Example Of Compensation Management Essay

Type of paper: Essay

Topic: Armed Forces, Army, Workplace, Salary, Organization, Company, Compensation, United States

Pages: 3

Words: 825

Published: 2020/10/14

The assignment specifically talks about the business management and its authorities that relates to compensation and benefits. The company which has been chosen for this assignment is US Army. The United States Army is the largest branch of the United States Armed Forces that perform all the land based military operations (Chingos, 1984). It is known as the largest and oldest established branch of the U.S. based military operations. There are number of questions that needed to be complete in this particular assignment.
U.S. Army as mentioned above is the largest Armed Force organization of the country. Therefore, it is not in any type of direct competition with any other organization in terms of level and rank. However, it can be competed with the Central Intelligence Agency (CIA) and Special Forces Commandos in terms of compensation and benefits (Chingos, 2002). The personnel work in CIA and Special Forces of the United States entitled to get lots of benefits including perks, medical, transportation and airways facility. Every household provision and necessity is on their door step without any cost incurrence. They and their families are secure during their services in the armed forces and after their services as well.
U.S. Army is one of those organizations of the United States that aim to secure and prevent the country from any type of external assault and problems, thus they have to satisfy the needs of their personnel in order to influence them to work hard for their homeland (DeLuca, 1997). Army personnel do not required high amount of salaries and benefits, but they required appreciation, medals and safety in their life. The competitive pay strategy of US Army depends upon the ranking and designation level of the personnel. The company is willing to pay more than the competitive average salary pay in other organizations on the same level just because to increase the level of satisfaction among their personnel.
Communication is an important strategy that associated with an organization, and it is equally beneficial for U.S. army as well. The company communicates their Salary Grade and Ranges to their personnel in a documented form (DeLuca, 1997). The Salary and Benefits in U.S. Army relates to the designation, grade or level of the individual. The company has made and presented a document in which the salary along with fringe benefits associated with each of the rank is duly mentioned to clear any type of issue or ambiguity in the future. Operating and managing the employees in this way can be very effective to manage the things without any squabbling. Apart from that, high communication level among the lower officer rank and high offer rank’s personnel is very high which is one of the most important strategies in the current scenario to increase the level of productivity with positive attitude and mindset.
Salary Range and Salary Bands are two different things. Theoretically, A Salary Band is sometimes used in the organizations to define the salary level for a respective job. It is basically counts on per hour basis (DeLuca, 1997). On the other hand Salary range defines a systematic way or mechanism in which the levels salary would be bifurcated according to the designation of the personnel. US Army Use the Salary Range method to compensate their personnel because U.S. Army is a sophisticated and well planned organization which doesn’t hire employees on hourly basis. There is a mechanism found in the Army Selection that the salaries and benefits commiserate with the rank of the officer. Not only in the US Army, this application founds in almost every country of the world because Army is an organization wherein the level of discipline is remarkable and unmatchable.
Competition lies in almost every organization in the world, however there are some organizations which operate without any type of competition on their head. Such organizations would have termed as Monopolist organizations, and U.S. Army is one of them (DeLuca & DeLuca, 2007). There is a monopoly of the US Army in the entire Armed Forces of the United States. The process used to establish the competitiveness within the Salary level and ranges by the U.S. Army is research and development (R&D). The company has the insight knowledge and information related to the compensation and benefits given to other organizations at the same level, and then the company decide to give a specific amount of money to their personnel. Compensating the Army is the most important operational activity of the U.S. Government, and almost 70% of the Gross Domestic Product (GDP) allocated to the funding of the U.S. Army.
It is important for a CEO to have insight and complete knowledge regarding the amount of personnel working with the company, and what are compensation packages offering to them. In order to give confidence to the employees regarding their salary packages and benefits, it is important for the CEO to communicate with them, show them through authentic facts and figures regarding the compensation they are having, and appreciates their working within the company.


Chingos, P. (1984). Financial considerations of executive compensation and retirement plans. New York: Wiley.
Chingos, P. (2002). Paying for performance. New York: Wiley.
DeLuca, M. (1997). Best answers to the 201 most frequently asked interview questions. New York: McGraw-Hill.
DeLuca, M., & DeLuca, N. (2007). Perfect phrases for negotiating salary and job offers. New York: McGraw-Hill.

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Example Of Compensation Management Essay. Free Essay Examples - WePapers.com. https://www.wepapers.com/samples/example-of-compensation-management-essay/. Published Oct 14, 2020. Accessed June 25, 2022.

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