...Running head: XCEL ENERGY PAYS FOR EMPLOYEES WHO EXCEL Xcel Energy Dyneaka Harrison Kaplan University MT203: Human Resources Management Instructor Sarah Scott April 16, 2011 Xcel Energy Pays for Employees who Excel Introduction Excel Energy based in Minneapolis, Minnesota, is a public utility company that generates electric power and transmits and sells electricity and natural gas to customers in Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. Xcel serves 3.3 million electricity customers and 1.8 million natural gas customers in these eight states. In 2007, Xcel was the 260th biggest corporation in the U.S., and the 15th biggest gas & electric utility in the country. Xcel Energy has decided to implement merit bonuses; which are paid for individual, group and corporate performances. Merit pay refers to the process of determining employee compensation “base salary or bonuses,” in part, on the basis of how well each employee performs at work. (Xcel 2011) Review/Analysis of the Case 1. Based on the information given, do you agree with management’s conclusion that merit pay can support Xcel’s strategy better than paying for suggestions? Why or why not? Based on the information given I do agree with managements conclusion that merit pay can support Xcel’s strategy better than paying for suggestions. Management and leaders must continually encourage and reward fresh thinking, promoting and keep open loops...
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...CASE: XCEL ENERGY PAYS FOR EMPLOYEES WHO EXCEL Xcel energy pays for employees who excel Brianna Williams Kaplan University MT203: Human Resources Management 1/29/13 XCEL ENERGY PAYS FOR EMPLOYEES WHO EXCEL Xcel’ management decision to change from paying the employees for their suggestion to a merit pay incentive program is well thought of. Though initial mistakes are there but when the team will be rewarded at parity, it will make the members more motivated to work hand in hand to excel together. Individual rewarding system creating a competition among the employees but the new incentive may initially discourage the outperformers. The company has to motivate them to ask their team members also to perform. The motivated people will compel the average and the poor workers to work hand in hand. Since in an organization, there is subordination of self-interest the new program will focus towards the achievement of the organizational goal. The company can think of rewarding the managers by other perks and recognition than money. Giving the person a good desk to work as a bonus, or a certificate or selecting employee of the month on the basis of suggestions are some of the perks. The person who gives many suggestions that have helped the company to earn reasonable profit should be given recognition in the company. The company can give such employees a chance to attend trainings for new experience or trainings in their field of expertise. This will help both-the organization...
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...Xcel Pays For Employees Who Excel Human Resource Xcel Energy in Minneapolis is an electricity and natural gas utilities that is trying to link rewards to performances in their company. This company has set up new incentive programs to get employees suggestions. With the new merit-pay programs, it motivates employees to perform higher to receive the incentives. Xcel is trying to have a fair incentive plan for all employees to feel appreciated and perform to their best. By creating the Xpress Ideas, Xcel provided a reward opportunity for employees to submit beneficial suggestions for the company. Xcel was paying the same price for all suggestions though they were not tested to be successful. After this program was started they developed the Merit-pay program to keep improving operations and be far ahead of the average company. “Continuously improving our operations to be the lowest cost, most reliable and most environmentally sound energy provider” (Noe, Hollenbeck, Gerhart, & Wright, 2009). With the Merit-pay budget it allows top performers to get more of an incentive but still gives the average workers an incentive they are pleased with. With the merit-pay budget it is important to channel more to non-management employees. The merit-pay also limits managers to 2% which frees more money for other employees. The merit-pay budget urges managers to give bigger raises and bonuses to the best employees for being a performer. With the Merit-pay budget, Xcel will more likely...
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