Direct Compensation

Difference between Direct Compensation vs. Salary
Jackie Berry
Discussion Board Phase III
Professor Bryant Neal
July 24, 2013
Repurposed work from MGM336-1203B-06 Professor Braggs September 24, 2012

Direct Compensation vs. Salary
Direct compensation and salary are used in organizations simultaneously, but are categorized differently. Direct compensation is monetary rewards that are given to employees directly. Direct compensation includes benefits such as bonuses, travel allowance, medical reimbursement and gratuity (Wolfe, 1999).
Salary or wages is a periodic payment earned by employees and employers. This monetary payment is set according to employee contract upon hiring and can change according to individual performance, skills and knowledge. Employees and employers receive their salary weekly, by- weekly, or monthly. It is the money an employee receives from his/her employer by rendering his/her services (Wolfe, 1999).
Blending Types of Pay to Maximize Employee Motivation
Recognizing individuals’ perceptions, attitudes, motivations and behaviors is exceedingly significant for attaining both managerial and organizational effectiveness. To get the very best out of individuals in occupation settings, executives perpetually need information about the behavior of individuals and groups in organizations; they also need to be mindful of the organizational and environmental variables that can possibly influence human behavior. They need to understand, anticipate, control and improve behaviors that are organizationally significant and relevant (, 2002-2010).
In previous course I learned that there are various motivational factors or theories that organizations can use to motivate employees to improve their work place effectiveness. These theories are Maslow’s Hierarchy of Needs, David McClelland Achievement Motivation, and Fredrick Herzberg Motivation- Hygiene. The motivational theory that I would personal used to maximize motivation...