...Please find enclosed Case Study One – Designing a Reward System for “The Fit Stop”, for your review. Using point form, write a brief description of the organization, its employees, and its challenges. What is the organization's domain? (10 points needed) Organization: * The Fit Stop is a new franchise opening in four months. * The Fit Stop will sell all types of training, fitness conditioning and exercise equipment to the general public * The Fit Stop plans to specialize beyond equipment to provide customers with personalized advice geared to customer’s specific training/conditioning needs * It will be starting out with stores in major cities in Ontario and in four western provinces – with plans of expanding to Quebec and the Atlantic provinces * Stores will be located in shopping malls, operating 7 days a week: 9am – 9pm weekdays, Saturdays: 9am – 6pm, and Sundays noon – 6pm. Employees: Employees will range from highly educated (degrees) to high school educated * total employees per store will be 11 to 15 fulltime employees * each store will employ physiotherapist and a person with a Bachelor’s Degree in Kinesiology. * each store will have a Manager with a Bachelor of Commerce Degree * each store will employ sales staff with a minimum high school diploma (8 to 12 per store) Challenges The Fit Stop knows that even though their competitors will sell their equipment at a lower price, none will have the range of equipment that they...
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...1-1-2003 Strategic Compensation: Does Business Strategy Influence Compensation in High-Technology Firms? Yoshio Yanadori Cornell University Janet H. Marler University at Albany - S.U.N.Y, marler@albany.edu Follow this and additional works at: http://digitalcommons.ilr.cornell.edu/cahrswp Part of the Human Resources Management Commons This Article is brought to you for free and open access by the Center for Advanced Human Resource Studies (CAHRS) at DigitalCommons@ILR. It has been accepted for inclusion in CAHRS Working Paper Series by an authorized administrator of DigitalCommons@ILR. For more information, please contact hlmdigital@cornell.edu. Strategic Compensation: Does Business Strategy Influence Compensation in High-Technology Firms? Abstract This study examined whether a firm's business strategy influences the firm's compensation systems in hightechnology firms. For the firm strategy variable, we used innovation strategy, which is one of the most critical business strategies in the high-technology industry. Our analysis showed that a firm's emphasis on innovation is positively related to the firm's employee pay level, both short-term pay and long-term pay. Moreover, a firm's emphasis on innovation has significant influence on several other aspects of employee compensation management. Innovation is positively associated with the difference in pay level between R&D employees and other employees, time orientation of employee compensation (the relative emphasis...
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... Impossible; it is impossible for a golfer to maximize the potential without two key components. First component is understanding how to properly position and accurately move to body. Simply having an understanding of the fundamentals of golf and the ball flight laws will not give any golfer the best possible opportunities to succeed. Knowledge of what the body does during the golf swing and how to maximize the potential of those body parts will allow the coach and golfer to assess and train for maximum performance. While possessing these fundamentals will increase the ability of the golfer to make their best possible swing, maximum potential can't be reached if the perfect swing is swinging incorrect equipment. Proper and accurately fit equipment is the second and equally important key to maximizing potential and player ability enhancement. (1)"Fitters say the reason a lot of people hit it sideways is because they haven't been custom-fit. Trying to figure out the swing with clubs whose length, weight, lie angle, shaft flex or grip size don't match the body encourages players to make unnatural compensations that prevent them from developing proper mechanics." Meeting with and interviewing the potential student or fitting client will allow the fitter to have the most accurate ability to assess what the client can and can't do. Physical disabilities will effect what the golfer can do and what the fitting professional should consider asking the client to do. Should the...
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...Chapter 1- The Pay Model Compensation: Does it matter? Compensation is one of the most powerful tools organizations have to influence their employees. General Motors (GM), like Chrysler, has, for decades, paid its workers well—too well perhaps for what it received in return. Having labor costs higher than the competition, without corresponding advantages in efficiency, quality, and customer service, does not seem to have served GM or its stakeholders well. On the other hand, Nucor Steel pays its workers very well relative to what other companies inside and outside of the steel industry pay. But Nucor also has much higher productivity than is typical in the steel industry. Wall Street financial services firms and banks used incentive plans that rewarded people for developing “innovative” new financial investment vehicles and for taking risks to earn themselves and their firms a lot of money. Troubled Asset Relief Program (TARP), which included restrictions on executive pay designed to discourage executives from taking “unnecessary and exces-sive risks.” In an opinion piece in The Wall Street Journal, entitled “How Business Schools Have Failed Business,” the former director of corporate finance policy at the United States Treasury wrote that “misaligned incentive programs are at the core of what brought our financial system to its knees.” 7 He says that we “should ask how many of the business schools attended by America’s CEOs and directors educate their students about the...
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...that bases its strategy mainly on academic research and related theories. They work together with proponents of the efficient market hypothesis, indicating a relatively strong belief in this theory and thus in efficient markets. However DFA also feels that skilled traders have the ability to contribute to a fund’s profits even when the investment is inherently passive and DFA does adjusts its strategy to new findings in the field. In this report we will evaluate the relevance and accuracy of the theories used by DFA, especially the value premium and the size premium where almost all of their funds are based upon. This will lead to comments on the usefulness of these theories to increase the return of DFA’s funds and to recommendations about changes in strategy that will enhance the performance of DFA overall. Performance and strategy so far DFA has performed relatively well over the years, aside from some relatively rough patches in the late 1990s. Growth of the company had been stable and profits high. There was no need to sell shares for liquidity reasons and shares were only sold if they did not fit into a fund anymore. This didn’t happen very often though as DFA had several funds that were “connected”, when a stock in the Micro Cap portfolio grew too big it could be placed into a fund with bigger companies (Small Cap portfolio). An important part of DFA’s strategy, that contributed to the performance of DFA so far, is aimed at achieving discounts in trades through buying...
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...NON EXECUTIVE DIRECTORS A member of a company's board of directors who is not part of the executive team. A non-executive director (NED) typically does not engage in the day-to-day management of the organization, but is involved in policy making and planning exercises. In addition, non-executive directors' responsibilities include the monitoring of the executive directors, and to act in the interest of any stakeholders. Also called external director, independent director and outside director. ROLE OF NON EXECUTIVE DIRECTORS * Provide objective and independent advice to the Board to enable it to make better decisions in the interest of all shareholders * Bring a genuine independent perspective to enhance decision making * Provide value added input to strategy and strategic development * Act in the best interests of the company as a whole rather than any one particular group of shareholders * Assist in carrying out the duties of the Board, such as: * reviewing, approving and on-going monitoring of the strategic plan * reviewing organizational capability in relation to stated objectives * reviewing financial performance against targets * raising capital * reviewing any major changes in the company, such as financial and organization structure * providing advice on major investments/divestments to be made * monitoring legal, ethical, risk and environmental compliance where appropriate * Act as a catalyst for change...
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...than grow with one company throughout one’s employment life, as was the case with our fathers and mothers. Employees are also increasingly demanding a balance between work and family life. Turnover costs for many organizations are very high and can significantly affect the financial performance of an organization. Direct costs include recruitment, selection and training of new people, with a phenomenal cost of time and expense. Indirect costs include increased workloads and overtime expenses for coworkers and reduced productivity associated with low employee morale. Costs vary from organization to organization, some as low as a few hundred dollars to as high as four times the annual salary of the employee. This tool can help you calculate the cost of replacing an employee. It has been estimated that, on average, it costs a company one-third of a new hire’s annual salary to replace an employee. At Missouri’s 2015 minimum wage of $7.65 an hour, the cost to replace just one employee is more than $5,000. Causes. 1. Rude behavior. Studies have shown that everyday indignities have an adverse affect on productivity and result in good employees quitting. Rudeness, assigning blame, back-biting, playing favorites and retaliations are among reasons that aggravate employee turnover. Feeling resentful and mistreated is not an enticement for a good work environment. 2. Work-life imbalance. Increasing with economic pressures, organizations continue to demand that one person do the...
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...PROJECT TWO DR. LAURENCE FINK HURM 4650 - COMPENSATION FASTCAT Meagan Ayers Michael Ingelido Lacey Scheff Eric Schiffler Christie Sprague Racheal Town Spring, 2010 TABLE OF CONTENTS 8. EXECUTIVE SUMMARY 9. DECISION ON THE NUMBER OF PAY STRUCTURES 10. POLICY REGARDING PAY FORMS FOR ADMINISTRATIVE PAY STRUCTURE 11. POLICY REGARDING PAY FORMS FOR TECHNICAL PAY STRUCTURE 12. POLICY REGARDING EXTERNAL COMPETITION FOR ADMINISTRATIVE PAY STRUCTURE 13. POLICY REGARDING EXTERNAL COMPETITION FOR TECHINCAL PAY STRUCTURE 14. SURVEY ANALYSIS FOR ADMINISTRATIVE PAY STRUCTURE 15. SURVEY ANALYSIS FOR TECHINCAL PAY STRUCTURE 16. DECISION MAKING RELATED TO CREATION OF ADMINISTRATIVE STRUCTURE 17. DECISION MAKING RELATED TO CREATION OF TECHNICAL STRUCTURE 18. EVALUATION OF ADMINISTRATIVE PAY STRUCTURE 19. EVALUATION OF TECHNICAL PAY STRUCTURE 20. EXHIBITS R JOB MATCHES FOR ADMINISTRATIVE STRUCTURE S JOB MATCHES FOR TECHNICAL STRUCTURE T MARKET ANALYSIS ADMINSTRATIVE/TECHNICAL U STATISTICAL ANALYSIS FOR ADMINISTRATIVE STRUCTURE V STATISTICAL ANALYSIS FOR TECHNICAL STRUCTURE W PAY STRUCTURE ADMINISTRATIVE X PAY STRUCTURE TECHNICAL Y COMPANY SURVEY DATA Z SUMMARY OF JOB RATINGS ADMINISTRATIVE/TECHNICAL EXECUTIVE SUMMARY FASTCAT EXECUTIVE SUMMARY Introduction FastCat is a Business to Business software company that operates in a highly specialized and technological advanced industry. FastCat has been a pacesetter in this industry...
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...The Impact of Compensation Practices February 20, 2011 “The ultimate goal of a pay system is to align the goals and interests of employees with the goals and interests of the organization” – Robert L. Heneman The Impact of Compensation Practices The business arena is ever changing. Where people work, how they work, the relationships in the workplace and compensation for their work continues to change. Hence, “It will be the challenge of compensation professionals to devise ways to reward and motivate employees who work under increasingly flexible arrangements” (Bennett, 1995). Most people interchange and have the perspective that pay and compensation are the same when in reality, compensation is more than just monetary rewards. Compensation is often misunderstood, and can also be misapplied. More often than not, it is out of synch with the values and processes of an organization. This is because despite continued organizational changes, the actual strategies for administering and implementing compensation is misaligned with the rapid changes in the company. “Pay can no longer be seen as a mere expense and cost of doing business, but instead must be viewed as an investment that is closely linked to the long-term success of the organization” (Flannery, et. al., 1996). As Cable and Judge (1994) note, “compensation systems are capable of attracting (or repelling) the right kinds of people because they communicate so much about an organization’s philosophy,...
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...Q1 Explain the importance of compensation management and detail how organization handle its complexities? Ans1 Compensation and reward system plays vital role in a business organization.since, among four Ms, i.e. men, material, machine and money, men has been most important factor, it is impossible to imagine a business process without men. Every factor contributes to the process without men. Every factor contributes to the process of production/business. It expects return from the business process such as rent is the return expected by the landlord, capitalist expects interest and organizer i.e. entrepreneur expects profits. Similarly the labourexpects wages from the process. Labor plays vital role in bringing about the process of production /business in motion. The other factors being human, has expectations, emotions, ambitions and egos. Labor therefore expects to have fair share in the business/production process. Therefore a fair compensation system is a must for every business organization. The fair compensation system will help in the following: 1) An ideal compensation system will have positive impact on the efficiency and results produced by employees. It will encourage the employees to perform better and achieve the standards fixed. 2) It will enhance the process of job evaluation. It will also help in setting up an ideal job evaluation and the set standards would be more realistic and achievable. 3) Such a system should be well defined and uniform...
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...Business Research Report Compensation Systems Assessment Code: RWT1 Student Name: Diane Smith Student ID: 337372 Date: October 7, 2013 Mentor Name: Christina Wright Table of Contents Executive Summary 3 Introduction 4 Research Findings 5 Finding Number 1 5 Finding Number 2 6 Finding Number 3 7 Recommendations 8 Conclusion 9 References 10 Executive Summary Compensation represents monetary pay for performance. It is a very important component to our manufacturing company’s Human Resource system. Our 120 employees are the heart of our business. We depend on their knowledge to help our company reach its goals. Therefore, we researched a variety of compensation strategies, which you will read below, that have helped us develop a compensation system that will motivate, encourage, retain and reward employees. There is no perfect system. Not all systems fit all businesses. The idea that pay policies have strategic impact has become a major theme within the compensation literature since the mid-1980’s…analysis reveals that inferior organizational performance is associated with the lack of fit between pay policy and business strategy.” (Montemayor, 1996, p889). But through careful investigation we have found two systems we believe will work well in our company. Through our research, three compensation systems really stood out. We will discuss Merit Based Pay, Salary Plus Commission and end with Salary Plus Bonus. This report outlines our...
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...important to understand whether the company needs an incentive plan to compensate for short or long term cash flow. This determination will help the company become aligned and the right path to creating an incentive plan that will flourish within the future. Because this is a retail company with both online and in store sales, it is important to evaluate the merchandise being sold. Is the merchandise high end or does the merchandise that’s being sold catered more to the volume in a lower market. The vision of the company will align with this if evaluated properly. Long term incentives are better for employees because it creates capital but it can be hard keeping employees motivated with long term incentives because it takes too long to reach the goal.. “For example, rewarding assembly line workers for increased production may result in a sacrifice in quality. The framework can be pre-established, or it can be built into the plan over time” according to Smith (2007). Legal Requirements & Additional Benefits There are five basic benefits required by law. * Workers Compensation which gives employees benefits if they are ill or if they are injured. * Social Security Taxes are required to be paid on employees. * Family and Medical Leave is time that employees are granted to take time off for emergency family issues such as the birth of a child. * COBRA Benefits are required for employers with 20 or more employees who are subject to the Consolidated Omnibus Budget Reconciliation...
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...The Fit Stop Overview The Fit Stop is a new firm that will be opening in the near future. The founder of the business is Susan Superfit. The company’s business objective is to sell all types of training, fitness, conditioning, and exercise equipment to the general public. The Fit Stop plans to specialize in this equipment and provide customers with personalized advice geared to customer needs. The owner, Susan suffered an injury while engaging in sports activities. She came up with the idea for this business during her recovery. She found that while there were plenty of business that sold fitness and conditioning equipment, they lacked in knowledge. They often gave poor advice on how to use the equipment and what was best to purchase based on customer needs. In order to provide high quality service, each Fit Stop will employ a physiotherapist( to provide advice on such problems as injuries or back pain), and a person with a bachelor’s degree in kinesiology( to provide advice on training for sports and other physical activities). The remainder of the staff in the store will consist of a manager, with a bachelor of commerce degree, and sales staff that will have at least high school diplomas. It is expected that 8-12 sales staff will be needed at each store. The stores will be located in shopping mall and will operate on a seven day a week basis. They will be open from 9:00-9:00 weekdays, 9:00-6:00 Saturdays and noon to 6:00 on Sundays. Susan believes that the key to her business...
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...birth of a child, placement of a child in foster care, adoption, or to care for immediate family members because of health conditions. It can also be used for the employee’s own health reasons. The law states that the employer needs to compensate the employee for any paid leave the company provides to its employees. If the company does not provide paid leave for their employees, then the leave does not need to be paid. In the situation, we followed the FMLA laws by allowing the employee to take a leave. We then brought the employee back to his previous job and rate of pay after his return. The company has no obligation to compensate the employee for his 11 weeks of leave, unless the company provides 11 weeks of paid leave to its employees. Situation B: An employee was denied a job based on his age. This particular situation would fall under the Age Discrimination Employment act of 1967. This law states that companies that employ 20 or more employees must not discriminate against any individual from the age 40 years and older. The law dictates that an employer not discriminate those individuals from, hiring, promotions, layoffs, compensation, benefits, job assignments, or trainings. In this incident we promoted a younger employee over an older employee. The younger employee had less experience and received an annual performance review of “adequate." The older employee had more experience and received an annual review of...
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...growing band of kindred spirits, campaigned tirelessly to improve the state of HR measurement and to help both HR professionals and senior executives understand its importance. These efforts started out at the nuts and bolts level—creating definitions for basic HR metrics such as compensation, staffing, hiring and retention. This work laid the foundation for gathering comparable data across organizations, which in turn, enabled the benchmarking of HR metrics. Over the years, a number of scholars and practitioners expanded the benchmarking of HR metrics to include investments in training and developing employees, as well as in a broad array of other HR policies and practices. Refining and improving the benchmarking of HR metrics remained a primary area of focus throughout much of the 1980s and 1990s. This benchmarking focus, while helpful in informing HR professionals about how their organization’s HR metrics stacked up to comparable or best-in-class organizations, provided little by way of actionable business intelligence on how to gain competitive advantage through people. It also contributed to an often unhealthy belief by HR professionals in simple one-size-fits-all solutions: something to the effect of, “If we can just look more like our competitors on some standard HR metrics, then we have done our jobs.” During the past decade, this has begun to change. Advances in the software used to automate transactional aspects of the...
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