...120 employees, you have been asked to evaluate different compensation strategies that are available for adoption within your organization. Compare and contrast several compensation strategies and determine the appropriateness of each compensation strategy to your organization. Business Research Report Compensation Strategies Presented to: Taskstream Assessment Code: RWT1 Student Name: Nicki Nelson Student ID: 0096768 Date: May 5, 2012 Mentor Name: Andrea Johnson Table of Contents Executive Summary 4 Introduction 5 Research Findings 6 Performance Based Compensation 6 Grade Based Compensation 7 Broad Banding or Team Based Compensation 8 Recommendations 8 Conclusion 9 References 10 Executive Summary Our main goal for a compensation strategy should be to retain high performers, those who work hard, and wish to grow with the company, (Kleimann, 2008). In thinking of these issues, I discovered employees don’t stay at employers because of pay. They stay for the culture. They stay because they get along with their supervisors. They stay because they are heard by senior management. Only 54% of those employees polled, rated compensation as very important, while 62% of employees polled stated opportunities to use skills and abilities at work as very important, (SHRM, 2011). With contemplating this information, I began looking at compensation strategies that rewarded more on skills or abilities than...
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...“The Boeing Company’s Board of Directors Fires the CEO” Problems After reading the case, some questions are apparent. The questions are very helpful to find out Boeing’s Problems. * Why Boeing’s board fired the former CEO, Conduit, only due to the scandal happened in Conduit’s tenure? * Why Stonecipher could receive such high pension and benefits, even after retired and resigned? Is the payment method for the directors appropriate? * Why the board appointed James Bell, who was not a member of board or of any committees before the assignment, to serve as acting CEO after Stonecipher? Is there any formal succeeding plan for the CEO? * Why Boeing just fired Stonecipher but did nothing to that women executive? If the relationship was not the only reason for the resignation, what were the other reasons? Because that woman, Debra Peabody, worked in the company’s government-relations office? * Did Boeing treat its CEO’s resignation so careless, even the CEO brought obvious operating improvement during the short 15 months? * Why that informant could intercept the company’s CEO so easily? Is Boeing’s corporate security appropriate, especially Boeing was cooperating with Air Force? * Why the board made Stonecipher’s affair public while not private, even that relationships had no direct impact on the company’s performance? In conclusion, some problems that Boeing faced are as follows: First, Boeing was dependent on its main customer—Air Force so much...
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...Compensation – The sum total of all forms of payments or rewards provided to employees for performing tasks to achieve organizational objectives Rs Compensation- Nature and scope • The complex process includes decisions regarding variable pay and benefits • It suggests an exchange relationship between the employee and the organization • It involves design, development, implementation, communication and the evaluation of reward strategy and process of the organization Compensation Objectives 1. 2. 3. 4. To reward employees’ past performance fairly, in line with efforts, skills and competencies To attract and retain competitive high performing employees To motivate the high performing employees and reinforce desirable employee behaviour To remain competitive in the labor market 5. 6. 7. To align employees’ future performance with organizational goals To communicate the employees their worth to the organization To provide employee social status • Strategic compensation – Using the compensation plan to support the company’s strategic aims. – Focuses employees’ attention on the values of winning, execution, and speed, and on being better, faster, and more competitive.. • IBM Strategic Compensation Planning • Strategic Compensation Planning – Links the compensation of employees to the mission, objectives, philosophies, and culture of the organization. – Serves to identify the net monetary payments made to employees with specific functions of...
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...Career Development at Electronic Applications 1. Executive Summary Electronic Applications was found in 1972, its headquarters are on San Francisco and it is a major producer of silicon chips. The company’s sales, profit and stock price have grown fast on the past years while the human resources policies have remained unchanged. The main problem the company is facing nowadays is the high turnover ratio closed to an average of 30% on the past three years. The fact that the company is based in an area where many of its closest competitors have offices facilitates employee’s movements from one job to another. This high turnover is mainly affecting positions among the electrical engineers in the R&D department. The key factors behind this high turnover are more related to the fact that there are no career development programmers inside the company than to salary issues, as a wage survey has revealed, Electronic Applications pays 5-8% above the market. Recently the company has hired Harold Sweeney: On the medium term he would need to upgrade the company’s human resources policies, at the moment are mainly reactive. On the short term he would need to tackle the high turnover ratio, specially taking into account that one of the company’s section chiefs, Helen Morgan is reviewing the possibility of moving to another company. 2. Problem Statement Electronic Applications has not got a Human Resources policy in place that goes accordingly to its position in the market...
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...companies. * team oriented professionals, who contribute to the greater whole of the organization through their participation in decision making situations. * a system which recognizes and rewards groups as well as individuals for their efforts and contributions to the company. Review: http://www.glassdoor.com/Reviews/Banglalink-Reviews-E534901.htm “So far so good” Current Anonymous Employee – Reviewed last week Pros – security, satisfaction and the culture facilitates to learn Cons – friends and family would want undue favors http://www.glassdoor.com/Overview/Working-at-Banglalink-EI_IE534901.11,21.htm http://www.glassdoor.com/Reviews/Banglalink-Reviews-E534901.htm# “Nice enveronment to work in banglalink.” Current Human Resources Administration Executive in Dhaka (Bangladesh) – Reviewed 2 weeks ago Pros – Now a days, people wants to work in a telecommunication company to show their output perfectly. So that i joined in banglalink as it is a multinational company; its mother company is Vimpelcom & was Orascom Telecom Holdings. Cons – banglalink is not maintaining the hundred percent multinational enveronment as now a days it is very expencive to maintain the same...
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...Executive Summary Demand fluctuations have created a huge burden on the company’s manufacturing and distribution system. This burden has also impacted company profitability. In order to continue as a leader in the pasta industry we need to look at our operations and improve our delivery and forecasts to meet these demand fluctuations. The overall demand for pasta is flat, and we should be able to accommodate for this within our supply chain. In order to assist and help deal with these fluctuations I recommend that we implement Just in Time Distribution (JITD) which will assist in lowering our overall inventory levels within the chain and assist us in managing demand, and improve overall company profitability. In order to implement JITD, we require management support in order for this to be successful. Issue Identification Barilla is currently being faced with a decision on where they need to go in respects with just-in-time-distribution (JITD). They need to look at whether this type of program is feasible in their environment and if it makes sense to continue with a JITD system. In order to look at these decisions we need to review some of the issues that JITD system was intended to overcome. Some of the issues that JITD was introduced to overcome are: 1. Demand Fluctuations – There is a high standard deviation of demand on the Barilla Dry products from week to week. (Exhibit 1) 2. Managing the Distribution System – The distribution system along the Barilla supply...
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...Pros and Cons of Walmart Lyman J. Woodworth Webster University Denver, CO Corporate Responsibility and Society Starting a paper on the pros and cons of the Walmart Corporation can be a little overwhelming, especially when the latest news about Walmart usually comes through the media with a negative spin. Trying to keep a positive attitude about a corporation that supposedly does not treat its employees properly, supposedly does not pay their employees a “living wage” and can never seem to do anything right in many people’s eyes can discourage a writer that wants to provide both pros and cons. Finding news about Walmart that is positive is not an easy thing; until you find something about one of the many Walton family members that is doing positive things in the local Bentonville, AR community. Alice Walton is an American heiress to the fortune of the Walmart Stores, Inc. She is the daughter of Walmart founder Sam Walton and her current net worth is $34.3 billion. Alice founded and financially supports Crystal Bridges Museum of American Art located in Bentonville, AR. The museum focuses on attracting little known artist from around the United States that would otherwise not have their art curated in other U.S. museums. Alice and her team, made up of the museums president and curator, travel the U.S. looking for artists from rural areas that are using unique mediums to make new and inventive pieces of art. (Werner...
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...Review Highlights Pros: * "Great environment combined with a perfect work-life balance" in 49 reviews * "Great work environment/culture which makes it a fun place to work" in 45 reviews * "Good benefits; Good company to work for till profits started to slide off" in 36 reviews * "Lots of great people at the company, learned a lot and inspired my career in technology" in 33 reviews * "Good pay, great management, I felt like the work I was doing was important for the company" in 30 reviews Cons: * "No work life balance, limited career advancement, lack of good benefits of tech companies" in 20 reviews * "Senior management (C-Level) does no communicate down to employees well" in 27 reviews * "Poor management decision making processes - not innovative" in 18 reviews * "Upper management doesn't listen to people lower down that actually know what they're talking about" in 15 reviews * "Many bad/useless middle management built up over the years but the layoff did some clean up" in 13 reviews Reviews Dec 8, 2013 “Loved the company and the people.” Software Development Manager (Former Employee) Rolling Meadows, IL I worked at BlackBerry full-time for more than 5 years Pros – BlackBerry was a great company with great people. I still believe the technology is the best in the industry and is only lagging due to customer lack of appreciation of the importance of Mil grade security. Cons – Executive management failed...
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...Minor December 29, 2015 Introduction The compensation companies offer their CEO is far grater then the wages paid to the average employee. Wal-Mart is no different in that aspect. There are a wide variety of performance incentives a company can offer to its employees and higher echalons of the organization. The Human Resources department is responsible for communicating the company’s compensation packages. Review/Analysis of the Case There is a huge gap between the incentive pay a CEO receives and the incentive pay of low-level employees. Wal-Mart’s CEO, Mike Duke, in 2011 received a base salary of $1.3 million, $13.1 million in stock awards, and $2.9 million in cash bonuses. While the average Wal-Mart employee earns $12.40 per hour. On average a full time employee earns $25,800 per year. The low-level employee is eligible for quarterly and annual bonuses, health insurance, and matching 401(k). This massive pay gap is large due to the fact that a company’s CEO has such a huge impact on the company’s overall performance verses low-level employees. Companies need to develop incentive plans for executives, so that the executives stay commited and engaged in cultivating the companies success (Noe, R., 2013). How Wal-Mart’s store workers feel about the difference between their compensation and that of Mike Duke’s depends on what store workers perception of the compensation. If store workers feel the CEO is being paid to much then this will...
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...CASE STUDY BARILLA SpA (A) TABLE OF CONTENTS PAGE 1 COVER PAGE PAGE 2 TABLE OF CONTENTS PAGE 3 EXECUTIVE SUMMARY PAGE 4 ISSUE IDENTIFICATION – IMMEDIATE ISSUE PAGE 4 ISSUE IDENTIFICATION – SYSTEMIC ISSUES PAGE 5 ISSUE IDENTIFICATION – SYSTEMIC ISSUES CONTINUED PAGE 6 ENVIRONMENTAL & ROOT CAUSE ANALYSIS PAGE 6 ALTERNATIVES AND / OR OPTIONS PAGE 7 ALTERNATIVE AND / OR OPTIONS (CONTINUED) PAGE 8 RECOMMENDATIONS & IMPLEMENTATION PAGE 9 IMPLEMENTATION PLAN PAGE 9 MONTIOR AND CONTROL PAGE 10 MONITOR AND CONTROL (CONTINUED) EXECUTIVE SUMMARY Barilla SPa(A) was the world’s largest pasta producer during the 1990’s and held a significant market share in Italy and Europe. They produced dry pasta, fresh pasta and bakery items at several factories throughout Italy. Their route to market was through central distribution centers which they owned who in turn sold Barilla products to other distribution centers who sold to the retail stores. Barilla was experiencing huge fluctuations in demand for its products, which was causing serious stock outs at the distribution centers and ultimately on the retail store shelves. Taking into account the manufacturing process time line, the non-existent forecasting of customer demand from the distribution centers, the ever increasing Bullwhip Effect, MY DECISION is to implement a Just in Time Distribution System (JITD), with a staggered implementation approach. I will first approach all Management with my implementation...
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...Management Final Exam Study Guide Chapter 11 – Compensation * What is total rewards * How is it different than traditional compensation * Why compensation philosophies vary by organization * Entitlement vs. performance philosophies Intrinsic vs. extrinsic rewards- Intrinsic rewards may include praise for completing a project or meeting performance objectives. Other psychological and social forms of compensation also reflect intrinsic type of rewards. Extrinsic rewards are tangible and take both monetary and nonmonetary forms. * Role of the HR unit in compensation * Internal equity * External equity * Meet/lag/lead strategies * FLSA * Exempt / nonexempt * 5 categories of exempt employees * Overtime * Training & travel time * Independent contractors * How to classify * Tax implications for employers / employees * Market pricing and pros/cons * Pay grades * Red/green circle employees * Pay adjustments (e.g. seniority) Chapter 12 – Incentives * Variable pay philosophy * How variable pay motivates employees * 3 categories of variable pay * Types of individual incentives * Gainsharing and how different from profit sharing * 3 types of commission pay plans and which is the most common * Examples of performance incentives * Why incentives should be tied to organizational goals * Pros/cons of bonuses vs. merit pay Chapter 13 – Benefits ...
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...Zoological Society of San Diego, a nonprofit organization that operates the San Diego Zoo, the San Diego Zoo’s Wild Animal Park, and San Diego Zoo’s Institute for Conservation Research has more than 3,000 persons employs. Tim Mulligan, the society’s new HR director, feels that organization and its managers should some goals for themselves and their workers so that persons can be paid based upon those goals. He wanted the zoo to have more structure and managers filling and completing more appraisals forms than usual. He wanted to implement a system where persons understand and are able to complete the organization’s goals. Furthermore, after the society adopted the “Halogen Software’s eAppraisal System” they immediately saw results. More of the appraisals were completed and employees are more motivated than they were before. A performance appraisal is considered an evaluation that is recorded of an employee’s overall actions over a period of time. In other words, it is a report that a manager/supervisor should complete on how well employees fulfill their duties throughout the year. Furthermore, Non-profits need appraisal system as much as for profit organizations because it serves a vital pivotal role in the motivation of the employees. Additionally, even though non-profit organizations goals are not to maximize their profits, they still have goals to meet in order for them keep their customers and animals satisfied. Furthermore, organizations like the San Diego Zoological...
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...On the aspect of compensation system in Roget S.A. organization, bonus system used to reward and promote executives is related to the profits of each division and subsidiary. Managers are motivated to increase profit of which they are responsible for. It is positively affect the development of each division and subsidiary. Also, these compensating incentives are beneficial to retain experienced employees under the competition with other companies. However, compensating based on the profit of each division might give rise to some problems which include creating unnecessary internal competition and sacrificing the profit for whole company in order to generate personal benefit. Ekstrom, managing director in Sweden, might only want to take his responsibility of increasing the profit for AB Thorsten so that the proposal for manufacture of XL-4 in Sweden is provided. Ekstrom might also be stimulated by the bonus or promotion. To gain benefits from the success of project in the future, he is probably to ignore the potential risk of this project or optimize the actual situation. It is reminded by Lavanchy that the estimated 400 tons in Sweden might be too optimistic since the world market share for Roget is only 600 tons. On the other hand, Lavanchy also can be biased on this project due to his responsibility for profits in manufacturing this product in Belgium. The profit of manufacturing XL-4 in Belgium can be maintained by selling the product to Sweden under current system, which also...
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...practice by taking a write-off of $56 million in the last quarter of 2001. Around this time Aon expenses increased as well and competition was succeeding. This caused investors to be on edge. Aon begin to conduct a global re-organization. The restructure entailed actions that were intended to streamline the organization and improve ability to serve clients. The plan was to result in $240 million of annualized savings by 2010. (Aon2) This resulted in a more profitable growth and higher cash flow. In 2010, Aon total executive compensation payout was $61,191,960. This was an increase of 72.46% from the previous year. Gregory C. Case who serves as President and CEO received 34% totalling $20,783,301. Gregory was elected in 2005. He also is a Director for Discover Financial Services. This position is part of the Executive Committee on the Board of Directors. Below is a chart to better understand the breakdown of his total compensation. Compensation for...
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...Abstract Whether you are an economists or the average consumer, Health Care costs and spending seems to always be a hot topic. From my initial research I found that Health Care costs are steadily rising both in the private and public sectors. From what I have read I believe some sort of Health Care reform is required. There are vast numbers of people suffering and even dying because the cost of Health Care is too expensive. Unfortunately people skip doctor appointments and ignore ailments, just because they cannot afford it and it some cases people are paying the ultimate price. I’d like to look a little deeper into the Pros and Cons of Private and Public Healthcare and delve a little into some of the Health Care reform Bills that are in play or will be implemented in the near future. Specifically I want to look at Obamacare, as I hear it in the news, but do not know what impacts it has to the economy, good or bad. List of Figures Figure 1 6 Figure 2 6 Figure 3 7 Figure 4 7 Health Care Reform In recent years, a fair amount of attention has been geared towards Health Care. There has been a number of Economists that have voiced concern that rising health care spending could hurt the economy and lower employment. A December 2004 survey of CEOs found that employee health care costs are the greatest cost concern of America’s business leaders. (via aspe.hhs.gov). Due to the ever rising cost of healthcare, I found that approximately 53 Million...
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