The Problems a Company Marshal & Gordon Is Facing - Case Study Example

Marshal &Gordon Name: Date: Affiliation: Marshal &Gordo Marshal Gordon: Designing an effective compensation system (A) is a case which is talking about case which presents the scene where company tries to breach new market that requires complete distinctive approach and skillet which more than that of the majority employees in the firm. The biggest problem in this case is the purpose to change the way current managers execute and sell business projects that are actually significant for different PR activities which are currently a major share of the business executive. The experience's affirm that professional services company in the world are facing similar problem all over the world. The managers asserted that similar firms are facing the same issues especially in cross selling the new services and getting partners whom they will collaborate with.PR and executive positioning are quite different and it is tough to have professionals from the both sides who are understanding each other perfectly. It is completely hard and some of the biggest procedures are completely separated when human capital consulting is added.PR firms usually provide a wide range of services that are aimed at protecting and enhancing the reputation of the brands and products. The PR job initially involved creating and issuing the press releases and using their connections with the journalists to place the stories as soon as possible (Foss 2007, pg 250). Initially, the client used to buy from PR firms since it had a good relationship with journalists. The PR has continued to become a long-term program which is building reputation for the clients across different stakeholders such as the media, analysts’ politicians and even trade regulatory bodies. The efforts cannot just end there but still we are working on adding value through more strategic ways which help companies develop and implement credible investment. Since the late 1990s, the PR firms have been adding services to the portfolios and allow them to develop broader and more strategic services to the clients. Around 2011, three quarters of the PR companies usually provide the full range of services which even include the media services and the investor relations, lobbying services, event management services and finally crisis management services(Drejer 2006,pg.144). In year 2010, the combined annual revenue of approximately $9billion across the globe, the industry was fragmented and the top 50 countries accounted for the 35% of the total industrial revenue. The business was highly competitive and the small local agencies could successfully steal business deals from the larger PR companies. According to History, the firms had contracted the PR agencies in individual engagements such as campaigns and it turned out to be successful since they secured many jobs and opportunities. The traditional PR companies had developed and managed successful relationships across multiple constituents that helped in building the PR companies. By the end of year 2010, several additional trends in the business were noticed and firms were consolidating through the mergers and acquisition of firms and were working to improve the global competences and expertise in the attempt to serve the multinational clients. Some PR firms were also finding green marketing that offered increased opportunities for the PR companies to continue expanding the business with the existing clientsMarshal & Gordon was started as a result of merging of small public relations agency which was founded by James Marshall in the sides of Atlanta and the Gordon partners. The form made its early strategic decision which was focusing on communications, brands portfolios (Kaufman, 2012, pg.44).' Executive positioning Many handful longtime Marshall & Gordon consultants have the interest and the required specialty to the EPP and the firm have brought various prominent management consultant and lawyers with appropriate expertise, therefore, making the company one of the best places to ever be. Various clients have gone to the company informally seeking guidance on how they enhance the profile of their c-level executives. One of the prominent chief marketing officer asserted that they had a compelling strategies that their new CEO was driving. The CEO had the idea of driving the idea of driving the company in the heart of the executive teams. The executive teams and the PR are actually two different issues and, therefore, the company had to come up with appropriate strategies that help it achieve the ultimatum goal. The way Marshal Gordon practices are dependent on relationships i.e. networking with people and it is commonly known as “the Schmooze factor” Actually the executive positioning needs a different person than the PR and actually an individual with completely different skills. The job in executive positioning depends more on the intimate relationships that have the C-Suite and it highly involves the strategic thinking and extensive interviewing among other types of analysis. In this job specialist who has deep analytic skills, digital media and close familiarity with leadership, regulation and government issues are needed (Kaufman, 2012,pg 45). The job will call upon more effective team based business and this means building a completely different types of relationships with these particular clients. The trick is meant persuade clients that the senior management of the company counts a lot for the reputation of the business. However, customers have to evaluate the deal severally before they see the value of the position services. Building up EPP will take many investments in order to get the business on its toes. This means that their traditional PR consultants will have to trust their EPP counterparts and finally help them build critical relationships with their inside clients. Despite all the reservations, Brown was totally confident that the new strategies were the right direction for the firm since the parent company was actually targeting more upscale and profitable to the client relationships. The previous month in London, Brown had met with the CEO of FST 100 company who affirmed that he was delighted that Marshal & Gordon had assisted in re-position of his consumer goods company which playing key role on environmental issues. The EPP continued becoming a trusted partner of the CEO though Brown knew it was for the god of the business especially for Toronto and Hong Kong offices (Lee,& Lee 2009,pg 433). Marshal & Gordon current compensation structure The principles and partners were compensated through a combination of annual bonus and salary. The salaries for the principals in year 2009 ranged from approximately100,000 to around 150,000.These salary ranges for the partners rages from $180,000 to around 250,000 and the quotation is according to the finance manager of the organization. However, the manager continued and expressed concern n over these issues. More the performance based on bonus was also calculated using two-part formula and the consultants ended up earning credits for both businesses that are the O and the E. The number that clients paid to Marshal &Gordon was actually credited twice and, therefore, the partner who sold a full$200,000 PR project would be credited the full amount, therefore, bringing the business despite the fact that she handled off the execution to the other partner. When partners sell or deliver the project jointly the negotiation amongst themselves, the individual bonuses were ultimately based on the consultant production that fell below the salary, he was considered underwater hence becoming ineligible for bonuses(Lee,& Lee 2009,pg 433). In the year 2005, the company came with tier system whereby more credits generated by the consultant translated to a higher percentage in the allocated bonus. The system was actually formulaic and once Brown asserted that the more you bring to the business the more you gain. The consultants were actually allocated 10% for origination of credits which were under$280,000 and increased 205 for credits which were earned between 280,000 and 560,000.Furthermore30% of credits was to be awarded for all credits that were over$560,000.The tiers worked efficiently and they were fruitful for the business. However, there were some challenges concerning the 10% and some consultants claimed that it was biased considering that even the consulting people were salaried (Mosadeghrad, 2012, pg.89 ). Considering the compensation system and the executive positioning, it best for the company to adopt the compensation since it fair and encouraging hard work among the workers. The company is shifting from PR to executive deals and, therefore, the strategies must change in an effort to make the business worthwhile. However, the business cannot thrive if the employee is not put on their toes.The consultants must work on the basis of commission and percentage so that, in the long run, the business can make a profit. The income to the consultants is not fixed and it is based on the amount of money they are making for the business. Let’s say the company fixes salaries to the consultant, it would be slacken them since by the end of the month they will get the salaries.IN an effort to avoid, laxity and dependency, Brown had to formulate that strategy that focused on a commission based salary for consultants. The decision was not accepted loquaciously though it benefitted the business in the long run. Therefore, the compensation system can be said to be lucrative and fit for the new venture ((Mosadeghrad, 2012, pg.89). The compensation in the Marshal &Gordon Company is a bit controversial and if positioned in the post of human resource manager, I would make several alterations that would make the terms better for the consultants. First base salary would be established since it is a fixed obligation that every employee should have. Once it is set it rarely goes down and this gives security to the employees who are in the business. It should be noted that base pay can be the smallest through which one can compensate the executives. It is paramount to note that base salary is set in such a way that it can pay for the standard living. Such a consultant will work whole heartedly because he is aware that by the end of the day the family and basic needs are catered for. Therefore, the most important thing that the human resource managers should ensure is that all the needs of the consultants are catered for and then work on the percentage. This change will not only increase the company’s revenue, it will also act as a motivation. Motivated employees are always productive compared to those who are struggling to earn something by the end of the day. However, the base salary for the consultants should be standard taking into account that the company has ventured into a different field and expertise and human resource is required (Mondy et al, 2005pg 33). Considering that Brown is not giving the consultants the base salary, it should be noted that these might demoralize the employees and they end up giving low productivity. the salary should be there, but it should not keep them in a comfort zone instead; a lesser salary will motivate them to work harder. Annual bonuses should also be given to employees in an attempt to motivate short term behavior. These bonuses clarify and sharpen the attention of the executive in an effort to do everything possible to continue on the journey of success. Annual bonus is usually paid in cash and it acts as very good way of motivating the employees. Upon adding the above motivator the compensation structure will have changed, therefore, becoming better for every employee (Lafferty 2005, pg.124). It is noteworthy to know that note the company is changing the services from PR services to executive positioning. There is a wide gap that needs to be bridged and that can only be bridged through training the existing employees and also hiring other employees who the relevant knowledge. These employees will not only improve their way of handling customers but also knowledge in executives will be taken into account. Initially, the company depended more on networking but executive positioning needs more of strategic reasoning and interview skills which the employees might not have. Therefore, it would be important for the company to take the initiative and train the employees in an effort to make them suitable in the new market. Moreover, incentives should be increased to lure the employees to the highly demanding job of the executive. This should be done through establishing base salaries for the employees and this will motivate them to work harder (Gilmore & Williams 2009, pg.44). Through motivation of the employees, they will work towards the realization of the goals and objectives of the business, therefore, promoting productivity in the long run. The incentives should be informed of bonuses and commissions which will work for the betterment of the business. These initiatives will only serve as the way of building the business and enhancing the success in its endeavor to succeed. Finally in training and sponsoring employees to further their studies is also another way through which the company can promote the company. Upon getting relevant skills, it will be easier for the company to secure and more contracts since the consultants are well versed with the field (Foss, 2007,pg 255). In conclusion, Marshall &Gordon company is a nice company which caters for PR and executive position. Under the headship of Madam Brown, they have been able to achieve a lot and, therefore, it paramount to note that it is one of the best multinational companies. It has managed to employ numerous consultants all over the world and its services are valued and recognized. However, its sudden switch from PR services to the executive position has been controversial and more also the compensation system which tends to dwell much on the commissions. However, with efficient management, the company can scale heights of success and turn out to be a multibillionaire business. References Drejer, A. (2006). Strategic innovation: a new perspective on strategic management. Handbook of Business Strategy, 7(1), 143-147. Foss, N. J. (2007). Strategic belief management. Strategic Organization, 5(3), 249-258. Gramberg, B. V. (2004). Book Review: Going Public: The Role of Labor-Management Relations in Delivering Quality Government Services. Journal Of Industrial Relations, 46(3), 377-379. Heery, E. (2005). The British Journal of Industrial Relations: Position and Prospect. British Journal of Industrial Relations, 43(1), 1-9. (2007). Journal of Organizational Behavior. Journal of Organizational Behavior, 28(5), 641-642. (2007). Journal of organizational behavior. Journal of Organizational Behavior, 28(3), 351-351. Kaufman, B. E. (2012). History of the British Industrial Relations Field Reconsidered: Getting from the Webbs to the New Employment Relations Paradigm. British Journal of Industrial Relations, 3, n/a-n/a. Lafferty, G. (2005). Book Review: The New Structure of Labor Relations: Tripartism and Decentralization. Journal Of Industrial Relations, 47(1), 123-126. Lee, J., & Lee, D. (2009). Labor-management partnership at Korean firms: Its effects on organizational performance and industrial relations quality. Personnel Review, 38(4), 432-452. Mosadeghrad, A. M. (2012). Towards a theory of quality management: an integration of strategic management, quality management and project management. International Journal of Modelling in Operations Management, 2(1), 89. Gilmore, S., & Williams, S. (2009). Human resource management. Oxford: Oxford University Press. Mondy, R. W., Noe, R. M., & Gowan, M. (2005). Human resource management (9th ed.). Upper Saddle River, N.J.: Pearson Prentice Hall. Read More