Compensation

Topics: Human resource management, Salary, Employment Pages: 10 (1604 words) Published: January 31, 2015
MISERICORDIA UNIVERSITY
BUSINESS DEPARTMENT
MBA PROGRAM
Assignment for Course: MBA 506 – Human Resource Management for Leaders Submitted to: Dr. John L. Kachurick
Submitted by: Jennifer Rebarchick
Days of Course Meetings: Tuesdays 6:00-8:30 pm
Date of Submission: November 2, 2014
Title of Assignment: Critical Thinking Assignment 3

CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.

Student's Signature: Jennifer Rebarchick

************************************************************************

Instructor's grade on assignment: ____________

Instructor's comments:

Compensation-Bemis 1

Compensation-Bemis Corporation

Human Resource Management

MBA 506

Jennifer Rebarchick

Misericordia University

Fall 2014

Compensation-Bemis 2

ABSTRACT

The main purpose of a compensation strategy is to give the right rewards for the right employee behavior. Compensation is an important motivator when looking to achieve desired organizational results. Money is thought of as a powerful motivator, however that only holds for sometime until the next pay increase is due. Compensation strategies reinforce the organizational culture that you desire, this enables the culture where pay is linked to performance. To ensure this process works, it must be reflected in the strategic business objectives. The objectives must clearly be defined, must be communicated as soon as decision has been reached. By doing this proper, the organization can motivate employees and make them want to perform better.

CONTENT

An incentive plan is defined as a formal scheme used to promote or encourage specific

actions or behavior by a specific group of people during a defined period of time. So

what are the reasons so many companies would find a need to offer such incentive

plans? Some of the top reasons are, for motivation, company morale, company loyalty,

increased productivity, increase achievement, reduced absenteeism, reduce company

cost, decreased turnover and to create more team work.

The organization I am employees with created for both union and non-union

employees an incentive compensation plan. When developing this plan it was to focus

on two major points, safety and waste reduction. It was then also decided that a third

element would also be counted, improved productivity.

In order to receive the incentive there were requirements; you need to be a full time

Compensation-Bemis 3

employee, employed for the last three (3) consecutive months and be actively employed

at the time of payout, which was quarterly.

There are also goals that need to be reached in order to collect the incentive for that

portion of the goals. The safety component is that the TRIR (total recordable incident

rate) needs to be low. Following the guidelines as noted:

Greater than 1.50 payout was 0
1.01  – 1.50 payout is 1% of quarterly wages
less than 1.01 payout is 2% of quarterly wages

As a company this component is important because the safety of the employees is

and will always be the most important thing to the company. Their safety should come

first not only to Bemis but also to the employees. They should be rewarded for working

safely.

The second component is waste, and the goals were to reward for reducing waste in

their respective operation through all acceptable waste reduction measures. Waste is

calculated in the sum of process waste, scrap that is...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Interclean Compensation Essay
  • Compensation Management: What is the role of compensation and rewards in modern organization? What are the advantages of a fair...
  • Compensation Essay
  • Final Compensation Paper 1
  • Essay about Compensation Strategies
  • Compensation Strategy Essay
  • Essay on Benefit and Compensation
  • Employee Compensation Essay

Become a StudyMode Member

Sign Up - It's Free