Assignment 2: Compensation Plan Outline

Assignment 2: Compensation Plan Outline Student’s name Institution Date Assignment 2: Compensation Plan Outline Apple Inc. is one of the biggest high tech companies in the world. The company is known for its highly innovative products like Macs, iPods, iPhones, and iPads. The company is also famed for providing great employee benefits. A company is good as its labor force motivation. Companies currently show their concern for their employees' welfare and ensure that apart from their financial stability, employee wellbeing is catered for. This essay seeks to take a keener evaluation of Apple's compensation plan and its appropriateness and influence on its employees' motivation. The paper will also compare the Apple Company's benefits program with its competitors and suggest what the company should improve on. Compensation plans vary and depend on the Company’s goodwill, the current Apple Company’s compensation has had a positive impact on its employees. The compensation comprises three packages, Long equity awards which involve giving employees limited stock entities, performance-based compensation which is based on the employees' innovativeness and work performance and salaries. Where an independent committee consisting of independent directors analyze and determine compensation for the executive officers. Compensation plans are very appropriate for the Apple company. The performance-based cash has led to innovation in the technological wing of the corporation as the executive officers are paid for remarkable work. This serves to increase the employees focus on their jobs as achieving a goal or doing a job excellently gets them rewarded. Achievement of the goals, impacts positively on the company as they are based on the operating cost and revenue objectives. These strategies have attracted the best entrepreneurial, talented and creative labor to the company. The result has been the company having dynamic employees and successful leadership. To improve the effectiveness of this compensation plan and avoid friction between the company and employees, Apple needs to negotiate broadly with the employees and use the compensation scheme as a binding factor among its many employees. Internally and Market consistent Compensations Systems. In Apple Company, the compensation plan involves deciding how to remunerate fairly, equitably and competitively based on the current market rates. To improve the employees' performance the company gives incentive to the employees that perform exceptionally well . All these benefits, the company makes sure are consistent and cost effective with the current compensation policies, market, and existing government policies. To achieve an internal and external market compensation system, the company has ensured that there is a balance of internal equity and external competitiveness. For the company to achieve internal equity, it consistently applies to reimbursement programs, both horizontally and vertically. In the external market, data from the competitors in the market determine the level of competitiveness. Apple is among the best compensating companies, The Company's executive compensation plan that rewards employees who successfully achieve goals and inspire inc...