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Morgan Stanley & Goldman Sachs
Employee compensations has for many years been seen as a type of job benefit package that did one of two things: either reward people for doing good work (merit) or offer them the chance to make more by coming up with creative new business ideas that made the company money (incentives) (Tropman, 2001). Now, however, the issue has changed on a number of fronts. For most companies, the development of menu-based benefit packages have allowed employees -- mostly management employees -- to basically choose from a variety of ways to be rewarded for their work. This remains the practice today for the majority of companies. But for some companies that rely on either technologically or otherwise highly competent people who can work well in a global setting, the issue becomes more about equity -- how well does what they make reflect the value of what…
AP (2012). Lloyd Blankfein, Goldman Sachs CEO's Pay Increased 14% to $16.1 Million in 2011. Huffington Post. Viewable at http://www.huffingtonpost.com/2012/04/13/goldman-sachs-ceo-lloyd-blankfein-16-million_n_1423848.html .
Faulkender, M. et al. (2010). Executive Compensation: An overview of research on corporate practices and proposed reforms. Journal of Applied Corporate Finance. Vol. 22, No. 1.
Goldman Sachs (2012). Compensation. Board Document. Viewable at Greenberg, M. (2010). Regulation of Executive Compensation in Financial Services. Working Group. Council of Foreign Relations.
Hoovers GS (2012). Hoovers Goldman Sachs. http://www.hoovers.com/company/The_Goldman_Sachs_Group_Inc/cfrkji-1.html.
compensation packages and benefit plans which Adobe Systems Inc. offers to its employees against their employment services, good performance at the workplace, and as motivational techniques for their retention and encouragement. The paper also explains the advantages and disadvantages of the key components of these compensations and benefit plans and recommends strategies on how they can be improved for more effective outcomes.
Adobe Systems Inc.
Adobe Systems Incorporated is an American multinational corporation engaged in manufacturing computer software and providing digital marketing and digital media solutions to the individual and corporate clients around the Globe. Adobe Systems Inc. was founded by Charles Geschke and John Warnock in 1983. Its major software development operations are spread in the United States, Germany, Canada, India, China, Switzerland, and omania. The main products of the company include Desktop software (e.g. Adobe Acrobat eader, Adobe Flash, Adobe Photoshop, Fireworks, Adobe Premier, and Adobe Shockwave Player);…
Adobe System Inc., (2013). Benefits and Compensation. Retrieved on April 18th, 2013, from
Adobe System Inc., (2013). Fast Facts. Retrieved on April 18th, 2013, from
Aswathappa, K., & Dash, S. (2008). International human resource management: text and cases, 1st edition. New Delhi: Tata McGraw-Hill Pub.
Goel, D. (2008). Performance appraisal and compensation management, 1st Edition. New Dehli: Prentice-Hall of India.
Expatriate Compensation Package
Compensation is a crucial link between strategy and its successful implementation. There is a fit between compensation and the goals for which the firm wants managers to aim. In this way employees may not feel exploited (Deresky, 2011). The employees need to perceive equity and good will in their compensation and benefits whether they are parent country nationals or host country nationals. Expatriates have to be competitively remunerated.
Compensation of expatriates whether from parent or host country calls for reconciliation of the parent and host country financial, legal, and customary practices (Deresky, 2011). To ensure that expatriates do not lose out on through their overseas assignment the balance sheet approach has to be used to equalize the standard of living between the host country and the home country and to add some compensation for inconvenience or qualitative loss. The multinational corporations have to make up additional costs…
Crandall, L.P. & M.I. Phelps (1991). Pay For A Global WorkForce. Personnel Journal, 70(2),
28, 30 -- 33.
Deresky, H. (2011). International management: Managing across borders and cultures (7th ed.).
Upper Saddle River, NJ: Prentice Hall.
Competitive Compensation Systems
The market for labor can be quite competitive, and it is incumbent on human resource professionals to set the market appropriately, depending on their strategy. For companies that require the best professionals in order to thrive in the marketplace, they may need to come in at the top end of the market for total compensation, whereas a company with a strategy focused on delivering cost leadership might need to pay employees at the low end. However, there are times when low pay does not make for a more efficient workforce, so it is important to understand the market for labor in a sector. As an example, Costco pays at the high end, which allows them to skim the cream of the manual retail labor pool, which in turn allows the company to deliver a higher standard of service than many competitors. Those competitors paying at the low…
Benefits are often seen as at least as or even more important than the base salary in terms of employee compensation. Furthermore, it is also important to provide employees with a sense of purpose and motivation in performing their duties.
While I would consider a slight increase in the base salary, I however feel that it is more important to include an incentive bonus for work performance. This will be calculated according to a scale of related skills and requirements of each job within the company. I will therefore focus on implementing annual work performance bonuses for employees who display excellent skills in their specific area of work. The precise requirements will be worked out with employees themselves.
I also feel that employees should receive benefits that are related to their work, such as company vehicles for personnel who travel many hours or miles during their year of work, or…
Amig, Stacey. "Managing Human Capital: improving employee recruitment retention in a changing economy. Behavior Health Management, 1 March 2001. Web. 14 Feb 2010. http://www.allbusiness.com/human-resources/workforce-management-hiring-recruitment/784909-1.html
Ojimba, Erisa. "Salary Basics -- Developing a Strong Compensation Philosophy." Salary.com, 2010. Web. 14 Feb 2010. http://www.salary.com/personal/layoutscripts/psnl_articles.asp?tab=psn&cat=cat011&ser=ser034&part=par410
"Salary and Benefits Basics." Salaryandbenefits.com. Web. 14 Feb 2010. http://www.salariesandbenefits.com/
Compensation and Performance management: Two Sides of the Same H Coin
While it is unquestionably part of a human resources manager or director's job to ensure that the company achieves some level of cost savings -- and definitely cost benefit -- in its human resources expenditures, this does not mean that keeping compensation packages at the minimum possible level is the ideal target to shoot for. The well-being and satisfaction of employees is important not only to ensure ongoing loyalty and productivity, but also for intrinsic and ethical reasons. When making cost-saving decisions in regards to human resources compensation, then, certain steps and measures must be taken.
First, effective appraisals must be conducted to determine where cost savings is appropriate, and where it is unwarranted. This process must begin with a purposeful appraisal design that is in keeping both with legal and ethical requirements and that is explicitly geared towards…
DeCenzo, D. & Robbins, S. (2009). Fundamentals of Human Resource Management. New York: Wiley.
McNamara, C. (2011). from Field Guide to Leadership and Supervision. Accessed 7 February 2011. http://www.managementhelp.org/emp_perf/perf_rvw/basics.htm
I believe that Keith was entirely justified in insisting that the job, not the person, be evaluated. If a company has established protocol, then that protocol should be followed. The receptionist in question has a boss who is in charge of evaluating her performance on a regular basis; the committee would likely be overstepping its boundaries if they had decided to evaluate a single person, rather than the position they were intended to evaluate. Keith would likely be justified in reminding the other committee members of their responsibilities and duties regarding the committee's purpose.
Initially, Keith was bothered by the possibility of a confrontation at the meeting with certain committee members. It would therefore behoove Keith to approach the situation with care and consideration, while maintaining a sense of balance and humbleness. One thing that Keith does not want to do is approach the other members of the committee…
Baumann, A. & Kolotylo, C.; (2009) The professionalism and environmental factors in the workplace questionnaire: Development and psychometric evaluation, Journal of Advanced Nursing, Vol. 65, Issue 10, pp. 2216-2228
Johnson, R.E.; Silverman, S.B.; Shyamsunder, A.; Swee, H.Y.; Rodopman, O.B.; Cho, E.; Bauer, J.; (2010) Acting superior but actually inferior?: Correlates and consequences of workplace arrogance, Human Performance, Vol. 23, Issue 5, pp. 403 -- 427
Roberts, G.E.; (2001) An examination of employee benefits cost control strategies in New Jersey local governments, Public Personnel Management, Vol. 31, pp. 301 -- 315
Tocher, N.; Field, H.S.; Giles, W.F.; (2006) Valuations of compensation and benefit items by new entrants into the professional workforce: Do men and women differ?, Journal of Employment Counseling, Vol. 43, Issue 2, pp. 84 -- 96
Compensation Strategy for a Limo Service
The compensation strategy and benefits strategy for a limousine service in Austin, Texas will represent an essential component to the overall business strategy. The projected annual net revenue for the first years of the business is a negative fifty thousand dollars. Therefore any potential savings in employee compensation might represent something that could reduce this financial burden. Furthermore, any amount of compensation that would go beyond the planned amount would increase the company's loss. Creating an efficient strategy for compensation and benefits will be exceedingly important in the company's first year because it is expected to operate at a loss.
The compensation and benefits strategy will also be important because it will largely influence the quality of the candidate pool that the company will have to select its employees from. Higher wages will draw more qualified candidates and a lower compensation package might reduce…
CCLAustin.com. (2015, July 25). Limousine Driver. Retrieved from Indeed: http://www.indeed.com/cmp/1821,-LLC/jobs/Limousine-Driver-caa563266df09236?sjdu=QwrRXKrqZ3CNX5W-O9jEvc_0arWZVL8kBZq_BJ55IeacX4zQS5v9EEfHtSBIrvbSgRNqfatL5qHmPK9ugjQ-5w
Pay Scale. (2015, July 2). Limousine Driver Salary. Retrieved from Pay Scale: http://www.payscale.com/research/U.S./Job=Limousine_Driver/Hourly_Rate
Verizon Compensation Strategy
Verizon Communications is a publicly traded company registered in the United States as a telecommunications and broadband company. It trades under the name Verizon. It is a market leader in the telecommunications industry and strives to provide excellent services that satisfy consumers. Worker compensation has always been an important aspect of Verizon's overall strategy to keep employees motivated and provide excellent service to consumers. In 2010, the company did a review of their compensation strategy with the aim of improving it. The 2010 compensation decisions, designed by a committee and approved by shareholders, took effect in 2011.
Briefly describe the company you researched, its compensation strategy, best practices they are applying, and compensation-related challenges they are facing.
Verizon's compensation strategy is founded on providing fair compensation to its employees. All of Verizon's employees get a base salary that is pegged on market rates and incentives…
Cheng, Q., & Farber, D.B. (2008). Earnings Restatements, Changes in CEO Compensation, and Firm Performance. The Accounting Review, 83(5), 1217-1250. doi: 10.2307/30243544
Tosi, H.L., & Greckhamer, T. (2004). Culture and CEO Compensation. Organization Science, 15(6), 657-670. doi: 10.2307/30034768
Williams, M.L., McDaniel, M.A., & Ford, L.R. (2007). Understanding Multiple Dimensions of Compensation Satisfaction. Journal of Business and Psychology, 21(3), 429-459. doi: 10.2307/30221746
New Trends in Employee Compensation and Benefits
This essay examines new trends in compensation and benefits. The essay discusses the impact of benefits offerings for both employer and employee, and reviews recent trends and discusses their significance.
Reasons for working vary from individual to individual, and compensation is usually among the most important reasons. However, many people list other factors that are almost equally important to them. These factors can range from opportunities to develop new skills, to an experiencing a sense of community, to more tangible benefits such as provisions for retirement. Currently benefits programs account for approximately one third of the average worker's total compensation, based on the size, profitability and philosophy of a particular employer. Programs that are effectively designed and promoted work to the advantage of both employers and employees (ish).
Compensation packages have changed significantly over the years. They no longer consist of a flat…
Gioia-Herman, Joyce. (2011). Trends in Employee Benefits. Engine Builder Magazine. Web. 3 March 2012.
Society for Human Resource Management. (2011). 2011 Employee Benefits Research Report. Web. 3 March 2012.
Wish, Fred. (2012). Trends in Employee Benefits -- Beyond the Fringe, Benefits Plans for Today's Workforce. Web. 3 March 2012. .
Zoo Media Group. (2012). New Trends in Employee Compensation. Web. 3 March 2012.
Caywood, Steven C. (2010). Wasting the Corporate Waste Doctrine: How the Doctrine Can
Provide a Viable Solution in Controlling Excessive Executive Compensation. ichigan Law Review, 109(1), 111-136.
ajor Thesis: This article reviews and seeks a solution for the controversial issue of corporate executives receiving enormous compensation. The article points out that public outcry against grossly, outrageously inflated bonuses and other compensations for executives has rarely done any good, but the group that suffers the most when executives receive such huge compensation are the shareholders. eantime this paper suggests that the "corporate waste doctrine" is one way to limit "excessive executive compensation"; if the corporate waste doctrine were enforced legislatively, the author explains, and executives continue to be paid outlandishly huge bonuses, the stakeholders would have a legal recourse in response.
Clearly it is unfair when an executive -- specifically a CEO -- receives "…roughly 400 times that of an…
Moreover, how could this article and the knowledge of corporate waste doctrine be of benefit to me in the future? If I were in the position of a shareholder in a corporation -- all I would have to do to become a shareholder is buy shares in any given company -- and executives in the corporation were given grossly over-the-top salaries, I would organize other shareholders and together we stakeholders would retain a competent attorney and plan to use the corporate waste doctrine.
Is there a precedent for bringing corporate waste to the point of litigation? There are a number of cases that have failed. But in the first big case, in which the Supreme Court recognized the corporate waste doctrine was in 1933 (Rogers v. Hill). Shareholders rebelled against the American Tobacco Company for paying what they believed to be excessive compensation; the High Court held that corporate waste occurs "…if a bonus payment has no relation to the value of services for which it is given" but the hard part for plaintiffs is proving corporate waste (Caywood, 117).
Conclusion: Before launching litigation as a shareholder holding stocks in a corporation, this article has shown me that in order to make a case for corporate waste, every previous case that has been brought by shareholders against boards of directors -- contesting absurdly high compensation -- must be carefully reviewed. What mistakes were made? What can be learned? Did the litigants make erroneous assumptions? What is the most recent ruling by courts at any level of the judiciary? How many shareholders can I get to back up my assertions, when a top executive walks away with a $22 million bonus, and we shareholders actually took a loss in this fiscal year? These are things I learned from this article and that I can apply in the future, because I do plan to become a shareholder in a successful corporation.
Q12. Describe the impact of legislation on the field of compensation management.
Minimum wage and overtime laws restrict the minimum amount employers can offer to workers; anti-discrimination legislation mandates that employees are compensated without regards to their racial, ethnic, gender, or disabled status.
Q13. Identify the impact of incentives such as bonuses to a compensation program.
For some professions, such as sales and investment banking, bonuses derive the bulk of the individual's expected salary. Bonuses can also be a means of distinguishing social status between employees. Bonuses can also simply be used to encourage higher levels of performance, based upon short-term outcomes.
Q14. Explain how the global market affects U.S.-based companies' compensation.
In a global marketplace, high-quality employees are more 'portable,' but because of the ability to outsource labor, employees may also find their salaries kept artificially low through the availability of lower-cost foreign workers.
Q15. Describe salary/market surveys.
compensation strategies companies. For company selected, discuss a 350-word synopsis: • Evaluate compensation strategies executives company. • Evaluate compensation strategies sales forces contingent workers company.ID
Compensation strategies for two companies
Whole Foods, the organic grocery retailer, is one of the few companies that has actually reported garnering positive press as a result of its executive compensation policy. Whole Foods ' "caps the chief executive's salary and bonus at 14 times the average worker's pay" (Clark 2006). This is intended to reinforce the team-based leadership and performance reviews that structure the company's leadership within its stores throughout the nation. However, it has been noted that Whole Foods is not quite as democratic in reality as its written policy might suggest. CEO John Mackey made $1.8 million exercising his stock options, far more than his official salary of $436,000 (Clark 2006). However, his overall compensation is still relatively low, compared…
Blodget, Henry. (2012). Apple's new CEO Salary 378 million times more than Steve Jobs.
Yahoo Finance. Retrieved: http://finance.yahoo.com/blogs/daily-ticker/apple-ceo-salary-378-million-times-much-steve-154822390.html
Clark, Hannah. (2006). Whole Foods: Spinning CEO Pay. Forbes. Retrieved:
Dental care under MCSS fee schedule for Ontario Works adults;
Prosthetic appliances such as back braces, surgical stockings, and artificial limbs (provision, replacement, and repairs);
Wheelchairs and repairs for the portion not covered through ADP;
Hearing aids and batteries (co-payment under Ministry of Health and Long- Term Care's Assistive Devices Program (ADP) for the provision, replacement, and repairs to hearing aids);
Vision care for adults;
Dentures where deemed appropriate;
Cost of completing other medical forms; and Other items may be approved individually based on medical documentation stating the need and the benefits.
7. It is important to carefully define these factors and determine an appropriate number for the organization. The definitions should not overlap, resulting in the same job dimension being measured multiple times. However, the important aspects of each job and what the organization wants from its employees must be included. From there, home country-based compensation is the following…
Offering benefits such as healthcare and even stock options to lower-level employees, a compensation strategy also pursued by Starbucks (a company both literally and figuratively 'green' in its image), is another example of a policy that can benefit both the company and employees -- employees enjoy greater security, while the companies reduce the high rate of workplace turnover that is endemic to the service industry at companies like McDonald's. In fact, as Eric Schlosser observed in Fast Food Nation, fast food companies have often deliberately made life unpleasant for lower-level employees, to reduce the need to offer them promotions, benefits, and higher pay, on the theory that it is easy to train a new worker to operate a cash register. "How can workers look to this industry as a career…when it pays them the minimum wage and provides them no health benefits" (Schlosser 2001, p. 88). hole Foods and Starbucks…
"Benefits." Google website. February 8, 2010.
"Careers." Whole Foods Market. February 8, 2010.
Sporadic bonuses across the year also help employee performance to stay more consistent. "Set up a series of smaller rewards throughout the year to motivate ongoing performance excellence. For example, instead of an annual trip, award several three-day getaways for each quarter. Vary the basis for the awards. Top sales might be one category, but so can top research or most diligent. ecognize that several types of excellence motivate your employees to focus on additional areas of their performance" (Berkus, 2012). In this quote, Berkus, truly brings up an important point: some of the bonus methods of compensation are going to depend on the employee hired, as the most effective bonuses will be the ones that are unique to the employee. For instance, some people might just want bonuses in the form of free clothes and shoes. Other people would prefer strictly cash bonuses. There will be some exploration that…
Berkus, D. (2012, July 13). Six Ways to Drive Employee Performance and Motivation. Retrieved from ldrlb.co: http://ldrlb.co/2012/07/six-ways-to-drive-employee-performance-and-motivation/
bls.gov. (2012, May). May 2012 National Occupational Employment and Wage Estimates. Retrieved from Bls.gov: http://www.bls.gov/oes/current/oes_nat.htm#13-0000
Gordon, C. (2012, July 19). Simple Cafeteria Benefits Plans. Retrieved from bizfilings.com: http://www.bizfilings.com/toolkit/news/office-hr/simple-cafeteria-plan-created-by-health-care-act.aspx
Stewart, G., & Brown. (2012). Human Resource Management. New York: John Wiley and Sons.
Compensation and Benefits: The Family and Medical Leave Act
The Family and Medical Leave Act (FMLA)
The FMLA came into effect on 5th August, 1993. The Wage and Hour Division of the U.S. Department of Labor (DOL) is responsible for its administration. The law covers all employees in the state, including those in the private sector and a majority of those in the congressional and federal sectors. The law entitles "eligible employees of covered employers to take up to 12 weeks of unpaid leave per year," in order to attend to specified medical and family issues (AFSCME, 2013). This could extend to 26 weeks, over the same period, in cases that involve serious illness or injury. The decision as to when the one-year period should actually begin is dependent on the employer and the policy of the organization. In the past, the FMLA has been amended a number of times…
AFSCME. (2013). The Family and Medical Leave Act. AFSCME. Retrieved from http://www.afscme.org/members/education-and-trainings/education-resources/fact-sheets/the-family-and-medical-leave-act-fmla
American Society of Employers. (2012). 2013 Employment and Labor Law Legislation. American Society of Employers. Retrieved from http://www.aseonline.org/ResearchbrnbspServices/EmploymentandLaborLawLegislation.aspx
United States Department of Labor. (2013). Family and Medical Leave Act. United States Department of Labor. Retrieved from http://www.dol.gov/WHD/fmla/2013rule/
Compensation Plan Outline
Ford Motor Company is the largest manufacturer of heavy commercial vehicles and second largest producer of automobiles in the world. Their range of vehicles comprises 70 different types that include Jaguar, Lincoln, Volvo, Mercury, Aston Martin, and Ford with presence in over 30 countries worldwide. Ford employs over 300,000 employees across the globe. In the United States itself, Ford has an employee strength nearing 100,000 employees and sales exceeding three million units (Joesph, 2003).
Compensation Plan of Ford Motor Company
Association with Ford Motor Company is a fulfilling experience for the workforce. The company offers motivation for exemplary work ethics, opportunities for individual and collective growth that translates into challenges to be met and overcome. The vast range of vehicles produced in the company provides the stimulus for development of the personnel at all levels, as does the cultural and regional diversity of the workforce itself. Ford…
Daniels Fund Ethics Initiative (2014).Ford Motor Company Manages Ethics and Social Responsibility. Retrieved from http://danielsethics.mgt.unm.edu/pdf/ford-motor-case.pdf
Ford Motor Company (2014). Notice of 2014 Annual Meeting of Shareholders and Proxy Statement. Retrieved fromhttp://corporate.ford.com/doc/457/143/ir_2014_proxy.pdf
Ford Motor Company (2011). Summary of Compensation and Benefits for Ford Motor Company. Retrieved from http://corporate.ford.com/doc/r-full-time-benefits.pdf
Joseph, B.S. (2003). Corporate ergonomics program at Ford Motor Company, Applied Ergonomics, 34, 23-28. Retrieved from http://www.sciencedirect.com/science/article/pii/S0003687002000807
Brief Overview of Costco's Compensation System
Costco has a unique compensation system within its industry. The company competes as a cost leader, where it features low prices as a means of winning business. Cost leaders typically try to have rock bottom costs throughout their operations, from the supply chain to labor and everywhere in between. These competitors will use their bargaining power to get the cheapest labor possible, bargaining down wages, benefits and other perks. This often results in a poor quality labor pool with high levels of turnover, but these companies accept that as part of having a low cost labor pool and account for that is the design of the low cost business model (Lutz, 2013).
The approach that the company has to compensation is therefore counterintuitive to the way that most of its competitors run their human resources, but there is internal logic to Costco's…
Costco. (2014). Benefits. Costco. Retrieved May 31, 2014 from https://costcobenefits.com/cms/your-wealth/401k/index.shtml
Deci, E., Ryan, R. & Koestner, R. (1999). A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation. Psychological Bulletin. Vol. 125 (6) 627-668.
Goldberg, A. & Ritter, B. (2005). Costco CEO finds pro-worker means profitability. ABC News. Retrieved May 31, 2014 from http://www.sba.pdx.edu/faculty/susanm/semaccess/BA%20385/Costco%20CEO%20Finds%20Pro-Worker%20Means%20Profitability.doc
Gray, C. (2014). Tangible benefits of reducing turnover. Houston Chronicle. Retrieved May 31, 2014 from http://smallbusiness.chron.com/tangible-benefits-reducing-turnover-21668.html
Compensation and Benefits Package for a Secretary
A pharmaceutical company has recently hired a new director for its human resource department as part of its initiatives to enhance productivity and organizational success. The company is also seeking to hire a new secretary for the H department and develop an employee compensation and benefits package for this position. This package will be utilized for the position of secretary for the H department once a suitable candidate is hired. Generally, pharmaceutical companies hire educated and highly talented individuals because of the nature of their operations, which requires high academic qualifications. In essence, the need for high academic qualifications for this industry is fueled by the fact that these professionals deal with patients whose needs are constantly evolving. The development of a suitable compensation and benefits package for a H secretary in this pharmaceutical company requires examining compensation and benefits packages in the…
Bureau of Labor Statistics. (2014, January 8). Occupational Outlook Handbook -- Pharmacists. Retrieved from U.S. Department of Labor website: http://www.bls.gov/ooh/healthcare/pharmacists.htm
"Human Resources: Compensation, Benefits & Reward." (n.d.). All About Careers Ltd. Retrieved December 11, 2015, from http://www.allaboutcareers.com/careers/career-path/human-resources-compensation-benefits-reward
UCSF Human Resources. (n.d.). Chapter 11: Employee Development & Training. Retrieved University of California, San Francisco website: http://ucsfhr.ucsf.edu/index.php/pubs/hrguidearticle/chapter-11-employee-development-training/
Compensation strategy is a useful tool that many, if not all, human resources managers can and should use in order to maximize their efficiency and effectiveness within the scope of a larger institution. Compensation strategy allows for the principles and character of the organization to show and demonstrates ability to negotiate the challenging aspects of maintaining a competitive advantage within a given industry.
The purpose of this essay is to explain and highlight the importance of strategic compensation as a component of a the larger corporate strategy within an organization. This essay will examine how pay and different forms of pay can be instrumental in finding new ways to motivate, sustain and increase participatory levels within company organizations and provide a footwork for future successes. This essay will also discuss some of the approaches that may be deemed useful by human resources managers in creating and designing a…
Greene, R. (2010). Effectively Managing Base Pay: Strategies for Success. Society for Human Resource Management, 21 Jan 2010. Retrieved from http://www.shrm.org/hrdisciplines/compensation/Articles/Pages/CMS_005592.aspx
Milkovich, G. & Broderick, R. (1989). Developing a Compensation Strategy. Cornell ILR School 1 Dec 1989. Retrieved from http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1416&context=cahrswp
Schuster, J. & Zingheim, P. (2012). Compensation and Human Resource Practices During Crisis. World at Work Journal, 1st quarter 2012. Retrieved from http://www.worldatwork.org/waw/adimLink?id=59577
It is well established that human resources personnel have a direct and forceful impact on the strategic success of any business or economic organization. Ulrich (1997) suggests that "the relationship between HR practices and business results is built on a rather simple premise: better deployment and use of HR practices should correlate with higher business results "(p.303). One tool HR managers have at their disposal is the use of compensation packages and their unique impact on the labor force. The purpose of this essay is to examine compensation packages, in both the monetary and non-monetary form, impact on attracting and maintain a desirable workforce and the possible influence on the overall effectiveness of the organization.
Casico (2010) discussed the aspect of compensation in terms of rewards. He suggested that compensation could be divided into two separate categories; either financial or non-financial rewards. Financial rewards are considered the monetary…
Cascio, W. (2010). Managing Human Resources. Productivity, Quality of Work Life, Profits. 8th edition. McGraw Hill.
Casico, W. (n.d.) . HR in Alignment hosted by Wayne Casico.
Ulrich, D. (1997). Measuring Human Resources; An Overview of Practice and A Prescription for Results. Human Resource Management, Fall 1997. 36, 3, Pp 303-320. Retrieved from http://www.e-rh.org/documents/ISO/measuring-hr-kpi-for-hr.pdf
Total Compensation Methods
Compensation is widely considered as a primary source of motivation for the employees within an organization.in most scenarios people look for jobs which not only suite their creativity and talents but those which compensate them in terms of salary and benefits. Compensation is one of the fastest changing fields when it comes to Human esource as companies are going ahead with investigations of various ways that can be used for rewarding employees commensurate to their performance. Within any organization there is need to ensuring that the turnover ratio is well maintained while at the same time retaining the best employees. Compensation and benefits are two sure ways that a company can use to achieve such things. This paper therefore looks at some of the common compensation strategies that are found within organizations, analyses the impact of various compensation methods used and also highlight how the salaries and…
Abel, M.(2012).Salary & Benefit Administration strategies to organizational culture and performance. Retrieved February 4, 2014 from http://www.ehow.com/info_8557824_salary-strategies-organizational-culture-performance.html
Payscale. Inc.(2009.). The Impact of Compensation Methods and Decisions. Retrieved February 4, 2014 from http://www.payscale.com/compensation-today/2009/10/impact-of-compensation-methods-on-employees-and-organizations
Answers Corporation, (2014).Employee compensation. Retrieved February 4,2014 from http://www.answers.com/topic/employee-compensation
The objective of this study is to examine fair and equitable compensation and to utilize critical thinking in discussing issues from two perspectives and those being the perspectives of both employee and employer. The writer's own concepts will be critically examined concerning compensation and benefits issues.
Defining Fair and Equitable
In order to examine the issue of fair and equitable compensation it is necessary that the words 'fair' and 'equitable' be defined. The word 'fair' is defined by the Merriam-Webster Dictionary as "agreeing with what is thought to be right or acceptable" and "pleasing to the eye or mind especially because of fresh, charming, or flawless quality." (2013, p.1) The word 'equitable' is defined by the Merriam-Webster Dictionary as "dealing fairly and equally with all concerned." (2013, p.1) Therefore, fair and equitable compensation means that the compensation offered by the employer to the employee is fair and equal…
Equitable (2014) Merriam-Webster online. Retrieved from: http://www.merriam-webster.com/dictionary/equitable?show=0&t=1390623952
Fair (2014) Merriam-Webster online. Retrieved from: http://www.merriam-webster.com/dictionary/fair
Human Resource Management: Employee Compensation Guide (2009) Curriculum Guide. Risk Management Education. Retrieved from: http://www.agrisk.umn.edu/cache/ARL01631.pdf
Romanoff, Kent; Boehm, Ken; and Benson, Edward (nd) Pay Equity: Internal and External Considerations. Retrieved from: http://theperfectpayplan.typepad.com/pay_equity_article.pdf
According to statistics, it has been noted that the current workforce is growing more and more disloyal and dissatisfied. The companies that do not respond to the current trends will end up paying a high price later. This is because, with the improvement in the job market, these companies will end up losing key employees to their competitors, which leads to reduced employee productivity. Companies need to establish a well-designed employee compensation and benefits package in order to retain its top talent and attract others. There are numerous companies that desire to attract, retain, and motivate their employees in order to meet the company's strategic objectives. Currently, employees are considered to be part of the company's assets because they have to be effectively and efficiently managed. There are numerous instruments that companies can use to attract, retain, and motivate employees. Compensation and benefits are some of the tools that companies…
Direct Compensation and Fringe Benefits
Fringe benefits refer to those elements of the total compensation package which are apart from the monetary payment made to an employee by the employer (Schuler and Jackson, 1996). These can include "employer's contribution to social security, workers compensation, unemployment compensation, health, life and dental insurance, private pension plans and cafeteria style benefits plan. " (Brookshire and Smith, 2008 p. 69)
Unionized organizations have often been faced with the problem of choosing between fringe benefits and direct compensation. But over the years, this trend has also been witnessed in non-unionized organizations where employees demand more monetary compensation as opposed to fringe benefits believing that the latter do not matter as much as the former. This has had companies in a quandary: should they let go of fringe benefits when some employees do not seem to value them?
The answer is an emphatic" No" in my…
Michael L. Brookshire and Stan Smith, 2001 Economic/Hedonic Damages: The Practice Book for. Plaintiff and Defense Attorneys (Cincinnati: Anderson Publishing
Berger, L. Berger, D. 2000. The compensation handbook: a state-of-the-art guide to compensation strategy and design. McGraw-Hill Professional, 2000 - Business & Economics - 646 pages
3. Does public awareness of the CEO's salary influence the branding of an organization? How? Give two examples, one negative and another positive.
It is perfectly understandable that public awareness of CEO salaries play a role in establishing corresponding attitudes toward the corporate Brand. Where corporations demonstrate socially responsible concern and altruism in the manner exhibited by corporate executives like Bill Gates of Microsoft and Ted Turner, or incorporated within the mission statements of Google, the corporate brand or public image is not necessarily harmed by public awareness of very lucrative executive compensation packages.
On the other hand, public awareness of corporate greed, social irresponsibility, and lucrative executive compensation likely undermines the maintenance of a positive corporate image or brand. Typical examples would include Circuit City, whose CEO, Philip Schoon's "wage-management initiative" resulted in the firing of 3,400 $12-per hour employees in order to replace them with employees earning $8…
Anderson, Sarah. Despite Failures, CEOs Cash in; the Hartford Courant, April 14, 2008. Retrieved April 15, 2008 from the Hartford Courant website, at http://www.courant.com/news/opinion/editorials/hc-anderson0414.artapr14,0,5653663.story
Lewis, Al. Marriage of Losers a Worst Buy; the Denver Post, April 15, 2008. Retrieved April 15, 2008 from the Denver Post.com website, at http://www.denverpost.com/business/ci_8925078
Human esources Pay Package
Employee Compensation Plan
Target Job: egistered Nurse (N) in a Hospital
Hillcrest Hospital is a 496 bed hospital located in Mayfield Heights, a Cleveland Ohio Suburb. Hillcrest is ranked in the nation's top 100 in cardiac care. It is part of the Cleveland Clinic system. The mission of the hospital is to provide nationally ranked healthcare to the surrounding community. It holds clinical excellence, safety, ethics, integrity, individual responsibility, respect for diversity and caring for others as key tenets (Hillcrest Hospital, 2012a). Its vision is to service as an example of state-of-the-art medical facility in every department that delivers consistent high quality service to Northeast Ohio (Hillcrest Hospital, 2012b). The Cleveland Clinic system is one of the best renowned systems in the nations in a number of specialties in which they operate.
Hillcrest Hospital strives to put their patients first and looks for enthusiasm in employees.…
Bureau of Labor Statistics. Occupational Outlook Handbook, 2010-2011Edition. Registered Nurses. Retrieved from http://www.bls.gov/oco/ocos083.htm
Hillcrest Hospital (2012a). Mission. Retrieved from http://www.hillcresthospital.org/AboutHillcrestHospital/Mission/tabid/574/Default.aspx
Hillcrest Hospital (2012b). Vision. Retrieved from http://www.hillcresthospital.org/AboutHillcrestHospital/Vision/tabid/575/Default.aspx
Hillcrest Hospital (2012c). Hillcrest-Hospital-Jobs. Retrieved from http://www.clevelandclinic-jobs.com/go/Hillcrest-Hospital-Jobs/28206/
Paying workers according to their performance is controversial in some fields, but accepted in other fields, such as sales. The types of bonuses offered to employees in some professions, from sales to investment banking, are another aspect of 'total compensation' that might affect an employee's decision to remain at a company. Some bonuses might be traditional 'lump sum' payments while others might take the form of smaller bonuses, paid upon the completion of phases of work (Heathfield, 2010, p.2). Additionally, the potential to work overtime might be attractive to some employees. Conversely, family-friendly hours, on-premise daycare facilities, and 'flextime' might draw prospective employees to specific companies, if the employee has the obligation of looking after small children.
ewarding employees with raises because of demonstrated excellence is growing more common: "Gone are the days when organizations gave equivalent increases to all organization members. These salary increases, in the one percent to…
Heathfield, Susan. (2010). Salary and compensation trends. About.com. Retrieved May 6, 2010
Total compensation @ UMass Amherst (2010). Human Resources. Retrieved May 6, 2010 at http://www.umass.edu/humres/tc_home.htm
The amended program integrates compensation, benefits, work-life, performance and recognition, and development and career opportunities, in the total rewards package making it more relevant and flexible for today's employers and employees. Financial remuneration and benefits are expected components of a compensation package. The last 3 mentioned bear further scrutiny.
The more progressive organizations have been incorporating programs that are designed to help their employees do their job more effectively. These businesses have come to realize that when they support their workers -- their workers support them. Examples of work-life programs include on-site daycare and flexible scheduling. Technology and a global economy have forced companies and employees to change their expectations of each other -- and for the most part this has improved opportunities for both.
Studies have shown that employees demonstrate greater satisfaction in their jobs when there is a recognition component to a compensation package. According to Christofferson (2006)…
Christofferson, J, & King, B. (2007). Breaking down the barriers, part 2. Workspan, p. 1-8.
Mercer (2004). Striking the right balance: Total rewards that work. New York:
Despite Crystal's criticisms of executives earning outrageous sums of money that are not linked to their performance, the reality is that most executives have a compensation package that is based on performance in some way or another (Codon and Lynch, 2004). However, the use of stock options and other equity-based incentives create enormous incentives to manage the performance of companies for short-term stock price gain. This often comes at the expense of strategy implementation that could sacrifice profits in the short-term for long-term benefits. Also, underlying executive actions there may be the desire for personal wealth, not the strength of the corporation obtained through a well thought out strategic plan.
Of the recommendations offered in the case, the two that are the most promising are linking pay to long-term profitability and putting workers on the boards of directors. Instead of being pressured to make quarterly and annual profits,…
Codon, D. And Lynch, D. (2004, January). Recent developments in executive compensation. The Corporate Compliance and Regulatory Newsletter, Vol 1. No. 5. Retrieved June 26, 2005 from Web site: http://www.rkmc.com/pdf/exec_compensation.pdf
Glassner, F. (2002, March 6). Who is to blame for outrageous executive pay? One less Barbie dream house won't hurt anyone. HRM Guide. Retrieved June 26, 2005 from Web site: http://www.hrmguide.net/usa/rewards/rewarding_performance.htm
Most firms will also reward good values such as honesty, commitment, and good relations with customers.
While in most cases, employees will develop positive feelings about internal equity if they feel they are being paid fairly depending on how perfectly reward management works in the organization, but there is always a time when they will compare their salaries with those of others in the industries. This gives rise to the question of external competitiveness. What is the guarantee that an employee will not leave an organization when he learns that other firms are paying hire for the same job and title? In today's dynamic world, no such guarantees exist and retention can become a problem if employees find it easier to switch jobs. It is thus important to take external competitiveness into consideration as well.
In order to remain externally competiveness, organizations normally depend on wage and salary surveys that…
Herman R.D. And Associates (1994), the Jossey-Bass Handbook of Nonprofit Leadership and Management, Jossey-Bass, San Francisco, CA
John Bratton & Jeffrey Gold (2003), Human Resource Management Theory and Practice, MacMillan, London
drive decision making about compensation is known as the compensation philosophy of a company. In general terms a compensation philosophy details that reasons and the ways of the choices it has and the decisions taken based on the choices to pay employees and other stakeholders. While such compensation philosophy differs from organization to organization, it company tries to formulate a compensation philosophy so that it is able to attract the best talent available in the market and retain the best talent. The sentiment or the philosophy for compensation is expressed in the settlement or compensation packages given to employees or o the stakeholders (Armstrong & Stephens, 2005).
There can be several types of philosophies that result in several types of compensation. Some companies follow the percentile-based compensation philosophy that is based on percentiles spells out where wages will fall in relation to the regional wage markets and comparable to the…
Armstrong, M., & Stephens, T. (2005). A handbook of employee reward management and practice. London: Kogan Page.
European Monitoring Centre on Change. (2007) (pp. 5-15). Dublin. Retrieved from http://website: www.eurofound.europa.eu
Gerig Meyer, J. Just wages.
Tesco.com,. (2015). Report of the Remuneration Committee. Retrieved 25 July 2015, from http://www.tesco.com/investorInformation/report97/accounts/page3.html
The statement regulating accounting for stock-based compensations defines a fair value-based method of accounting for an employee stock option or similar equity instrument and encourages all entities to adopt that method of accounting for all of their employee stock compensation plans. However, it also allows an entity to continue to measure compensation cost for those plans using the intrinsic value-based method of accounting prescribed by APB Opinion No. 25, Accounting for Stock Issued to Employees. The fair value-based method is preferable to the Opinion 25 method for purposes of justifying a change in accounting principle under APB Opinion No. 20, Accounting Changes. Entities electing to remain with the accounting in Opinion 25 must make pro forma disclosures of net income and, if presented, earnings per share, as if the fair value-based method of accounting defined in this statement had been applied.
Stock options are the most frequently used method in…
Cadbury, Sir a. 1992. Committee on the Financial Aspects of Corporate Governance. London, Gee.
Combined Code. 2003. The combined code on Corporate Governance. London, Financial Reporting Council.
Directors' Remuneration Report Regulations. 2002. Available at http://www.opsi.gov.uk
Girma, S., Thompson, S. And Wright, P.W. 2007. Corporate governance reforms and executive compensation determination: evidence from the UK, the Manchester School, vol. 75(1): pp. 65-81.
Incentive Pay: Strategic Compensation and Its Impact on Human esource Management in the United States
Compensation refers to a wide array of benefits and pay that a company uses to reward employees for performance. Strategic compensation refers to any type of compensation strategy that is aimed at rewarding good performance. Because the variety of companies and their internal structure varies wildly, strategic compensation strategies can vary wildly. For example, many direct sales companies where employees are actually independent contractors use strategic compensation strategies, giving prizes for hitting certain sales goals and increasing compensation percentages with sales. On the other end of the spectrum, large corporations almost always include stock options in higher-level compensation strategies, which directly ties the degree of financial reward to overall corporate performance. Individual companies can tailor their compensation strategies to what their firm does, the number of employees, and what is likely to motivate those employees.…
Berrone, P. & Gomez-Meija, L.R. (2009). Environmental performance and executive compensation: an integrated agency-institutional perspective. Academy of Management Journal, 52(1), 103-126.
Chen, C. & Huang, J. (2009). Strategic human resource practices and innovation performance:
the mediating role of knowledge management capacity. Journal of Business Research, 62(1), 104-114.
Chenevert, D. & Tremblay, M. (2009). Fits in strategic human resource management and methodological challenge: Empirical evidence of influence of empowerment and compensation practices on human resource performance in Canadian firms. The International Journal of Human Resource Management, 20(4), 738-770. doi:10.1080/09585190902770547
Toyota Company is the world's largest automobile manufacturing company in the world. Similar to what their vision states about being the most respected and successful car manufacturer in the world, the company has achieved that objective. With its headquarters in Japan, the Toyota Company has several branches around the globe. It is not surprising that the company employs hundreds of thousands of employees because of its huge size. The fact that the company employs such a high number of employees also means that it equally has a responsibility to take care of that many employees to guarantee high performance. One of the most important responsibilities of any organization is to fairly remunerate its staff, if they are to ensure better results. Once an organization creates employment opportunities, it then becomes its responsibility to make sure that all the talent and work put in is adequately compensated (McHugh & Nickels, 2008).…
Huitt, W. (2007). Maslow's hierarchy of needs. Educational Psychology Interactive. Valdosta, GA: Valdosta State University. Retrieved from, http://www.edpsycinteractive.org/topics/regsys/maslow.html
Kenrick, D. T., Neuberg, S. L., Griskevicius, V., Becker, D. V., & Schaller, M. (2010). Goal Driven Cognition and Functional Behavior. The Fundamental-Motives Framework. Current Directions in Psychological Science, 19(1), 63-67.
Business Dictionary. (2015). Retrieved from: http://www.businessdictionary.com/definition/benefit.html
Maslow, A. H. (1943). A Theory of Human Motivation. Psychological Review, 50(4), 370-96.
DAV's Chief Executive Officer, Arthur ilson, last year got $287,000 in compensation plus $72,994 in "other" pay from DAV or related organizations; General Counsel Christopher Clay $198,558, plus $144,331; and J. Marc Burgess, the executive director of the national headquarters, $163,483, plus another $122,532; Vice Chairman Larry Pozin seemed to get best deal, earning $107,240 for an average of just five hours of work a week in 2012 (Crudele, 2013).
There is some debate about whether the compensation is justified. Surely these individuals might earn a higher income in the private market. However, the compensation packages given to the executive staff have outraged some people to the extent that there is now an organized group with a website online that is called Veterans for DAV Reform. This group claims that "currently, the Disabled American Veterans is held captive by an opportunistic gang of charlatans only interested in their own gigantic…
Charity Navigator. (2012). DAV (Disabled American Veterans) Charitable Service Trust. Retrieved from Charity Navigator: https://www.charitynavigator.org/index.cfm?bay=search.summary&orgid=7589
Crudele, J. (2013, November 12). The Ugly Business of Stealing Money Meant for Vets. Retrieved from New York Post: http://nypost.com/2013/11/12/the-ugly-business-of-stealing-money-meant-for-vets/
DAV. (N.d.). Mission Statement. Retrieved from DAV: http://www.dav.org/learn-more/about-dav/mission-statement/
PR Newswire U.S.. (2013, September 5). Disabled American Veterans Non-Profit Charity Execs Paid as much as the President, while 200,000 Veterans Homeless. Retrieved from PR Newswire U.S.: http://eds.b.ebscohost.com.proxy-library.ashford.edu/eds/detail?sid=1141c2a2-2510-4579-b7fe-2c1c88a0590b%40sessionmgr112&vid=2&hid=104&bdata=JnNpdGU9ZWRzLWxpdmU%3d#db=bwh&AN=201309051018PR.NEWS.USPR.NE74538
A total rewards package contains many different elements that are meant to compensate employees, in some way, for the time they spend on the job. Companies are unable to follow a specific plan because different industries have different needs, but every company can use a total rewards system to make sure that they have the best employees and are able to keep them. However, there are issues with this system and solutions are just beginning to come to light.
Some, even in the total rewards community, continue to believe that compensation in the form of monetary rewards and simple benefits should be enough to satisfy employees and keep them engaged. Unfortunately, this is not true. A benefits package that includes such items as a comprehensive medical plan, some type of retirement, and other monetary rewards is not enough to make productive employees out of even the best…
Carlton, L.G., Anderson, C.J., Johnson, M.A., Longton, B., & Lulli, L.S. (2011). Total rewards/compensation & business panel. Retrieved from http://www.shrm.org/Communities/SHRMSpecialExpertisePanels/Pages/CMS_0 22153.aspx
Ghazzawi, I. (2011). Does age matter in job satisfaction? Journal of Organizational Culture, Communication and Conflict, 15(1), 25-42.
Ghazzawi, I. (2010). Gender role in job satisfaction: The case of U.S. information technology professionals. Journal of Organizational Culture, Communication and Conflict, 14(2), 1-21.
Heneman, R.L. (2007). Implementing total rewards strategies. Retrieved from http://www.shrm.org/hrdisciplines/benefits/Documents/07RewardsStratReport.pdf
iordan Manufacturing: Internal and External Compensation
iordan Manufacturing: External and Internal Equity Compensation
iordan Manufacturers, being a leader in its industry, appreciates the need to meet the needs of its employees through a fair compensation policy - one that equates pay with the value of the task performed, because fair treatment boosts employee performance and morale, and is an effective employee retention technique (omanoff, Boehm & Benson, n.d.). Internal equity compensation describes an employee's compensation in relation to that of other employees at the same level within iordan Manufacturing (H Council, 2014). External equity, on the other hand, compares iordan Manufacturing's wages with those of organizations within the industry.
Employee compensation is fundamental to iordan Manufacturing, just as is stipulated in the company's compensation philosophy. iordan realizes the intensity of global competition and understands that in order to maintain its industry position and market share, it has to acquire the…
HR Council. (2014). Compensation and Benefits. HR Council. Retrieved 2 May 2014 from http://hrcouncil.ca/hr-toolkit/compensation-systems.cfm
Romanoff, K., Boehm, K., & Benson, E. (n.d.). Pay Equity: Internal and External Considerations. Pay Equity Article. Retrieved http://theperfectpayplan.typepad.com/Pay_Equity_Article.pdf
This has certainly been the case with KFC and its burgeoning operations in many Asian countries where cultural factors that can affect business operations are particularly pronounced. For example, according to Briscoe and Schuler (2004), "In a highly successful strategy, KFC employed a first-generation Chinese-American to return to China to establish its chicken restaurants. These international employees may not be placed on a full expatriate compensation package, but rather may receive a form of hybrid compensation, with some aspects of the package received by a traditional expatriate and some aspects of local employees" (p. 219). Even though these KFC expatriate executives may not receive the full measure of the compensation package offered counterparts in other countries, these assignments are widely regarded as being important to achieving longer-term career goals, professional development and providing valuable work experience in cross-cultural settings (Konopaske et al., 2009).
Evaluate the monetary and nonmonetary programs…
Briscoe, D.R. & Schuler, R.S. (2004). International human resource management: Policy and practice for the global enterprise. London: Routledge.
Glover, J., Rainwater, K., Jones, G. & Friedman, H. (2002). Adaptive leadership (part two): Four principles for being adaptive. Organization Development Journal, 20(4), 18-19.
Konopaske, R., Robie, C. & Ivancevich, J.M. (2009). Managerial willingness to assume traveling short-term and long-term global assignments. Management International
Review, 49(3), 359-360.
Starbucks is a quick service restaurant that focuses on coffee and snacks. The company operates globally, with over 18,000 stores, roughly 55% of which are company-owned and the rest are franchised. Over 10,000 of these stores in are in the United States. Starbucks earned $14.89 billion in revenue in the last fiscal year (2013 Starbucks Annual eport). Starbucks employees are known as associates. In total, there are 191,000 associates (full-time equivalent) in the Starbucks system, most of whom work at the retail level (MSN Moneycentral, 2014). For this reason, this paper will mainly focus on the human resources policies that apply at the retail level.
The basic business strategy that Starbucks follows is differentiation. The company seeks to provide a unique mix of product and service offerings that distinguish it from other locations where consumers can acquire coffee and snacks. The basic commodity, coffee, is difficult to…
2013 Starbucks Annual Report. In possession of the author.
Caldicott, S. (2014). How the minimum wage is reshaping workforce strategies. Forbes. Retrieved December 2, 2014 from http://www.forbes.com/sites/sarahcaldicott/2014/07/18/will-starbucks-eat-mcdonalds-lunch-how-the-minimum-wage-is-reshaping-workforce-strategies/
Martel, L. (2003). Finding and keeping high performers: Best practices from 25 best companies. Employment Relations Today. Vol. 30 (2003) 27-43.
Moroko, L. & Uncles, M. (2008). Characterstics of successful employer brands. Journal of Brand Management. Vol. 16 (2008) 160-175.
CEO's salary, bonus, and long-term compensation with respect to various organizational, financial and CEO factors such as corporate reputation, growth in employees, company size, and return on equity, CEO tenure and CEO stock ownership. In relation to the general performance of the organization
This paper utilizes the various measurement of chief executive compensation as exploited by the various detailed pieces of literature and employed as the dependent variable in a model based on multiple regression theory. It explores the extent to which the CEO's compensation package affects the overall performance of the whole firm or corporation for which he or she works for.
The purpose of this research is to determine the extent to which the CEO's remuneration a large corporation such as Coca Cola has on the general performance of the organization.
The CEO's compensation has for a long time been source of attention from various groups in…
Anderson, R.C & Bizjak, J.M. 2003) An Empirical Examination of the Role of the CEO and the Compensation Committee in Structuring Executive Pay.Journal of Banking and Finance, 27.
Baiman, S. And Verrecchia R. (1995).Earnings and price-based compensation contracts in the presence of discretionary trading and incomplete contracting. Journal of Accounting and Economics, Vol. 20:1, pp. 94-120.
Barro, J.R.; Barro, R.J. (1990) Pay, Performance and Turnover of Bank CEOs, Journal of Labor Economics, 8.
Bebchuk, L.A & Fried, J.M.( 2003) Executive Compensation as an Agency Problem. National Bureau of Economic Research Working Paper Series, No. 9813.
Compensation Improvement Company ABC
The goal of this review will be to examine the overall objectives of the pay model for ABC corporation, a small manufacturing plant that specializes on developing nanosecond electronic components for select suppliers. As a job analyst my position requires that I evaluate each position in the company and ensure that a compensation structure is developed that is in line with the strategic goals and objectives of the organization which include having the workforce reflect the diversity in the community.
The use of automation and high tech systems has enabled the workforce to remain relatively low, less than 100, and may even substantially reduce the workforce in the upcoming years. The number of employees that must be reduced may be limited if employees are offered alternative forms of compensation rather than pay based incentives, which will decrease the overall financial burden on the company at large.…
Fun is Good
The Benefits of Google Inc.
The benefits and compensation system for Google Inc. is both varied and complex. It offers many options for the worker at Google Inc. And is meant to increase employee retention rates within the company. Compensation and benefits systems enable leaders to generate and maintain a chance for an effective mechanism that stimulates a culture of self-empowerment, creative modernization, and self-motivating employees. Google is among the top companies in promoting self-motivation and innovation within its employee pool leading to its continual success and high profits.
Google Inc. has become one of the top 100 companies in the world with profits increasing since its formation in 1998 and its first public offering in 2004. Ever since the mid-2000's, Google has received a steady wave of success. "Companies like Cisco Inc. And Google Inc. have structured their leadership to provide the best environment to motivate…
Bershidsky, Leonid. "Why Are Google Employees So Disloyal?" Bloomberg. Bloomberg, 29 July 2013. Web. 22 Feb. 2014. .
Cook, Joshua. "How Google Motivates their Employees with Rewards and Perks." HubPages. Thinkingleaders.com, n.d. Web. 22 Feb. 2014. .
Datamonitor.com. "Datamonitor Research Store - Google Inc." Datamonitor | the home of Business Information. N.p., 2014. Web. 21 Feb. 2014. .
Glassdoor. "Google Salaries and Benefits." Glassdoor. N.p., n.d. Web. 22 Feb. 2014. .
Crafting a Compensation and Benefits Plan
Fishers is a mid-sized manufacturing company out to maintain market leadership through the development and implementation of a compensation plan that meets the needs of the owners, clients, as well as employees. Compensation programs are critical to the effectiveness of the organization as they play a fundamental role in employee motivation, satisfaction, and productivity. The company seeks to achieve two crucial objectives from the implementation of this compensation and benefits plan; i) to reduce turnover, which has been an imminent problem over the last couple of years; and ii) to attract new talent, while retaining and improving the existing one.
The company is at a critical juncture; it can no longer offer the perks of a small entrepreneurial enterprise since it has exceeded the employee threshold for such categorization. Employees have been complaining over what they think is below-market compensation, and…
Basset-Jones, N. & Lloyd, G.C. (2005). Does Herzberg's Motivation Theory have Staying Power? Journal of Management Development, 24(10), 929-943.
Beam, B.T. & McFadden, J.J. (2012). Employee Benefits (6th ed.). Chicago, IL: Dearborn Trade Publishing.
Cappelli, P. (2011). Why Good People can't Get Jobs: the Skills Gap and What Companies do about It. Pennsylvania, PA: Wharton Digital Press.
Miner, J.B. (2007). Organizational Behavior 4: From Theory to Practice. New York M.E. Sharpe.
Crafting a Compensation and Benefits Plan: Looking Ahead in the Modern Workplace
Increasingly, technologically-driven businesses have become more and more reliant upon attracting top talent to gain a competitive edge. Perhaps the most obvious example of this is the Google organization. Google’s Internet search engine is virtually synonymous with searching on the Internet itself. Google offers generous salaries and time off to its employees. It also offers many amenities, such as free food, medical care, dry-cleaning, fitness classes, and even buses from certain common location hubs in the surrounding area. This enable employees to remain focused on work as well as removes many of the inconveniences of modern life (Cain, 2017). To reduce stress levels about balancing personal and professional lives, Google even offers the option of allowing employees to bring pets to work and daycare (Cain, 2017).
Amazon has been taking the lead from Google, also offering catered lunches,…
Utley Food Case Study
Utley Food Markets was founded in the 1930s in the St. Louis area. It grew to 86 supermarkets in the Missouri and Southern Illinois area. Up until 1948 it was a family owned company, but then sold and went public, with the Utleys moving out of managerial roles. The company is now heavily unionized, and even those employees who are not union members receiving similar salary increases as to union members. One of the largest concerns is the manner in which employees are reviewed; now typically with the supervisor answering, "how did this employee do in the past year." There is no quantitative data, dialog, supervisory committee, or employee response. This has resulted in a culture of mistrust and suspicion, with the general view that the system is unfair. hen employees complain, supervisors typically respond with a larger than average raise simply to make the concern…
Challenges of Performance Appraisal. (2007, March). Retrieved from Appraisals.Naukrihub.com: http://appraisals.naukrihub.com/challenges.html
The Strategic Planning Process. (2010, March). Retrieved from QuicMBA.com: http://www.quickmba.com/strategy/strategic-planning/
Beer, M. (2011, March). Pay for Performance Doesn't Always Pay off. Retrieved from Harvard Business School: http://hbswk.hbs.edu/item/3424.html
Kole, M. (2010, January 8). Trying to Understand the Union Mentality. Retrieved from Kole Hard Facts of Life: Retrieved from: http://kolehardfacts.blogspot.com/2010/01/trying-to-understand-union-mentality.html
Company's Compensation And Benefit Package
A number of factors determine how a company compensates its employees. These factors may include economics, psychology and even sociology. To an economist compensation is viewed as a labor market determinant (Filer, Hammermesh, & ees, 1996). As a human resource manager for Vanguard Industries I have been entrusted with the responsibility of explaining to the Chief Executive Officer (CEO) that guided my development of the company's compensation and benefit plan. I will specify economic factors I considered while coming up with the company's compensation and benefit packages, the manner in which they do so and the relative and absolute importance of each. Before coming up with a compensation and benefit scheme, it is imperative that matters pertaining employees' skill level, age, gender and minority and majority status are factored as they affect an individual's reward preferences and their view on what they contribute to an…
Filer, R., Hammermesh, D., & Rees, A. (1996). The Economics of Work and Pay 6th ED., New
York: Harper Collins.
Landes, W.M. (1968). The Economics of Fair Employment Laws. Journal of Political
Economy, 76: 507-52.
Total ewards: Compensation That Encourages
Developing a more comprehensive and conscious reward system can be an excellent way to motivate employees, to maintain and exceed ethical human resources management practices, and to attract and retain top talent through performance-based compensation. There are also several legal considerations that need to be taken into account before implementing such a system, however; though it might seem odd that trying to give employees more could have legal barriers, understanding the law helps owners to avoid unintentional errors that could create significant risks for the business. The following pages present a brief overview of some of the total rewards considerations that should be looked into and some of the attendant legal concerns that could arise.
Achieving Total ewards
No rewards system will be effective if the goals that lead to rewards are not clearly defined and carefully adhered to, but part of the beauty of…
Armstrong, M. & Baron, A. (2002). Strategic HRM. London: CIPD.
Mathis, R. & Jackson, J. (2011). Human Resource Management. Mason, OH: Cengage.
Thompson, P. (2002). Total Rewards. London: CIPD.
Total Compensation Methods
Impact of various compensation methods and benefit programs on employees and organizations.
The compensation term is used for the combination of salaries, benefits and wages for the employee. It also includes hourly or annual salary, bonuses, benefits and incentives like short-term disability insurance, retirement plan and health coverage. Thus, a comprehensive package includes a combination of different components. The collection of all components is relevant to "Employee Compensation Plan" along with the way of payment and the reasons individuals collect salary increases, incentives and bonuses (Milkovich and Newman, 2005).
Employees who are not exempted, receives hourly wages with an addition of overtime payment for working more than 40 hours in a week. The rate of overtime to hourly wages is one and half. Employees having a bargaining and collective contract with the management have already set wages according to the contract for certain period and…
Conrad DA, Christianson JB. Penetrating the 'Black Box': Financial Incentives for Enhancing the Quality of Physician Services. Medical Care Research and Review. 2004;61(3, Suppl):37S -- 68S
Hadley J, Reschovsky J. Medicare Fees and Physician's Medicare Service Volume: Beneficiaries Treated and Services per Beneficiary. International Journal of Health Care Finance and Economics. 2006.
Kukreja, P. (2011). Employee Retention of McDonald's. Taken from: http://www.managementparadise.com/forums/human-resources-management-h-r/219372-employee-retention-mcdonald-s.html
Milkovich, G.T. & Newman, J.M. (2005). Compensation. 8TH Edition. Chicago: Irwin.
New compensation plan for the employment team
As a result of the changes which have recently been implemented within InterClean, a new need arises in the necessity to align the compensation plan with the new organizational features. In other words, the changes implemented would only succeed if they are adequately supported by the staff members and a means of attaining employee support in times of organizational change is that of readdressing compensation issues (Lamm, Gordon and Purser, 2010).
Given this situation, the current endeavor proposes a new compensation plan based on the following:
A guaranteed minimum wage established for all of the team members
Additional wage increases based on specific employee features, such as experience, loyalty to the firm or level of education acquired
Premiums and bonuses based on performance
Non-financial compensations, such as flexible working schedules or the offering of training programs.
The above presented pay system stands…
Carlson, D.S., Bozeman, D.P., Kacmar, K.M., Wright, P.M., Mcmahan, G.C., 2000, Training motivation in organizations: an analysis of individual-level antecedents, Journal of Managerial Issues, Vol. 12, No. 3
Lamm, E., Gordon, J.R., Purser, R.E., 2010, The role of value congruence in organizational change, Vol. 28, No. 2
Mellor, E.F., 2002, Shift work and flexitime: how prevalent are they? Monthly Labor Review, Vol. 109
The sales person is driven by their target, as to fail to meet the target would not only be financially costly but embarrassing. The second target, the hard-to-achieve target -- is something that the salesperson can take pride in achieving. Attaining this target means more for the success and improvement it represents than for the payout that comes along with it.
The third component is the Top Performer incentive. For some sales staff, this may not serve as significant motivation as they may not feel as though they are in contention. For those high-performing staff members, however, this award gives the opportunity for bragging rights -- fulfillment of the ego. This can be powerful motivator for sales people. This incentive will work for the strong sales people, so while the others may not push themselves to attain it, all of the best sales people will and in doing so they…
Also, environmental factors as well as leadership can affect overall company performance. Oxford's floundering was due partially to internal control issues that may or may not have been under the direct control of iggins, and also had roots in the problems afflicting the health care industry in general. This is why: "Financial rewards in a fast-changing business environment could undermine a company's ability to build trust and commitment unless management and employees have an honest discussion about their mutual expectations" ("Performance-Based Salaries Don't Always Pay Off,"2003, Harvard Business School orking Knowledge). Finally, it must be remembered that the effects upon the psyche of even a well-compensated CEO who does not receive his or her expected compensation may frustrating but this effect can be even more devastating for a less well paid, lower-level employee.
Performance-Based Salaries Don't Always Pay Off." (26 Apr 2003).
Harvard Business School orking Knowledge. Retrieved…
Performance-Based Salaries Don't Always Pay Off." (26 Apr 2003).
Harvard Business School Working Knowledge. Retrieved 18 Aug 2007 at http://news.com.com/Performance-based+salaries+don 't+always+pay+off/2009-1069_3-997668.html
Strategic Human esource Management in Small and Growing Firms: Aligning Valuable esources" by Michael B. Hargis and Don B. Bradley (July 2011)
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.
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…
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.
organization's ability to recruit and retain talented employees requires ensuring employees are rewarded proportionately for their contribution towards achieving organizational goals and profitability. To achieve this, a benefits and compensation policy is developed and implemented for all workers. This company has established a compensation policy that offers a full range of conventional benefits, dental, vision and medical benefits in addition to a rewards program that offers incentives based on employees' input. However, there are numerous complaints from the workforce that these benefits do not effectively address a growing problem. To address this growing problem, it's important to develop a Benefits and Compensation plan that offer packages that correspond to the employee type, reflects the organization's culture, and is comparable to the company's competitors.
Components of the Benefits and Compensation Plan
The current benefits and compensation plan is seemingly ineffective because it does not provides benefits and compensation based on the…
Dunne, P.M., Lusch, R.F. & Carver, J.R. (2014). Retailing (8th ed.). Mason, OH: Cengage Learning.
Linton, I. (n.d.). Basic Responsibilities for Retail Workers. Retrieved October 14, 2016, from http://smallbusiness.chron.com/basic-responsibilities-retail-workers-36997.html
White, M.C. (2014, April 27). The Many Ways Retailers Pay and Reward Employees. Retrieved October 14, 2016, from http://www.jckonline.com/2016/02/19/many-ways-retailers-pay-and-reward-employees
Employee Contributions 30/05/2015
Two methods an H professional could use to determine incentive pay
Legally mandated benefits that the company must currently offer to its employees
Additional benefits that should be considered for its employees
Efficiency of common techniques for communicating compensation plans to employees.
Ethical risks of incentive pay and recommendations to mitigate the risks.
Two methods an H professional could use to determine incentive pay
There are a number of methods that are generally used by companies to link work, output and expertise to the remuneration of the employees. In this section we examine two methods that can be used by the company to create more loyalty among the employees to stay back in the company through the increasing in pay.
The reward management practices would help the company to determine the amount that would be paid to the employees. The underlying principal is that the company would…
Hoffmann, F., Inderst, R., & Opp, M. Regulating Deferred Incentive Pay. SSRN Journal. doi:10.2139/ssrn.2284337
Rosenbloom, J. (2001). The handbook of employee benefits. New York: McGraw-Hill.
Rosenbloom, J. (2011). The handbook of employee benefits. New York [u.a.]: McGraw-Hill.
Schraeder, M., & Becton, J. (2015). An Overview of Recent Trends in Incentive Pay Programs. The Coastal Business Journal, 2(1), 18-25.
Nike Inc. is an America multinational company with engagements in development, manufacturing, design, and global marketing of equipment, apparel, footwear, services, and accessories. The firm has its headquarters in Beaverton in Portland metropolitan region. The company remains part of the largest apparel and athletic shoes supplier in the world. The company is a notable manufacturer of different sports equipment reaching a revenue mark of U.S.$23.1 billion in 2012. The year 2012 was illustrated by the employment of close to 44,000 individuals across the world. Further, the brand was estimated to be at the value of $19 billion that made it a valuable brand within other sports businesses. Nike was developed in 1964 under the name Blue ibbon Sports (Farrell, 2009).
The founders were Phil Knight and Bill Bowerman who later adopted the name Nike, Inc. In 1971. The firm took the name against the Greek meaning of 'goddess of victory'.…
Berger, L., & Berger D., (2008). The compensation handbook. New Jersey: McGraw-Hill Professional.
Biswas, B.D. (2012). Compensation and Benefit Design: Applying Finance and Accounting Principles to Global Human Resource Management Systems. New York: FT Press.
Estreicher, S., & Reilly, D.J. (2010). Employee Benefits and Executive Compensation: Proceedings of the New York University 59th Annual Conference on Labor. New York: Kluwer Law International.
Farrell, B.S. (2009). Human Capital: Actions Needed to Better Track and Provide Timely and Accurate Compensation and Medical Benefits to Deployed Federal Civilians. New York: DIANE Publishing.
The future that is fast heading our way is often thought to be associated with creative technologies and businesses that do online services. But this is definitely not the full picture. Many traditional businesses are also being impacted in regard to what will be expected about some of their core operations, including in regard to how they treat and motivate their employees. Basic manufacturing is no different. In order for companies like ours to be ready for the future, we have to look seriously at the ways in which we recruit employees and keep them here once they sign on. With 120 employees whose skills encompass a broad range of talents -- some basic skills others tied to quite sophisticated technological abilities -- we have the chance to position ourselves to be ahead of the curve as the entire field of payment, rewards and recognitions is examined yet…
Barton, H. And Laux, J. (2010). Executive pay inefficiencies in the financial sector. The Journal of Applied Business Research. Vol. 26, No. 4.
Carpenter, S. (2007). Design the right compensation plan for your business. Entrepreneur. Retrievable from http://www.entrepreneurship.org/en/resource-center/design-the-right-compensation-plan-for-your-business.aspx .
CompuData Surveys (2009). The real effects of today's economy on the manufacturing industry. Retrievable from http://www.compdatasurveys.com/Files/News/Manufacturing%20Whitepaper.pdf .
Scott, D. And McMullan, D. (2010). The impact of rewards programs on employee engagement. WorldatWork. Retrievable from http://www.worldatwork.org/waw/adimLink?id=39032 .
home-based companies are slowly shifting their business operations to foreign companies to ensure they have an impact in the global business world. Given the current modern changes in international business developments, the number of expatriates is increasing for both long-term and short-term durations. For these organizations, sending employees overseas is an opportunity undertaken to improve business activities but without the right preparation, it is a challenging initiative to any organization. In this regard, companies are constantly training employees on international work issues to ensure their success in the global marketplace (Kontrimas, 2006). However, businesses face several challenges relating to hiring employees for their American-based business or expatriating employees to work in remote facilities, open new plants, and work with international clientele. As is the case H2O, mentoring future corporate leaders to successfully manage operations on a worldwide scale is a welcome step to ensure their operations are not limited to…
Ajami, R., & Goddard, J. (2006). International Business: Theory and Practice. M.E Sharpe Inc.
Brock, D.M., Shenkar, O., Shoham, A., & Siscovick, I.C. (2008). National Culture and Expatriate Deployment. Journal of International Business Studies, 39 (8), 1293-1309.
Delios, A., & Bjorkman, I. (2000). Expatriate Staffing in Foreign Subsidiaries of Japanese Multinational Corporations in the PRC and the United States. The International Journal of Human Resource Management, 11 (2), 278-293.
Fang, Y., Jiang, G.-L. F., Makino, S., & Beamish, P.W. (2009). Multinational Firm Knowledge, Use of Expatriates, and Foreign Subsidiary Performance. Journal of Management Studies, 47(1), 27-54.
Human esource Management is a practice of managing human skills, capacities and talents, to ensure their effective usage in the attainment of organizational goals, objectives and overall competitiveness (Youssef, 2012). Every Human esource manager performs various functions of recruiting, hiring, selecting and training competent employees. In addition, the manager offers competitive compensation and benefits packages, which attract, motivate and retain qualified employees. However, it is the function of the Personnel manager to devise ways, which will increase the employee effectiveness in performing the jobs. These ways include training, offering education and developing the capacities of the employees. As a result, there is an improvement of the employee contribution towards the attainment of organizational effectiveness and efficiency.
Effective management of employees' productivity is a crucial element in attaining organizational success (Youssef, 2012). High levels of productivity enable the organization to offer high compensation and benefits packages, which do not affect its…
Edwards, P. (2003). Industrial Relations: Theory and Practice. Oxford: Blackwell Pub.
Kreitner, R. (2009). Management. Boston: Houghton Mifflin Co.
Sims, R.R. (2007). Human resource management: Contemporary issues, challenges and opportunities. Greenwich, Conn: Information Age Publ.
Youssef, C. (2012). Human resource management. San Diego, CA: Bridgepoint Education.