BUS 310

Powerful Essays
Compensation at Carrington

Executive Summary:
The managerial style I chose: as HR person I would use Human Relations Managerial Strategy. This strategy helps to coordinate employees and supervise them. The organization is not big so it would be appropriate to have informal (grapevine) communication as well. This strategy will help me motivate employees both extrinsically and intrinsically to enhance task behaviour. With this strategy it will be autocratic decision making, so only top-level management would be able to make decision with minor consultation (Long, 2010). However the opinion of employees is important. Providing comfortable environment for work will increase employees’ motivation, their loyalty and performance.
Proposed compensation strategy: The compensation mix consists of three components: base pay, indirect pay and performance pay. The largest part of compensation package in the company will be base pay. The salary will be calculated on monthly basis. In this industry much depends on employees performance: how they treat customers and how they perform their job duties. That is why part of their salary will depend on their performance results. Performance pay will consist of two parts and coincide 10% of total billings. I will give this bonus to technicians, set the goals every two weeks, set achievable goals on the amount of sales and split the bonus equally between the group. In order to work well this plan must be designed with input from employees. Last part of the commission mix is indirect pay plan that will be fixed benefit system where all employees are covered by a standard package of benefits (Long, 2010 p.445). It will include mandatory benefits, health benefits, pay for time not worked and miscellaneous benefits.
Summary of the compensation mix is: 47% of base pay, 45% of performance pay and 8% of indirect pay.
Introduction:
Carrington Pest Control Company is a local pest control firm in a large city. The company’s business is to



References: Long, R. (2010). Strategic compensation in Canada, 4th ed. Nelson Education Limited, Toronto, Canada. Miller, Thomas. (2001). Compensation at Carrington: The New Pay Plan. The University of Memphis. The North American Research Association Naceur, A. K. (2000). Environmental Uncertainty. Retreived from ASQ: http://asq.org/pub/qmj/past/vol10_issue4/jabnoun.html

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