Question

There are two major compensation philosophies- entitlement and performance. Which is your preference explain why?

Answer 1

I will prefer to adopt the performance based compensation. It is different from entitlement based pay in which a fixed increment will be given to every organizational members. In performance based pay merit and quality wise work completion is quite important. In this method, people who will perform higher will be paid accordingly. To some extent, we can say that here elements of justice will be present as merit will be the basis. There is an unlimited opportunity to receive the compensation. In this, an incentive or bonus payment might be paid to the individual contribution, group or overall organization basis. In this , produtivity will be maintained by the organization by several intiatives of added payment .