Compensation An Overview

Compensation: An Overview

Interview with Gregory Feldman, Human Resources Specialist at Yang and Associates

The specialized literature presents the reader with a multitude of models for evaluating and compensating the staff members. But the economic agent cannot simply adopt one particular theoretical model and expect for it to work. There is a vast array of variables which influence both the model as well as its results. This specifically means that companies need to develop and implement their own compensation systems based on elements such as nature of organizational operations, size of the labor force, the availability of the financial resources, the leadership style and so on. In order to get a better comprehension of such a compensation system, we have interviewed Gregory Feldman, human resources specialist at Yang and Associates.

We commenced the interview with a few pleasantries in order to thank Mr. Feldman for his time and acceptance of the interview (McNamara). We then continued by asking him if the company for which he worked (Yang and Associates) was at the time implementing a specific system to evaluate its staff members. The answer was a clear "Yes" as the company was implementing a specific system to evaluate its staff members. In terms of the nature of the appraisal system, we wondered if the system was a traditional or innovative one. Mr. Feldman's answer was that it was neither and both. It was in fact a combination of several appraisal elements into one which best served their specific organizational needs. This solution of combining several appraisal elements was pegged to the impossibility of implementing an already given model and expecting it to work. As a general rule, economic agents are always advised to develop and implement their own internal systems in accordance to their particular internal needs. In other words, they cannot implement a model as presented in the specialized literature, but they have to tailor it to their specific features (Cummings and Worley, 2008).

At this stage of the interview, we asked Mr. Feldman about the specifics of the evaluation system. We found out that the scope of the appraisal system was that of evaluating the job through three different lenses -- the rights and responsibilities of the position; the means in which the employee is able to comply with his tasks and responsibilities and the appropriateness and drive of the individual employee occupying the respective position. In terms of job rights and responsibilities, these are established internally and specifically for each position. They take a technical side and are assessed twice every year with the aid of charts and measurable data. This process is also used to identify the means in which the employee performs his tasks. Regarding the appropriateness of the individual in the position, this is assessed in a more qualitative manner through discussions with the employee, his colleagues, or his customers, as well as the observation of his ability to function as part of the team.

We also asked Mr. Feldman who was in charge of these stages of the evaluation process. He argued that it was in fact a combination of technical staff and human resources staff. The two categories of supervisors simultaneously assess the individual staff members through the three lenses previously presented. The final decision is generally up to the human resources department, but the input generated by the technical team is the central element in the decision making process.