The project would bring forth the various problems that aroused out of the compensation restructuring plans in the company, in terms of productivity, job satisfaction, employees attrition, etc, and the ways in which AA dealt with the problems to restore stability and commitment from the employees. …
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This research paper describes the compensation practices undertaken in organizations have far reaching effects on the competitive advantage of the firm. In order to develop competitive advantage of a firm in the global market, the compensation plans developed by the firm must align with the strategic plans and actions of the same. Apart from the attainment of competitive advantage compensation practices also have influence over recruitments, turnover, productivity of labour, etc. in firms. Thus it is crucial that firms make thorough analysis of how people perceive about the firm’s compensation and how these perceptions consequently affect their behavior. A substantial amount of job satisfaction of employees depends on the amount of compensation that he receives as well as the benefits he derives from the organizations. The financial compensations complemented with adequate benefits such as insurances, sick leaves, paid vacations, discounts, pension plans etc. impacts on the satisfaction level of employees and subsequently their behavior and commitment towards the same. The American Airlines (AA) confronted with serious compensation and benefit issues due to the restricting of their compensation plans for employees. Due to the great losses incurred by American Airlines, one of the world’s largest airlines, the management had to undertake massive cost cutting and restructuring campaign with the purpose of restoring profitability. This resulted in massive job cuts of employees. The policy only invited random resistance from employees which further aggravated the amount of losses incurred by the company.
The problem would be supported by presentation of critical literature which would include various arguments presented by researcher, practitioners and author and also empirical evidence on the subject. Thesis statement Following is the thesis statement developed for the study; Due to the critical role played by compensation and benefit plans on employees’ job satisfaction, commitment and productivity, companies need to strive to exploit full potential of their human resources through adequate compensation and benefit structures. Review of the Literature As organizations continue to be confronted with increased competitive pressures, they seek to achieve more using fewer resources. Along with the rise in emphasis on such aspects as sales volume, innovation, profits, quality etc, many cases have revealed tight control over employments with substantial employment cuts. The idea to manage human resources effectively using fewer employees has evolved over the years. Subsequently the emphasis has shifted towards the system of employee compensation with the view to manage human resources better (Gerhart, Minkoff & Olsen, 1994, p.1). Employee compensation and benefits play a key role as it lies at the heart of employment relationships having critical importance for both employers and employees. The financial compensation paid by employers in the form of salaries and wages comprises of the main income of the employees. On the other hand benefits account for the health and other security of employees. A large proportion of employee’s job satisfaction and performance depends on the combination of both the compensation and benefits he receives. From the perspective of the employer, the compensation decisions undertaken influences the costs associated with doing the
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The paper will seek to draw from the strategy that those organizations have devised to address the issue of compensation and benefits. The paper will show theories and strategies that should be contemplated in addressing the situation. The paper will give recommendations to the GM management on how to address and resolve the situation.
Western Union Money Transfer: Compensation and Benefit Challenges.
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In order to deal with internal and external market risks and strategically manage a company in such a manner that it can hire and retain quality human resource, expertly designed compensation and benefits packages are necessary. The compensation plans that organizations increasingly employ are routinely in line with the shareholder interests, cost constraints, and profitability targets, while concomitantly supporting employee development and retention.
The company’s affiliate branch in the United States is called Boehringer Ingelheim USA Corporation. The innovation of this branch is contributed to by a philosophy that calls for learning and leading. Each and every individual involved in the organization is encouraged to take initiative, be inquisitive, and take full advantage of the existent opportunities in a work ambience of leadership and learning.
Worker benefits and compensation are turning out to be more and more intricate and costly. Companies should cautiously think about both the business's financial needs and the workers' requirements when making compensation and benefits plans.
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The massive shortfall in the workforce and subsequent recruitment, which has become a common feature in the recent days, has been causing heavy overheads for the company. The firm is in dire need of adequate supply of well trained employees for the successful performance of their business processes.
7 Pages(1750 words)Research Paper
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