might affect them. Still Your Turn Mapping Compensation Strategies Take an terne
ID: 389231 • Letter: M
Question
might affect them. Still Your Turn Mapping Compensation Strategies Take an terned, a friend's employer. Look at Exhibit 2.8, "Contrasting Maps of Microsoft and SAS." Map your organization's compensation strategy then compare it to that of Microsoft and SAS. y organization that you know-current employer, business school, the place you in- 1. Summarize the key points of your company's strategy 2. What are the key differences compared to the strategies of Microsoft and SAS? Or ask several managers in the same organization to map that organization's compensation strategy. You may need to assist them. Then compare the managers' maps. 3. Summarize the key similarities and differences. 4. Why do these similarities and differences occur? 5. How can maps be used to clarify and communicate compensation strategies to leaders? To employees? SummaryManaging total compensation strategically means fitting the compensation system to the business and environmental conditions. We believe the best way to proceed is to start with the pay model-the objectives and four policy choices-and take the steps d in the chanter: (1) assess implications for the total compensation of your n ohiectives and four policyExplanation / Answer
Answer 1:
Compensation Strategy of our organization: The compensation strategy of our organization is to develop the compensation plan such that it contains the fixed pay and variable pay so that the employees can be motivated for better performance by variable pay plan. The variable pay plan will motivate the employees for better performance and the organization will achieve better performance.
The key points of company strategy for compensation are as below:
The compensation plan needs to be effective so that it attracts the employee towards the organization and does not make them frustrated with the organization.
The compensation plan should support the organization goal as well as the employee goal.
The compensation plan should have the fixed pay plan and variable pay plan so that compensation is linked with performance of the employee in the organization.
The compensation should drive the performance in the organization.
The variable pay component of the compensation plan should be such that it attracts the employee attention and motivates employees for better performance to achieve higher variable pays for themselves.
Company wants to drive performance with the help of compensation plan and wants to pay higher to the employees who perform better in the organization so that a healthy competition can be developed in the organization and employees works in the competitive environment.
The Compensation plan should meet all legal and statutory requirements as per labor laws and factory acts. The fixed pay should consider the legal clauses .
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