Corporate Fairness And External Competitiveness At Gore 's Compensation Plan

Organizations are growing in size each and every day, which in turn creates a high demand for employees. This outcome, however, needs a systematic approach to determine the right employee for the right position. The process has become so large that organizations need specialized help from Human Resource Management (HRM) departments to ensure that the requirements of the position are met. Therefore, the HRM department provides the function of job analysis in order to select the right individual for the position. "Job analysis is a complex and vital part of every HRM program, as well as an important systematic process used within an organization to determine future members of the workforce." Job analysis

This paper will discuss the reasons why CEOs are not being overpaid. It will apply the utilitarian ethical principle to many a few aspects to CEO compensation and whether or not it is justifiable for such pay. The paper will look at whether or not their performance is justifiable for the pay because they play such a big role in the livelihood of the company along with the principle agency theory and how it is being addressed for the benefit of the shareholders and others involved with the company, the supply and demand of the CEOs, and the paper will describe the comparison of other professions to help link the idea of CEOs being fairly compensated.

carefully planned out and considered, the total closure or failure of the organization could be at hand in the near future. In our modern age, employers know that salary is not the only factor that should be considered and that salary alone will not lead to better or more highly profitable workers alone. This is why compensation planning is important and why pay should have some connection between performance and compensation. This is why the human resources department should consider many monetary and non-monetary factors when considering how to properly compensate and motivate employees (Dessler, 2013).

Thus, employers must know how the compensation they offer for critical positions differs with compensation for similar positions at other organizations in the market. Therefore, if an organization is recognized to be a great place to work in terms of factors such as training, resources, technology, work environment, staffing, and scheduling, the organization may be able to pay less than its competitors do within an acceptable range. However, if competitors are viewed more favorably as an employer, on the other hand, the organization will need to use compensation as its strength. Although, any strategy based solely on compensation will not succeed in the long run because a successful strategy combines market-rate compensation and a work environment that is competitively distinguishing and unique (Gering & Conner,

A non-competitive compensation package however would result in making it harder for an organization or employers to attract and hire those with talent and skills (Ghosh&Satyawadi, 2013). As with everything else in this world, an attractive compensation and benefits package is subjective and is different from field to field. The compensation should also be in line with on the job factors such as difficulty, working hours and so

A Performance-Based Pay system is an increasingly popular compensation method used by organizations to increase productivity. A goal for all companies is to try and remain competitive and control costs, this is a reason for performance-based pay systems becoming more popular. This type of system attempts to link compensation to performance. (Gena Richter, 2002) These systems are directly tied to organization or individual performance and are most effective when based on objective measures of quantity or quality of performance. If we wish to have a direct impact on work motivation, it must be linked directly to the performance of desired behaviors. In order for to put this type of system into place, performance evaluations must be conducted regularly , as well as training and development for those with performance that isn't quite up to par. These additional resources will be necessary for our organization if we implement a performance based pay system. (William B. Bernathy, Ph. D., 2004)

The right compensation program will depend on the organization’s business strategy and goals. To achieve these, an organization must recruit and select the best possible employees. To attract such employees, there must be an attractive compensation plan. Competitors will be offering different payment options, this may be based on pay rate or special perks, and a company’s stock options. Organizations must be aggressive yet reasonable to compete with competitors. Retaining and encouraging employees to perform at their best may be achieved through an immediate incentive award

In today's market world many companies use forced ranking as a effective performance management approach. According to Bryars, using this technique encourages a negative impact on productivity, a competitive work environment, dysfunctional staff performance, and no employee engagement as a team effort. Furthermore, when employers rank employees, they lose information. For example, the difference between someone who is ranked at 70% and someone who is ranked at 20% would be minimal information compared. Let's take for example salesmen, the difference between your top performers and your bottom performers is the information needed, this could the difference of a very small percentage. So if employers start making performance decisions based

Ranking is the simplest job evaluation and is based on factors like “job difficulty.” However in the ranking method you don’t know any other information then that one job ranks higher then than the other. Best for small business, because it the easiest way for them to create market competitive pay scale

The organization has an advantage of selecting the best employee since there is a criterion that is being used. The standardized measures minimize chances of selecting an employee based on biasedness by the interviewing managers. The use of the criteria for rating, therefore, minimizes chances of employee selection by nepotism, favoritism or any other kind of biases.

Gore's competency to attain innovation can be traced from the company's culture where employees are encouraged to feel free, collaborate through self-motivation, and communicate among themselves. Gore's innovation stems from contributions made by flexible working schedules allocated to employees. Gore has granted all employees one day off per week in order to pursue their personal commitments (Hamel & Breen, 2007). New employees at Gore are put into wider roles, which include business development leaders or R&D engineers and not other narrowly defined jobs. In order to assist the new recruits to be at their best, each is allocated a guide who gives the newcomer guidelines on the norms of the organization. Instead, bosses are teams, which are made by associates. In this case, tasks are only accepted and are never assigned, but associates dedicate and commit themselves because this is the only way they are measured. This is a voluntary commitment, and many find it hard to keep up with it and opt to leave (Deutschman, 2007).

Some managers rotated the highest ranking between their employees from one year to the next. So the objective of developing new evaluation system was unfulfilled.

Gore’s belief and implementation of a lattice system was successful in his vision for creativity and innovation but the structure presented a lack of clarity in regards to the amount of compensation given to employees relating to their specific qualifications, expertise and performance.

A great opportunity lay in employee recognition. Employee recognition will be nonfinancial benefits offered to employee. This non-financial benefit allows management to proper recognize and foster employee loyalty as well reinforce positive work behavior and encourage for repeat performance in all areas of the job (Henderson, 2006). Another non-financial benefit for employee is training. Training will allow employee gain additional knowledge and expertise and to be up to date with new technology open opportunity to advance in their career. These non-financial benefits allow management to make sure employees are value. Including employee in department meetings and allowing employee to have a say so in decision making demonstrates respect for employee and it allow the

From the interview with Ms. Lim, the managerial will rank their employees according to their relative level of performance. The employees will be call upon into the office by their own manager or even supervisor, and will be interviewed accordingly. Ranking is done on an annual basis during the annual planning cycle, which takes place worldwide during Quarter 1. There are three rank categories and a performance category for employees who are not ranked because they are not consistently demonstrating the performance expected of those in similar positions. The rank categories are: