The challenges facing SAP is the shrinking matched skill workforce for the needs of the organizations strategic goal. This makes the training and development area very important to the strategic planning involved in human capital management. It make the Human capital management part of the strategic plan. Training and development methods
SAP utilizes a Career Success Center for employee and a Manager’s Success Center as some of the methods for training and development. (SAP Employees) It also has several universities that it runs to provide training for it employees. Value University is one in which it utilizes to train and develop it sales force. This has become a method of consolidating and sharing knowledge and allowing the rapidly changing environment to all employees who can utilize this resource. This provides a asset development environment which is beneficial to the organization executive compensation
SAP utilizes a performance based compensation system for its executive compensation package based on organization strategic goals. (SAP Executive Compensation, 2010) It pays it executive compensation on a total package system. It consists of a base salary and 4 separate performance based indices. – A fixed annual salary
– A variable short-term incentive (STI) plan to reward performance in the plan year
– A variable medium-term incentive (MTI) plan to reward performance in the plan year and the two subsequent years
– A share-based long-term incentive (LTI) plan tied to the price of SAP stock (SAP Executive Compensation, 2010)
Sap is an environment that is more team performance oriented. The nature of the strategic plan and environment that the organization operates dictates that it be a diverse and team to be successful. SAP has a strategic plan to continue to develop its diversity and development thru SAP Universities. It also enhances and develops its human capital thru acquisitions and recruiting to meet the...