An effective compensation system Essay Sample Posted on by bros2qET1 Marshal and Gordon is a taking public dealingss house that has been spread outing its services to include Executive Positioning. This requires a batch of squad work as opposed to individualistic attack. The main executive officer is under force per unit area to plan a compensation system that will assist in the retaining and actuating the already bing and really valued PR advisers. Before continuing to suggest any compensation system for Marshal and Gordon.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. Get Access An effective compensation system Essay Sample Marshal and Gordon is a leading public relations firm that has been expanding its services to include Executive Positioning.
This requires a lot of team work as opposed to individualistic approach. The chief executive officer is under pressure to design a compensation system that will help in the retaining and motivating the already existing and very valued PR consultants, get all the professionals to back the new strategy and also to retain the current clients and keep attracting new ones.
Before proceeding to propose any compensation system for Marshal and Gordon, it is important to have an overview of the existing system so as to understand the way to proceed without having negative impacts on the firm. From the onset, it can be admitted that Marshal and Gordon are faced with a very complex situation.
It appears as though the proposed change is opposed from every side. The first thing that is notable is that the firm has expanded o almost all the regions of the world; Asia, South America, and Europe page 3.
However, in its numerous offices scattered in the world, there are diverse specialty services and the firm has maintained an individualistic culture in the process of acquiring new PR firms, and in the integration of new principals, partners and associates onto Marshal and Gordon Page 4.
The fees that are paid for each project are double counted for origination and execution.
Controversies emerged where the projects originated and where executed by more than one partner or principal. These controversies always arise in the sharing of the rewards and especially where the parties have not agreed on the formula to use in the sharing.
In instances where one partner has found out that he or she cannot carry out a project to completion or where they need assistance of another to carry it out successfully, they always seek the assistance that is so required. The firm is in a bid to change its compensation program and adopt a new one.
It has already introduced a tiered system where the consultant earns bonuses according to the percentage of credits he or she generates. This tiered system enables the consultant to calculate the bonuses he or she expects.
This was based on the individual reports at any point in the course of the year page 9. However, it faces a challenge from the HR as the people have a negative perception of the ultimate consequences.
They perceive that it will end up taking money from their pockets page 8. From this description of the firm, it can be identified than the firm faces inherent challenges in its bid to build a compensation system that can meet the needs of all the sides of the business. Walking out is also very risky for the business of the firm as most of the consultants are very influential and will definitely walk away with the client.
This means, a bad move could occasion great losses for the firm and ultimately a threat to its business. The first principle that should be observed is philosophy. There should be a philosophy that is clearly communicated and principles that guide how the development, maintenance and decisions are made.
The philosophy should also be aligned with the overall business plan. In this philosophy, all the components of the reward model should be considered.
Differentiation in the compensation practices should be put into consideration. This is concerned with the manner in which different people in different levels in the business are compensated.
Such a differentiation should be clearly articulated and communicated. There should also be established means for measuring individuals contribution and if any bonus, they should be clearly communicated to the employees.
An ideal compensation model can be described as an exchange program. This is because it seeks to compensate the services of the employees in monetary form. The second key principle of an effective compensation system is rational structure.
In the implementation and maintenance of any compensation system, the organization must understand the baseline which is the legal and regulatory requirements that are in place.
The strategic workforce plan of the organization should be included in the system.
The compensation criteria and decisions should also be closely monitored.Essay Service, Best essay writing help and tips from our articles - Page 56 Books On Essay Writing It’s unreal for you to develop good writing skills on your own.
How an effective compensation and benefit system contributes to organizational effectiveness. The principle components of your revised compensation and benefit system for a large-scale organization as well as a recommendation for each component.
Developing an effective and efficient compensation system is an important part of the human resource management process. An effective and appropriate compensation system can help attract and retain competent and talented individuals who can help the organization accomplish its mission and goals.
- Case 1: Marshall& Gordon Company; Designing an Effective Compensation System In April , KK BB, the CEO of Marshall & Gordon, a leading public relations firm met with the firm’s leadership committee off-site in Miami. Impact Of Compensation System On Employee Performance Management Essay.
Print Employee Turnover, (4) Reward system. Objective of Research Study: There are two main objectives of these research proposals which are; A compensation system is an encouragement design whereby the contribution of employees is returned. An effective. An important component of compensation strategy is the organization's compensation philosophy.
Define what is meant by a “compensation philosophy” and discuss the principle components and limitations of a compensation philosophy, and answer the following two questions using the question and answer (Q&A) format.