Tuesday, 4 December 2012

Blog 3 Web Based Compensation and Planning


        The topic of compensation and planning is interesting because it usually involves the process of compensation data and information. Online compensation is the web based approach of compensation tools that enable organization to gather, store, manipulate, analyse, utilise and distribute compensation data and information. Whereas, planning is a systematic approach to estimating the future needs of a company in terms of labor and supply.
            After understanding the main concept of this topic, the web based compensation is the process that using technology as a means to manage it. Usually compensation is related with the monetary and rewards, thus, managing it might be difficult and hard since everyone wanted the rewards. With using web based tools, managing the process will become easier.
            There are two components in compensation, first is the fixed compensation and second is the variable compensation. Under fixed compensation are bonuses, pay wage, merit pay and equity adjustments. Meanwhile, under the variable components are individual incentives plan, group incentives plan, profit sharing plan and productivity gain sharing programs. Online compensation may be beneficial in terms of streamlining the administration of employee’s compensation and benefits. Process to streamline the administration will become easier since the technology helps a lot. Other than that, it improves the effectiveness either by in terms of the accuracy of information or by using the technology to simplify the process. The information entered may went wrong and does not align with the real information, so using the online can fixed the information and detect where is the part that going wrong. Manager also can access to the information that they wanted and does not have to go through the third party. The record of the compensation can be referred if there has any problems that arise in the future.
            In my opinion, e-planning is the process to estimating the future needs of the organization. Every organization must have planning for the whole year in order to make sure that the journey of the organization runs smoothly. Thus, the planning should be planned thoroughly so that the plan will be execute according to the plan. Employees play important roles in executing the plan because they are the main element of the organization. Without employees, the organization may decrease in productivity due to the absence of the employees.
            Online compensation and planning is actually made the process in the organization become easier. I have learnt new things and I was satisfied because I know the new knowledge in the information system.  (414 words)

No comments:

Post a Comment