Compensation Plan: Human Resource Manager at Lenovo Group Ltd - Case Study Example

Compensation plan: Human resource manager at Lenovo Group Ltd Compensation plan: Human resource manager at Lenovo Group Ltd Lenovo group is a company that has a number of headquarters situated on different locations, which implies that the management and coordination of the employing, planning compensations as well as strategies to improve employee relations play a major role in the company’s success (Lenovo.com, 2014). Consequently, the position of the human resource manager commonly referred to as the vice president, human resource by the company is the dream job that I have always aspired. The position is currently held by Ginaa Qiao who has an enviable engaging personality that has contributed to the company’s success through contracting the rightful employees to undertake various tasks from the designers to the marking and sales persons (Lenovo.com, 2014). The job of the human resource manager in Lenovo is given the mandate to oversee organizational development, compensation and benefits planning, global talent, and nurturing the culture of the company. Remarkably, attaining the position of the senior most employees in the human resource department at Lenovo is quite challenging given the position is highly competitive. The company is ranked as the fastest growing technology company, which necessitate it to acquire competent staff for maintaining its core strength as well as coping with global economy challenges. Consequently, the position of the human resource manager forms one of the most critical component that oversee approximately 23, 000 employees globally including designers, engineers, and scientists (Lenovo.com, 2014). Despite the attractive nature of being a human resource vice president at Lenovo, a reward and compensation package can be useful in promoting its attractive nature not only to skilled workers, but also to those who can go out of their way to safeguard the interests of the company while enjoying highly satisfactory benefits. Rewards and compensation package for Human resource manager that would both attract skilled workers yet control costs Intrinsic and extrinsic rewards form major aspects in human relations with an objective of ensuring that the human resource manager position does only attract skilled employees, but also promotes the growth of the company. Notably, organization’s managers who have the will to customize employee’s rewards and compensation package are obligated to invest additional time and energy to comprehend, design, negotiate, and monitor the creation of such packages. Consequently, executives and high potential employees’ compensation and reward package creation require precise procedure and considerations to ensure that the company does not invest in employees more than it can gain from their expertise. An effective reward and compensation package for the human resource manager that is advantageous to the company costs and attracts highly skilled human resource managers such as Qiao is one that contains a number of values arising from the employment relationship. The package consists of base wages, premium pay, company holidays, and variable pay/bonuses. Each of the components contains a specific motivational value to the human resource manager as well as a competitive advantage of Lenovo in the market. Base Wages Base wages also known as fixed wages include the salary pay, hourly pay, and piece rate pay, which do not vary with the situations of the company such as performance and goal achievements usually formulated by the Lenovo’s pay philosophy and structure (Greene, 2014). Not much can be done on base pay to the influence the reward and compensation plan because the pay philosophy and structure department determines the appropriate wages. However, to ensure fixed pay reflects the company’s success, the human resource manager will be paid a high hourly pay that will ensure that she/he performs duties in a manner that promotes the company’s competitiveness and income. Consequently, this will integrate both the wages and comprehensive reward strategy boosts the profits and productivity of the company; hence, both parties benefit from the fair and within company’s budget package. This will ensure that the company des not suffer from losses due to poor HR management, which will enable it cut costs that would be used to revive the company in case of employee poor performance (Greene, 2014). Base wages for the position will range from $30,000-$70,000/month, which will be negotiable depending on the skills of the potential candidate and expertise possessed. Premium Pay Lenovo is a technology company that necessitates the human resource manager to have an eye on upcoming talents; hence, expected that the human resource manager will be required to attend innovation shows be it on a weekday or weekend. Consequently, weekend/holiday, shift differential, on-call, and call-in pay will serve to encourage the human resource manager to be on the toes in searching for talents globally as she/he is assured of fair compensation for the efforts put towards the success of the company. Additionally, skill-based pay, bi-lingual pay, and hazard pay will serve to push the HR manager to go out of his/her way in search of competent employees even in regions that are life threatening. Although the company will have to part with extra money for the upkeep of the HR manager, it will be a step ahead of other competitive companies promoting its sales; hence, optimizing premium pays will serve to increase profits and productivity. On the other hand, the position will attract skilled and hardworking employees because of the fair compensation strategy. Premium pay will be calculated depending on the extra hours worked and work circumstances. Company Holidays and appreciation pays Organizational managers who have embraced provision of company holidays for the human resource executive as a form of performance recognition have seen a successful human resource strategy that is focused on employee satisfaction and engagement. Subsequently, the package will include company holidays irrespective of the performance, which will motivate, attract, and retain effective human resource management in Lenovo despite the large number of international employees (Graham, Roth & Dugan, 2008). Variable pay A compensation and reward package is never complete with the variable pay that is influenced by the performance of the human resource manager, and includes commissions, team-based pay, bonus program, and incentive pay. Incentives major aim is to motivate the HR manager towards heading the human resource department in a goal-orientated manner. Incentives will include short-term that include individual performance based incentives, performance-sharing incentives and long term including restricted stock as well as performance shares (Graham, Roth & Dugan, 2008). These incentives are positioned to increase operating effectiveness contributing to long-term achievements and income of the company yet controlling costs because the package will only be available to the performing executive rather than every employee. Benefits package for human resource manager that is competitive yet advantageous to the company A comprehensive benefit package is an indirect compensation of the human resource manager at Lenovo including health, disability, retirement, time off and that indication of how much the company values the hard work of the employees. A proposed benefit package consists of four major components that include health, retirement, disability, insurance, and time off benefits (Biswas, 2013). Health care and welfare benefits Healthy employees always produce high achievements because most of their time is devoted towards the success of the company and not taking care of various illnesses. The benefits will include prescription drug coverage, health insurance program with a recommended preferred provider organization plan, health care for the human resource manager and his/her dependents, women health as well as other health care and welfare benefits such as acupressure medical coverage. This package takes care of the family structures, which has a substantial impact to the society as well as the productivity of the company. Consequently, the company ensures that the health care responsibility of the human resource manager and his/her finally is almost reduced to zero giving the HR manager position a competitive nature yet advantageous to the company because the manager will be fully focused on matters of the company’s interest rather than personal health matters (Biswas, 2013). Disability benefits The disability benefits will include short-term and long-term disability, which occur because while working for the company. Lenovo’s HR manager is supposed to be conversant with word processing, and excel among other programs that ensures accurate tracking of the employees employment history; hence, spends most of the time on the PC and displays in innovative exhibitions. Consequently, the HR is prone to technological hazards that can cause vision disability that necessitate the company to offer a disability benefits. The benefit ensures that the HR manager works without any fears as he/she is covered making the position competitive yet advantageous to the company (Babenko, 2009). Time off/leave benefits The benefits package will ensure that the HR manager is paid regardless of whether she/he takes a vacation or sick leave, which will make the company more attractive to prospective skilled employees and making it easier to retain the current employee. Despite that paid time off may be abused; strategies such as scheduled leaves for the employee will ensure that it aims at improving productivity rather than losses to the company. Retirement savings and planning benefits The retirement plan will help employees plan for their future in terms of financials through personal pension account formula stipulated by the IBM personal pension plan. The pensions plans will be based on the HRM’s years of productive contribute to the company, which will ensure that she/he portrays hard work and commitment throughout the contact with the company. Consequently, the position will be highly competitive because most individuals require a source of income in the future and ensure that the company utilizes the human resource manager the best way possible throughout his/her work period helping the company success through the global challenges (Biswas, 2013). Assessment of how negotiating and collective bargaining with Human resource manager position would contribute to the achievement of organizational goals Negotiation and collective bargaining is are industrial tools applicable to the employment relationship in a company, which help the company attain the goals it sets. Given the nature of a human resource manager at Lenovo, collective bargaining is critical at achieving collective interests for both the employee and the company contributing to creating fair employment terms as well as the acquisition of competent employees to spearhead the company’s strategic HR management. Collective bargaining is use to address productivity and efficacy issues, which forms the major component of the achievement of the company’s objectives (Hayter, 2011). It forms a tool of reaching settlement in issues that may affect the human resource manager; hence, reduce confrontations and conflicts with the organization’s human resource. Consequently, the company will spend less time in solving conflicts and focus purely on developing strategic plans to thrive through the highly competitive global market. Additionally, it forms a sense of social partnership towards which the company relates positively with the employees steering a healthy working environment contributing to the achievement of the set goals (Hayter, 2011). Remarkably, collective managing forms a part of participation process where the employees feel a part of the organization, which help in implementing with all-inclusive disciplinary measures, promotions, and production norms key to the achievement of the company’s goals. On the other hand, negotiation is an important factor in the employment agreement because it forms the basis for teamwork. It enables skilled candidates for the position to present their preferred salary whereas the company proposes its budget towards the position ensuring that the two parties end up agreeing on fair compensation plan, which does not strain the company’s budget. Consequently, both the human resource manager and the company are able to focus on the goals as a team reducing financial crisis and disputes optimizing productivity. Additionally, negotiation provides a medium for conflict result in an organization that ensures that the company interests do not undermine the interests of the employees, but rather develop a mutual understanding. Mutual understanding between the human resource manager and the company promote a professional working environment that leads to effective strategies on employee recruitment free from biasness (Hayter, 2011). Alternatives are always the key to meet set goals within an organization, which are formulated through negotiation. As a result, the HR manager is provided with a way to device alternatives in the human resource department to guarantee that the company’s goals are achieved. References Babenko, I. (2009). Share Repurchases and Pay-Performance Sensitivity of Employee Compensation Contracts. The Journal Of Finance, 64(1), 117-150. Biswas, B. (2013). Compensation and benefit design (1st ed.). Upper Saddle River, N.J.: FT Press. Graham, M., Roth, T., & Dugan, D. (2008). Effective executive compensation (1st ed.). New York: AMACOM/American Management Association. Greene, R. (2014). Effectively Managing Base Pay: Strategies for Success. SHRM. Retrieved 23 August 2014, from http://www.shrm.org/hrdisciplines/compensation/articles/pages/cms_005592.aspx Hayter, S. (2011). The Role of Collective Bargaining in the Global Economy (1st ed.). Cheltenham: Edward Elgar Pub. Read More