HR Department Guide: Compensation, Training & Evaluation

Introduction: Strategic HR Planning at Titan

Effective decision-making is founded on sound planning. In order to be successful, organizations must develop both long-range (strategic) and short-range (tactical) plans. Resources must be organized and allocated to carry out organizational goals in an effective and efficient way. Human Resources professionals need to utilize approaches to strategic planning and business development that are also present in the marketing, financial, technology, and operational departments. Every company has a marketing plan to guide its product and/or service strategy; similarly, every organization should have a human resources plan that outlines its people strategy (Lauby, 2009).

For our purposes, we will focus on a specific organization — "Titan" — which is a first-tier supplier to major athletic footwear manufacturers such as Nike, Puma, and Converse. We will develop a Human Resources department that fulfills the needs of senior management in maximizing company efficiency. The overall goal is to integrate HR planning with the company's main business plan in a way that benefits the firm's long-term strategic objectives. We begin by examining the compensation practices that Titan may apply to employees who merit them.

Compensation is divided into two main categories: short-term disabilities and long-term disabilities. In both cases, the overall record of the specific employee is evaluated in his or her field of work. After a thorough assessment, a compensation plan is developed by the head of the employee's department and then forwarded to senior management for formal approval. The employee is consulted throughout the entire process, but final approval rests with senior management.

Compensation Practices

Short-term disabilities may include common sick leave, minor injuries, or other personal circumstances. Long-term disabilities may include permanent damage such as a major injury, physical or mental impairment, or any other factor that affects the employee on a lasting basis.

Employers must ensure that people with disabilities:

Furthermore, an employer is required to provide reasonable accommodation if a person with a disability needs one in order to apply for a job, perform a job, or enjoy benefits equal to those offered to other employees. An employer is not required to provide any accommodation that would pose an undue hardship. In addition to the above, compensation may also include packages such as paid leave — depending on the rank and performance record of the employee — or monetary payment for damages incurred.

To maximize the value of employees' benefits expenditures at a firm like Titan — which covers a wide range of functions including sales, marketing, industrial design, fashion design, tooling design, manufacturing, assembly, and shipping — it is essential to survey employees about what they value and how much. Benefits surveys or focus groups are important first steps in understanding employee preferences. Relevant questions might include:

Benefit Offerings

Based on the data gathered, the company can adapt its benefit offerings or provide choices that are consistent with organizational objectives such as employee retention or improved performance.

A Personalized Benefit Statement provides a brief overview of the data the company uses to evaluate an employee's eligibility for benefits paid as part of the total compensation package. The following terms appear in the Personalized Benefit Statement:

There are two related kinds of orientation. The first is called Overview Orientation, which deals with the basic information an employee needs to understand the broader system in which he or she works. Overview Orientation helps employees understand: