FKLT/06-00

Name(s)

SHAHIDAH BINTI SHAH JAHAN

ID Number(s) Section

AM2107009477 02

Lecturer
DR SITI MASITAH BINTI ASHAR
Lab group / Tutorial group / Tutor (if applicable)

Course and Course Code Submission Date:

COMPENSATION MANAGEMENT (HRM2053) 20TH JUNE 2023

Assignment No. / Title Extension & Late submission:

INDIVIDUAL ASSIGNMENT Allowed / Disallowed

Assignment type: % of Assignment Mark Returning Date:

Individual/Group 30%

Penalties:
1. 10% of the original mark will be deducted for every one week period after the submission date
2. No work will be accepted after two weeks of the deadline
3. If you were unable to submit the coursework on time due to extenuating circumstances you may be eligible for an
extension
4. Extension will not exceed one week

Declaration: I/we the undersigned confirm that I/we have read and agree to abide by these regulations on plagiarism and
cheating. I/we confirm that this piece of work is my/our own. I/we consent to appropriate storage of our work for checking
to ensure that there is no plagiarism/ academic cheating.

Signature(s): Shidah

This section may be used for feedback or other information

Table of Contents
1.0 INTRODUCTIONS ..................................................................................................................................... 2

2.0 ISSUES OR PROBLEMS ............................................................................................................................. 3

3.0 COMMENTS AND RECCOMENDATION .................................................................................................... 5

4.0 CONCLUSION ........................................................................................................................................... 6

5.0 REFFERENCES .......................................................................................................................................... 7
1.0 INTRODUCTIONS

Everything a company provides an employee in exchange for their work is considered

compensation. Employee compensation has a crucial influence in many aspects of the workplace
and can impact morale, productivity, turnover rate, and employee performance. This assignment’s
main goal is to review previous research on the subject of how employee performance and
compensation are related. Employees are one of a company's most valuable assets, thus they
should be handled properly and sensibly.

The success or failure of the company will be impacted by whatever choices or actions the
personnel make. Organizational leaders should reward their staff members to encourage them to
perform at their best. Since employees are an organization's principal resource, the success or
failure of the business will depend on the employers' ability to successfully recruit, retain, and
reward skilled and competent workers. Additionally, the remuneration packages provided by the
company will significantly guarantee that the workers are inspired to work and willing to remain
on the job.

One of the physical necessities that affects employees' ability to execute their jobs is
compensation. Many elements, both internal and external, can have an impact on how well a job
is done. For instance, it has been discovered that compensation and performance are directly
related to achieving organizational goals, and employees will receive rewards for their superior
performance. This suggests that rewards are a reinforcement or incentive in motivating staff to
enhance their performance and deepen their commitment to the company's objectives.

2
2.0 ISSUES OR PROBLEMS

• Relationship Between Compensation and Employee Performance

A compensation package is not limited to money; it can take many different forms. This covers
work-life balance, health care, and flexible benefits. It also includes employee incentives. If a good
remuneration package is not well-established, it will have a significant impact on staff productivity
and performance. Compensation has a significant impact on employee productivity. Giving
employees fair wages fosters increased employee productivity. On the other hand, paying
employees less will mean that they work less productively.

• Relationship between Bonus and Benefits and Employee Performance

Bonuses are typically discretionary awards provided after the fact for achievements, actions, or
other relevant events. Benefits, on the other hand, are all forms of compensation other than direct
payment; they are expensive for the business and are frequently provided indirectly to employees.
Results showed that in order to encourage employees to perform even better, bonuses and fringe
benefits are additional forms of pay that are given to workers for a job well done.

• Relationship between Job Promotion and Employee Performance

A person progresses up the organizational structure from one position to another through the
process of promotion. It almost always comes with an increase in responsibility, money, and
benefits from the organization.

Additionally, a commercial organization's practice of appreciating and rewarding employees is

promotion, making a contribution to the planning and work. Employees are more committed to
the company, more satisfied with their jobs, produce better work, and are more committed to the
organization if they feel that promotion decisions are fair. They consider promotions to be a sign
of respect for an employee's work ethic. A successful employee will have a higher chance of
moving up.

3
 • Relationship between Appreciation and Recognition and Employee Performance

A widespread acknowledgement or validation of a certain event or performance is what

appreciation and recognition are, according to understanding, In the workplace, appreciation is
crucial for employees. Employees respond to appreciation that is shown through acknowledging
their hard work since it shows that the employer thought highly of it.

4
3.0 COMMENTS AND RECCOMENDATION

Employees who receive enough compensation report higher levels of motivation, self-assurance,
and positivity regarding their work, in addition to reporting higher levels of job satisfaction. If an
employer can make their workers happier with their work, they will have a greater incentive to
improve their performance. A study discovered that there is a connection between the total
compensation of an employee and their level of performance. The purpose of this study was to
determine how well the employees of Mayfair Insurance Company Limited performed in
proportion to the total remuneration that they received. The findings of the study indicate that
there is a strong positive correlation between total salary and employee performance in a number
of different ways. There was a significant positive correlation between the balanced scorecard,
employee performance characteristics, and total remuneration. This was the case overall.

These various motivational factors, like as promotions, incentives, and enough remuneration, all
have a substantial impact on performance. Benefits, on the other hand, are a component of an
employee engagement strategy. The ability of the compensation system allows the firm to offer
perks in addition to money to employees, which can impact their attitudes. Benefits alone,
according to, led to considerable increases in financial performance. However, the fact that a
company provides benefits above and beyond the minimum wage is a component of engagement
activities that encourage improved performance and greater understanding of the real purpose of
benefits.

Recognition and appreciation are two essential tools for enhancing both employer and employee
motivation as well as organizational success. Employees will exhibit motivating behavior at work
as a result of their emotional reactions to praise and recognition of their professional skills, which
will ultimately increase their performance and productivity.

5
4.0 CONCLUSION

In conclusion, the topic in this article demonstrates that the more effective management is applied
to the relationship between employer and employee as well as the relation with the staff, the more
likely it is that the organization will expand. However, people management systems are introduced
in public sectors, despite the fact that these systems do not function to the benefit of employees.
This results in organizations in the private sector becoming more effective as a result of improved
human resource management.

The connection between employers and employees inside an organization needs to be one that
is cordial and constructive, and organizations have a responsibility to ensure this. The
management strives to make the working environment pleasant and conducive to productivity for
all of the employees. Employers have a responsibility to make sure they provide their workers
with competitive benefits that will inspire and motivate them to do their best work. Because it is
the goal of every organization to achieve ever-increasing levels of productivity, there is an ongoing
demand to incentivize workers through the implementation of all-encompassing pay packages
and the cultivation of pleasant working environments.

This will lead to increased levels of job satisfaction which, in turn will lead to increased levels of
productivity and profitability. In order to be fair, compensation should take into account not just the
work that a person is performing but also their education and skill level. When referring to
compensation, equity refers to what one receives in comparison to peers who have comparable
roles, either within the same company or in other organizations operating within the same industry
and performing comparable work.

Additionally, employee perks are an additional example of a non-financial form of pay that can be
taken into consideration in the process of making employees happy. The provision of employee
cafeterias with low-cost or free meals, as well as childcare services, in order to alleviate some of
the responsibilities that come with being a parent. Offers like as memberships to health clubs,
onsite gyms, and regular health tests. A healthy workforce is one that is more productive and
takes fewer sick days, which is something that is recognized by corporations.

6
5.0 REFFERENCES

Mohd Zahari, A. S., Kamaruddin, R., & Raja Baniamin, R. M. (2020a). The Relationship Between
Compensation Systems And Employee Performance: A Literature Review. The
Relationship Between Compensation Systems And Employee Performance: A Literature
Review, 5(12).

Team, M. S. (2023, May 23). Compensation & benefits - meaning, importance, types, components
& example. MBA Skool. https://www.mbaskool.com/business-concepts/human-resources-
hr-terms/4032-compensation-a-benefits.html

Shreya Dutta. (2023, April 27). Employee benefits and compensation ideas: A guide. Nurture an
Engaged and Satisfied Workforce | Vantage Circle HR Blog.
https://blog.vantagecircle.com/employee-benefits-compensation-ideas/

Wool, M. (2022, August 17). Compensation and benefits packages: Your guide to pay and Perks.
BetterUp.https://www.betterup.com/blog/compensation-and-
benefits#:~:text=Compensation%20is%20a%20direct%20payment,or%20partially%20exe
mpted%20from%20taxation.

7
 APRIL2023/HRM4053

RUBRIC FOR
CASE STUDY

Course Name: Compensation Management Student's ID: AM2107009477

Course Code: HRM4053 Student's Name: SHAHIDAH BINTI SHAH JAHAN

Lecturer's Name: DR SITI MASITAH BINTI ASHAR

Marks (M) Weighted

Marks
Criteria Marks
Allocated 1 2 3 4 Obtained
Incomplete in most
Incomplete in many respects; Complete in most respects; Complete in all respects; reflects all
Completeness 10% respects; does not reflect
reflects few requirements. reflects most requirements. requirements.
requirements.

Demonstrates an Demonstrates an acceptable Demonstrates an accomplished Demonstrates a sophisticated

Understanding 20% inadequate understanding understanding of the understanding of the understanding of the
of the topic(s) and issue(s). topic(s) and issue(s). topic(s) and issue(s). topic(s) and issue(s).

Makes appropriate but somewhat Makes appropriate connections

Makes appropriate and powerful
Analysis, Makes little or no vague connections between the between the issues identified
connections between the issues
Evaluation connection between the issues and concepts studied in and the strategic concepts
identified and the strategic concepts
and 40% issues identified and the the reading; demonstrates limited studied in the reading;
studied in the reading; demonstrates
Recommendat strategic concepts studied command of the strategic demonstrates good command of
complete command of the strategic
ion in the reading. concepts and analytical tools the strategic concepts and
concepts and analytical tools studied.
studied. analytical tools studied.
Writing is unfocused, Writing lacks clarity or Writing is accomplished in terms
Writing demonstrates a sophisticated
rambling, or contains conciseness and contains of clarity and conciseness and
clarity, conciseness, and correctness;
serious errors; lacks detail numerous errors; gives contains only a few errors;
Writing Skills 20% includes thorough details and
and relevant data and insufficient detail and relevant includes sufficient details and
relevant data and information;
information; poorly data and information; lacks relevant data and information;
extremely well-organized.
organized. organization. well-organized.
APA Does not use APA Reflects incomplete knowledge of Uses APA guidelines with minor Uses APA guidelines accurately and
10%
Guidelines guidelines. APA guidelines. violations to cite sources. consistently to cite sources.

Overall
100% Total Marks
Assessment