As we know, Human Resources Management
consists of various functions and one of the fundamental functions would be
compensation. According to Richard L. Daft in his book entitled New Era of
Management, compensation may be refer as all monetary payments and all goods or
commodities used in lieu of money to reward employees.
Basic
compensation system comprises of base pay, merit pay, short-term and long-term
incentives, perquisites, recognition awards and attraction or retention awards.
Thus, it does involves a lot of complicated processes to go through and plus,
there will be unique processes for special populations like executives, sales
personnel, expatriates and many more.
The
organization has to ensure that the compensation and benefits system is running
effectively in the company so that it would attract and retain talented workers
in the organization.
As
we are breathing in a technology-based era, administering compensation via
technology would be the best way in order to enhance the organizational productivity
and the management as well. The application of web-based compensation may help
the organization to cut the organizational cost and of course, it simplifies
the administrative work load.
There
are several advantages of using this web-based compensation. First, web-based
compensation would ease human resources department a lot in terms of managing
the compensation and employees’ benefit. Thus, when applying this system, of
course, the human resources is able to avoid themselves from making any mistakes
or error as the system will automatically have a thoroughly checked on it.
Next, web-based compensation tool do not need any installation or frequent
updating which will wastes the employees’ time and it is also can be access at
anytime and anywhere.
In
addition, web-based compensation would only use little disk space and it is a
stand-alone system, in which it does not any administer to watch over it.
Compared to the old, classical, traditional method of client-server based or
stand-alone PC system, it does need administer in order to administer,
maintain, develop and implement the policies and procedures for the sake of
security purposes.
However,
every single thing in this world is not perfect and has its own disadvantages
and limitations. Web-based compensation rely fully on the internet access and
if there is no internet connection, the system will not be functioning and if
it happens regularly, it might caused big problems to the organizations.
Another disadvantages would be, most of the employees are not able to handle it
and having no knowledge on it. Thus, in order to solve this problems and
limitations, it is best for the organization to think carefully on its pros and
cons before making the decisions on the implementation of this system.