Strategic Compensation Essay
Chapter 1 Setting the Stage for Strategic Compensation, Page 31
2. Presumably, five core job characteristics promote intrinsic compensation. Give examples of jobs that you believe rate highly on these core job characteristics. Explain your answer.
Director of Daycare Facility * Skill Variety-Knowledge of upcoming changes in the facility, upcoming health and safety issues regarding children, knowing the many different disabilities that you serve as a daycare and how to handle them. * Task Identity- Knowing when and how to make the right decision on a child when an incident occurs, is a problem solver when teachers run out of ideas on handling children, and enforces all company rules for all staff members. * Task Significance- Making …show more content…
Identify two companies. One that you believe pursues a lowest-cost strategy. Another that pursues a differentiation strategy. Relying on personal knowledge, company annual reports, /or articles in newspapers and business periodicals, discuss these companies’ competitive strategies. * Lowest-Cost Strategy-Aldi’s: They offer the same type of food as many other grocery stores just at low reasonable costs. They offer food, toys, and household items. Simplicity, consistency and responsibility have always been our three defining core values. As an expanding discount retailer, there actions have international influence in different markets and along the supply chain. They are convinced that long-term business success can only be achieved if they are additionally assumed responsible for people, nature and the environment.
* Differentiation Strategy-Abercrombie and Fitch- Offer the same items of clothing just more expensive because you are paying for the name brand. With all of their departments from merchandising to design collaborating on their products on campus, they are able to react to emerging trends faster than any other retailer. Cutting edge facilities, technology, and resources are available at your fingertips, making their Home Office a retail playground for the most talented in the industry to grow their …show more content…
Discuss what strategic compensation means to you. * Strategic compensation is the type of compensation scheme implemented to improve the motivation of your people to perform better. It must also have the potential of strengthening your image as a good employer. A good reward scheme has the potential of motivating employees if implemented with care. But it can demotivate if poorly handled. There is nothing more immediate in affecting the behavior of employees than a salary scheme that is not designed well or badly implemented even if the scheme is good.
4. Describe why a company’s long-term prospects are an important consideration to compensation professionals. * As a company transitions from startup mode into the expansion stage, the corporate vision becomes clearer and less flexible and the corporate goals readjust and become more long-term focused. Consequently, the benefits of corporate stability increase as employee onboarding and training takes a lot of time and costs a lot of money. Additionally, high employee turnover leads to significant productivity losses. Thus, it makes sense for maturing companies to start building long-term compensation and benefit incentives into their employee compensation plans as their corporate strategy and goals become more concrete and focused on multi-year
2. Presumably, five core job characteristics promote intrinsic compensation. Give examples of jobs that you believe rate highly on these core job characteristics. Explain your answer.
Director of Daycare Facility * Skill Variety-Knowledge of upcoming changes in the facility, upcoming health and safety issues regarding children, knowing the many different disabilities that you serve as a daycare and how to handle them. * Task Identity- Knowing when and how to make the right decision on a child when an incident occurs, is a problem solver when teachers run out of ideas on handling children, and enforces all company rules for all staff members. * Task Significance- Making …show more content…
Identify two companies. One that you believe pursues a lowest-cost strategy. Another that pursues a differentiation strategy. Relying on personal knowledge, company annual reports, /or articles in newspapers and business periodicals, discuss these companies’ competitive strategies. * Lowest-Cost Strategy-Aldi’s: They offer the same type of food as many other grocery stores just at low reasonable costs. They offer food, toys, and household items. Simplicity, consistency and responsibility have always been our three defining core values. As an expanding discount retailer, there actions have international influence in different markets and along the supply chain. They are convinced that long-term business success can only be achieved if they are additionally assumed responsible for people, nature and the environment.
* Differentiation Strategy-Abercrombie and Fitch- Offer the same items of clothing just more expensive because you are paying for the name brand. With all of their departments from merchandising to design collaborating on their products on campus, they are able to react to emerging trends faster than any other retailer. Cutting edge facilities, technology, and resources are available at your fingertips, making their Home Office a retail playground for the most talented in the industry to grow their …show more content…
Discuss what strategic compensation means to you. * Strategic compensation is the type of compensation scheme implemented to improve the motivation of your people to perform better. It must also have the potential of strengthening your image as a good employer. A good reward scheme has the potential of motivating employees if implemented with care. But it can demotivate if poorly handled. There is nothing more immediate in affecting the behavior of employees than a salary scheme that is not designed well or badly implemented even if the scheme is good.
4. Describe why a company’s long-term prospects are an important consideration to compensation professionals. * As a company transitions from startup mode into the expansion stage, the corporate vision becomes clearer and less flexible and the corporate goals readjust and become more long-term focused. Consequently, the benefits of corporate stability increase as employee onboarding and training takes a lot of time and costs a lot of money. Additionally, high employee turnover leads to significant productivity losses. Thus, it makes sense for maturing companies to start building long-term compensation and benefit incentives into their employee compensation plans as their corporate strategy and goals become more concrete and focused on multi-year