Registered Nurse
Respond to the following in a minimum of 175 words:
Job – Registered Nurse
Imagine that the HR department was going to design a compensation approach for that job that was aligned with (reinforcement, expectancy, and agency theories).
Briefly describe the job you are writing about, then describe a compensation approach for that job that aligns with all 3 theories.
Consider the following questions when writing your response:
• What are the potential advantages of this plan?
• What are the potential negatives of this plan?
• What might be difficult in administering this plan?
Registered Nurses Compensation Plan
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Registered Nurses Compensation Plan
Compensation theories, namely, reinforcement, expectancy, and agency theories, help determine effective remuneration components in alignment with the job descriptions and specifications. The job that forms the basis for a compensation plan is a “Registered Nurse” job. Registered nurses (RN) treat, educate, and advise patients as well as their families on medical conditions. RN implement orders and instructions given by physicians, interpret diagnosis and test to patients, provide care and treatment plans, and evaluates patients’ needs, among others (Dysvik, 2020).
| Elements | Description |
| Job Title | Registered Nurse |
| Job Description | Ø Treat, educate, and advise patients as well as their families on medical conditions
Ø Implementing orders and instructions given by physicians Ø Interpreting diagnosis and test to patients Ø Provide care and treatment plans Ø Evaluating patients’ needs |
| Job Specifications | Ø Three years’ experience
Ø Full time-Night shifts Ø Bachelor Degree Ø Accredited license for Nursing Program |
| Direct Compensation | 1. Hourly wages – $31.88/H
2. Annual salary – $74,000 |
| Indirect Compensation | 1. Company-matching 401(k) plan
2. Health insurance plan 3. Stocks schemes |
| Non-monetary Compensation | 1. 20 Paid Time-off
2. 5 Annual and paid holiday vacations |
When designing a compensation plan for Registered Nurses job, three main objectives and goals are used. Primarily, the plan must align with organizational goals and stakeholder interests, which is in alignment with agency theory. Offering the compensation and benefits package aligns with the interests and capabilities of the company. In that, the merit pay is behavior oriented, while the stocks option is outcome-oriented (Dysvik, 2020). The plan integrates behavior as a merit basis for rewards, which communicates the expectancy theory. When compensating RNs, many aspects are considered due to the variance in shifts, costs of living, experience, and education, among others. Here the RN is on the top level, which is the motivation for the high compensations. Finally, rewards must improve and enhance performance today and in future, which aligns with the reinforcement theory. The higher the RN performance, the more the rewards (Dysvik, 2020).
Potential advantages include attracting new high-level skills and talent, as well as retention of existing RNs, hence reduced turnover rates and maximized competitive pay. Inherent limitations include competitiveness that can result in noncompliance. In cases of potential burnout, RNs could not be attracted hence, turnover increment. Finally, the plan could be complex to administer, especially in the stocks schemes, due to complexities experienced.
Reference
Dysvik, B. K. (2020). Individual variable pay for performance, controlling effects, and intrinsic motivation. Motivation and Emotion , Vol 671(2).
