A (Fitz-enz, 2001, p.154). After getting the right

A compensation strategy is a long-term pay plan. It details the rewards earned by employees in return for their labor. The most effective compensation strategy is one that develops a clear link amongst the three basic elements of compensation. The first item is the work expected from an employee; that is, the job description.

The other item is the work an employee performed as shown in the performance evaluation and finally, is the pay provided to the employee determined through external survey and internal equity. The interrelationship among these three items provides an appropriate compensation strategy. This paper expounds on the link between these three items for a human resource manager.

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A human resource manager is a highly qualified and experienced individual that oversees employees’ affairs. The manager takes care of employee needs since they are a valuable resource to the organization. A human resource manager’s work is dynamic.

The manager performs the entire recruitment process, which involves job advertisement, short listing, and interviewing (Fitz-enz, 2001, p.154). After getting the right employees, the human resource manager engages them in training programs. The training orients the new employees to their positions in an organization. The human resources manager conducts motivational sessions for the employees and appraises their performance.

In addition, the manager deals with salary negotiations for the employees. Salary negotiation is a sensitive area and the human resource manager works with the accounts department to determine it. The manager also deals with employee promotions and other benefits for employees. The human resource manager keeps all employee records for reference (Kleiman, 2000, p.71). In addition, the manager handles employees’ complains and resolves disputes arising among them.

Performance evaluation is a significant process that measures the actual performance against potential performance. There are four classes for evaluating the performance of a human resource manager (Milkovich, & Jerry, 2005, p.21). The first class is for excellent performers. These are employees that are exemplary in their work, and they receive a salary increase of 5% for their extra work. The next category is for good performers.

These employees carry out their duties well, just above the expected performance. They receive a 3% salary increase for the extra effort of being slightly above their performance. The third category is for the average performers. Their actual performance is equal to their potential performance. They receive a 1% salary increase for their actual performance. Finally, there are poor performers. These do not meet their performance expectations; therefore, they do not receive any salary increment.

There is an external survey carried out to on the website to determine the salary for this position. This analysis indicates that the human resource manager gets approximately $4500 to $5000 a month. In addition, there is an internal survey of similar positions with the human resource manager. This position is identical to that of an office manager, which attracts a salary of about $4200 to$4750 a month.

The pay for a human resource manager depends on the actual amount of work done. If the work exceeds the expected, the manager receives a bonus in terms of a pay increase. However, this pay cannot go beyond what the market charges or what other similar positions attract. The pay increase also depends on how much work the human resource manager performs above expectations. Moreover, pay increase can result from other factors like performance. Excellent performance will probably attract a pay rise.


Fitz-enz, J. (2001). How to Measure Human Resource Management, 3rd edition. New York: McGraw-Hill.

Kleiman, L. S. (2000). Human Resource Management: A Tool for Competitive Advantage. Cincinnati, OH: South-Western College Publishing.

Milkovich, T., & Jerry, N. (2005). Compensation. New York: McGraw-Hill/Irwin.