Employees will lost bit in amenities and some restriction on the raise of wage and salaries. JVA corporation will save almost 2% to 3% part of their net income that is spent on perks and other amenities.
It may affect to employees as they will suffer from raises and other incentives but they will get benefit too as JVA will not lay out of current workers. The implementation of new strategy can affect JVA corp. due to lack of incentives or raises because it can discourage to employees and their productivity and motivation may get low.
The international employees will be part of this change also. Recession is affecting every nation so JVA need to implement the changes globally. It does not matter that employees are US based or have international location, the change of strategy will be same for all otherwise it can bring frustration amont other employers and employees.
As JVA Corporation is facing 17% net lose in their income and demands to cut the perks from 8 to 5 % so it will be crucial to bring effective change in the compensation system of organization.
The crucial aspect of the strategy is that the all the changes that have been mentioned in JVA co-operation will continue until the recession of economy get recovered. It’s clear that the strategy I will refer best matches to the second strategy which needs to focus on “Performance, as well as revenue, that is reviewed every 6 month” As the economy get recovery prior strategies will take place again.
Being a Human resource manager in JVC I would make some permanent and some temporary changes in the appraisal system. The temporary changes will consider modification of performance management of JVC. The permanent change will be implemented by restructuring the additional benefit package in which basic consideration will be on cutting expenses.
Now I have to consider that