if the desires of the individual are already met, then an increase in income will not increase satisfaction as well as working performance. (Solberg, Diener, Wirtz, Lucas, & Oishi, 2002) In other words, increasing compensation and benefits may not always lead to employee’s job satisfaction.
Besides, employers must design an appropriate compensation and benefits system to their staff. This is because inappropriate compensation and benefits will have negative effect to employee job satisfaction. For example, assume that university staffs have received one thousand and fifty ringgit (RM) each month, no allowances and overtime claim and his or her still need to work 8 hours per day. Will you believe this staff will satisfy with his or her jobs? The answer is absolutely no. Therefore, an appropriate compensation and benefits system is very significant to an organization.
As a conclusion, in today fast moving world, the issue of the compensation and benefits are getting more and more important. This is because it is have much influence on an employee’s life, for example, health, personality, mentality and thus lead to employee’s job satisfaction. Therefore, employers must ensure themselves understand the way of how compensation and benefits influence the employees job satisfaction.
Objectives of the Study
The objectives of this study are as following:

To explore the influence of compensation and benefits towards job satisfaction among University staff
To examines the awareness of the importance of compensation and benefits
To investigate the importance of job satisfaction among university staff in Malaysia
To identify about the opinion of the university staff about compensation and benefits on job satisfaction

Scope of Study
The scope of this study is all about the relationship between the compensation and benefits with the job satisfaction among university staff. This study will conduct a survey to support the finding. The respondents of the survey are the administrative staff among the university. The reason of choosing these respondents is because administrative staffs represent an important component in the university. They are played an important role to run the day to day operation of the organization. By choosing administrative staffs as survey object, this research can be strengthened by the survey results.
Significance of Study
The information gain from this research will be able to provide valuable insight on the influence of compensation and benefits towards job satisfaction among university staff.
The aim of the research is to investigate and understand the relationship between compensation and benefits and job satisfaction. This research is conducted in a local public and private university is needed to gather the university staff basic information of salary, basic need of compensation and benefits, ideas of improving the total reward system of the university. From the result of the research, we can have a clear picture and concept of the relationship between compensation and benefits and job satisfaction among the university staff. Besides, we also can identify clearly the variable of the job satisfaction among the university staff.
In addition, the significance of the study is to provide an opportunity to the university staff to express their opinions and thus the grievances on the compensation and benefits they receive. By doing so, this can help the employer to get a better understand on what their employees need. This research also enhances the understanding of both the employer and the university staff on managing and designing the compensation and benefits of staff. Therefore, the communication gap between the employer and the staff can be removed indirectly. From the information obtained, the employer can able to design an appropriate compensation and benefits system for their employees. As a result, the employer can increase the employee’s job satisfaction more effectively and efficiently by using appropriate compensation and benefits.
Compensation and benefits are obviously crucial to either the employer or the university staff. Appropriate compensation and benefits will address fairness, openness and clarity. This can help employees to increase their job satisfaction, encourage and motivate them to devote themselves to the university thus improve the performance of the whole university.
Organization of the Study
In this Final Year Project 1 will be constructed into five different chapters. The following is the detail of each chapter.
Chapter 1: Introduction
This chapter will provide the core value and a clear image of the study and also a briefing of the whole study. This chapter will includes background of study, problem statement, objectives of the study, scope of study, and the significance of the study.
Chapter 2: Literature Review
The second chapter is related to the literature review. In this chapter, all the main point will be summary and related information of the articles and journals will be used which related with the research.
Chapter 3: Research Methodology
This chapter for the research is the method of investigation on the influence of compensation and benefits towards job satisfaction among university staff, which include theoretical framework, research design, sampling and data collection and so on.
LITERATURE REVIEW
Overview
As discussed and highlighted in the previous chapter, this research examines the relationship between compensation and benefits and job satisfaction among university staff. In order to gain a better understanding about this issue, an examination of literature on related study were carried out. This chapter will consist of six sections. First, key terms definitions of the job satisfaction, compensation and benefits are provided on the following sections. For thoroughly capturing the significances of compensation and benefits, the selection related literature is explained in detail. And, the relationship between compensation and benefits and job satisfaction among university staff is being discussed and explored in the following sections by using some nations and different industry for examples. Last, the comprehensive review of all the related studies will be provided.
The Definition of Job Satisfaction
Job satisfaction has been explored in a variety of ways, and is defined differently by various researchers. It is also a heavily researched area of inquiry. Locke (1976) estimated that, as of 1976, about 3350 articles or dissertations had been written on the topic. Cranny (1992) indicated that more than 5000 studies of job satisfaction have been published. Job satisfaction defines as a worker’s sense of achievement and success, is generally perceived to be directly linked to productivity as well as to personal wellbeing (Answer, 2008). Job satisfaction is a measure of the degree to which the employee is satisfied and happy with the job. Prince and Patche (1972) defined job satisfaction as the degree to which the members of a social system have positive and affective orientation towards membership in the system. Smith (1969) perceived job satisfaction as the “extent to which an employee expresses a positive orientation towards a job”.
Oshagbemi (2003) stated that job satisfaction is an affective reaction to a job that results from the comparison or actual outcomes with those that are desired. Job satisfaction is a pleasurable and emotional state resulting from the perception of one’s job as fulfilling or allowing the fulfilment of one’s important job values, provided these values are compatible with one’s needs (Locke, 1976). Katzell (1964) argues that if there is consensus about job satisfaction, it is the verbal expression of an incumbent’s evaluation of his or her job. On this basis, it is an affective or hedonic tone, for which the stimuli are events or conditions experienced in connection with jobs or occupations. Job satisfaction refers to an employee’s overall affective evaluation of the job situation. There is increasing interest in the job satisfaction of frontline employees, given their prominent role in developing relationships (Schneider, Benjamin & Bowen, 1993).
Besides, according to Stephen and Mary (2004) a person with a high level of job satisfaction has a positive attitude towards the job, while a person who is dissatisfied with the job has a negative attitude. When people speak of employee attitude, they usually are referring to job satisfaction. Job satisfaction is a very crucial issue in higher education industry; even less evidence is available related to job satisfaction in higher education for non-western nations. However, there has been a growing interest in job satisfaction in higher education over past several years mainly due to the realization that higher educational institutes are labour intensive and their budgets are predominantly devoted to personnel and their effectiveness is largely dependent on their employees (Kusku,2003), both academic and administrative.
The Importance of Job Satisfaction in an Organization
Job satisfaction is a very important attribute which is frequently measured by organizations. The topic of job satisfaction is also important because of its implications for job related behaviours such as productivity, absenteeism or turnover (Oshagbemi, 2000). Besides, it is also can be an important indicator of how employees feel about their jobs and a predictor of work behaviours such as organizational citizenship, absenteeism, and turnover. Further, job satisfaction can partially mediate the relationship of personality variables and deviant work behaviours (Answer, 2008).
Extensive study has shown that job satisfaction has a direct impact on the performance of employees in different levels of profession. It is related to employee motivation and performance (Ostroff, 1992). For the organization, job satisfaction of its workers means a work force that is motivated and committed to high quality performance. On the other hand, to the worker, job satisfaction brings a pleasurable emotional state that often leads to a positive work attitude. A satisfied worker is more likely to be creative, flexible, innovative, and loyal (Answer, 2008). Therefore, the issue of job satisfaction among employees must be explored and discussed in the well-manner.
The Definition of Compensation
Compensation has been defined in a variety of ways. In English, “compensation” is defines as something that counterbalances, offsets, or makes up for something else’s. However, if we look at the origin if the word in different languages, we can get a sense of the richness of the meaning, which combines entitlement, return, and reward (Atul, Matt & George, 2002; Mark, 2002; Mansour, Peter, Mary, & Robert, 2006). In Japanese, compensation is defines as kyuyo, which is made up of two separate character (kyu and yo), both meaning “giving something”. Besides, in China, the traditional characters for the word “compensation” are based on the symbols for logs and water; compensation provides the necessities in life (Milkovich & Newman, 2008).
According to Deluca (1993) and Rajkumar (1996), compensation is defines as pay, reward, remuneration, or salary and wage management. These terms are often used interchangeably in organization. In an organization perspective, compensation is often defines as an important human resource management function where it emphasizes planning, organizing, and controlling various types of pay systems. For example, direct and indirect payments, monetary and non-monetary rewards and cash and non-cash payments, those compensation is used for rewarding employees who perform in their work or service (Noe, Hollenbeck, Gerhart & Wright, 2004). In this research, compensation refers to all forms of financial returns and tangible services employees receive as part of employment relationship. It can be seen as a measure of justice. Normally, it is the major source of employees’ financial security (Milkovich & Newman, 2008).
Zhou, Qian, Henan and Lei (2009) stated that compensation provides competitive base salary levels necessary to attract and retain talent and compensates for day-to-day responsibilities performed at fully acceptable level and above. Chen and Brian (2004) propose that the types of compensation typically contain the following components base salary, overtime pay (OT), bonuses, commissions, the dollar value of restricted stock awards and gains from exercising stock options, profit sharing, and so on. The following is the definition for the two components of compensation.
Base-Salary
Base- salary is the annual and monthly salary rates of an employee which are established under current personnel policy for each position. Besides, base- salary is to represent the employee’s straight-time pay for a standard 40- hour workweek (Anonymous, 2007). According to wikipedia.com (2009), base- salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis. In other view of running a business, base- salary can also be viewed as the cost of acquiring human resources for running operations, and is then termed personnel expense or salary expense. Besides, Henderson (2006) and Young (1999) are stated that base-salary is a base pay that is given to employees on a weekly, monthly or yearly basis based on job structure.
Overtime Pay (OT)
Overtime pay (OT) is always included in cash compensation. It is the pay to time worked in excess of an agreed upon time for normal working hours by an individual employee (Answers.com, 2008). In addition, Overtime Pay (OT) is defines as the payment of premium time and one-half rates in form of monetary compensation or time off is required for hours worked in excess of 40 in one a week, with exception of those considered exempt. The overtime pay rate usually is 1.5 times of base wage per hour (Anonymous, 2007).
Bonus
Bonus is refers as a cash payment provided to employees based on their performance. For example, monetary incentives for achieving job targets (Bloom & Milkovich, 1998; Gupta & Shaw, 1998; Lowery, Beadles, Petty, Amsler & Thompson, 2002). Steven and Loring (1996) stated that bonus is a single, one-off, lump-sum payment which can be in the form of cash or other creative monetary scheme, such as stock options. Bonus is defines as all payments to employees which is not paid regularly at each pay period, for example bonuses paid at fixed periods. Besides, bonus payments are generally linked to individual or collective performance. Bonus can be distributed randomly as the company can afford to pay a bonus, or the amount of the bonus pay can be specified by contract (Anonymous, no date).
The Definition of Benefits
Benefits refer to the part of the total compensation package provided to the employee in whole or in part by payments from the employer and it’s did not include the pay for time spent on work (Milkovich & Newman, 2008). Besides, benefits are group membership rewards that provide security for employees and their family member. Benefits are a non-compensation paid to employees. Some benefits are mandated by law, for example social security, unemployment compensation and worker compensation. Employees’ benefits include pension, health insurance, fringe benefits, welfare and etc (Lee, Hsu & Lien, 2006). Benefits are a crucial part of an employee’s total compensation package. Benefits packages are became popular after World War II, when wage controls made it more difficult to give competitive salaries (Enotes.com, 2008). Besides, benefits can be treated as the payment or entitlement, such as one make under an insurance policy or employment agreement, or public assistance program or more generally, something of value or usefulness. Benefits may also be seen as a reflection of justice in society (Herman, 2005).
According to Carter (2008), benefits are forms of value, other than payment, that are provided to the employee in return for their contribution to the organization, which is for doing their work. Zhou, Qian, Henan and Lei (2009) argued that benefits are provides flexible and market competitive health benefits to support employment brand and support attraction and retention. Employee’s benefit includes disability income protection, retirement benefits, work-life balance (for example, sick leave, vacation, jury duty and etc), allowances (for example, dental, insurance, medical, transportation, housing, mobile phone and etc), and so on. The following is the definition for the two components of benefits.
Allowances
Bergmann and Scarpello (2002) and Milkivich and Newman (2008) stated that allowances is often related to additional financial rewards legally provided to employees based on the employment contract or organization related service, for example, entertainment allowance or allowance fixed for particular jobs or service schemes. Allowances is also defines as a amount paid to employees as part of their salary package, or defray their out of pocket expenses incurred on behalf of the firm (Business Dictionary.com, 2009).
Work-life Balance
Work-life balance is refers to the effectively managing the juggling act between paid work and the other activities that are important to people. Besides, work-life balance can defines as having enough time for work and enough time to have a life thus the work life balance. The concept of work-life balance is includes the priority that work takes over family, working long hours and work intensification (Dr. Mervyl, 2007). According to Milkovich & Newman (2008), work-life balance is a programs that help employees better integrate their work and life responsibilities include time away from work (vacation, jury duty), access to services to meet specific needs (drug counseling, financial planning, referrals for child and elder care), and flexible work arrangements (telecommuting, non-paid time off). Besides, Melissa (2007) also stated that work-life balance is about creating and maintaining supportive and healthy work environments, which will enable employees to have balance between work and personal responsibilities and thus strengthen employee loyalty and productivity.
The Importance of Compensation and Benefits in an Organization
In today fast moving world, developments have made it more important than ever for companies to make sure they have a strategic, holistic and integrated approach to compensation. To compete in a tough arena, organizations now more than ever need the support of an informed, involved and motivated their employees (Chen & Hsieh, 2006). Here, compensation and benefits is a primary motivator and rewards for employees. As noted by Lawler (1995), compensation can be an effective motivator only if it is important to people and it is seen to be tied to their performance in ways that are perceived to be credible and direct. Without rewards, a company is planting seeds for high turnover, low productivity and long-term failure.
According to Herman (2005), compensation help to focus on the position and duties performed. And, it attempts to influence employee’s current and future working performance. Besides, compensation servers’ different objectives, the main ones being to attract, retain and motivate high-potential employees. Meanwhile, the fulfilments of those goals are subject to constraints such as the maintenance of equity, cost control and legal requirements (For example, wage and salary legislation) (Steven & Loring, 1996). To employee, compensation may be seen as a return in exchange between the firms they work for and themselves, as an entitlement for being an employee of the company, or as a reward for job well done. It is given to employees in exchange for work performed (Milkovich & Newman, 2008).
Steven and Loring (1996) observe that for employees, compensation is an important issue since pay is perceived to be an indication to their personal and market value to the organization. Based on about.com (2009), for employers, compensation is one of the crucial communication tools, to send a message about your organization’s expectations and goal achievement rewards. Besides, Yale and Donald (2002) stated that compensation rewards performance relative to others and progressive improvement in year-to-year results and providing regular measures of success or progress. It also balances rewards with risk and providing capital accumulation opportunity. Therefore, compensation has very crucial to not only the employees but also the employers.
Carter (2002) proposed that benefits are increasingly expensive for businesses to provide to employees, so the range and options of benefits are changing rapidly to include, such as flexible benefits plan. For employers, they use benefits to attract and retain good and talented workers. For employees, they rely on benefits (for example, medical subsidies, vacations, and retirement) to secure their financial well-being. By linking benefits (for example, pension and holidays) to seniority, workers will be reluctant to change jobs (Gerhart & Milkovich, 1992).
Lee, Hsu and Lien (2006) stated that benefits are designed to safeguard employees and their family against problems due to sickness, sickness, accidents or retirements. Here, let use some examples of components of benefits to bring out its effect of employees. Work life balance with regard such as temporal flexibility, leave benefits, and interpersonal relationships has the potential to reduce or increase stress on workers with life responsibilities. The provision of work life balance strategies can provide a positive and direct effect on an employee’s decision to remain with an employer (Macran, Joshi & Dex, 1996).
Based on Milkovich & Newman (2008), income protection helps protect employees from the financial risks inherent in daily life. It serves as a backup to employees’ salaries in the event that an employee is sick, disabled, or no longer able to work. Besides, workers allowances are absolutely needed for employees. It helps to reduce the financial burden of employees and also can treated as extra sum of salaries indeed (Herman, 2005). Therefore, a benefit has great significance to the whole organizations.
The Relationship between Compensation and Benefits towards Job Satisfaction
In today’s globalizes world, organizations are facing changes generated by increased competition, mergers and acquisitions, shifting markets and changing employee demographics (Chen & Hsieh, 2006). Therefore, it is crucial for organization to strategies their competitive and benefits plans in order to attract appropriate talent, maximize return on human capital and increase employees job satisfaction. A key component for a successful organizational intervention is the meaningfulness of the intervention to the employee. One intervention that may be meaningful to many employees is the amount of their compensation and benefits increase (Mayuri & Mark, 2005).
Compensation and benefits is a powerful communicator of organizational goals and priorities and companies that expect to be successful must make employees become partners in their success (Shuster & Zingheim, 1993). Pam (2007) observes that employee compensation can be a sensitive subject, and people get very passionate when trying to determine the most appropriate compensation plan for any business. Nowadays, many human resources related concerns need to be addressed, but equally important understands the financial aspects of employee compensation and benefits. Thus, compensation and benefits play an important role in an organization.