Case Study on "Compensation Philosophies Up to This Point"
Case Study 3 pages (1031 words) Sources: 12
[EXCERPT] . . . .
Compensation PhilosophiesUp to this point, I have encountered two compensation systems. One was based on commission, and the other was a fixed salary. The first salary computation method was registered during a temporary position and it did not guarantee any income, only part of the sales registered. The outcome of such a philosophy is that of increased motivation to sell and as such motivation for high performances (Flannery, Hofrichter and Patten, 2002). The downside is however that of the employee not being able to rely on a steady income, and the frustration which comes with such a situation. The second compensation philosophy has the advantage of ensuring reliable incomes and allows the employee to make personal plans and as such commit to the job, yet their motivation for increased performance could be decreased (Berger and Berger, 2008).
Coordinated system of compensation
Within a large size entity (of 180 employees), a coordinated system of wage determination and payment is imperative. In order to develop such a system, the following steps would be implemented:
The analysis of all jobs existent within the firm in terms of priority, importance as well as responsibilities assigned and KSAs (knowledge, skills and abilities) required from the occupant of the position
The analysis of all employees within the organization through appraisal systems, with the aim of identifying their appropriateness for the jobs occupied
The correlation of the KSAs with the job responsibilities and performances
The creation of an internal grid of salaries for each position withi
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The allocation of insurance and other mandatory pay (Louisiana Workforce Commission)
The measurement of the efficiency of the established system (Snell, 2010).
Chapter 12 questions
1) Pay for performance plans
Throughout the past recent years, the compensation of employees based on their performance has become more and more popular and this is the result of the two specific features. On the one hand, the system motivates the employees to work harder and improve their performances in order to gain increased salaries. On the other hand, it allows employers to save on their personnel expenditures by granting higher salaries only when these are linked to high employees, and subsequently, organizational performances (Brown and Heywood, 2002).
Despite its popularity, the system is quite complex and requires several elements in order to succeed. For instance, it is necessary for the managerial team to set clear goals; to understand and address the challenges; to integrate the performance-based system at a leadership level; to develop quantifiable metrics; to provide and receive feedback and to use benchmarking techniques (Gilbert, 2010).
2) Executive compensation in U.S. industries
The compensation of executives is often a combination of fixed salary, plus a significant bonus upon organizational performance (Bebchuck and Fried, 2006). The main issue with this system is represented by the large sum of the compensation, which is often perceived as inequitable in report to the salaries and other compensation forms granted to the organizational staff members. This complaint is however counter argued with the large responsibility carried by the executives.
Aside from the equity towards other organizational employees, the compensation of… READ MORE
Quoted Instructions for "Compensation Philosophies Up to This Point" Assignment:
“Chapter Questions 11
1.) Discuss the compensation philosophies and approaches that have been used organizations where you have worked. What have been the consequences of those philosophies and approaches?
2.) you have been named Human Resources Manager for a company that has 180 employees and nor formal base pay system. What steps will you take to develop such a coordinated system?
Chapter 12 Questions
1.) Discuss why variable pay-for-performance plans have become popular and what elements are needed to make them successful.
3.) Describe the nature of components of, and the issues currently facing, executive compensation in various U.S. industries.
Chapter 13 Questions
1.) Why are benefits strategically important to employers, and what are some key strategic considerations?
2.) Discuss the following statement: *****"Healthcare costs are out of control in the United States, and increasing conflicts between employers and employees are likely as employers try to reduce their health benefit costs.*****"
***There is no specific length for each question however each question must have 2 sources, and have a logical and detailed answer***
*****
How to Reference "Compensation Philosophies Up to This Point" Case Study in a Bibliography
“Compensation Philosophies Up to This Point.” A1-TermPaper.com, 2012, https://www.a1-termpaper.com/topics/essay/compensation-philosophies-up/12706. Accessed 28 Sep 2024.
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