Employee Compensation And Its Impact On The Organization 's Performance Levels Essay

Employee motivation is, or at least must be, one of the key issues for directors, managers and personnel managers. The leader must be able to find the sensitive strings of his subordinates, which can be motivated by influencing them to achieve high performance. The correct use of motivation encourages staff to make more efficient use of their knowledge, skills, and talents. In today's turbulent, often chaotic environment, commercial success depends on the employee's talent and effort. Despite the many existing theories and practices, some of the motivation of leaders today remains a mystical term. This is partly due to the fact that people are motivated by different things and techniques.

Looking from the outside in, there are some distinct reasons why Edward Jones kept its employees finely motivated. Using the Job Characteristics Model as a template to analyze how it was done, it is apparent that Edward Jones harnessed for its employees job meaningfulness, responsibility, and demonstrated knowledge of results; which ultimately guided top-notch work outcomes (Louis, Notes on the Job Characteristics Model). Analyzing the ‘job characteristics’ section of the model, it is evident that Edward Jones mastered the concept of autonomy. Evidence presented itself when Jones’ employees were encouraged to grow roots and stay in one branch office without having to relocate in order to advance careers. This autonomy allowed for another characteristic to prevail, task significance. Through their autonomy, the individual branches reached out to connect with their clientele and clearly were able to perceive the impact that their

According to all the facts we have on the Fit Stop, we chose that the best suitable organizational performance pay plan for employees would be employee stock plans which are a plan through which employees acquire shares in the Fit Stop. We have chosen the three main employee stock plans i.e. employee stock bonus plan, employee share purchase plan and employee stock option plan. (Long, 2013)

According to the recently released Employer Cost for Employee Compensation of June 2017, release by the Bureau of Labor Statistics, the average compensation per hour worked in the United States in the month of June was $35.28. The wages and salaries of these workers were a total of $24.10 per hour correspondingly accounting for 68.3% of the cost. The benefits averaged a total of $11.18 per hour likewise reporting for 31.7% of the cost. (Bureau of Labor Statistics, 2017) I incorporated an attached a pie chart to show the total compensation for all works in different industries, based on the hourly compensation, civilian workers as well as their corresponding percentages of the average $35.28 wages and indirect compensation.

Many companies now recognize the value of investing in their human capital (NYtimes.com, 2006, para 1). A biotechnology company, Genentech, has proven that there is a direct link between motivated, happy employees and economic success. By providing several special programs and positive reinforcers to assist their employees and making life a little easier, the employees show pride and are dedicated and motivated to doing their jobs and performing above average. Because of the employees increased efforts Genentech has increased their profits, created world class medicines, and have been recognized numerous achievement awards.

There are very many factors that motivate employees to do outstanding work in their jobs. Though most of them are non-monetary factors like participative decision making, work teams, challenging jobs, goals in life or in the company, power and other factors. Most of the employees that emerge in their workplace, either in a small cubicle or a mega office have got some drive that enable them to perform in their work, but the key question is, is money is the key motivation in their workplace? In this essay both sides will be argued in order to find the answer to this (Robbins, Odendaal & Roodt, 2003).

Chapter 2 Harvard Press Book (2006). Performance management: Measure and improve the effectiveness of your employees. (Chapter 2) Motivation: The Not-So-Secret Ingredient of High Performance. Harvard Business School Publishing. Cambridge, MA. Lynn, I., Hodge, Y. & Yemen G. (2007). Teamwork turmoil. University of Virginia Darden School Foundation. Beamish, P. & Jiang, R. & (2011). The Chinese fireworks industry. Richard Ivey School of Business Foundation. Kaplan, R.S. (2010). Leading change with strategy execution system. Harvard Business School Publishing. Cambridge, MA. Karkhardt, D. & Hanson, J. (1993). Informal networks: The company behind the charts. Harvard Business School Publishing. Cambridge, MA. Katzenbach, J. & Smith, D. (1993). The discipline of team. Harvard Business Review. President and Fellows of Harvard College. Kerr, S. (1995). On the folly of rewarding A, while hoping for B. Academy of Management Executive. 9 (1), 7-14 Download on class site Kramer, R.M. (2003). The harder they fall. Harvard Business School Publishing. Cambridge, MA. Montgomery, C.A. (2005). Newell Company: Corporate Strategy. Harvard Business School Press.

that employees remain motivated if they are rewarded to achieve goals of a company. And when they are

Motivation in the workplace is one of the major concerns that managers face when trying to encourage their employees to work harder and do what is expected of them on a day-to-day basis. According to Organizational Behavior by John R. Schermerhorn, James G. Hunt and Richard N. Osborn the definition of motivation is "the individual forces that account for the direction, level, and persistence of a person's effort expended at work." They go on to say that "motivation is a key concern in firms across the globe." Through the years there have been several theories as to what motivates employees to do their best at work. In order to better understand these theories we will apply them to a fictitious organization that has the following

In today’s competitive workforce, compensation and benefit packages plays a crucial role on recruitment and retention for both the organization and the employee. Bumpbie finds itself in a situation where it could positively affect its employee’s morale, turnover rate and longevity; by making a strategic decision to implement compensation and benefit packages that will encourage current workers to stay and entice new applicants. Money is not always the inherent reason businesses experience high turnover rate, the constant shifting in the job market will always be a contributing factor as well as employee’s moral. Mayhew, R. (2016), explains that an “employee compensation plan” refers to all the components offered as well as the way in which they are paid, and the reason behind the employees getting the compensation case bonuses, salary increases and incentives. The fact that there are voluntary and mandatory benefits that organization provides to their employees give employees the freedom of choice, as well as the option to make the whether to stay with or leave an organization based on the benefits it provides. Variable Pay is also an option that some employers offer their employee which is performance based or results oriented. Whether it is profit sharing, merit based programs or incentive bonuses; it all comes down to which organization can provide employees with the compensation or benefits packages that best satisfy their needs.

Keeping employees motivated in addition to creating incentives and/or additional ways for employees to receive more compensation will create better performance overall within an organization. Contrary if company B gives their employees incentives to perform, without any motivational tactics they probably will not have as many top performances as company A, in addition the company may only seek short term rewards verses have long term success. Lack of motivation for employees within an organization, can cause long term damage for the company’s success. Different things motivate everyone; therefore there should be a system in place to keep employees motivated for the long term success of the company. In the MBM textbook under the concept of incentives, compensation, and motivation, there are a couple of different views of how it should be applied within an organization. We will discuss The Social Role of Profit, Personal Profit and Losses, and the way Market-Based Management view how incentives, compensation, and motivation should be applied and the things that effectively drive employees’ actions while at work.

Pay for performance is to link employees’ salary or salary increase to his or her performance. It seems to be a reasonable or attractive idea but it often does not work well in organizations. Please use at least 4 motivation theories or models to explain why pay for performance may not work as expected—particularly in government and nonprofit organizations.

A study completed by the University of Michigan revealed that as employee motivation improved, the a company’s stock reached higher subsequent returns the following year, spanning times both good and bad. As an example, in 2002 the Standard & Poor 's 500 returned negative 22%. Yet the study found that for every five points added onto a firm 's Employee Motivation Index--how the study kept score--it returned an additional 2% in stock price the following year (Serchuk, D. n.d.). Costco subscribes to this type of belief in that a satisfied employee that enjoys higher wages, potential for bonuses, job security and full appreciation for their work is not only recognized by management, but taken into consideration when promotions for other positions are considered.

The organization for which I am designing the compensation package is a company that offers internet solution to customers in the domestic US market and the global market. The position that I am hiring is that of a company secretary. The secretary will be required to work in the office of the human resource manager and will handle all the papered and paperless documentation. The position comes with numerous benefits and packages as outlined herein.

Today, competition between the businesses is extremely high thus companies need to find ways to be competitive. Organizations prepare the best market strategy to increase the company performance and the ways to keep their employee motivation on the highest level to perform well within the competition. At that time, several incentive pay programs play an important role for every organization to perform well within the competition.