Compensation Essay

The organization I chose was my own. I chose to explore the Army and its compensation system. The Army falls into the innovator category and this assessment is based on the fact that the system is quite complex and it shifts to mass customization. The Army also focuses on cyclic time in how they pay all employees. Meaning bi-monthly or once a month and also has generic job descriptions. This is the closest structure I could relate the Army and the complex structure in which they compensate military personnel (Milkovich, 2014 p.43).

Objectives: The objective of the military pay structure is to be equal to or meet the cost of living standards that are in line with the civilian compensation structures. There are no profit sharing or incentives for innovation within this structure. But the objective also is to reward through other compensation vehicles such as a 2.5 day leave accural each month and a benefits package unrivaled by many civilian corporations. That is where the objective of taking care of Soldiers and compensating them comes into play. Other objectives within the structure are a paid stipend for food and housing allowance in which your full rent is paid. The final objective is to ensure you are taken care of after you retire and you receive a percentage of your base pay for the rest of your life. Though the objectives are cyclic and timed based on years of service and certain other criteria this pay system truly looks out for its employees.

Internal Alignment: The internal alignment of the Army pay structure is similar to a fortune 500 company. Executives meaning General officers are paid at the executive level not to exceed 14 times the average salary of the most senior enlisted Soldier. Yet, the Army has a disparity between enlisted pay and officer pay. The disparity exists based on the fact that an officer has a four year degree upon commissioning and the enlisted Soldier for the most part comes in with a high school education. This within itself makes sense initially but as time goes on enlisted Soldiers either