Impact of Compensation Practices on Organizational Reputation

Organizational reputation is not only about product market perceptions, external communication and advertising. Organizations have often found out that their reputations have been seriously damaged when questions are raised about the way in which they manage their employment relationship. Also, if organizations are to deliver good products and services then they need to attract and retain the best talent in a competitive labor market. This paper focuses on the organizational processes which help in developing organizational reputation in the context of compensation practices. Specifically, the role of adaptation to market changes, financial practices, performance linked pay, strategic HRM and organizational practices in impacting organizational reputation are explored.