In the recent past, firms have shown interest in applying performance measurement purposely to increase accountability and performance among executives. Many corporations are providing competitive incentive and compensation packages that align with the interests of company executives (CEOs). It is beneficial for a company to pay employees a compensation plan, which aligns with its performance package, productivity and financial position. Businesses have been profiling their highly compensated executives, and most of them lack a clear compensation plan. This paper examines different methods of compensation and their alignment with the productivity of executives in a company.
Businesses today need to be ethical in the way they operate. Remuneration, being a corporate governance issue, should be dealt with wisely since directors in the modern business world are expected to act as good corporate citizens. According to some research, high packages are justified as they do reflect the performance of those directors. Levels of remuneration should be adequate to attract, retain and motivate directors of the quality required to run the company successfully. However, directors should not be paid in excess of the adequate levels necessary for this purpose.
For instance, it has products that targets children, women and men individually. The segmentation strategy has been their best strategy to help the company achieve its mission statement. Moreover, the firm has employed HR strategy that is why it always tries to use its human assets to a maximum level so that it increase its sales and market share. Corporate Level Strategies: The corporate level strategies tend to cover the strategic direction of the firm. JCPenny has employed a number of corporate level strategies aimed at providing the direction that the firm should take in the future.
Based on the match employees can apply for a job or consider other job opportunities. COMPETENCY BASED COMPENSATION Competency based compensation is compensation for individual characteristics, for skills and competencies over and above the pay a job or organizational role commands. Various elements are considered for arriving at compensation increase. Enhancement in competencies has to be one of them. There is a need for competency based compensation system •To attract more competent than average employees •To reward for results and competencies developed •To motivate employees to maintain and enhance their skills and competencies regularly.
this is the process of setting up a strategy that will help them achieve their initial goals. Carry out the strategic plans is what J.C Penny is putting into practice what they plan. “Consumers have been reluctant to spend without the incentive of ig markdowns.” (Case Study, 2) In other words, marking down of prices per month used by the company to entice the customers to come into their store. Monitoring and reviewing of strategy implemented is very important as you will never know how good or bad a strategy will turn out. Monitoring also help to address any issues and make sure that procedures are followed correctly and that they aide to achieve initial goals set.
1. PURPOSE The purpose of this case study is to clearly identify the roles and relationships within the compensation management division in human resources. While identifying the roles and relationships within the compensation division the following are to be considered; traditional bases for pay, incentive pay, and employee’s performance appraisals in correlation to compensation/benefits. Additionally, evaluating the compensation/benefits division there are certain required and discretionary benefit laws that govern employer-sponsored retirement and health insurance plans which require review for employee satisfaction. Furthermore, to analyse the entire compensation/benefits program and the total rewards offered by Aflac.
Subordinates should understand an adopted compensation plan. Arbitrariness in promotions and rewards leads to cynicism, but not to an increase in motivation. If a new program is taken from the ceiling, workers start to think that the leaders do not respect them. The company should give clear answers to the questions of subordinates on how the system of rewards can affect their daily operations. Also, to achieve professionalism in any work, the employee should strive to become the best in the field.
Lau (2012) said that, the resourcing strategy incorporates drawing in and selecting and enrolling brilliant people. Learning and improvement techniques incorporate preparing and advancement, at work learning etc. which gives a learning domain to the people at work. The work of the effective representatives must be very much perceived and remunerated. For this prize and pay methodologies both financial and non-fiscal procedures must be distinguished.
Martocchio (2017) explains that compensation professionals promote successful compensation systems by achieving three main objectives: internal consistency, market competiveness, and recognition of individual contributions. Of the three main factors, internal consistency has an interconnection with many, if not most, business strategies and practices. Internally consistent compensation systems compare the value of each job among jobs within a company recognizing differences in job characteristics defined with job descriptions that as a result, represents and establishes the company’s job structure or hierarchy. Job characteristics enable compensation managers to set pay accordingly, i.e., jobs with greater qualifications and responsibilities receive a higher compensation than those requiring lesser qualifications and fewer responsibilities. Compensation professionals use job analysis and job evaluation to achieve internal