Designing a Fuzzy Expert System to Predict the Effectiveness of Compensation System

Document Type : Original Article

Authors

1 Ph.D. Candidate, Department of Public Administration, Faculty of Management and Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran.

2 Associate Prof., Department of Public Administration, Faculty of Management and Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran.

3 Prof., Faculty of Public Management, Islamic Azad University of Qazvin, Qazvin, Iran.

4 Associate Prof., Department of Management, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.

Abstract

Background & Purpose: Focusing on the diversity of human capital in organizations and its possible role in the effectiveness of the compensation system, the purpose of this study was to predict the effectiveness of the compensation system for various types of human capital in Police Force of Qazvin Province.
Methodology: The present research is descriptive, and it is applied in terms of purpose. The statistical population of the study includes 53 senior, middle, and operational managers of Qazvin Police Force, of which it was possible to access the opinions of 46 of them. The assessment tool was a questionnaire. In order to analyze the data, network analysis methods and fuzzy inference system were used.
Findings: According to the results, the effectiveness of the service compensation system varies according to its types of human capital. Priority of the elements of compensation for core human capital included perquisites, rewards, salaries, benefits, welfare services, awards; for idiosyncratic human capital: salaries, benefits, perquisites, rewards, welfare services, awards; for compulsory human capital: salaries, benefits, welfare services, rewards, awards, perquisites; for ancillary human capital: benefits, rewards, salaries, welfare services, awards, perquisites respectively. Also, the evaluation of the model in the police force suggested that the most observed effectiveness belongs to compulsory human capital.
Conclusion: The most important achievement of this article is designing an effective compensation system in the Police Force, which will dynamically determine the amount of output based to the amount of inputs. This model can be used to predict the effectiveness of the service compensation system. 

Keywords


Albatsa, E., Bogers, M. Podmetina, D. (2020). Companies’ Human Capital for University Partnerships: A Micro-Foundational Perspective, Technological Forecasting & Social Change, 157, 1-15.
Alipour Madarsara, M., Alvani, S., Memarzadeh Tehran, G., Alborzi, M. (2019). Investigation and Identification Components of Compensation in Police Force based on Total Reward Model. Public Management Researches, 12(45), 5-30. (in Persian)
Aljarallah, R.A. (2020). Natural resource dependency. Institutional Quality and Human Capital Development in Gulf Countries, Heliyon, 6, 1-11.
Armstrong, M., & Murlis, H. (2019). Reward Management (6th edition), Kogan Page Business Books.
Armstrong, M., & Taylor, S. (2020). Armstrong's Handbook of Human Resource Management Practice. London: Kogan Page.
Bogardus, A. (2011). Human Resources JumpStart, Hoboken, New Jersey:John Wiley & Sons.
Borisova, G., Salas, J. & Zagorchev, A. (2018). CEO compensation and government ownership, Corporate Governance an International Review, 27(2), 120-143.
Chiang, T., Birtch, T. (2012). The Performance Implications of Financial and Non-Financial Rewards: An Asian Nordic Comparison, Journal of Management Studies, 49(3), 538-570.
Dubra, I. (2019). Human Capital Impact on the Enterprise Competitivieness, Young Scientist International Conference.
Durai, P. (2019). Human Resource Management, India: Pearson Education.
Ellig, B. (2011). Short-Term Incentives: Top Down or Bottom Up? Compensation & Benefits Review, 43(3), 179–183.
Esmaeili, A., Seyed Naghavi, M., Memarzadeh Tehran, G., & Hamidi, N. (2019). The Architectural Pattern of Human Resources in Law Enforcement Agencies With an Emphasis on Work-Life Balance. Quarterly of Order & Security Guards, 12(1), 87-116. (in Persian)
Gholipour, Arian. (2016). Human Resource Management (Concepts, Theories and Applications), Tehran: Samat. (in Persian)
Ghorban Nezhad, V., Alizadeh, M., Bejani, H. (2019). Pathology of the Compensation System in the Police Force. NAJA Human Resources, 10(56), 9-38. (in Persian)
Ghorbani Zade, V., Montazer, R., Seyed Naghavi, M., Hoseinpour, D. (2014). A framework for the coordination between innovation modes and human resource architecture in innovative SMEs, Tomorrow Management, 13(41), 61-72. (in Persian)
Güngör, P. (2011). The Relationship between Reward Management System and Employee Performance with the Mediating Role of Motivation: A Quantitative Study on Global Banks, Procedia Social and Behavioral Sciences, 24, 1510-1520.
Gupta, N., Shaw, J. (2014). Employee Compensation: The neglected area of HRM research, Human Resource Management Review, 24, 1-4.
Hasanpour, A., Abbasi, T. (2013). Advanced Human Resource Management (Volume 2), Tehran: Yakan. (in Persian)
Hellriegel, D., & Slocum, J. (1986). Management, 4th edition, Addison-Wesley.
Heydari, M., Salajeqe, S., Pourkiani, M., Sayadi, S., & Amiri, A. (2017). Explaining and designing an effective conceptual model of compensation system in line with general policies of the administrative system, Urban and Roral Management, 16(3), 477-496.
(in Persian)
Hoole, C., & Hotz, G. (2016). The Impact of a Total Reward System of Work Engagement. SA Journal of Industrial Psychology, 42(1), a1317.
Hoseinian, S., Babaeian, A., Hamzeloei, J., & Pourgholami, M. (2011). Pathology of human resources maintenance system in NAJA (case study: Police commandment of Hamedan Province). Police Management Studies Quarterly, 6(4), 610-627. (in Persian)
Islam, M.S. and Amin, M. (2021). A systematic review of human capital and employee well-being: putting human capital back on the track. European Journal of Training and Development, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/EJTD-12-2020-0177.
Kheirandish, M., Hassanpoor, A., Fallah Zawarreh, M. (2013). The pathology of service compensation system stressing the law of countrywide service management: A case study. Journal of Human Resources management, 2(7), 59. (in Persian)
Kucharcikova, A. (2011). Human Capital-Definition and Approaches, Human Resources Management & Ergonomics, 5, 60-70.
Landeta, J. (2006). Current validity of the Delphi method in social sciences, Technological Forecasting and Social Change , 73(5), 467-82.
Lawshe, C. H. (1975). A Quantitative Approach to Content Validity, Personnel Psychology, 28, 563-575.
Lepak, D., Snell, S. (2002). Examining the Human Resource Architecture: The Relationships among Human Capital, Employment, and Human Resource Configurations, Journal of Management, 28(4), 517–543.
Lepak, D., Snell, S. (2007). Managing the Human resource Architecture for Knowledge-Based Competition, Chapter 15 of Strategic Human resource Management, Hoboken, New Jersey: Wiley- Blackwell.
Mabaso, C.M. (2017). The influence of rewards on job satisfaction and organisational commitment among academic staff at selected universities of technology in South Africa, Doctoral thesis, Durban University of Technology.
Mikander, C. (2010). The impact of a reward sytem on employee motivation in Motonet-Espoo. International Business.
Milkovich, G., & Newman, J. (1990). Compensation, 1th edition, McGraw-Hill.
Moshabaki, A., & Alipour Darvishi, Z. (2008). Studying The Moderator Role Of Cultural Dimensions And Occupation Characteristics In Relation To Agency Theory Assumptions And Compensation Features (Case Study In Automotive Industry System). Modarres Human Sciences, 12(1), 257-296. (in Persian)
Mphil, A.H., Ramzan, M., Zubair, K.M.H., Ali, Gh. & Arslan, M. (2014). Impact of Compensation on Employee Performance, International Journal of Business and Social Science, 5(2), 302-309.
Mwengu, G. I. (2015). The Impact of Rewards on Police Officers Performance: The Case of Kondoa District. Available in: http://hdl.handle.net/11192/1765.
Nazir, T., Hussain Shah, S.F. & Zaman, Kh. (2014). Review of Literature on Expatriate Compensation and its Implication for Offshore Workforce, Iranian Journal of Management Studies, 7(2), 203-221.
Osibanjo, M., Adeniji, A., Falola, H. and Heirsmac, T. (2014). Compensation Packages: a strategic tool for employees’ performance and retention, Leonardo Journal of Sciences, 25, 65-84.
Ranjbarian, R. (2013). Human Resources Architecture, Social, Economic, Scientific and Cultural Monthly of Work and Society, 166, 15-22. (in Persian)
Resurreccion, P. (2012). Performance Management and Compensation as Drivers of Organization Competitiveness: The Philippine Perspective. International Journal of Business and Social Science, 3(21), 20-30.
Rezaei Mirghaed, A., Seyed Naghavi, M., Dehghana, H., Amiri, M. (2017). Investigating and determining the human resources productivity functions based on the architecture of human resources model. The Journal of Productivity Management, 11(1), 185-220.
(in Persian)
Perez, R., & de Pablos, P. O. (2003). Knowledge management and organizational competitiveness: a framework for human capital analysis, Journal of Knowledge Management, 7(3), 82-91.
Ross, T. (2017). Fuzzy logic with engineering applications (4rd edition), Hoboken, New Jersey: John Wiley & sons.
Salisu, J., & Chinyio, E., & Suresh, S. (2016).  The influence of compensation on public construction workers’ motivation in Jigawa state of Nigeria. The Business and Management Review, 7(3), 306-316.
Sepahvand, R., Shariatnezhad, A., Saedi, A. (2017). Design Architectural Model of Human Capital in Governmental Agencies Using Grounded Theory. Quartely Journal of Logistics & Human Resources Management, 44, 173-198. (in Persian)
Shaemi, A., Safari, A., Salimian, S. (2015). Determining the Effect of Financial and Nonfinancial Compensation Satisfaction on Employee Engagement with Mediating Role of Justice Perceived Organizational. Management Studies in Development and Evolution, 24(78), 17-32. (in Persian)
Shields, J. (2020). Managing Employee Performance and Reward: Concepts, Practices, Strategies, London: Cambridge University Press.
Stewart, G. & Brown, K. (2019). Human Resource Management, Linking Strategy to Practice, Hoboken, New Jersey: John Wiley & Sons.
Susan, M., Gakure, W., Kiraithe, K., Waititu, G. (2012). Influence of Motivation on Performance in the Public Security Sector with a Focus to the Police Force in Nairobi, Kenya. International Journal of Business and Social Science, 3(23), 195-204.
Yan, W. (2014). Exploring the Design of Compensation Management System in ICBC. International Journal of Business and Social Science, 5(13), 243-256.