Strategic Compensation : Strategic Management

Compensation systems can take on many forms, all of which have positives and negatives related to it. However, certain components are noted to be determinants of solid compensation plans. One agreement of a solid compensation system is the use of incentives. “Clearly a successful companies set objectives that will provide incentives to increase profitability” (Needles & Powers, 2011). Incentive bonuses should be measures that the company finds important to long-term growth. According to Needles & Powers (2011) the most successful companies long term focused on profitability measures. For large for-profit firms, compensation programs should offer stock options. The interweaving between the market value of a company’s stock and company’s performance both motivate and increase compensation to employees As the market value of the stock goes up, the difference between the option price and the market price grows, which increases the amount of compensation” (Needles & Powers, 2011). Conclusively, a compensation plan should serve all stakeholders, be simple, group employees properly, reflect company culture and values, and be flexible (Davis & Hardy, 1999; The Basics of a Compensation Program).

Feedback was provided to assist you in maximizing points earned on this final paper. To properly complete this final project, you must include the feedback provided to apply to this final paper. The purpose of this assignment is to apply your critical thinking skills in completing the employee process from job analysis to compensation based on performance. You are now going to make compensation decisions.

The senior leadership within Harrah Entertainment, Inc. feel compelled to, and recognizes the need to look inward at its staff to better equip and motivate them with a meaningful compensation strategy to support and achieve their overarching goals. The method currently in place is a customer-satisfaction driven gain sharing bonus plan (Delong & Vijayaraghavan, 2003). The question at hand, are they dealing the right deck of cards to their employees to continue to meet and exceed the goals? In this paper, key players within

This report examines 3 different compensation systems that our company can develop and enforce within our company for our employees. Compensation is the most important and rewarding factor for employees, so a thorough and thoughtful approach should be taken as we think about changing the way in which this company rewards it's employees for the work they do for us each and every day.

Market rate and equity policy needs to be formulated on the extent to which rewards are market driven rather than equitable. Should obtain and keep high quality staff and response to market pressures. Market considerations will derive levels of pay in the organization. Attraction policies should have career prospects, training and development, intrinsic interest of the work, flexible working arrangements, and work life balance. Retention policies should consist of Talent management (attraction and retention of quality employees). Talent management policies are to attract employees, to develop employees, rretain employees, and mmotivate employees. Talent management process is wwork life balance, lleadership qualities of line managers, rrecognition, cconducting talent audits. Assimilation policies is how existing employees should be assimilated into revised pay structure such as red circling (identifying and dealing with overpaid people) and Green circling (identifying and dealing with underpaid people). The three performance measurement practices to be compared in this presentation are written, confidential evaluation non-confidential evaluation, and oral evaluation.

The components and general structure of any business firm could lead to disconnection of the relationship between managers and their employees. It is, therefore, necessary that Kudler Foods adopt a well-defined strategy, which will protect the relationship. The composition of the compensation plan for Kudler was developed with the needs and efforts in mind. For Kudler Foods Organization, the Human Resource Managers planned for a strategy that would include all necessary components. The compensation plan for the organization included the base pay, short-term incentives, long-term incentives and benefits for employees, plans for retirement and finally the equity element (Tibergien & Pomering, 2011). The components are discussed in detail, in the proceeding paragraphs.

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

This paper will examine setting the stage for strategic compensation and bases for pay. There are three main goals of compensation departments: internal consistency, market competitiveness, and recognition of individual contributions. Internally consistent compensation systems define the relative value of each job among all jobs within a company. (Martocchio, pg. 22, 2011) With this system companies want employees to be paid more based on their qualifications and responsibilities. They believe someone with less experience should be paid differently. To determine such evaluation companies use job analysis in order to provide job descriptions. The job evaluation is to determine pay according to a particular position. Market-competitive

As an HR manager, I have to come up with a plan to revamp the compensation and benefits package. I have to essentially come up with what is expected from a team so that there is no miscommunication about what is required. First, a compensation plan has to be written for the company should provide the managers with an important tool to get the most out of those who report to them. Second, the plan should include every form of the compensation that is available, such as, salary, bonuses, merit increases, wages and overtime, paid time off, 401(k), and other profit sharing plans. Third, we

Compensation is output and the benefit that employee receives in the form of pay, wages and also same rewards like monetary exchange for the employee’s to increases the performance Holt, 1993). Compensation is the segment of transition between the employee and the owner that the outcomes employee contract. As the prospective of employee pay is the necessary of life. The payment receives from work done on the behalf of people getting the employment. From the employee prospective one of the most important part of cash flow. Compensation is mostly equal to half of cash flow of the companies. But in the service sector it is more than half. It is the major to attract the employee and motivate employee to increases the performance (Ivanceikh and Glueck, 1989).

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.

As mentioned above that the cost and the quality should be proportional to be fair with customers .Equality is the important element for compensation plan. If an employee is willing to do extra time, he/she should be compensated accordingly to maintain the moral of the employee high as employees expect to be rewarded for their ability and productivity. Therefore special care must be taken to remove differentiations.

As a significant impact on the organizational strategy, employee behaviors, and firm performance, executive compensation program is designed and determined through many policies and approaches, and many leading theories are explained and related empirical studies are conducted. The theories that will be introduced include marginal productivity theory, governance theories of managerialism and agency theory, structural theory, human capital theory, and the symbolism theories of tournament winnings and political strategist appointments.

Holland Enterprises is on a new strategic direction, to attract and retain the most talented employees and to reduce turn over. Human resource department has came up with a new compensation plan. In the propose compensation and benefits system plan , I will explain a new compensation plan for Holland Enterprises, also I will explain the components of the compensation and benefit system plan in order to attract and motivate employees to be productive . In order for the compensation and benefits system plan to be operational, the package should include a necessary level of compensations to fulfill basic needs, equity with the external labor market, equity within the organization (Henderson, 2006).

Therefore, the human resources managers and tax experts have to evolve proper compensation planning for High end and  qualified employees. The components of compensation have to be devised in such a way that, it focuses on the growing demands of employees while retaining the