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: ____________
Human Resource Management
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.
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
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
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...
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