The size of the organization matters as the process is time consuming and difficult as the compensation plans need to be done and changed on yearly basis. Managers need to automate the ways that the funds are allocated to the direct reports. Due to the extensive research done on organizations, the organizations need to treat every employee in fairness and the right decision making as the individual performance is indicated in the reports. For the management reports to be effective the process is allowed to each employee to access it individually. Specific rules are them set for the new employees as they need to follow the rules for certain factors to be reviewed as the compensation process it being carried out. For fair decisions to be made, it is possible to engage or include salary trends from external references as in the current market making it possible to consider the retention policy.
By use of allocated envelopes the management can easily solve the salary review for every employee as they are dispatched to them. With the hierarchy power that the managers have they can view the allocated envelopes in any department in the organization. The organization and the employees in it can be managed with the compensations that are needed as the different kinds of compensation can be done hence the compensations may be done as they happen on different bases. With the allocated envelopes issued, the software can then indicate if they are within the consumption of the organization or exceed the predefined amounts. With the decisions made it is easy to issue alters automatically with the adjustments and iterations to be made.
With the extensive research on management compensation, the organization needs to have the compensation software as the managers have a duty to work any problems that organization may be suffering from thus the goal of the software is making the management chain work together hence have excellent result with the same data that appears in all departments. In the organization hierarchy, every manager has the ability to access the data that is being compensated hence making easy for decision making and all the managers to have the required information concerning the organization. The managers are given the opportunity to give their thoughts and decisions as there are phrases that an the managers can hence the decision making process is done after the decisions are presented to every manager and the recommendations agreed on making the central system to work fast in moving the iterations. The graphical tools that are input in the software are of great help as the decision making and employee viewing are helped as the management can evaluate the value of the employee in the organization and what compensation is to be given.