Strategic Compensation Excellence and Plain Mediocrity

There is a clear business case for strategic compensation. Well managed rethinking of performance management, rewards and benefits leads to better business results, stronger capability, higher staff retention levels, heightened motivation and employee satisfaction. The success stories of organizations leading the field in strategic compensation prove that how employees are motivated, rewarded, recognized, fulfilled and challenged to perform better is a key differentiator between excellence and plain mediocrity. One of the best ways to keep employees from walking out the door is to pay a higher salary. Paying employees more in salary, however, wont necessarily align them with the companys priorities. In order to do that, companies need†¦show more content†¦Younger people want time off and money; older people want 401(k)s and good medical. Those in the child-bearing years want child care and flexible leave (Frase-Blunt, 2002). In order to make Plastec a more competitive company in regards to wages, Paul should utilize a third-quartile strategy (Mathis and Jackson, p. 366). Wage increases should be based on performance. Each position will be assigned a wage range and the employees productivity will determine his or her hourly wage. In the article Strategic compensation: Pay for performance, the author discuses several automated systems that can help managers sort and manage employees. Paul can utilize an On-demand compensation management application to assist him with developing the wage, salary, and reward system for Plastec (Dobbs, 2006). Compensating employees financially will often result in better performance and higher levels of motivation. Pay for performance plans are the most popular incentive plans in businesses today and would be ideal for Plastec to integrate into their new compensation plan. For a compensation plan to motivate performance, employees must believe that good performance will lead to more pay, want more pay, not believe that good performance will leads to negative consequences, see that other desired rewards besides payShow MoreRelatedStrategic Human Resource Management72324 Words   |  290 PagesBusiness Management Study Manuals Advanced Diploma in Business Management STRATEGIC HUMAN RESOURCE MANAGEMENT The Association of Business Executives 5th Floor, CI Tower ï‚ · St Georges Square ï‚ · High Street ï‚ · New Malden Surrey KT3 4TE ï‚ · United Kingdom Tel: + 44(0)20 8329 2930 ï‚ · Fax: + 44(0)20 8329 2945 E-mail: info@abeuk.com ï‚ · www.abeuk.com  © Copyright, 2008 The Association of Business Executives (ABE) and RRC Business Training All rights reserved No part of this publication may beRead MoreOrganisational Theory230255 Words   |  922 Pagessynthesis of approaches to organization theory. It will be welcomed by organization theory scholars and reflective practitioners and is a valuable companion for scholars and students of organization theory. Henk W. Volberda, Chair of the Department of Strategic Management Business Environment and Vice-Dean of the RSM Erasmus University, Netherlands At last, a text that brings organization theory into the 21st century! This is the first organization theory textbook to provide full and informed coverageRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 Pagesideas for improvements. Although MBWA has long had its advocates, it does present certain problems. First, the time managers spend directly observing the work force is time they are not doing their core job tasks like analysis, coordination, and strategic planning. Second, management based on subjective impressions gathered by walking around runs counter to a research and data-based approach to making managerial decisions. Third, it is also possible that executives who wander about will be seen asRead MoreDeveloping Management Skills404131 Words   |  1617 Pagesan investigation of the association between management tools and techniques and organizational performance. According to 4,137 managers in North America, Europe, and Asia, the tools associated with organization success were: strategic planning, pay for performance, strategic alliances, customer satisfaction measurement, shareholder value analysis, mission and vision statements, benchmarking, cycle time reduction, agile strategies, self-directed teams, and groupware. These kinds of lists are useful