Compensation Philosophies Up to This Case Study

Excerpt from Case Study :

This problem was mostly raised within the financial sector in light of the credit crisis, but is now also being addressed in other companies as well. The focus as such now falls on responsible governance (Muller, 2012).

Chapter 13 questions

1) Strategic importance of benefits

Today, the dynamics of the business environment are suffering dramatic challenges, emerging from various fields. Customers for instance become more demanding; the domestic and international competition intensifies; the technologies rapidly evolve and there is increased social pressure towards environmental sustainability (Brooks and Weatherson, 2000). In such a setting, it is imperative for the economic agents to rely on their staff members to help address these challenges. Today then, the employees are no longer just the force operating the machines, but they are the most valuable organizational asset (Mayo, 2001). In the creation and implementation of the benefits, it is essential for the employers to consider the differences between the motivating factors of various employees.

2) Health care costs

The health care situation in the United States has been growing more and more severe as the medical act become more solicited, as well as more expensive. The aging of the population, the increasing living standards or the technologic advancements all increase the costs of health care (Weinberg, 2007). And these costs are reflected at the level of employers, who are less and less able to ensure full medical coverage for their staff members, and this materializes in employee dissatisfactions, pressures and even conflicts between employers and employees.

The issue of the rising health care costs nevertheless is one of national importance, with ramifications obvious not only within the business climate, but at the level of the entire society. In such a setting then, it is believed that a solution should also be supported by the state, rather than economic agents alone (Shi and Douglas, 2011).

References:

Bebchuck, L.A., Fried, J.M. 2006, Pay without performance: the unfulfilled promise of executive compensation, Harvard University Press

Berger, L.A., Berger, D., 2008, The compensation handbook, 5th edition, McGraw-Hill Professional

Brooks, I., Weatherson, J., 2000, The business environment: challenges and changes, 2nd edition, Financial Times Prentice Hall

Brown, M., Heywood, J.S., 2002, Paying for performance: an international comparison, M.E. Sharpe

Gilbert, R.L., 2010, 7 steps for creating a viable pay for performance model, ASC Review, http://www.beckersasc.com/anesthesia/7-steps-for-creating-a-viable-pay-for-performance-model.html last accessed on April 26, 2012

Flannery, T.P., Hofrichter, D.A., Platten, P.E., 2002, People, performance and pay: dynamic compensation for changing organizations, Free Press

Mayo, A., 2001, The human value of the enterprise: valuing people as assets: monitoring, measuring, managing, Nicholas Brealey Publishing

Muller, D.C., 2012, The Oxford handbook of capitalism, Oxford University Press

Shi, L., Singh, D.A., 2011, Delivering health care in America: a systems approach, 5th edition, Jones & Bartlett Publishers

Snell, A., 2010, 5 steps to differentiated compensation, Taleo Research, http://www.taleo.com/talent-management-blog/2010/06/24/5-steps-to-differentiated-compensation / last accessed on April 26, 2012

Weinberg, S.E., 2007, U.S. healthcare on life support: resuscitating the dying system, Denisher Press

Employer's key steps in workers' compensation, Louisiana Workforce Commission, http://www.laworks.net/WorkersComp/OWC_employerkeysteps.asp…

Sources Used in Document:

References:

Bebchuck, L.A., Fried, J.M. 2006, Pay without performance: the unfulfilled promise of executive compensation, Harvard University Press

Berger, L.A., Berger, D., 2008, The compensation handbook, 5th edition, McGraw-Hill Professional

Brooks, I., Weatherson, J., 2000, The business environment: challenges and changes, 2nd edition, Financial Times Prentice Hall

Brown, M., Heywood, J.S., 2002, Paying for performance: an international comparison, M.E. Sharpe

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