Influence in analyzing Compensation Strategy and Business Strategy

Chapter 1 preliminary

1.1 Background

Compensation is any form of payroll or bonus that is given to employees and arises from their jobs. Compensation provided to employees has two main components, namely direct

installments in the form of compensation, salary levels, incentives, commissions and rewards and indirect installments in the form of monetary benefits such as coverage and tours paid by the manager. Everyone works to attain sufficient gain for the necessities of life. For this reason, everyone works to urge correspondence in accordance with the work that has been done. So that workers work effectively and are able to carry out their duties properly so that the reward for carrying out their work is in the form of payment or compensation. One way of managing to expand efficiency, creativity, performance at work, inspiration, and increase the ability of

workers is by giving compensation to those who achieve the target.

The provision of benefits turns out to attract, retain, and inspire workers or employees. In providing payments, usually listening to companies with a salary or honorarium, actually the salary or honorarium can be a form of appreciation. Therefore, for the implementation of work to representatives of workers / employees of the company. In general, payment is in the form of a salary or honorarium that is separated from the long term for the provision in payment. Salary rates are more often given in a month to month period, while honoraria as a rule are given

weekly or daily.

The certainty of the salary structure is one of the most important and complex tasks for organizations. In order to decide on the salary structure in an organization, it is important to consider the different viewpoints that influence the size and type of field of workers to be linked in the organization. Apart from the conditions in the company, the certainty of the salary structure is also seen from the external environment which is full of currents or changes.

Guarantee of a correct salary structure with a skill in the trade and goals to be achieved. As a first step towards setting up an equitable financial framework, management must establish a

consistent and efficient relationship between the basic salary levels for all jobs in the organization. The structure and level of the amount of salary or compensation is influenced by several components, both from internal and external components of the organization.

Therefore, movements that occur within and outside the company environment must be responded appropriately by management. This means that management and payroll systems must be surveyed regularly, and if necessary modified or balanced with environmental flows, in order to ensure that appropriate and appropriate rewards are realized. In measuring the required salary structure, three things are needed, namely to calculate the amount of achievements made by

employees, the quality of work made, and accuracy whether it is in accordance with the set time or not in the collection of a given task.

In the formulation of a compensation strategy is to coordinate compensation with salary incentives to employees and work motivation gains in a group of employees. If possible, choose an honorarium and benefits that can be combined and run simultaneously. Management of compensation and benefits strategies is part of the provision of human resources. Rewards and benefits are important perspectives from human resources to maintain labor inspiration and provide benefits to workers based on their performance and work effort in the work environment. With the framework of providing benefits and benefits to workers, of course, later workers will feel more comfortable working and work with good results. Often it is the rewards and perks themselves that stimulate workers. Every individual, of course, will be more excited when there

is an innate stimulus. The rewards and perks in themselves will advance the working personality of the worker. In this way, later workers will be able to work well and the company will also benefit. In every company, two important things that will never be separated are needed, namely the perspective of the compensation management structure and the way the company aims to be implemented. The most important thing that is taken into account in running an organization or company is a representative implementation assessment. In the company all the aspects that exist in the organization require good compensation management to prepare and actually achieve common goals.

1.2 Problem Formulation

1.2.1 What effect does compensation have on business strategy?

1.2.2 Is the compensation strategy related to the business strategy?

1.2.3 What is the impact of the compensation strategy on employee performance?

1.2.4 Is there a difference between the compensation strategy and the business strategy?

1.2.5 How do salaries and benefits affect employee performance in the company?

1.3 Purpose of Writing

1.3.1 Definition of compensation strategy and business and payment model

1.3.2 The factors of compensation strategy and business strategy

1.3.3 To determine the effect of the compensation strategy and business strategy

1.3.4 To determine the relationship between compensation strategy and business strategy

1.3.5 To analyze the impact of employees on the dependency of compensation strategies and business strategies

2.1 Definition of business strategy

Chapter 2

Analysis and Discussion

Business strategy as an action in an activity or selection of decisions that offers business visionary assistance to achieve certain goals and is a combination of all the choices taken from activities taken by business people to achieve trading objectives and to secure a competitive position in the business market. Business strategy is achieved by executing an interesting variety of efficient strategies. Meanwhile, every worker, work partner, and company partner or

important person in the company is centered on one trade goal. Their skills and abilities are determined by different strategies according to their level in the organization. Business strategy can be a procedure that companies use to be able to face a competitive environment (Wardani & Khoiriyah, 2018). Strategy appears as a general path through which an organization or company reaches its targets. Thus, business strategy includes the breakdown and implementation of most of the targets and activities taken by the selected strategic aspects in the best interests of the company for the sake of owners, based on the thinking of resources and an evaluation of the internal and external situations in which the organization is competing. Strategies in the world of trade or business are very necessary to form the vision and mission that has been carried out by the company, as well as to choose goals or objectives, both short and long term goals.

2.2 Is a business strategy planning with a compensation strategy

As a result, the fit, or arrangement, between the organization’s business strategy and its compensation framework must lead to organizational change in corporate improvement (YANADORI & MARLER, 2006). Strategic arrangements must be managed, communicated and implemented efficiently. Every action or activity in managing to achieve a high victory must continue to be designed and compiled a good and mature work plan. For example, a market squeeze affecting compensation strategies is caused by inflation. An increase in costs or inflation is a price that has increased significantly, which causes purchases from the public to decrease, which means there is not much demand. The higher the product price, the lower the people’s purchasing power. Thus, for companies with employees who cannot achieve the target results achieved, there is no reciprocity in giving gifts or other things that benefit the company and employees. With no compensation at all. If sales can increase sales of the company’s products

and influence business strategy in finding a way out. This triggers, the most important strategy that can be implemented in relation to the appropriate expansion is a suitable financial framework or also known as the merit pay system for performance-based salary programs. This

can be an inspiration or motivation to persuade employees to work harder. Many things affect the level of compensation, such as specific competitive compensation with other companies, tariff

increases, and so on. So that in determining the amount of compensation must use a good business methodology so that the increase in rewards can be adjusted with increased efficiency.

The reason that organizations attract and retain workers is because one goal is to achieve organizational goals through the implementation of work related to the work performance of these employees according to their skills and abilities. Then, it affects the employee’s entity with business strategy and compensation for employee performance. So that it can be seen that the assessment that affects employee performance in determining compensation:

2.2.1 Work alone or individuals in achieving company results

If it prioritizes the end result, then management carries out the work with workers who focus on the end result. More often to the production department with the arrival of output in the form of an assessment, the remainder is taken per unit issued.

2.2.2 Nature

This can be an assessment model that refers to implementation evaluation, due to the difficulty of being measured or not being able to meet the criteria for positive results in job performance and assignment, such as good attitude, self-confidence, persistent qualities, and the capacity to cooperate.

2.2.3 Behavior

The capacity that aims to cooperate with colleagues and work superiors affects the course of a career related to including behavior that occurs after you cooperate with colleagues and work superiors (KOMPAS.com 25 JERNIH SEE DUNIA, 2011). For work that is given in the form of an essential, for example a secretary or supervisor, arises from behavioral assessments, such as time efficiency, reasonableness of authority style, accuracy in decision making, and level of absenteeism.

During its development, allowances have a very big impact on the performance of workers’ work, therefore companies must pay attention once again to the arrangement of benefits according to the workload given to workers so that there is an adjustment between the company and the workers, so that there is a common path to be made between both so that there is an increase in the implementation of the work which is expected to achieve maximum results.

2.3 Human resources

The presence of management in human resources in an organization has a very influential role (KOMPAS.com, 2020). The ability of an organization to create, to find other ways that are different from the usual, can be as done by unlimited human resources (Dini, 2010). Human Resources are important figures that cannot be separated from an organization. These human resources can be the key to determining the progress of the company. Substantially, these human resources are in the work used in the organization as movers, opinions, thinkers, and planners in

achieving organizational goals. The goals achieved by the company will not be separated from the part and every worker who drives the life of an organization or company, so that part of the company’s leaders should be able to understand each individual worker’s individual conditions. Starting from the employee’s condition. If, many employees get a load of problems that can damage the company’s operations. Company leaders, such as managers, step in to help reduce and resolve the burden on these workers, especially related to work stress which should be fully supervised so that it is effective along with the process so as not to interfere with company implementation (Prasetyoning Tyas, 2013).

2.4 Human resource function

Organizations have several functions, as follows:

2.4.1 Planning

Planning is an activity in a workforce condition to suit the wishes of the organization (Pratama,

2020). One of the main main functions in the company must be carried out. Since the beginning, managing the implementation of company activities in accordance with the company organization is to make a plan.

2.4.2 Organizing (Organizing)

Organizing refers to the linkages between each individual in an organization (Putri, 2021). Organizing work is very important for management. Therefore, it is very important to plan the necessary. Organizing creates and maintains relationships between organizational assets by indicating which assets will be used for specific activities, when, where and how the entrepreneur’s resources to minimize deficiencies, such as trade imitation and immovable organizational assets are rarely used.

2.4.3 Preparation and development

The following Resource Jobs provide preparation for all human resource elements in the company. it points to shaping the ideal working worker. During its development, HR is also able to manage problems experienced by employees to maximize employee capabilities.

Chapter 3

Conclusions and suggestions

3.1 Conclusion

Compensation is any form of payroll or bonus that is given to employees and arises from their work. Providing benefits turns out to attract, retain, and inspire workers or employees. Therefore, it is for the implementation of work to representatives of workers / employees of the company. Compensation is everything that is obtained, both physical and non-physical. Compensation also means gaps that address gaps that are obtained by workers / employees for the management that they get or have their jobs in a company, either directly or indirectly. Rewards that can be obtained can be in the form of cash, merchandise, either directly or indirectly. In addition, the compensation also appears that the company is appropriate for its workers. Furthermore, it is strong in choosing to work in an organization. Then, a solid good relationship for the improvement of the company’s implementation. Thus, the creation of an increase in the resulting employment occurs. During its development, the fulfillment of benefits plays a role in shaping

the mindset of employees at work. Workers give their performance to the company or as compensation or identical by the company to drive much better, higher, and stronger in higher career advancement.

The certainty of the salary structure is one of the most important and complex tasks for organizations. This means that management and payroll systems must be surveyed regularly, and where necessary modified or balanced with environmental flows, to ensure that appropriate and appropriate rewards are realized. In measuring the required salary structure, three things are needed, namely calculating the amount of achievement achieved by the employee, the quality of the work done, and the accuracy of whether it is in accordance with the set time or not in the collection of the assigned tasks. The formulation of a compensation strategy is to coordinate compensation by providing salary incentives to employees and obtaining work motivation within a group of employees. Their skills and abilities are determined by different strategies according

to their level in the organization.

As such, business strategy includes the breakdown and implementation of most of the targets and activities undertaken by the strategic aspects selected in the best interests of the company for the sake of owners, based on resource thinking and internal and external evaluation. Situations in which organizations compete. The higher the product price, the lower the people’s purchasing power. So that in determining the amount of compensation must use a good business methodology so that the increase in rewards can be adjusted with increased efficiency. The

reason the organization attracts and retains workers is because one of the goals of the organization is to achieve goals through the implementation of work related to the work performance of these employees according to their skills and abilities. If it prioritizes the end

result, then management carries out the work with workers who focus on the end result. The capacity which aims to cooperate with colleagues and superiors influences the course of a career which is related to including behavior that occurs after a person cooperates with coworkers. The presence of management in human resources in an organization has a very influential role. The ability of an organization to be creative, looking for other ways that are different from the usual, can be done by unlimited human resources. One of the main functions in the company must be carried out. Since the beginning, managing the implementation of company activities in accordance with the company organization is to make plans. Organizing refreshes the relationship between every individual in an organization. The following Resource Jobs provide preparation for all human resource elements in the company. Human resources are closely related to the company. Human Resources are related to the Quality of Workers. Workers to realize achievement goals in a performance. Without employees, the company cannot grow to achieve high performance. That in itself must be fulfilled, this demands empowering and motivating someone to do something or work. From the depiction of inspiration, it can be seen

that in organizational life, inspiration is a motivation that empowers workers to act in such a way as to achieve predetermined organizational goals.

3.2 Suggestions

Through this paper, the authors provide several recommendations regarding the relationship of compensation strategies that affect business strategies in employee performance in the company as follows:

3.2.1 With a paper that has been processed regarding compensation strategy and business strategy, the company can see the processes that are interrelated and affect the performance of a predetermined employee.

3.2.2 It is hoped that with this paper, the company will take precautionary measures if the employee is having a very large number of tasks with the help of preventing any mistakes or delays in duties.

3.2.3 The author hopes that the company re-checks its strategy and makes regular strategic changes to all business strategies, so that the company’s performance can be as much as possible with the achievement in a line of goals.

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