Wages, Compensation and Satisfaction

Human Resources Management

Table of Contents

Topic Page

Abstract --------------------------------------------- 3

What is Compensation? --------------------------------------------- 4

How is compensation used? --------------------------------------------- 5

Different Types of compensation --------------------------------------------- 6

History --------------------------------------------- 7

Motivational theory --------------------------------------------- 7

Maslow Hierarchy of Needs --------------------------------------------- 8

Herzberg Hygiene Theory ---------------------------------------------- 9

Satisfaction Factors that affect/influence --------------------------------------------- 13

Fair compensation --------------------------------------------- 16

Expectations --------------------------------------------- 17

Summary --------------------------------------------- 20

Evaluation --------------------------------------------- 21

References --------------------------------------------- 22

Abstract

Wages are not a major factor in the motivation or satisfaction of employees. Wages or money have a transitory effect on motivation and satisfaction in the work place. A well planned effectively executed compensation plan along with other unique types of benefits programs will have a longer more permanent effect than the implementation of increased wages, and award programs. Employers must strive to understand the dynamic wants, needs and desires of their employees. Only through carful study and poling of employees will management be able to properly address the dynamics of employee satisfaction.

Compensation is a broad ranging, generally wages given an employee in return for their performance also including other programs besides base or variable pay. Employees usually consider compensation to be the wages they receive to be...