Harmonization means to match the allowance of the person with kind of work and value addition the individual is doing to the organization. If there is a disparity between the works and take away salary given to the person, then there is chance of worsening of attrition rate in the company.
Harmonization, in broad terms, means to get things in synchronization with one another. It means to have everything in coordination so as to attain better results. Term was coined to be used in musical instruments for chords but have taken a general meaning as time passes by.
Finding the match between the two is a huge task for the HR personals and they generally take help of line mangers in this regard. Nowadays, company make the process of harmonization the part of the HR strategy. There are series of recommendations and feedbacks to finally achieve proper Harmonization. Plus they generally do the benchmarking with the competitors and also consider the industry average.
Following example best describe the harmonization:
Say, Mr. Y is an employee of a huge multinational. He recently got into the organization from some other company and the post that he took in new company has been formed especially for him. So, there is no precedent for this salary structure.
HR department comes into picture there and they need to find the compensation pattern just right from them. For this, they may have to take recommendations and suggestions from other departments. After considering all the parameters, they need to harmonize the benefits with value addition. This sums up the process of harmonization.