Individual Compensation Paper Essay Example | Topics and Well Written Essays - 750 words

Individual Compensation Paper - Essay Example interpersonal relationship, the relational satisfaction will be judged by the individual perception of resource distribution being fair or unfair (Adams, 270)†. The application perspective of the theory says that the employee has certain types of input (time, effort, ability, trust) and produces output (salary, recognition, responsibility, job security) and he compares both on the constant basis to determine the equity between efforts and rewards (Yum and Canary, 390). Russell is a pharmacy professional and works as an administrator of a Health Care Center. He needs to know if he is paid fairly by his organization. In order to answer the question, the paper proceeds with components of his total reward package. Russell enjoys handsome salary and perceives it higher than the one offered in market to other professionals of same cadre. Hence, he can afford standard of living consistent with market pay levels. He is an administrator which shows career progression is provided to him. His base pay level is also the evidence that his organization rewards him for his performance. Russell is also entitled to receive 6 bonus salaries per year (18 in total). It is an opportunity to earn additional direct compensation. This additional compensation is not possible without the effective performance of his team members and achieving organizational goals. Organizations pay salaries out of their revenues and revenues are dependent on the employees’ performance. Russell’s organization promises him for many benefits other than the ones mentioned under the above headings. These benefits win Russell’s loyalty and provide win-win solution for him and his organization. Russell expects his organization to pay him fairly against his time and efforts that he dedicated to the organization. He assumes that the efforts he puts on workplace will lead to good performance and achievement of organizational goals. He is justified to expect reward of his performance and the organization