Managers` perceptions of a total package compensation system.
Date
2014-03-26
Authors
Rodgers, Clinton Bruce
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The changing business environment in South Africa has resulted in significant
organisational change taking place, as South African companies attempt to
remain competitive in an increasingly globalised economy. A key feature in
this change process is the way in which managers are remunerated, with a
number of companies implementing a total package approach to managerial
compensation.
The purpose of this study was to exa 'nine management perceptions of a total
package system, in terms of the fairness, equity and efficacy of the system.
The research took the form of a case study in one large organisation, using a
sample of 162 respondents. A questionnaire was used as the data collection
tool, and the outcomes were analysed using the Spearman’s rank correlation
co-efficient and interpretations! analysis. The analysis was then discussed in
terms of the established theory base.
Several factors that predicted perceptions of fairness, equity and efficacy of a
total package remuneration system were derived from the analysis. These
were consolidated into a process model for use by executives and
compensation professionals in designing and implementing total package
compensation systems. The model will facilitate the alignment of managerial
effort behind organisational objectives, ensuring synergy between the
compensation system and the achievement of strategic business objectives.