HRM 3490 Chapter Notes -Reward System, Life Insurance, Merit Pay

• School: York University
• Department: Human Resources Management
• Course: HRM 3490
• Professor: Ping Peng

Document Summary

Compensation is the financial returns, tangible services and benefits employees receive as part of employment relationship. Comprises of both extrinsic and intrinsic rewards. Anything provided by the organization that satisfies one or more of an employee"s needs (economic needs, security, social interaction, etc ) can be considered a reward. Satisfy basic human needs for survival and security, as well as social needs and needs for recognition. Satisfy higher level needs for self esteem, achievement, growth and development. Extent to which it provides feedback and allows autonomy. To attract qualified persons to join the organization and to perform the tasks needed to achieve the organization"s goals and objectives. To help to create a willingness among qualified persons to join the organization and to perform the tasks needed by the organization. The reward system is a mix of both extrinsic and intrinsic rewards. The compensation system only deals with the economic or monetary part of the reward system.