Compensation is one of the complex areas in
human resources management. Therefore, due to the complexities of creating and
administering compensation systems are increasingly turning to technology for
help. Web-based compensation planning represents a web that enable an
organization to gather, store, manipulate, analyze, utilize, and distribute
compensation data and information. And online benefits administration subsystem
is used to administer the organization’s benefit plans through internet
integrate with other human resource information and payroll system.
The
compensation data required in the web-based system is including internal and
external data. Internal data include information about job description, job
specification, individual performance and others. External data would include
market survey data and information on rewards practices. Internal and external
data would be combined and used to generate job evaluation results, salary
structures and a variety of reward guidelines. Therefore, from the internal and
external data, the primary data outflow from the compensation modules is
payroll for each employee.
With the web-based compensation and benefit
system, it has both advantage and disadvantage. The advantages are including it
is very save time because using technology to simplify the process and it
improving the effectiveness in terms of accuracy of information. Besides that,
it also allows a business to streamline the administration of employee
compensation and benefit. By the report prepared by the system, it let the
manager have ready information that is valuable to them and to their employees.
For disadvantage is some of the employees and managers they view this new
technology as the “work of HR” and therefore they feel resist to using it and
perceive that the new technology is not as user-friendly.
There are certain implications for
management in web-based compensation and benefit system because online
compensation and benefit subsystem is tied with human resource department. The utilization
of Online Compensation and Benefits Subsystems plays an active role in help top
management and employees in implementing the new strategies and policies.
Therefore, E-Compensation and E-Benefits seem to be the system of HRM to revised
company strategy and structure. It is also help the management in redefined the
employee’s responsibilities and improves the HR services by improving two way communications
in order to leading to higher levels of interaction and satisfaction with human
resources. Although E-compensation and E-benefits has positive impact to
organization, but due to the reasons lack of time and the willingness to pick
them up, so the organization has limited opportunity to experience it.
(406words)
References:
Rothwell W. J and
Kazanas H.C, (2003), Planning and Managing Human Resources, Amherst: HRD Press.
IncTeresa T. C and Mario A. O, (2005), E-Human Resources Management, United States of America: Idea Group Publishing
Gueutal. H. G and
Dianna L. S. (2005), The Brave New World of e-HR, San Francisco: John Wiley
& Son. Inc
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