¶ … employer, Acme Inc., a medium sized industrial company, has conducted a Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis and has determined the strategic goals and objectives for the organization. One of the opportunities identified from the SWOT was the current economy and the high unemployment rate. In addition, a strategic goal was established as a result of the SWOT for Acme Inc. To maintain status quo on recruiting and focus specifically on retention (keeping Acme's best employees).
Simulation: As the HRM for Acme Inc. And based upon the situation, describe how you would develop a "Compensation Plan" for this organization. Discuss how your plan would align and be effective with the above mentioned strategic goal. In addition, discuss how you would control the costs associated with your compensation and benefits plan.
In the form of an abstract, clearly state the issue or problem.
a. Express the problem in multiple ways to clarify its meaning and scope.
ACME has conducted a SWOT analysis of its company. One of the identified opportunities is the current recession and high unemployment rate. This means that ACME seeking talented workers may be able to have more of an opportunity in attracting them given the present need for jobs. Likewise, workers may be induced to join ACME for lower wages and reduced benefits than ACME may ordinarily have to provide due to the high rate of unemployment and the great need for work. This is an opportunity right now: it means that ACME may be able to attract extraordinary workers at a cheaper rate than it ordinarily would. The problem, however, would occur in the future once the recession lifts in that these same workers would then scout around for places that offer more attractive benefits and salaries. The problem may actually start even before the recession lifts since companies are always searching for remarkable talent and even during a recession some companies are prepared to offer higher prices for superb workers.
For ACME, therefore,...
On the other hand, ACME wants to retain these skilled workers -- turnover may cost the company more in the long run and talent is irreplaceable. The problem that ACME, therefore, faces is creating a strategic goal that would continue to attract these workers and induce them to continue working for ACME despite higher inducements that another place may offer them.
The goal; that ACME implemented was one that would maintain status quo on recruiting and focus specifically on retention (keeping Acme's best employees).
2. Identify and justify your assumptions used for shaping your point-of-view.
a. Clearly identify your assumptions and explain why or why they are not justifiable.
b. Explain how your assumptions are shaping your point-of-view.
My assumptions are that:
1. The recession causes as lot of companies to close resulting in skilled people losing their jobs
2. These skilled people may be willing to take up any job as short-term gap measure in order to receive the needed money
3. Appreciating their potentials, these skilled people will be on the look-out for a job that pays more. Alternately,
4. Other jobs may compete for their services offering them higher pay and better services.
3. Identify appropriate concepts from the text or other research to support your ideas. Identify key concepts and explain them clearly.
b. Consider and explain other concepts or alternative definitions of concepts.
The most significant kind of research that I have for this is from real life where the U.S.A. Today (Rugaber, 2010) quotes a Labor Report that noted that "There are about 6.3 unemployed workers competing, on average, for each job opening." Employers had fired a total of 7.2 million workers during this economic downturn and hiring had yet to begin. At the same time, "the number of unemployed Americans…
