WEB-BASED COMPENSATION

          

          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.