HRMT 326 Chapter Notes - Chapter 1: Organizational Identification, Organizational Commitment, Job Satisfaction

• School: Athabasca University
• Department: Human Resource Management
• Course: HRMT 326
• Professor: Dr .G

Document Summary

Why- a compensation system encourages qualified workers to seek employment and maintain their position at an organization. This means that the employer must provide the employee with work and remuneration in exchange for their efforts and production during the time they are employed. Employees need to seek work in order to gain provisions to survive and satisfying their personal needs. These include economic needs for the basic necessities of life but may also include needs for security, social interaction, status, achievement, recognition, and growth and development. Companies know that employees need some type of incentive in order to attract and retain them. Depending on the organization they may provide more compensation than others in order to attract better employees. Other organizations do not need to offer as much incentive because of their job market and lack of employment; workers need to survive and will often take a job with lesser benefits in order to meet their basic needs.