Verified Document

Identifying Optimal Compensation Strategies Article Review

¶ … Strategic Human Resource Management in Small and Growing Firms: Aligning Valuable Resources" by Michael B. Hargis and Don B. Bradley (July 2011) Citation/Source:

Hargis, M. B. & Bradley, D. B. (2011, July). Strategic human resource management in small and growing firms: Aligning valuable resources. Academy of Strategic Management Journal, 10(2), 105-110.

Major Thesis

According to Hargis and Bradley, there is a growing body of evidence that many of the same types of human resource management challenges that are experienced by larger corporations are no different than those encountered by smaller firms, including the need to identify optimal compensation and reward packages that will help recruit and retain talented employees. At present, though, there remains a dearth of timely and relevant research concerning the impact that human resource management practices have on the performance of small companies. To help fill this gap in the body of knowledge, Hargis and Bradley review and evaluate the types of compensation and reward practices that are used by independent small business owners based on a national sample.

The findings that emerged from this study confirmed a relationship between effectively administered strategic compensation plans and overall performance in the small companies reviewed. In addition,...

109). While there is also growing evidence that pay alone no longer represents the most important motivational factor for employees, it is also clear that to the extent that employees feel they are not being compensated fairly will be the extent to which they become unengaged from their jobs and the performance of the firm will suffer (Hargis & Bradley, 2011).
Moreover, inadequate compensation rates will adversely affect the ability of small companies to recruit and retain the talented employees they need to achieve and sustain a competitive advantage (Hargis & Bradley, 2011). In sum, the authors suggest that to the extent that the challenge of identifying optimal compensation and reward packages is achieved will be the extent to which small businesses are able to recruit, retain and reap the benefits of a highly motivated workforce, making this a useful study for human resource practitioners as discussed below.

3. Utility

Although the authors did not present any especially earth-shattering results, their findings that small businesses also need effective human resource management practices, including…

Sources used in this document:
Resources" Hargis and Bradley cite the need for additional research concerning optimal compensation and reward practices in small businesses and draw on a national sample to highlight various strategies that have proven effective -- and ineffective -- in helping small companies address many of the same types of problems that are experienced by their larger counterparts. The presentation of typical strategies currently that are being used by small businesses makes this a particularly useful study for practitioners interested in small to medium sized enterprises.
Cite this Document:
Copy Bibliography Citation

Related Documents

Strategies to Improve Retention Rates at a Consulting Firm
Words: 2352 Length: 8 Document Type: Research Proposal

Executive Summary Although the precise causes differ from organization to organization, the high costs that are associated with unplanned turnover are well documented. In fact, in some professions, replacement costs for employees can easily equal their annual salary or even more, so identifying strategies to reduce turnover rates represents a valuable and timely enterprise. To this end, the purpose of this proposal is to provide a description of the problems of

Strategies for Recruiting Appropriate Employees in an Organization...
Words: 3113 Length: 11 Document Type: Essay

Human Resource Management and Development Human beings hardly work and live in isolation because they are social beings who consciously and unconsciously develop, plan, and manage relations. These relations become the outcome of actions and greatly depend on the extent of individual's ability to manage actions. Knowledge and experience are acquired during an individual's development and helps in understanding others and responding to various life challenges and situation. Later on, we

Strategies for Success During Mergers and Acquisitions
Words: 2476 Length: 9 Document Type: Essay

Mergers and Acquisitions: The Case of Microsoft and EPAM This paper focuses on Microsoft Corporation. The firm is one of the major public multinational corporations in America with headquarters in Redmond, USA. The company majors in developing, manufacturing, licensing, and supporting a broad scope of services and products that are especially predominant in the computing of various product divisions. The firm was established in 1975 with the goal of developing and

Human Resource Management Recruitment at USC Identifying
Words: 2092 Length: 7 Document Type: Case Study

Human Resource Management Recruitment Recruitment at USC Identifying purpose: Attracting Talent: Accessing Talent: Select: Appoint: Evaluation of Remuneration Strategy of the USC Strategic Remuneration HR is Asset Remuneration is Tactic and A Plan Salary vs. World Class Program Strategic objectives Strategic Objectives Performance Goals Performance Measures Organization and Talent Strategies in Emerging Markets Attracting the most talented pool of candidates and satisfying their needs and retaining them might seem a simple mathematical formula but it is a really tough challenge for many. University of Southern California for

Capital Budgeting Corporate Strategies
Words: 3586 Length: 12 Document Type: Corporate

Question Berk and DeMarzo (2020) exemplify the variances between the three key approaches companies utilize for capital budgeting with leverage and within imperfect markets. These approaches comprise the Weighted Average Cost of Capital (WACC) method, the Adjusted Present Value (APV) Method, and the Flow-to-Equity (FTE) Method.The Weighted Average Cost of Capital methodWACC refers to a weighted average of the cost of debt, the cost of equity, and also the cost

Students With Disabilities Who Did
Words: 17241 Length: 60 Document Type: Dissertation

The shift toward standardized testing has failed to result in a meaningful reduction of high school dropout rates, and students with disabilities continue to be marginalized by the culture of testing in public education (Dynarski et al., 2008). With that said, the needs of students with specific educational challenges are diverse and complex, and the solutions to their needs are not revealed in the results of standardized testing (Crawford &

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now