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Feasibility of compensation and justice as well as factors affecting compensation system

Here's an explanation Feasibility of compensation and justice as well as Factors Affecting Compensation System. Please read below....


Definition of Compensation Eligibility
Compensation system is created and organized to achieve certain goals (Milkovich & Newman, 2004: 7). These objectives include efficiency (efficiency), justice (equity) and feasibility (compliance) in accordance with the laws and regulations in force. Specific efficiency goals include increasing productivity and controlling labor costs. Feasibility, as an objective, related to the implementation of all laws and regulations on compensation. If then the laws and regulations are changed, then the compensation system itself needs to be adjusted as well, so the purpose of eligibility can continue to run.

Understanding Equity Compensation
Justice is a fundamental system of compensation (Milkovich & Newman, 2004: 8). Statements such as "fair treatment for all employees" reflects a concern for justice. The purpose of justice seeks to ensure the fairness of compensation for all individuals in the employment relationship. Objectives focused on making equity compensation systems that recognize the contribution of workers (the higher the performance or experience or training, the higher the compensation provided) and the needs of workers (providing minimum wages, or health insurance).
According Simamora (2004: 449), equity compensation is divided into three, namely:
1. External justice
Appropriate wage rates prevailing wages for similar jobs in the external labor market. Justice of externally assessed by comparing similar jobs between the organizations incomparable. Two conditions must be met:
(1). work is being compared must be equal or nearly equal, and (2). organizations surveyed have similar size, mission, and the sector.

2. Internal Justice
Appropriate level of salary / worth the value of internal work for the company. Internal justice is a function of the relative status of a job in the organization, the economic value of the work, or social status of a job, such as power, influence, and status in the organizational hierarchy. Associated with a plurality of internal justice in wages between different jobs within an organization.

3. Individual justice
Individual worker feels that he is treated fairly in comparison with his colleagues. When a worker receiving compensation from the company, perceptions of fairness are influenced by two factors: (1) the ratio of compensation to the input of effort, education,

training, resistance would harm the working conditions of a person, (2) comparison of this ratio with the ratio of other workers with direct contact occurs.

Factors Affecting Compensation System
According Simamora (2003: 438), the system of compensation by the organization to the workers affected by various factors. These factors are a challenge every organization to determine the compensation policy for employees. Factors these factors include the following:
1. Productivity
Any organization willing to make a profit. This advantage can be either material or non material benefits. For those reasons, the organization should consider the productivity of his work in his contribution to profits organization. Of that organization will not pay or give compensation exceed contributions to the organization through their productivity.

2. Ability to pay
Compensation will depend on the organization's ability to pay. Any organization will not pay workers compensation, beyond his ability. Otherwise, the organization would go out of business.

3. Willingness to pay
Willingness to pay will affect the policy of granting compensation to the workers. Many organizations are capable of providing high compensation, but they are not necessarily willing or unwilling to provide adequate compensation.

4. Supply and labor demand
The extent of labor in the labor market will affect the compensation system. For workers whose abilities are very numerous in the labor market, they will be compensated lower than the rare ability to workers in the labor market.

5. Trade Unions
With the workers' organizations will affect the compensation policy. Workers' organizations usually fight for its members to obtain compensation commensurate. If there are organizations that provide compensation that is not commensurate, then the organization will demand workers.

6. Various regulations and legislation
With a better system of government, then the better the system of legislation, including in the areas of labor (workers). Various rules and regulations will clearly affect the workers' compensation system by any organization, whether public or private.

Hopefully you can find what you are looking at the "feasibility of compensation and justice as well as Factors Affecting Compensation System"

Theory of Work Adjustment to Employee Satisfaction Measure.

Please read the Theory of Work Adjustment to Employee Satisfaction Measure carefully. A group of University of Minnesota psychologist in the late 1950's, made a research program related to the general problem of adjustment inengenai work. This program develops a conceptual framework called the Theory of Work Adjustment (Wayne & Cascio, 1990, 277). Theory of Work Adjustment is based on the relationship between the individual and the work environment. The relationship began when people pay attention to the ability or expertise that allows it to respond to the needs of the work of a working environment. From the other side, providing a work environment such as driving or award salary, status, personal relationships, and others in relation to individual needs. If an individual meets the job requirements, the employee will be considered as satisfactory workers and allowed to continue working in a business entity. 

On the other hand, if the work needs to meet the individual needs or are considered as workers are satisfied. Needs work, workers lndividu expect to be evaluated by the supervisor as satisfactory when the ability of workers and individual skills to meet employment needs of individuals, they are expected to be satisfied workers. An employee who is satisfied and expected to perform their jobs satisfactorily. If ability and job requirements are not balanced then the resignation, the rate of turnover, dismissal and demotion can occur. Model Theory of Work Adjustment to measure 20 dimensions which describes 20 elements needs / condition specific boosters that are important in creating job satisfaction. Dimensions are described as follows:
  1. Ability Utilization is the utilization of skills possessed by employees.
  2. Achievement is achievement reached during the work.
  3. Activity is all kinds of activities undertaken in the works.
  4. Advancement is the advancement or progress achieved during the work.
  5. Authority is the authority that belongs in doing the work.
  6. Company Policies and Practices are conducted just for the employees.
  7. Compensation is any form of compensation given to employees.
  8. Co-workers are co-workers who were directly involved in the work.
  9. Creativity is creativity that can be done in performing the work.
  10. Independence is the independence of the employee in the work.
  11. Moral values ​​are moral values ​​that employees have in their jobs such as guilt or forced.
  12. Recognition is an acknowledgment of the work performed.
  13. Responsibility, carried the responsibility of and owned.
  14. Security, a sense of security felt by employees to the work environment.
  15. Social Service employees are the social feeling of the work environment.
  16. Social status is the degree of social and self-perceived effect of the work.
  17. Supervision-Human Relations is the support provided by the enterprise to its workers.
  18. Technical supervision, guidance and technical assistance is given to the employees supervisor.
  19. Variety is the variation of the employee to do his job.
  20. Working Conditions, the state of the workplace where employees do their jobs.

Basic hypothesis dart Theory of Work Adjustment is that job satisfaction is a function of the relationship between the driving system of the working environment to individual needs.

Definition, Indication, Impact of Turnover for the Company and the Calculation of Turnover

You read about Definition, Indication, Impact of Turnover for the Company and the Calculation of Turnover.

Definition of Turnover Intentions
According Harninda (1999:27): "Turnover intentions is essentially the same as the desire to move employees from one workplace to another workplace." The opinion shows that the turnover intentions is the desire to move, not yet reached the stage of realization is to make the transition from one workplace to other workplaces. Harnoto (2002:2) states: "turnover intentions is the degree or intensity of the desire to get out of the company, many of the reasons that led to turnover intentions, and among these is the desire to get a better job." Opinion was also relatively similar to that opinion has been previously disclosed, that turnover intentions is essentially a desire to leave (exit) of the company.

TOLY (2001), states: "The high desire to move the staff accountant has given rise to the potential cost to the Public Accounting Firm (KAP)." This argument suggests that the turnover intensions is a form of employee willingness to move to another company. Handoko (2000:322) states: "The cycle (turnover) is a particular challenge for human resource development. Because these events can not be predicted, development activities should be prepared at any time substitute an outgoing employee. "On the other hand, in many real cases, the company's development program is very good actually increase turnover intentions.

Employee turnover or employee of the organization's turnover is an important phenomenon in organizational life. There are times when the employee turnover has a positive impact. But most of the turnover unfavorable influence on the organization, both in terms of cost and in terms of loss of time and opportunity to take advantage of opportunities in a broad sense, "turnover is defined as the flow of workers entering and leaving the company" (Ronodipuro and Husnan, 1995 : 34). While Mobley (1999: 13), megemukakan that general limitations on employee turnover are: "the cessation of the individual as a member of an organization with accompanying financial rewards by the organization concerned".
The occurrence indication Turnover IntentionsAccording Harnoto (2002:2): "Turnover intentions are characterized by a variety of matters relating to employee behavior, such as: increased attendance, getting lazy work, increasing the courage to violate labor discipline, the courage to oppose or protest to superiors, as well as seriousness to completing all the responsibilities of employees who are very different from the usual. "indications can be used as a reference for predicting turnover intentions of employees within a company.1. Increased absenteeismBerkinginan employees to change job, usually marked by the increasing attendance. The level of the employee's responsibility in this phase is less than before.2. Getting lazy to workBerkinginan employees to change job, it would be lazy to work because of the orientation of these employees are working in other places that are seen as more capable of fulfilling all the wishes of the employee concerned.3. Rather, they increase in labor violationsViolations of discipline in the work environment often do employees who will do the turnover. Employees are more likely to leave the workplace when the hours of work in progress, as well as various other forms of infringement.4. An increase in protest against the bossBerkinginan employees to change job, more often protested against the policies of the company to the boss. Protests that emphasized material usually associated with fringe benefits or other rules that do not agree with the wishes of employees.5. Positive behavior is very different from the usualUsually this applies to employees who are positive characteristics. These employees have a high responsibility for the tasks assigned, and if the positive behavior of employees is increasing much different than usual and it shows it will do the turnover of employees.
The impact of turnover for the organizationTurnover is an indication of the stability of the employee. The higher turnover means more frequent turnover. Of course this will hurt the company. Therefore, if an employee leaves the company will bring a variety of costs such as:a. The cost of employee withdrawal. Regarding the time and facilities to interview the employee selection process, the withdrawal and replacement study.b. Training costs. Regarding the superintendent, the personnel department and trained employees.c. What is spent for employees is smaller than that produced the new employee.d. The accident rate of new employees, usually tends to be high.e. The existence of the lost production during turnover.f. Production equipment that can not be used fully.g. A lot of waste because of the new employees.h. Need to work overtime, if not experience delivery delays.High turnover in an area within an organization, showed that the area in question needs to be improved working conditions or how to built it.
Calculation of TurnoverLevels of turnover intentions can be expressed by a variety of formulas.Generally, the rate of turnover intentions expressed in percentages covering a specified period. If a company has an average 800 workers per month, during which it occurs 16 times the employee exit (accession) and 24 times the removal (separation). Then the accession rate was 16/800 x 100% = 2%, while the separation rate is 24/800 x 100% = 3%. Thus the level of replacement (replacement) or the replacement rate is the same as the accession rate which is 2%. Because replacement (penggatian) or the replacement rate should always be balanced by the accession rate. This means that the discharge of an employee / employees for example, must be replaced with an employee / new hire as a replacement (replacement).Replacement rate is often called the net labor turnover, an emphasis on labor turnover costs to attract and train replacement employees.

Definition, Aspects, Decreased Symptoms and How to Increase Morale Morale and Work Passion

According Nitisemito spirit and morale is: "The spirit and excitement of working in essence is the embodiment of high morale, and some have identified as free, high morale is the enthusiasm and the excitement of working."
In general, there is a tendency of high-productivity relationship with morale and enthusiasm high. Under the condition of the spirit and excitement
bad work will lead to lower overall labor productivity.
Decline in productivity will affect the profits earned by the company in the future. This would burden the company's prospects in the future, when the spirit and excitement of the job seriously burdened by the company. The spirit and excitement of high work should not lead to high productivity, it is simply an effect of overall productivity, for example: a group of workers who have the passion and excitement of high employment, but they only just bersendau joked at the time regardless of the job left by supervisor.

Aspects of Morale
Morale aspects need to be studied because in these aspects can measure the high and low morale. According to (Maier, 1998:119), a person who has high morale has its own reasons for work that is really wanted. This causes the person has a passion, qualities to survive in the face of adversity to fight frustration, and
have a partisan attitude. There are four aspects that indicate a person has high morale, namely:
a. Enthusiasm
Someone who has a passion in the work means also have the motivation and drive to work. Motivation will be formed when a person has a desire or interest in doing his job. According to (Jucius, 1959) which further necessitated by the employee is supposed to work for the organization
not more concerned on what they can.
b. Strength to fight the frustration
This aspect shows the strength of a person to always be constructive even when a failure is encountered in the work. Someone who has high morale certainly will not have a pessimistic nature when having difficulties in his work.
c. Quality to survive
This aspect implies a person who has high morale is not easily discouraged in the face of the difficulties in his work. This means there is perseverance and confidence in him. This belief, by (Maier, 1998:120) indicates that a person who has the energy and confidence for the future looked good. This is to improve the quality to survive. Reflect persistence in the sincerity of someone having to work. So do not assume that work is not only a result of time, malainkan something important.
d. Team spirit
The spirit of the group described the relationship between employees. With the morale of the employees will work with each other, mutual help, and not each other down. So the morale here indicate a willingness to cooperate with others for others to achieve common goals.

The decrease symptoms of passion and Passion Works.
By knowing the symptoms and fall of the spirit and excitement of the work it can take preventive measures as early as possible problems include:
High levels of attendance. To see whether the increased level of absenteeism was a decline in morale and enthusiasm for the job then we should not see this increased level of absenteeism on an individual basis but must be viewed in the average.
Anxiety is everywhere. Kegelisahaan in the workplace will happen when the passion and excitement of the work down, as a leader, we must be aware of the anxieties that arise in the corporate work environment. This anxiety can manifest in the form of labor unrest, complaints and others.
High labor turnover. Increased employee turnover, particularly the unrest caused by their work at the company, so they try to find another job that is considered more appropriate. Labor turnover rate is high but may decrease the productivity of labor, can also disrupt the continuity of the company.
Demands that often occur. The demand is actually a manifestation of dissatisfaction, which at some stage will cause the nerve to make demands.
Strike. The most powerful indication of the level of enthusiasm and excitement of falling employment is in case of strikes. This is due to the strike is a manifestation of discontent and kegelisahaan employees.

For cause-and-drop in enthusiasm and excitement of Work
According to the passion and excitement Nitisemito employment decline was due to many reasons, for example: wages are too low, inconsistence with the style of leadership, poor working environment and so on. To solve the problem then
companies must be able to find the cause of the decline in the working spirit and excitement. In principle, the decline in morale and enthusiasm of work due to dissatisfaction of the employees. Source of dissatisfaction may be material and non material. Which is material such as low wages, lack of facilities and others. While the non material such as: respect for human beings, the need for participation and others.

How to Boost Morale and Work Passion.
Each company is always trying to improve morale and enthusiasm of its employees work as closely as possible, and limits the ability of the company. How to improve morale and enthusiasm to work as closely as possible. Because it is here attempted to provide some of the ways how to improve morale and enthusiasm to work, both material and non material. Where the most appropriate way of course depend on the company's circumstances and objectives. To raise the spirits and morale can be reached by Nitisemito by:

Enough salary. Each company should provide adequate salaries to its employees. Significant amount of money that can pay the company without incurring losses for the company.
Giving a nice facility. Any company where possible should provide an enjoyable facility for its employees. The facility can be a place of worship, canteen, and so forth.
Place the employee in the right position. The exact position of the point is in accordance with their respective skills, inaccuracies position will lead the way employees work less well and the results are not satisfactory.
Provide opportunities for employees to advance. Denganadanya opportunity to advance the spirit and passion will drive employees to achieve corporate objectives.
Ensuring employees have loyalty. Faithfulness or loyalty to the company's employees can cause a sense of responsibility. Responsibility can create excitement and passion. As for how to provide opportunities for employees to participate in the purchase of shares of the company concerned, and so forth.
Self-esteem needs to get attention. Corporate leaders must be able to appreciate the employees themselves if they want to be appreciated. People will be more than happy to work with low wages, but rewarded with a salary higher than but the company is lowering them.
Inviting employees to negotiate and resolve the implementation of the company. If the lead in carrying out his job had a personal problem to be solved then the employees have been consulted.
Noting a sense of security for the future. To create a sense of security for the future, the company in implementing retirement plans for employees. Variations in this way is that in addition to setting aside in part from corporate profits, wages paid to employees to cut pension.
Occasionally need to create a relaxing atmosphere. Provide a relaxed atmosphere for the employees is so that employees do not experience boredom of doing the job every day.

Definitions, approaches, Dimensions and Factors Affecting Organizational Climate

Understanding Organizational Climate, Climate organization has many definitions. The first definition put forward by Forehand and Gilmers in 1964, which states that organizational climate is a series of descriptions of the characteristics of the organization to survive in the long term (Toulson & Smith, 1994:455). Litwin and Stringer on paper, as quoted by Toulson and Smith (1994:457) define organizational climate as one that can be measured in the work environment either directly or indirectly affect the employees and work where they work with the assumption will affect the motivation and behavior employee.
Davis and Newstrom (2001:25) viewed organizational climate as an organizational personality that differentiates it from other organizations that lead to the perception of each member in view of the organization.
So it can be concluded that organizational climate is a series of descriptions of the organizational characteristics that distinguish one organization to another that leads to the perception of each member in view of the organization.

Organizational Climate Approach
James and Jones in Toulson and Smith (1994:455) divides organizational climate in the three approaches, namely:
a. Multiple measurement - organizational approach
This approach considers that organizational climate is a set of descriptive characteristics of the organization that has three properties, namely: relatively fixed over a certain period, different from one organization to another organization, and to influence the behavior of individuals within its organization. The main factors affecting the size, structure, systems complexity, leadership style, and direction of organizational goals.
b. Perceptual measurement - organizational attribute approach
This approach is also viewed as an organizational climate of organizational attributes, but this approach emphasizes the use of the measurement of perception rather than objective measurements such as size and organizational structure.
c. Perceptual measurement - individual approach
This approach views climate as a series of summary or global perceptions that reflect an interaction between the real events in the organization and perceptions of the incident. This approach emphasizes the attributes of a real organization to a summary of the individual perception. With this approach, the intervention variable caused by the events experienced by both individuals and organizations can influence the behavior of those individuals. Therefore, the climate of the organization can act as free and bound variables.

Organizational Climate Dimensions
Toulson and Smith (1994:457) described in his journal that the concept of organizational climate was first suggested by Litwin and Stringer in 1968. Organizational climate by Litwin and Stringer, described or measured by five dimensions, namely:
a. Responsibility (liability)
b. Identity (ID)
c. Warmth (warmth)
d. Support (support)
e. Conflict (conflict)
Understanding of each dimension are as follows:

A. Responsibility
Responsibility (responsibility) is the feeling of being a leader to yourself, do not always have to double check all of the decisions taken, when the employee gets a job, the employee knows that it is his job (Toulson & Smith, 1994:457).
Responsibility is the obligation of a person to carry out the functions assigned to the best possible fit with the direction received (Flippo, 1996:103) or the level of the extent to which members of the organization responsible for the assigned job (Cherrington, 1996:560).
Responsibilities associated with the delegation, Handoko (2000:224) states that the delegation can be defined as the delegation of formal authority and responsibility to others to carry out certain activities. Delegation of authority is the process by which managers allocate authority down to the people who report to him. Four events occurred when the delegation carried out:
a. Set goals and delegating tasks to subordinates.
b. Delegation of the delegation of authority necessary to achieve the goal or task
c. Acceptance of the delegation, either implicitly or explicitly, give rise to liability.
d. Assignments must accept responsibility subordinate to the results achieved.
In order to be effective delegates needed guidance to subordinates,
Handoko (2000:225), menggutip Stoner on guidelines for effective delegation:
a. Scalar principle
In the process of delegation of authority must be clear. Clear line of authority which will make it easier for every member of the organization to know: to whom he may delegate, from whom he would accept the delegation, and to whom he must give an account.
b. The principle of unity of command
This principle states that every subordinate in the organization should report to a boss. Reporting to more than one employer makes it difficult to know the individual to whom responsibility is given and where the instructions are followed. In addition, subordinates can avoid the bad performance of duties by reason of the many duties of the employer to another.
c. Responsibility, authority, and accountability
This principle states that the responsibility for specific tasks given to the lowest level of organization where there is sufficient capability and information to complete and is authorized to taste. An important part of the delegation of responsibility and authority is accountability. Acceptance of responsibility and authority means that the individual also agrees to accept the accountability demands of the task.
With the above explanation the employee will feel happy to accept the responsibilities given to his superiors, because in addition to get clarity about the limits of the role to be and to whom he should take responsibility for their work, employees are motivated to accept other responsibilities and complete tasks received by fine.

2. Identity
Identity (identity) is to have a feeling (sense of belonging) to the company and accepted in the group (Toulson & Smith, 1994:457).

3. Warmth
Warmth (warmth) is the feeling of a friendly working atmosphere and more emphasis on the conditions of hospitality or friendship in informal groups, as well as good relationships between colleagues, an emphasis on the influence of friendship and informal social groups (Toulson & Smith, 1994:457) .

4. Support
Support (support) are matters relating to the support and relationships among co-workers that is the feeling mutual help between managers and employees, with more emphasis on mutual support between superiors and subordinates (Toulson & Smith, 1994:457).

5. Conflict
Conflict (conflict) is a situation of disagreement or difference of opinion between leaders and subordinates with subordinates with subordinates. Emphasis on the conditions in which managers and workers are willing to listen to different opinions. Both sides are willing to place the issue openly and find solutions rather than avoid it (Toulson & Smith, 1994:457).

Factors Affecting Organizational Climate
According to Higgins (1994:477-478) there are four principal factors that affect climate, namely:
a. Manager / leader
Basically every action taken by the leader or manager affects climate in several ways, such as rules, policies, and procedures of the organization, especially the issues related to personnel issues, the distribution of rewards, communication styles, ways of used to motivate, techniques and disciplinary action, the interaction between management and groups, interaction between groups, attention to the problems that employees have from time to time, as well as the need for satisfaction and employee benefits.
b. Employees' behavior
Climate affect employees' behavior through their personalities, especially their needs and the actions they take to satisfy those needs. Employee communication plays an important part in shaping the climate. The way a person communicates to determine the success or failure of human relationships.
Based on a person's normal life style or set something up, can add to a climate of positive or negative can also cut it down.
c. Behavior of the working group
There is a particular need in most people in terms of relations of friendship, a need which is often satisfied by a group within the organization. Growing groups in the organization in two ways, namely the formal, especially in the working groups, and informal, as the friendship or common interests.
d. Factors external to the organization
Number of external factors affecting the organizational climate in the organization. State of the economy are the main factors that influence climate. For example in the economy with high inflation, the organization is under pressure to provide increased benefits at least equal to the rate of inflation. If the Government has set rules on wages and prices that could limit the increase in profits, employees may be unhappy and make it out to get a job at another company. On the other hand, the economic boom can drive sales and enable everyone to get a job and a big increase in profits, so the climate becomes more positive results.
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