Critical Philosophical Study on Policy in Educational Institution: Response to the global competitive environment

Abstract

This article explores the development of compensation and rewards policies in educational institution. The global era with its systematized characteristics makes educational institutions have to reformulate how they should appreciate the performance of their employees. The performance of an organization or institution, including educational institution, always strongly associated with the welfare of its employees. Basically, educational institutions need the same stimulation as other institutions, especially in terms of financial administration. the concept of compensation and reward becomes an aspect that must be pursued because it can motivate employee performance to improve over time. However, it will always be associated with compensation and rewards given to them. This article compiled by using literature study of qualitative approach. This article will also be fitted with some discussion about the essence of compensation and rewards, the Islamic viewpoint of it, and the types of each, by reviewing some of literature on human resources. Providing adequate compensation and rewards will greatly help improve employee performance, even though the amount is not so large. However, the essence of providing compensation and the award is as a form of empathy shown by the management of the educational institution to its employees. Compensation and rewards management is absolutely necessary in order to maintain optimum performance of all members in an educational institution. The policies should be determined equally and wisely so that the performance of all parties are always in a good condition and it will surely increasing day after day. Therefore, the development of compensation and rewards policies must be carried out continuously.