Compensation Systems: Designing a Model for Pay Program Based on Equity Theory

Planning a convenient compensation system which obtains the maximum satisfaction in exchange of spent cost, minimizes discontent, and on the other hand, motivates the staff to work better and more effective is one of the important concerns of the organizations. To reach the goal, the compensation system in each organization must be planned exclusively and in accordance with the internal and environmental requirements of the organization. The compensation policy can be aligned with the strategies of the organization and it enforces its general policies. In this article, by explaining problems of an active company in oil drilling industry of Iran in the field of human resource management, the planned compensation system has been studied with regard to internal and environmental conditions and the general policies of the organization. The compensation management system in this organization has been planned by using Adams's equity theory and the result was proposing a mathematical model to determine the staffs’ salary.