Bringing the Team Concept Into Compensation-or Not

In: Business and Management

Submitted By nurashekin
Words 1407
Pages 6
Bringing the Team Concept into Compensation-or Not

One of the first things Sandy Caldwell wanted to do in his new position at Hathaway Manufacturing was improve productivity through teamwork at every level of the firm. As the new human resource manager for the suburban plant, Sandy set out to change the culture to accommodate the team based approach he had become so enthusiastic about in his most recent position.

Sandy started by installing the concept of team management at the highest level, to oversee the operations of the entire plant. The new management team consisted of manufacturing, distribution, planning, technical and human resource executives. Together they developed a new vision for the 500-employee facility, which they expressed in the simple phrase “Excellent Together.” They drafted a new mission statement for the firm that focused on becoming customer driven and team based, and that called upon employees to raise their level of commitment and begin acting as “owners” of the firm.

The next step was to convey the team message to employees throughout the company. The communication process went surprisingly well, and Sandy was happy to see his idea of a “workforce of owners” begin to take shape. Teams trained together, developed production plans together, and embraced the technique of 360-degree feedback, in which an employee’s performance evaluation is obtained from supervisors, subordinates, peers and internal or external customers. Performance and morale improved, and productivity began to tick upward. The company even sponsored occasional celebrations to reward team achievements, and the team structure seemed firmly in place.

Sandy decided to change one more thing. Hathaway's long-standing policy had been to give all employees the same annual pay increase. But Sandy felt that in the new team environment, outstanding performance should…...

Similar Documents

Compensation Management

...ISSUES FOR COMPENSATION AND INCENTIVES MANAGEMENT: THEORETICAL APPROACH Ramunė Čiarnienė, Milita Vienažindienė Kaunas University of Technology, Vilnius Co-operative College For most people, pay is a primary reason for working. Indeed, compensation is at the core of any employment exchange, and it serves as a defining characteristic of any employment relationship. The study focuses on critical points of compensation and incentives management. The fundamentals of a good incentive program include the elements of vision, potential, communication and motivation and can be realized if incentive promises are fulfilled – by both employer and employee. The aim of the paper is to identify the most important attributes of compensation and incentives management. Research method is the analysis and synthesis of scientific literature, logical, comparative and graphic representation. On the base of analysis, authors of this paper present the model of incentive system for positive employee attitudes and behaviors. Keywords: compensation, employees, incentives, management. Introduction Compensation refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship. Pay may be received directly in the form of cash (e.g., wages, merit increases, incentives, cost of living adjustments) or indirectly through benefits and services (e. g., pensions, health insurance, paid time off). Programs that distribute compensation to......

Words: 2728 - Pages: 11

Compensation

...Employee Compensation that Encourages Performance By Kate Greene, SPHR The strategy my neighborhood kids use to get customers for their lemonade stand is not unlike what many employers use to get employees. The kids scream “35 cents a glass” over and over, louder and louder. Would they have more success if they used signs, knocked on doors, yelled in a more even tone of voice, sold from a rolling wagon, etc.? Similarly, employers that advertise $8.00 an hour, over and over, may not get applicants or results they require. Better results come from compensation strategies that align company and employee performance goals. Establishing wages that will both attract employees and provide contain labor costs starts with careful evaluation of internal and external factors to establish fair pay ranges that reward performance. Recently a client asked how to best compensate his employees. The response, it depends. Compensation is a complex issue requiring careful consideration and research regarding many factors. The design of your company compensation structure can send a very strong message regarding what you expect from employees. Many authors have written on this subject and a lot of research and compensation theories/plans have been completed. When working with a small to mid-size employer to create a compensation plan, I recommend following a few central principles. These are: 1. Keep it Simple Pay structures needs to be easy to communicate and understand. Complicated formulas......

Words: 953 - Pages: 4

Compensation

...Concept of Compensation The literal meaning of compensation is to counter-balance. In the case of human resource management, Compensation is referred to as money and other benefits received by an employee for providing services to his employer. Money and benefit received may be in different forms-base compensation in money form and various benefits, which may be associate with employee, service to the employer receive or benefits, he enjoy lieu of such payment. Cascio has defined compensation as follows: “Compensation includes direct cash payment, indirect payment in the form of employee benefits and incentives to motivate employee to strive higher level of productivity”. Based on above description of compensation, we may identify its various components as follows: 1. Wage and salary. 2. Incentives. 3. Fringe Benefits. 4. Perquisites. COMPENSATION MANAGEMENT: Compensation management, also known as wage and salary administration, remuneration management, or reward management, is concerned with designing and implementing total compensation package. The traditional concept of wage and salary administration emphasized on only determination of wage and salary administration structure in organizational settings. However, over the passage of time, many more forms of compensation, as discussed earlier, entered the business field which necessitate to take wage and salary administration in comprehensive way with suitable change in its nomenclature . Bench has......

Words: 2980 - Pages: 12

Team Assignment Concept

...Team Assignment Concept Group 4 November 12, 2011 Members: Sharon Conner, Timothy Glaze, Bac Legaffney, Kristi Rosiak Concept: New Home Starter Kit Top Line Details: Buying a home is an exciting time for any new or experienced homebuyer in the market. So much of the work goes into actually buying a home- from searching to find the perfect house, putting in offer, closing costs, a date to move in etc. that a lot of the thought as to what is going to be needed once a person is actually in their home is often times forgotten. Currently, within the market there is no offering to first time homebuyers to help better prepare them for moving into their home on some of the things that come up unforeseen. Everything from a loose screw to air filters that might be dirty are things that will be discovered at some point but the homebuyers might not have the necessary tools to help perfect the home right then and there. We would be looking to market a “new home” kit that real estate agents can either sell or give as a “thank you” for your purchase to their clients. Some of the things the kit would include are: • The gift box would be in the shape of a house • A small toolbox of the necessities like a wrench, pliers, screw drivers, screws, picture mounting hooks, wires, batteries, drywall repair kit, flash light, emergency candles • A home maintenance guide for quick tips on how to winterize the house, when to change the filter, clean out the dryer lint,......

Words: 330 - Pages: 2

Compensation Concept

...Wage and Salary Administration’ refers to the establishment and implementation of sound policies and practices of employee compensation. The basic purpose of wage and salary administration is to establish and maintain an equitable wage and salary structure. Wages and salaries are often one of the largest components of cost of production and such have serious implications for growth and profitability of the company. On the other hand, they are the only source of workers’ income. After the independence and particularly after 1948, some new terms relating to wages began to be used. These are: 1. Statutory Minimum Wages 2. Basic Minimum Wages 3. Minimum Wages 4. Fair Wages 5. Living Wages 6. Need Based Wages 1. Statutory Minimum Wages: By it we mean the minimum amount of wages which should essentially be given to the workers as per provisions of the Minimum Wages Act, 1948. 2. Basic Minimum Wages: This minimum wage is fixed through judicial pronouncement, awards, industrial tribunals and labour. The employers are essentially to give this minimum wage to the workers. 3. Minimum Wages: The concept of minimum wages has developed due to different standards in different countries. In Indian context, minimum wage means the minimum amount which an employer thinks necessary for the sustenance of life and preservation of the efficiency of the worker. According to Fair Wage Committee, the minimum wages must also provide for some measures of education- ...

Words: 673 - Pages: 3

Compensation

...Compensation In this assignment the upper management has asked Eric Garcia to suggest a new compensation plan specifically for the Puerto Rican team that include: A description of a compensation package for the new employment team, why the pay system will work, what reward package would motivate the employees to increase performance, compensation plan’s benefits to the individual and the company and how the Puerto Rican compensation plan differs from the parent company’s compensation plan. He must propose the plan and a rationale to the Human Resources Department for approval. Compensation package for new employment team The level of pay in a company is one or the most important aspect of the employee; they will pay close attention in this category in terms of fairness. If the employees think the pay level for the job is not acceptable the lack of commitment and mistrust will be reflected in their performance. According to University of Phoenix Week Five Compensation (2012), there are four key challenges of pay planning and administrative system: (1) Understand the pay levels of economics and legal factors. (2) To develop a systematic pay structure. (3) Combine compensation and general business strategy. (4) Address key policy issues. Granting bonuses to new heirs it can offer a competitive compensation package, especially for those with special required skills by the company. Overtime will be provided by request and it can be rotated among the employees so it can be......

Words: 899 - Pages: 4

Compensation

...and employees) affect the views of compensation? (11 marks) Differing perspectives certainly do affect the view of compensation. Our textbook discusses in pages 2-5 (Milkovich et al) that society in general may "view pay as measure of justice" (pg. 2). The example used in our textbook refers to the pay gap between men and women in society. It is stated that the pay gap is narrowing but it still persists compared to various other OECD countries. Economists have concluded that various factors may have contributed to this gap. For example: human capital, demographic characteristics, and job characteristics. What this may mean is that "women are more likely to study health and education, whereas men are more likely to study engineering and other technology fields" (Mikovich et al, pg. 3) Women are also more willing than men to adjust their work location and hours in order to take care of young children and elderly parents, and to do most, if not all, of the "unpaid" housework. From the manager's point of view, compensation directly influences their success in two ways. According to Milkovich et al on page 4, it is a "major expense." Managers need to think of and be aware of both global and local competitive pressures when making compensation decisions. Moreover, managers need to either minimize or optimize pay in a way to influence employee behaviour and to improve organization performance. This is the second way that compensation influences their success. As......

Words: 2412 - Pages: 10

Compensation

...MGT6033: COMPENSATION & BENEFITS MANAGEMENT ------------------------------------------------- ------------------------------------------------- COURSEWORK / ASSIGNMENT I ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Prepared By: Lim Chee Seong (IC: 661007-08-6109) ------------------------------------------------- (Student ID: PACE 024747) ------------------------------------------------- ------------------------------------------------- Lecturer: Dr. Perema Kumari S Ponnampalam ------------------------------------------------- ------------------------------------------------- a) Compensation management as one of the important link to the human resource management, has greatly affects the competency of an organisation or the corporate. Hence, the decision made by an organisation how to compensate its labours must be objectively and reasonably for the contribution from its labours in order to facilitate the corporate development and at the same time ensure the satisfaction of employee with monetary compensations......

Words: 2740 - Pages: 11

Compensation

...Running head: PROS AND CONS Pros and Cons of Compensation for NCAA Division I Student Athletes Mark Dunkley PEP 461 Student The College at Brockport Abstract This paper weighs in the pros and cons for the compensation of Division I college student athletes. This paper also introduces a plan that would allow monetary compensation of college athletes in the United States. A survey was distributed to 14 males of the Suny College at Brockport basketball team Pros and Cons of Compensation for NCAA Division I Student Athletes The exploits of student-athletes in sports have variously been advanced as generating a lot of dollars in forms of revenues for their respective institutions, which has generally raised the question as to why they shouldn’t be compensated for their sporting prowess. Student-athletes generate tens of millions of dollars for their respective athletic departments and ideally then should be reimbursed. However, as per the guidelines of the National Collegiate Athletics Associations (NCAA), athletes are not supposed to receive any commercial use of their personas and likenesses and are indeed not expected to gain any monetary compensation for their sporting engagements. This has generally been interpreted to mean that they cannot enter into agreements for endorsements in their sporting activities as has been the case with professional engagements. Instead, students are expected to benefit from the payment for tuition fees from their sporting......

Words: 2163 - Pages: 9

Mgt 210 Week 4 Checkpoint Work Team Concepts

...Work Team Concepts Get Tutorial by Clicking on the link below or Copy Paste Link in Your Browser http://hwguiders.com/downloads/mgt-210-week-4-checkpoint-work-team-concepts/ For More Courses and Exams use this form ( http://hwguiders.com/contact-us/ ) Feel Free to Search your Class through Our Product Categories or From Our Search Bar (http://hwguiders.com/ ) WK 4 CheckPoint – Work Team Concepts, Due Friday From what I have observed during this weeks assignment all of the areas discussed by Rue and Byars (2004) in Ch. 8 in Supervision: Key Link to Productivity (8th ed.) require some form of communication. Group norms and group cohesiveness require some form of communication; otherwise there would not be a reason to belong to the group. Group pressure, group conformity, groupthink, and group influence would not take place if people were not listening to information being communicated to them and, group leadership, group self-direction, and group communication would not occur if there were not any members of the group to listen. MGT 210 Week 4 CheckPoint Work Team Concepts Get Tutorial by Clicking on the link below or Copy Paste Link in Your Browser http://hwguiders.com/downloads/mgt-210-week-4-checkpoint-work-team-concepts/ For More Courses and Exams use this form ( http://hwguiders.com/contact-us/ ) Feel Free to Search your Class through Our Product Categories or From Our Search Bar (http://hwguiders.com/ ) WK 4 CheckPoint – Work Team......

Words: 2479 - Pages: 10

Team Concept

...With the large number of firms and industries in the market and an investor’s ongoing desire to make knowledgeable and informed decisions, the necessity to ensure financial statements are easily conversed is imperative. To achieve maximum decision usefulness of financial statement information, corporations should follow a standardized reporting system that allows for comparability, reduces information asymmetry between themselves and their investors and follows a rule-based methodology. The information presented on the financial statements is only useful if it can enable investors to make more informed investment decisions. Fischer (1989) states that comparability is a fundamental characteristic of financial reporting and “without comparability financial reporting lacks usefulness in decision making” (page 9). In addition, Fischer (1989) also points out that to achieve comparability of financial reporting, accounting choice should be concentrated on one specific method or at most, a few limited methods (page 9). Beke (2010) argues that without standardized reporting, cross-border comparability would decrease which may result in distorting cross-border portfolio and direct investment (page 1). Beke (2010) is in favour of the financial reporting standardization as empirical research evidence shows that uniform standards “will increase market liquidity, decrease transaction costs for investors, lower cost of capital, and facilitate international capital formation and flow”......

Words: 1233 - Pages: 5

Compensation

...status of the company’s compensation strategies that are currently in place? What would you do to begin to address this situation? (3 Marks) Provide Constructive Feedback to at least two other student’s postings. (2 Marks) HINT:-reference both internal equity (alignment) and external equity (competitiveness) in your response. NOTE:-this Discussion Assignment will be marked on content, analysis, direct references to the readings, the overall professionalism of the presentation and constructive feedback to other students’ work. The organization’s strategies seem to be outdated, reflecting a different period in time.  It does not seem that government policies, laws, and regulations are being followed and/or up to date.  There are no consistent policies on employee relation issues and some employees’ fear of getting on the owners bad side would cause them to be terminated.  There are also no policies on employment equity and pay equity.  This could cause legal issues if they are not following the proper legislation set out by the government.  There is also no pay structure and therefore, no differentials.  Hiring salaries are negotiated which leads to no salary range for jobs within the company as well as no bonuses or succession management.   The relationship among same or similar jobs may differ due to no salary criteria and no clear relationship between jobs.  As the textbook states, pay structures can motivate the behavior of employees.  Compensation strategies seem to......

Words: 1436 - Pages: 6

Team Pay Based Compensation

...Shifting your company's compensation structure from an individual-based system to one that includes team-based pay can yield powerful results; such as increased efficiency, productivity and profitability. But making the switch is not for the faint of heart and does not work for all companies. The notion of team-oriented corporate structure came into vogue in the United States during the 1980s and 1990s, prompted by the example of successful Japanese companies. Over The past 10 years, the use of team-based pay has ticked upward, says Edward Lawler, director of the Center for Effective Organizations and a distinguished professor of business at the University of Southern California's Marshall School of Business. The center's periodic surveys of Fortune 1,000 corporations indicate that in 1990 about 59 percent of companies surveyed were employing a team-based compensation system. The figure had risen to 80 percent by 1999, the most recent year for which data are available. But Lawler cautions that this figure does not mean that team-based pay is widespread throughout the halls of corporate America; it "just means they used it somewhere." He adds, "In virtually no organization is it a companywide practice." Finding the Right Fit Teams can be structured a variety of ways. They can be groups of multifunctional employees brought together temporarily to accomplish a specific task, such as developing a new product or penetrating a new market. But the more common and more......

Words: 293 - Pages: 2

Team Concepts

...Work Team Concepts A previous experience in my work life illustrates the concept of group communication. According to Rue and Byars (2004), keeping members of a group informed helps create the feeling that the group is needed and a part of the organization (p.138, para. 2). The company I work for recently has undergone 60 layoffs throughout the corporation. The management team did not inform us on whether or not our department would be part of these layoffs. This caused a scare to the employees and the feeling that their jobs are no longer secure. Several of the employees were working poorly with production due to added stress of the job. Our department did not lose any employees but did lose many hours because they have closed the cafeteria down on the weekends. The full-time employees that worked in the café were given hours in the kitchen, therefore reducing the per-diam worker’s hours. As a team, we developed new job descriptions for the production jobs in the kitchen. We were able to keep all our full-time and part-time workers as well as create hours for the per-diam workers. The management team allowed us to use our team concept and group communication skills to adjusting the job descriptions. We have been working with the new job functions for several weeks now and the morality of the group is back up to the group norm. A group norm according to Rue and Byars (2004) is a group that adapts to regulations and regularized group members’ behaviors (p. 140, para. 2).......

Words: 284 - Pages: 2

Compensation

...A study of Estimating Cost to Government For a government employee Study conducted by XLRI The XLRI Team consists of Prof. Premrajan Prof. EM Rao Prof. Gurunathan L XLRI Jamshedpur Acknowledgements The XLRI Team is thankful to the Sixth Pay commission for offering their support during the entire length of the project. The XLRI team also thanks the representatives of all the government sectors that offered their views and patiently answered the questions the team asked them. We thank the numerous government employees who participated in the study conducted by the team to elicit their views regarding the pay mix. The team is especially thankful to Ms. Madhulika P. Shukul and Ms. Sheela Prasad for their untiring efforts towards making this study what it is now. The team salutes their dedication to their profession. Prof. R. K. Premrajan Prof. E. M Rao Prof. Gurunathan L 2 Estimating cost to government XLRI Jamshedpur ACKNOWLEDGEMENTS ..........................................................................................................................2 1 2 3 4 AN OVERVIEW OF THE STUDY..................................................................................................10 DELIVERABLES ..............................................................................................................................12 METHODOLOGY .........................................................................................................................

Words: 53589 - Pages: 215