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

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.


Introduction
Basically, every institution should have its own management, include educational institutions. However, there are some things that must be present in every institution. One of that 'must have' thing is management of compensation and rewards. Compensation and rewards are part of human resource management. This is in line with what was stated Daniel J. Julius in the journal New Directions for Higher Education. According to his statement, the field of human resource management include: the labor-employee relationship, aspects of recruitment, professional development, institutional benefits, payroll administration, classification and compensation, as well as the systems and technologies used [1]. At least, that is the basic aspects of the compensation and rewards management.
Compensation and rewards are generally intended for the benefit of companies and employees. So that the goals are reached and provide satisfaction for all parties, and award compensation program should be set based on the principle of fair and proper. The compensation programs should be able to answer the question such as "what drives a person to work and why there are people who work hard, while others workings of mediocrity." Compensation and rewards affects the performance of the employee. As mentioned by Hasibuan, that the compensation's functions are: International Conference on Environment and Technology IOP Conf. Series: Earth and Environmental Science 469 (2020) 012108 IOP Publishing doi: 10.1088/1755-1315/469/1/012108 2 a. The allocation of human resources efficiently. This function shows the compensation to employees who excel will encourage them to work better. b. The use of human resources more efficiently and effectively. With the granting of compensation to employees implies that the organization will use the power of employees as efficiently and effectively as possible. c. Promote stability and economic growth. Compensation system can help the stability of the organization and encourage overall economic growth [2].
Based on the findings of Idemobi's research in 2011, it is recommended that for any public service organization to improve the performance of employees. They should offer financial compensation that will be specifically designed to link it with performance [3]. This is in agreement with the assertion of Ejiofor who postulates that an able worker will not be motivated if he does not perceive that there is an intimate relationship between his effort and his reward [4]. Based on the research which is held by Darma, Compensation variable directly affects on Employee Performance variable. This shows that compensation in form of salary, wages, bonuses, facilities, travel programs and holiday allowance directly have a positive effect on employee performance. Compensation variable directly affects on Employee Satisfaction variable. The higher the compensation given the by company to its employees will increase employee satisfaction. Job satisfaction mediates the effect of compensation on employee performance. When someone is satisfied with compensation provided by company, it will improve the employee's performance. Compensation and job satisfaction are components to improve employee performance. Leaders need to maintain job satisfaction maintained to create organizational efficiency. Future researcher should develop a research model by adding OCB variable, to make research become wider [5].Compensation in an organization should be set such that it becomes a good system in institutions. According to Notoatmodjo, the orientation of compensation and awards are for appreciating the work performance, ensure fairness, retain employees, acquire qualified employees, control costs, and meet a regulations [6]. The influence of compensation and rewards for employees made us realize how it is sensitive to the interests of an institution. The world of education also requires compensation and awards management. Every education activity should be carried out in accordance with the concept of management. Thus, any education practitioners should still consider this aspect for the continuation and advancement of educational institutions.

Method
This article is written by compiling several references that have relevancies, so the approach that used is a qualitative type of literature study. This is done for obtaining a valid synthesis through a combination of various interconnected sources in order to get a more comprehensive representation of the concept of compensation and rewards policy in educational institution as response to the development of the global era. This article also use a critical-philosophical analysis to find a fair educational administration policies. Therefore, it will adapt some perspective of the compensation and reward concepts

Results
Compensation in an organization should be set such that it becomes a good system in institutions. According to Notoatmodjo, the orientation of compensation and awards are for appreciating the work performance, ensure fairness, retain employees, acquire qualified employees, control costs, and meet a regulations. The influence of compensation and rewards for employees made us realize how it is sensitive to the interests of an institution. The world of education also requires compensation and awards management. Every education activity should be carried out in accordance with the concept of management. Thus, any education practitioners should still consider this aspect for the continuation and advancement of educational institutions.

The Essence of Compensation and Rewards
The compensation is a term that is widely interpreted by the legal exchanges between services and wages. Experts give their opinions regarding management's understanding of the term. According to Pangabean, compensation is the total of all remuneration received by the employees in exchange for their services. Compensation is often referred to a tribute and can be defined as any form of awards given to employee as a remuneration or the contribution they make to the organization [8]. Meanwhile, according to Hasibuan, compensation is all the income in the form of money or goods directly or indirectly received by employees as a reward for services rendered to the company or organization [8]. Both compensation and rewards of course are two similar terms. The awards is often interpreted as a gift to someone on his success or excellence in doing something. Some experts expressed the opinion in this regard. According to Ahmad Tohardi, the award is given rewards to motivate employees to high productivity [9]. In another reference, according to Henry Simamora interpreted as incentive awards paid associate on the basis to be able to increase the productivity of the employees in order to achieve a competitive advantage [10]. Michael Armstrong defined reward management is concerned with the formulation and implementation of strategies and policies, the purposes of which are to reward people fairly, equitably and consistently in accordance with their value to the organization and thus help the organization to achieve its strategic goals. It deals with the design, implementation and maintenance of reward systems (reward processes, practices and procedures) that aim to meet the needs of both the organization and its stakeholders [11].
The study about compensation and reward that was conducted by Tessema connclude that both financial and nonfinancial rewards, as measured by pay, benefits and recognition have a role in influencing job satisfaction. Managers should consider the impact of the three rewards examined in developing effective recruitment and retention policies. Hence, this study has both practical and theoretical implications and demonstrates that employees are satisfied and motivated by both monetary and nonmonetary rewards [12]. Job Satisfaction can be an important indicator of how employees feel about their jobs. Managers should be interested in their employees' job satisfaction because attitudes provide warnings about potential problems. Attitudes influence behavior (e.g., intention to quit, reductions in productivity, absenteeism, and turnover). Thus, it is imperative that managers, supervisors, human resource specialists, employees, and citizens in general should be concerned with ways to improve job satisfaction. Some opinions are made the authors conclude that the compensation and rewards are the two things complement each other. Compensation is a provision of material and non-material, as a form of exchange between employee performances with what should be their right. While the reward is material or non-material present given to someone on the success and excellence in performing a task so that they can be more motivated and getting better achievement in completing a given task. So, it is not surprising that every single person will feel more comfortable when his work was appreciated by equal compensation or reward, although it doesn't always about the money.
Compensation and rewards are not only discussed in the frame of Human Resources and Management, but also in the Islam's perspective. Islam was a balanced religion, which regulates both the temporal and hereafter synergistically in everything. If we look back, there are verses of the Qur'an that talk about justice, especially in delivering the mandate entrusted to those who deserve it. For example, in al-Nisa' 58, it was revealed that "God tells you to convey the message to those who deserve it, and (told you) if it establishes the law among men that you assign to the fair. Verily Allah gives his best teaching you. Verily, Allah is All-Hearing, All-Seeing". This verse implies to us that the compensation and reward for performance or achievements of someone was a necessity. Because it is a mandate that should be given to those who perform it. The provision of compensation should be fair, without any discrimination between them [13]. There are many other verses which reflect the need for compensation and awards. One was said in al-Zalzalah: "Those who are doing good even weighing zarah, surely he would see (return for) it. And whoever does evil even weighing zarah, surely he would see (return for) it anyway". This verse show that Islam teaches the balance of giving award, both in the form of material and non-material. If the employee's performance is good, then it should be given the good compensation and rewards [15]. This is a wise policy, considering an institution was not able to walk alone without employees. While employees also require compensation and rewards in return for their services to the institution.
If we see some references about the argument of the importance of compensation and rewards, it will be found many different perspectives. A popular one is mentioned in several reference books, which is a hadith narrated by Ibn Majah. Although the validity needs to be re-examined, at least the matan of it said that: [15] Meaning: Al-'Abba>s ibn al-Wali>d al-Dimashqiy has told us saying, Wahb ibn Sa'i>d ibn 'A<t}iyyah al-Salamiy has told us saying, 'Abd al-Rah}man ibn Zayd ibn Aslam has told us of his Father, from 'Abdulla>h ibn 'Umar he said, the Prophet S{allallaahu 'alayhi wasallam said: "Give the workers their wages before their sweat dries." (H.R. Ibn Ma>jah, 2443) In terms of sanad, this hadith was ranked as d}a'i>f. According to ibn Hajar al-Asqalani, the rawiy named 'Abd al-Rahman ibn Zayd ibn Aslam was rated 8. However, the content of this hadith is nice to be applied. Explicitly, this hadith reveals that compensation is important in a management. It can be applied in various institutions such as educational institutions. Compensation and rewards become an institutional basis for implementation that will involve programs to be implemented.

The Kind of Compensation and rewards
Compensation and reward was very important in order to gain performance ofemployees. Based on a study that conducted by Njoroge and Kwasira, there was a strong relationship between compensation and reward on employee performance in the county government of Nakuru. The researcher therefore recommended training needs and other nonmonetary rewards practices in order to enhance employee performance [16]. However, we should know further about the kind of compensation and rewards.
Compensation programmes are one of the most powerful tools available to organizations. Various researches recently have been on extensive compensation systems and few researches have been in the areas of which compensation tools need to be combined, both financial and non-financial, to reward the employees in return for their services to the organization. Some literatures has a difference in classifying this kind of compensation and rewards. For example, Veithzal Rifa'i describe forms of compensation is divided into two parts, namely the form of financial and non-financial forms. Financial compensation is compensation-oriented material, while the non-financial compensation is the opposite. The variation of financial compensation includes direct and indirect compensation. Direct compensation was determined as principal payments (such as salary and wage), payments of achievement, incentive payments (such as commision, bonus, some part of advantages, and share options), and delayed ppayments (such as savings for pension and ccumulative shares). While iindirect compensation could be protection, compensation for outside working hours, and facilities. Regarding non-financial compensation, forms can be derived two form. First is obtained as a career, which are a sense of security in the post, promotion opportunities, recognition works, the new findings, and special achievement. Second is obtained because of the work environment, which are Praise, Cooperative atmosphere (friendly), Comfortable sense of duty, Pleasant feeling, and Conducive working atmosphere [17]. Meanwhile Hadari Nawawi provides a classification that is not much different from what was raised sebelumnya.Hanya he isolate incentive compensation as a variety of stand-alone. According to him, compensation and rewards has three range. First is direct compensation (An award / reward is paid regularly by a fixed deadline). Second is indirect compensation (giving the profits / other benefits for employees outside the fixed salary. This compensation can be money or goods). Third is incentive (it is an award / reward given to motivate employees to work productivity is high, is not permanent, or at any time) [18].
According to Adenike's opinion, there are three basic classifications of compensation tools employers can combine to encourage their employees to perform at a higher level of efficiency. These are: the basic pay, performance incentives, and the benefits. They make up the employee's reward for making himself available for the services of the organization. Basic pay is the fixed or guaranteed monthly or annual gross payment made to employees-in other words it is the hourly, weekly, or monthly pay to employee. Performance incentives are rewards offered in addition to base wage/salary, and are usually directly related to performance. While benefits are some of the advantages that can be obtained by employees in addition to those already mentioned. For examples such as gifts, health insurance and security, salaries while not working, and some other facilities for employees [19]. As we know that Compensation includes expenses such as bonuses, profit sharing, overtime and rewards that includes monetary and non-monetary rewards such as house rent and car facility against hired services of employees [20]. The remuneration process is crucial and a source of contention in most organizations. It deals with rewarding people in accordance with their value in the organization. The same process is concerned with both financial and non-financial rewards. It embraces the strategies, philosophies plans and processes employed by organizations to develop and maintain reward systems.
Many of the past research conclude that HRD practices are found to be weakly related with performance, and various examples about HRD practices and employee performance show a positive relation. HR considered employees as important factors to achieve organizational goals and objectives and to attain a competitive edge over competitors. Although employee performance is considered to be an important factor in organizations, few studies did not find a direct effect of HRD practices on employee performance. Many Studies have found that HRD practices of staffing, training, involvement of employees and incentives have a positive relation with employee performance and increase the productivity of the firm [21]. This diversive opinions is not surprising, because all of them have same substance. The variation of compensation and rewards shows how rich the system should be prepared in order to ensure the sustainability of an institution. However, the employee/employees will strongly consider this aspect more carefully when he was about to enter an institution. Not only in a material, but also compensation and rewards which will they get in the form of non-material. So that is also the reason for them to determine the attitudes and behavior of the work.

Philosophical Review
Compensation and reward was very important in order to gain performance of employees. There was a strong relationship between compensation and reward on employee performance. Other nonmonetary rewards should be implemented in order to enhance employee performance. However, we should know further about the kind of compensation and rewards. Compensation programmes are one of the most powerful tools available to organizations. Various researches recently have been on extensive compensation systems and few researches have been in the areas of which compensation tools need to be combined, both financial and non-financial, to reward the employees in return for their services to the organization. Compensation processes are based on Compensation Philosophies and strategies and contain arrangement in the shape of Policies and strategies, guiding principles, structures and procedures which are devised and managed to provide and maintain appropriate types and levels of pay, benefits and other forms of compensation. This constitutes measuring job values, designing and maintaining pay structures, paying for performance, competence and skill, and providing employee benefits. However, compensation management is not just about money. It is also concerned with that nonfinancial compensation which provides intrinsic or extrinsic motivation [22].
Compensation management is one of the central pillars of human resources management (HRM). It is concerned with the formulation and implementation of strategies and policies that aim to compensate people fairly, equitably and consistently in accordance with their value to the organization [23]. Compensation Management as the name suggests, implies having a compensation structure in which the employees who perform better are paid more than the average performing employees [24]. This encourages top-performers to work harder and helps to build a competitive atmosphere in the organization. Armstrong and Brown postulate that compensation management is an integral part of HRM approach to managing people and as such it supports the achievement of business objectives and it is strategic in the sense that it addresses longer term issues relating to how people should be valued for what they want to achieve [25]. It is therefore integrated with other HRM functions, especially those concerned with human resources development.
Armstrong in his own analysis says compensation management is all about developing a positive employment relationship and psychological contract that adopts a total compensation approach which recognizes that there are a number of ways in which people can be compensated. Other writers [26] see compensation management as being based on a well articulated philosophy-a set of beliefs and guiding principles that are consistent with the values of the organization which recognizes the fact that if HRM is about investing in human capital from which a reasonable return is required, then it is proper to compensate people differently according to their contribution. This emphasizes the development of the skills and competencies of employees in order to increase the resource-based capability of the organization.
Harrison and Liska [27] in their study posit that reward is the centre piece of the employment contract-after all it is the main reason why people work. This includes all types of rewards, both intrinsic and extrinsic, that are received as a result of employment by the organization. In another study, Brown [28] sees compensation as a return in exchange between their employees and themselves as an entitlement for being an employee of the organization, or as a reward for a job well done. Employees' pay does not depend solely on the jobs they hold. Instead organizations vary the amount paid according to differences in performance of the individual, group, or whole organization as well as differences in employee qualities such as seniority, educational levels and skills [29].
By looking at the concept which has been described previously, designing compensation and rewards effectively was not impossible. According to William J. Rothwell and HC Kazanas, essential prerequisites in determining compensation policies and the actual reward consists of four things: 1) Pay structure. This term refers to rates paid to people in different job classes in an organization. 2) Equity. This term means "comparability." 3) Job evaluation. The process of determining the relative value of jobs. 4) Job analysis. A process that must precede job evaluation. Its focus is on identifying what people do and what they should do [30].

Discussion
Many management experts who try to give their views related to how to set up a system of compensation and rewards in an organization effectively. One of them is Gilbert B. Siegel, which offers a concept in building and managing a system of compensation and rewards effective as follows: 1) Designing the compensation levels. Compensation and awards will be given must be in accordance with the characteristics of each job responsibilities. By classifying this level, it can be seen how various compensation and awards to be given. 2) Conducted a survey of compensation. Balance is the key principle in compensation and rewards.
Surveys can be done either in the institutions concerned, or with other institutions engaged in the same plane. 3) Collecting data accompanist benefits (fringe benefits). In addition to the basic salary and other remuneration, some benefits accompaniment becomes an important aspect to be considered. Examples of the benefits of companion in this case as giving off work, health insurance, bonuses, security, insurance and so on. 4) Taking into account the balance of compensation. The ability of each institution to be key management compensation and rewards. The determination of the level of this compensation must not interfere with the institution system in general. So that aspects of the institution balance must still be addressed [31].
On the other references, Techno team competences provide a clear picture of the role of compensation and awards include: 1) Determining the institutional compensation. In principle, this phase has been included in the planning. For the purpose of compensation, considering institutional issues as a first step to identify strategies to suit the purpose of the institution. 2) Pick and choose the elements of compensation. Provision of compensation should be in accordance with desired shapes agencies. So that each institution should have an idea of what compensation will be given to employees later. 3) Analyze position. Some of the criteria that should be considered at this stage include qualifications and experience, responsibility performance, efforts were made intellectual and physical, as well as conditions of employment. 4) Giving determine compensation. This stage of the aspect of the balance of work and equal pay with this type of work. 5) Determining the Payroll Improvement. This was done as a token of appreciation to the performance of the employees, so that the work environment becomes increasingly results. 6) Comparing Compensation and Awards Given to those offered in other Institutions. It is useful to know whether the compensation granted in accordance with standard market outside agencies or even lower [32].
The steps described above is an alternative for developing compensation and rewards policies. It may also be applied in educational institutions considering each institution does need the appropriate management in the organization. However, there should be an adjustment in applying it, because every educational institution certainly have diverse abilities. We can't enforce the same strategy to all institutions. A strategy may be very suitable to be applied in an institution, but not at other institutions. From some earlier opinion, in essence, an effort for developing compensation and rewards policies in general can be done through the stages of planning, implementation and supervision must done continuously by taking into some important aspects of the institution. Selection of varieties compensation and rewards which will be given must be adapted to the ultimate goal and institutional capabilities. Thus the measures taken can be implemented properly without disturbing the institutional system in general.

Conclusion
After the whole descripion about compensation and rewards, surely we agreed that educational institution also requires compensation and rewards management. Compensation is a provision of material and non-material, as a form of exchange between employee performance with what should be their right. While the reward is material or non-material present given to someone on the success and excellence in performing a task so that they can be more motivated and getting better achievement in completing a given task. Every education activities should be carried out in accordance with the concept of management. Thus, any education practitioners should still consider this aspect for the continuation and advancement of educational institutions.
Compensation and rewards policies has a very important role in an institution. If it done carefully, it is not possible that compensation and rewards will further spur achievement and performance of employees. Certainly it will encountered some challenges in the implementation of the compensation and rewards management, considering it is quite sensitive. But the implementation of policies to provide fair compensation and rewards is a breakthrough that could be considered in order to promote managerial of an educational institution. It required the cooperation of all parties to support this management of compensation and rewards so that can run optimally and make a significant contribution to the institution.
Competition in the global era spread to all areas of life, including education institutions. this institution, which was not too focused on how to stimulate employee performance, today is required to show its appreciation for the performance of its employees. Because after all, employees will also be more motivated to work better if their work gets equal appreciation. An important point of providing compensation and this award indirectly also shows how the management of the educational institution highly respects and empathizes with the work of their employees. Thus, the working climate in educational institutions will also improve for the better.