JOURNAL OF APPLIED BUSINESS AND ECONOMICS
3P Approach to Compensation Management and Its Implications for Employee Performance at Work
Author(s): Farzana Ashraf
Citation: Farzana Ashraf, (2020) "3P Approach to Compensation Management and Its Implications for Employee Performance at Work," Journal of Applied Business and Economics, Vol. 22, Iss.10, pp. 245-254
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This article provides a synthesis of the 3P approach to compensation management with a comprehensive explanation on how these approaches can affect an employee’s performance at work. Through the theoretical lenses, the study looked into the 3P compensation system based on the fundamentals of paying for position, person and performance along with advantages and disadvantages of each. Subsequently, it identified different factors that are considered critical to the development of an organization’s compensation policies on the basis of this 3P approach. In addition, this paper proposed some recommendations conducive to the emergence of high performing organization by reducing the shortcomings of this approach in aligning the compensation policies with its management practices and business strategies.