Hrm 380

Section: 03

Faculty Instructor: Arif Shahjahan Bhuiyan (ASB1)

Date of Submission: 29 May, 2020.

Spring 2020

Name Id

Ohida Khanom 1520298630

Ishraq Shafin 1511233030
Sajib Hasan 1520418630
Kamrun Nahar 1520333630
Sadia Islam Sanjana 1521921030
Saeed Bin Latif Symoon 1520129030
 Letter of Transmittal

Hrm 380, Section 03

North South University
Plot-15, Block B, Bashundhara Residential Area, Dhaka 1229.
Date: May 29, 2020

Arif Shahjahan Bhuiyan

Lecturer, Department of Management
School of Business and Economics
North South University
Plot-15, Block B, Bashundhara Residential Area, Dhaka 1229.

Subject: Submission of the following group project.

Dear sir,

At the outset we would like to take the utmost privilege to express my heartfelt gratitude to
be able to write to you. This is the final report that we have affirmed from you beforehand it
has been prepared under your cooperative supervision and guidance.
We have attempted our level best to finish this venture definitively, precisely and effectively
as much as conceivable. We do accept that our exertion will assist you with excelling with
this kind of adventure. In this case, it will be extremely valuable to us.
This report is to depict our perception, learning and suggestion dependent on the information
and the encounters picked up amid the course under your watch. We have endeavored to
cover every one of the necessities as indicated by the rule you gave us for this report. Your
thoughtful and vigilant guidance showed us to how the work is really done. In the event that
you have any request or requirement for illumination in regards to this undertaking, it would
be ideal if you told us. Much thanks to you for your time, direction, and for giving us this
chance to learn.

Acknowledgement

The report was duly carried out with the great sincerity and with devotion and pragmatic
influence and the presence of all the members of the team made carrying out the whole report
a whole lot easier. Writing a report is a hefty task, and it needs sync and coordinated effort,
the presence of which was prevalent throughout.
We would want to thank our honorable faculty supervisor and our course instructor, Arif
Shahjahan Bhuiyan, Department of Management, School of Business, North South
University for allowing us to observe and analyze such an interesting topic and moreover for
his due guidelines by pointing out the flaws and the drawbacks of our report and showing us
the direction towards diluting our mistakes and making the report a whole lot more
presentable and fruitful. Our honorable faculty imparted us the wisdom to carry out the task
and we are ever thankful to you sir. His persistent support, understanding, cooperation helped
us get into the strides to our report. Lastly, we are thankful to each member of our group.
Everyone’s cooperation and contribution to this report is highly appreciated.

Executive Summary
The report is based on the findings of all the members who have integrated different plots and
cumulated them into a basic form for research. The report initiates with the introduction of
the whole work arrangement and the plots that it would be taking. The findings and research
aspects information were then significantly highlighted in the literature review section. The
different methodologies that were used for the findings are then concretely stated. To put
forth the vital portions of the report were summarizing the members’ own interpretation of
the research findings and how all those would be applicable in the field of compensation. To
report progresses with the application of those findings in the compensation field and how it
would consequently be impactful in organizational success and HR leadership. To conclude
the report the members were designated to state the implication of Strategic Human Resource
Management (SHRM) developing Total Compensation Strategy, and it was conclusively
summarized through each members’ recommendations and final thoughts.

Introduction

Appreciation and recognition is an essential human need. Employees react to gratefulness

communicated through acknowledgment of their great work since it affirms their work is
esteemed by others. At the point when representatives and their work are esteemed, their
fulfillment and profitability rises, and they are inspired to keep up or improve their great
work. Acknowledgment is fundamental to an extraordinary work environment. Individuals
need to be regarded and esteemed by others for their commitment. Feeling of
accomplishment for function admirably done or in any event, for a valiant exertion.

When employee contribution is properly adjudicated it sets into establishing incentive

programs to justify the cause, and proportionately makes for an effective compensation pay
model.

In organization, employees are the key resources through which all the other objectives are
achieved. Academic staff is the employees of the educational organizations and their job
satisfaction promotes teaching and learning. Employees will demonstrate pleasurable positive
attitudes when they are satisfied with their job. Higher education is influential in the
development of a country; it does not only function as a provider of knowledge but as a
pertinent sector for the nation’s grown and societal well-being. The higher education
institutions play a significant role in development of skills, increased economy; therefore,
high quality of staff is required. Human capital is the pivotal of organizational effectiveness
and the most valuable asset available to an organization is its people. Retaining employees in
their jobs is crucial for any organizational productivity and competitiveness.

Compensation is the contribution and benefits earned by employees as salaries, bonuses and
the same incentives for an employee's performance improvement as monetary exchange. The
offer is made on behalf of the individuals doing the work. One of the most important
components of cash flow from the prospective employee. The decision taking by workers to
keep their organizations should have incentives and bonuses and also recognize
accountability. The value-added employee training as compensation programs improves the
efficiency of human resources results, which usually enhances morale, satisfaction and
productivity. Organization pays the employee's voluntary turnover directly as compared to
their pay available in another organization.
Employee compensation is the benefit that an employee receives in exchange for the service
they provide to their employer in the organization. Employee compensation is commonly one
of the largest costs or expenses for any organization or company.

A few examples of the compensation paid to employees are cash compensation consisting of
wages or salaries, retirement plans, employer-paid health insurance, life insurance and paid
leave for vacation and sick days. So, these are the things that needed to be paid to value the
work that they do and also to retain the employees in the organization. But it is also essential
to evaluate the employee’s contributions the organization receives in exchange as well. So the
HR department also needs to make sure about that both the parties get benefitted from each
other.

The compensation may directly influence several key outcomes, for instance: job satisfaction,
attraction, retention, performance, flexibility, cooperation and skill acquisition. However, its
influence may also be facilitating the effectiveness of other human resource activities, for
instance: recruiting, selection, training and development. This actually helps us to assess the
impact of employee attitudes, behaviors and the effectiveness of the entire organization and
its units.
Literature Review

Barnard, (1936); Simon, (1951); Williamson, (1975); Rousseau, (1990) narrated that an
organization must provide inducements that are of value to its members. This exchange or
transaction process is at the core of the employment relationship and can be viewed as a type
of contract, explicit or implicit, that imposes reciprocal obligations on the parties.

Gomez-Mejia & Welbourne, (1988); Milkovich, (1988) concluded that their focus on
managerial implications has also led them to devote relatively on compensation and what
may be termed more tactical things between the job evaluation or performance appraisal
instruments. The main focus in discussing determinants is the relative importance of
organization differences in compensation decisions.

Belcher & Atchison, (1987); Heneman & Schwab, (1985); Heneman, (1985); Milkovich &
Newman, (1990) concluded that the most important: pay level and structures are the
individual differences in pay, and benefits. They had suggested that the decisions in these
areas influence individual and group outcomes which, in turn, influence units for instance:
plant and business unit outcomes and ultimately, entire organization outcomes.

Salary

There are numerous elements of pay, explore play out that might be type of separately and
might be type of various execution pay plan various characteristics can consider the effective
of degree to perform merit pay to execution, reward long impetuses above all else merit pay
is type of remuneration and individual capacity of their people execution and rating (Millvier
and Newman; 2005) .Bounces pay is monetary reward gives to employee in addition to their
fix compensation (Millovian & Newman 2005). This compensation plan in base on singular
execution yet rewards does pay and they’re not execution (Suman & shout, 2000).

Incentives and Rewards

The activity fulfillment impacts the degree of worker execution which implies that fulfillment
got from along these lines’ announcement of representative so great. So that if work
fulfillment is mean good decay and backing of the association objective (Hasbuan; 2003).
According to grisly and Brown (1950&johson2008) .

Indirect compensation

Milkovich and Newman (1999) refer that monetary return and worker get as a business
relationship all money motivators and other mating representative got which nations of
complete compunction. Roundabout assemblage worker inspiration Gareth and Jeorg (2010).

Fogleman. McCorkle. and Schwert (1999) considered, “Compensation packages as the total
rewards systems that contain non-monetary. Direct and indirect elements.”

Millan, J.M., J. Hessels, R. Thurik and R. Aguado, 2013. A determinant of job satisfaction is
a remuneration package which is one of the most important factors that influence people to
take up employment and stay with organizations.

METHODOLOGY

The particular methodology or strategies that have been used to distinguish, select, process,
and break down data about a point in this research paper is qualitative data and secondary
data. The methodology segment would permit our esteemed faculty to fundamentally assess
the overall legitimacy and dependability of the report.
A questionnaire was intended to collect data on compensation variables such as wages,
benefits, indirect benefits and success by workers. Data from various banks in Pakistan were
collected. The study of the data was based on various analytical and descriptive techniques.

Secondary research: For secondary research, we took help from the website and summarize
the article gathered some information which was important to complete the report.

In this research paper we use qualitative data and secondary resource. We download mostly
readied journal and article from the websites for this research paper. The methodology
segment would permit our esteemed faculty to fundamentally assess the overall legitimacy
and dependability of the report.

The methodology which has been used to collect information, to select the authenticity of the
information, to use the best analysis approach and to put forth that information in this
research paper is qualitative data and secondary data. This methodology section will allow
our honorable faculty to assess the viability and reliability of the report.

Interpretation of your research findings –

understanding and application in the field of
Compensation

When employee contribution was recognized and acknowledged it was seen that there
had been an increase in the individual productivity. Recognizing desired behavior
increases the repetition of the desired behavior, and therefore productivity. There had
been greater employee contempt and jovial attitude towards work. There was an
increase in time on focusing on the job rather than complaining. There was a spike in
the loyalty radar and satisfaction scores from employees. In throwing in a
comparison, it was seen that when employee contribution was recognized and
implemented in designing an effective compensation pay model it instigated
teamwork and collaboration among employees. The retention of quality employees
increased, subsequently decreasing employee turnover. There was an increment in the
safety records, resulting to fewer accidents on the job. These are the general findings
in the field of compensation. This jurisdiction of employee contributions is stacked
with positives in the field of compensation as it brings about positive outcomes
through its implementation.

Employee job satisfaction has remained a remarkable area in the field of human resources
management, psychology and organizational. It is necessary for management to look into the
welfare and well-being of their employees. A happy employee is regarded as a more efficient
and more productive employee. Employees join organization with certain motives like job
security, better prospects in future and satisfaction of both social and psychological needs.
Compensation is a useful instrument in the hand of the management to contribute to the
organizational effectiveness and can impact positively on the behavior and productivity of
employees. To attract, retain and be profitable, organizations need innovative reward systems
that satisfy employees.

Compensation is an area of strategic importance. Not only to the individual employee but
also it is an essential factor for all the employees working in every sector. And that is the
reason why compensation decisions have great consequences. The salaries and wages
represent the main sources of income for most of the people. It is seen as the key indicators
of a person's social standing or success in life. Compensation includes variant benefits as
well. For instance: income protection, work/life balance, allowances, health care and
pensions. These are the essential determinants of wellbeing and provide financial security
among employees and their dependents. In the total compensation factors or total returns;
there is a term called relational returns which includes recognition and status, employment
security, challenging work and learning opportunities.

Application of the findings in the compensation field as

best practices, and applying them into
compensation field in context of compensation
management process

While doing the research, I have seen that in the employee compensation article there
is a term called compensation management process. So, actually compensation
management is overseeing and managing the process of giving payments like base
salary or wages, some other benefits and relational returns to employees for doing
their jobs. The main purpose is to put forth compensation in order to recruit and retain
the highest quality, efficient and skilled employees. When an organization tries to
give value to its respective employees through compensation, in point of fact it helps
to motivate employees to work hard and to take the organizations objective as their
own objective.

In this research, I have found out that the compensation is a vast thing to be
discussed. It is not just about providing the base salary and wages to the employees, it
is also a matter of fact to bring justice to their works so that they can feel valued.
That’s why the organizations tend to provide variant forms of financial returns and
tangible services.
The HR department will be managing these for instance: merit/ cost of living, short/
long term incentives, benefits like income protection, work/life focus and allowances.
As a HR student, I can apply those above findings into compensation field in the
context of compensation management process. As the compensation management
process lays out an organization's point of view on how the HR department will
determine pay and benefits for its employees. I have to make sure that it aligns all of
the compensation resources to the business goals, aids the HR department to decide
how the organization wants to establish the payments of each segment or
departments, how organization wants to maintain the hierarchy and to set the
compensation according to that. From that perspective I also have to ensure that the
compensation management process aligns well in the field of compensation. That is
why I will implement the job evaluation, surveys of wages and salary analysis,
improvement of suitable wages and salary structure, framing of rules for
administering wages and salaries, the payment and monitoring of compensation
expenses time to time.

How will they impact organizational success and HR

Leadership

Compensation assumes a significant job whether an applicant acknowledges or passes on a

bid for employment. Businesses ought to consider utilizing employee compensation as a vital
component.
For crucial reasons, successful and reasonable compensation management is an
unquestionable requirement for each business. Employees who are perceived for the worth
they bring are bound to be roused, steadfast and higher performing than those who're most
certainly not.
Generally, if the compensation framework is effectively anticipating pay rates, expands,
rewards, limits and different advantages, at that point employee maintenance will remain
consistent.
The size of the business probably won't make any difference, however the way to deal with
compensation with the employees does. Savvy pay strategies are demonstrated to enable
organizations to extend. This is on the grounds that they help with the obtaining and
maintenance of excellent inspired employees. Indeed, compensation management is one of
the best approaches to keep workers cheerful and concentrated on accomplishing individual
and business objectives.

Implication of Strategic Human Resource Management

(SHRM) developing Total Compensation Strategy

The Strategic HR depends on the profound information on the association, procedures,

techniques and the business system. In any case, it needs a solid connect to the basic
achievement factors, which can empower the HRM Function to gauge its own prosperity in
transit of executing the Strategic HR in the association.

It is the errand of the SHRM Function's Management Team to choose the right arrangement
of basic achievement factors and to characterize the right KPIs to gauge their turn of events.
The supervisory group of Human Resources needs to choose the basic achievement factors,
which are in the immediate impact of the HRM Functions not to accuse the remainder of the
association for not meeting the characterized objectives.

The SHRM Function Management Team ordinarily chooses the basic achievement factors,
which have a typical root in the business system and their improvement has an immediate
effect on the benefits of the association, by expanding the pay or by diminishing the
expenses.

There are innumerable implications of Strategic Human Resource Management in developing

Compensation Strategy.

The compensation strategy is gotten from the HR Strategy and it characterizes the situation of
the association hands on showcase, the degree of the all-out money, the fundamental extra
standards in the association and rules for the base compensation setting.
The pay methodology is one of the principles supporting archive for the HR Strategy. The
remuneration procedure is firmly observed by the administration of the association and they
request the advancement of the usage of pay technique on the standard premise.

The HR Strategy must be constantly planned and created with having the regard to the
circumstance in the remuneration region in the association. The HR Strategy can't set the
desire, which isn't appropriate for the organization.

The compensation strategy ought to be refreshed, when Human Resources rolls out huge
improvements to the SHRM or the association changes its business procedure. The
compensation strategy has consistently bolstered the business and its selling abilities
considered to be the pivotal aspect of the implication of Strategic human resource
management.

The remuneration procedure gives the assurance to the HR representatives and HR

administrators as they can guarantee the steadiness in the pay, the security and the oversaw
improvement of the pay segments and they can clarify the fundamental job of the individual
pay parts. The remuneration system goes about as the essential record driving the pay and
advantages forms and characterizes clear needs for the turn of events or update of the pay
segments.

Strategic human resource management refers to the practice of attracting, developing,

rewarding, and retaining the employees in the organization. It is very much needed for the
benefit of both the employees and the organization as a whole. When an organization
implements this practice, consequently the objectives of a human resource department reflect.
This eventually uphold the aim and destination of the rest of the organization.

The greatest implication of strategic human resource management in developing total

compensation strategy is its purpose, to enhance the organizational performance by
integrating and aligning with business strategy.

In this research, I have found out that the compensation strategy lays out an organization's
point of view on how the HR department will determine pay and benefits for employees. It
also aligns all of the compensation resources to the business goals, aids the HR department to
decide where the organization wants to compete, how competitive one organization needs to
be and what it chooses to reward. That is how the importance of strategic human resource
management is much needed when it comes to develop the compensation strategy. These are
both interconnected. The HR department needs to know where the organization is headed and
then they will be doing the most important tasks, for instance: the HR department will be
handling the hiring/ firing decisions. They will be managing payroll and benefit concerns.

The HR department will be managing the all forms of financial returns like the cash
compensation: base salary, merit/ cost of living, short/ long term incentives, benefits like
income protection, work/life focus and allowances. So, establishing and developing a
compensation strategy through the support of strategic human resource management will
work and eventually get a positive feedback from people at all levels of the organization.

Recommendations / Final Thoughts

By creating a clear compensation philosophy that distinguishes the planning model,

showcase situating, and hierarchical alignment, while making sure that the technique
is lined up with your organization esteems and industry. Alongside, by using the
recruiting and line managers, performance management techniques, succession
planning, and stay interviews to distinguish the prodigies. Consequently, it is then
advised to know your information and know your market before you settle on
significant pay choices.
In particular, compensation planning ought to not be considered only a regulatory
undertaking. It is a basic and vital device that can amplify the profitability of the
ability, yet the organization’s interest in them. It is only through the accumulation of
the above techniques and their proper and just implementation we can establish
competitive compensation model in Bangladesh. The compensation objectives that an
organization tallies when scrutinizing the compensation model are acquiring qualified
personnel, subsequently retaining them and then breeding them into much better
prospects, and alongside motivating them to procure the best out of the concerned
individuals, can largely be achieved through the implementation of the above
thoughts.
Compensation is financial and non-financial extrinsic rewards provided by an
employer for the time, skills and efforts made available by the employee in fulfilling
job requirements aimed at achieving organizational objectives. Employee
compensation is one of the major functions of human resources management.
Compensation is important for both employers and employees regarding attracting,
retaining and motivating employee.

My personal recommendation is that compensation has a positive impact on the output of

workers. But I recommend to put more emphasis on reward here shows that reward has
inverse relationship with performance. But I think reward has positive relation with
performance. Employee will be more dedicated if company know the right reward for the
right employee at the right time. Correlation analysis shows that all independent variables
have a low to moderate positive relationship to each other.

Conclusion

Compensation is a mandatory thing for any organization. It gives an employee the reason to
perform better and show their excellence for the company. But most of the time employees
are confused about their salary and promotions. So that every company should establish a
compensation structure based on the updated market-based information. Beside this they
should follow the state low to compensate their employee. And they can give them some
goals. Based on that goals the organization can pay salary incentives and some non-financial
reward. Because that works as a motivator that motivates them to meet and exceed their goals
that creates the opportunity for the organization to increase their earnings.

Therefore, employee compensation research will be ordinarily requiring data on

multiple organizations. And these pay levels and paying off the compensation factors
can be varied from organization to organization. Now, if I conclude everything and
make a conclusion regarding employee compensation factors will depend heavily on
how these competing organizations are defined and chosen. But it is also true that
measuring total employee compensation goes beyond a consideration of wages and
salaries. The benefits and relational returns are much needed if the organization really
wants its employees to retain, stay and work for the betterment of the organization.
In Bangladesh it is also possible. There are thousands of organizations in which they
have the best HR people and those HR people are working relentlessly to give
guidance to assist the organization in reaching its goals. By communicating to the
employees and other departments, the human resource department can help providing
concrete methods how the compensation strategy can used in the organization. By
solidifying the company’s short and long term aims and targets, the compensation
strategy can be tailored to best aid meet those goals and retain the employees. So,
employee compensation is a vast thing to be discussed but if the HR people are really
efficient and good at with their works, the compensation factors can be easily
provided to the employees which will ultimately encourage the employees to stay in
the organization.