Web-Based Compensation and Planning

Web-based compensation is online tools in where the organization store and manage the  compensation information and data.

The first thing I learn in this topic is component of compensation subsystem.

1.      Fixed compensation

This type compensation is the pay receives by employee. One of the important pay in this compensation is salary.

2.      Variable compensation

This compensation is involved bonuses, commissions and other benefits.

3.      Stock

This compensation is involved equity benefits or ownership in the company.

          I also learnt that the web-based compensation have many strengths that beneficial for both employee and employer.

1.      Accuracy

The data store in the system is valid which provide the insight about employee’s requirement to receive their reward.

2.      Time effective

The system enables the employee to access and edit their own information when changes occur. This saves time for employer to collect information separately or any incorrect data which can trigger any problems and conflict in compensation plan.

3.      Systematic

The web-based system is very organizes and easy to access by both employee and employer. The employee can access and track their compensation plan provide by organization. While, the employer can edit and updating the employees compensation plan where adequate information is available in the system.

4.      Reduce administration cost

The system prevents expenses such as documents and manpower in collecting and analyzes the compensation plan for their employee. Every compensation plan can be done with the web-based system anytime and anywhere.

Although the system is providing many benefits, it’s also cause few disadvantages:

1.      Complexity

The system is not user friendly where it contains many features. These features may be difficult for some employee to use without a proper assistance from management.

2.      Server problem

The system cannot be access when server is down and this can interfere the management of compensation plan.

I’m also got understanding about implication of online compensation system:

1.      The system is very effective for employee where they can review and track any changes in their compensation plan.

2.      The system is very convenient for HR manager to collect and utilize the information in compensation plan.

3.      The system also easy for both employee and employer to obtain information with computer at anytime and anywhere.

4.      The system is use as a channel and link of communication between employee and employer to post information about compensation plan.

References

Global, I. (2010 ). Enterprise Information Systems:Concepts, Methodologies, Tools and Applications (3 Volumes). Idea Group Inc (IGI).

http://smallbusiness.chron.com/advantages-webbased-databases-28339.html