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Case Study 1Fit Stop Essay

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Case Study 1 Fit Stop – Designing a Reward System Introduction Starting a business can be an exciting time for an entrepreneur but new market concepts and opportunities are useless without the strategies to operate the company to success. Day to day strategies are needed to achieve the organizations goals. The largest expense of any company is usually the compensation strategy. The face of the retail company is the service staff and their relation to the customer are paramount to success. Firms are in competition to find qualified, engaged employees. The pressure for an organization to get it right is the key to competitive success. Companies now look to creative compensation strategies to create a environment that employees want to …show more content…

The organization must attract and retain the individuals with the attributes necessary for the tasks required. The organization through its managerial system must then support and guide the desired task behaviors for each individual in the organization. The compensation system must comply with all laws in the jurisdiction it operates and be seen as equitable for members of the organization. The organization must achieve these compensation goals in a cost effective manner. Fit Stops key strategy of competing in the market place is exceed customer expectations by providing personalized training advice, consultation, and top customer service. Susan's initial thought of compensation is to match what her competitors are doing. By matching the compensation systems of organizations, she will be operating in the same pool of applicants as her competitors. Fit Stops challenge is to align its compensation system to its organizations strategy by firstly the ability to attract and retain and secondly to promote the desired employee behaviors'. Fit Stop needs to have fully engaged employees, to provide the personalized service that it provides to its customers. Their employees need to be highly motivated and knowledgeable with a strong concern for their customers. Employees must be flexible and innovative to developing solutions, and keeping up with the latest in fitness and training trends. As trends develop they must also

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