Compensation Practice: Far-Reaching Effects (Essay Sample)
Assignment 1: Compensation Practice
Use the Internet or the Strayer Library to research a publicly traded company for which you would like to work.
Write a six to eight (6-8) page paper in which you:
Briefly describe the company you researched, its compensation strategy, best practices they are applying, and compensation-related challenges they are facing.
Analyze how your company applies compensation practice to determine the positive or negative impact to the company and its stakeholders.
Examine the ways in which laws, labor unions, and market factors impact the company's compensation practices. Provide specific examples to support your response.
Evaluate the effectiveness of traditional bases for pay at the company you researched.
Use at least three (3) quality references. Note: Wikipedia and other websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
Analyze how compensation practice can be applied to positively impact an organization and its stakeholders.
Examine the ways in which laws, labor unions, and market factors impact companies' compensation practices.
Evaluate the effectiveness of traditional bases for pay (seniority and merit) against incentive-based and person-focused compensation approaches.
Use technology and information resources to research issues in compensation management.
Write clearly and concisely about compensation management using proper writing mechanics.
A compensation criteria or strategy is a very vital component of any organization. It usually acts as the difference between the success, and failure of the organization. This is because it directly dictates the competitiveness of the organization, as a result of the motivation levels of the employees. The organization's competitiveness in turn means productivity, profitability and hence sustainability. A compensation strategy also goes a long way in determining or alignment of job skill sets and respective wages, while also budgeting for each accordingly. In so doing, there is the important factor of how it plays a crucial role in the attraction of top talents within the job market.
Workers employed in an organization typically obtain a compensation for services they render to the company. Numerous individuals assume that salary payment and compensation is the same. Nonetheless, this is a misconception because compensation is more than just a payment package. Organizations or companies use diverse compensation plans or strategies. The compensation plan or strategy used by a company has far-reaching effects. To that end, each and every company should see to it that it maintains a compensation plan or strategy that is fairly competitive. Below will be a discussion of the Apple Company and a critical insight into its compensation strategy.
Its compensation strategy, best practices they are applying, and compensation-related challenges they are facing.
Apple is an American based multinational technology company. The company is headquartered in Cupertino a city in California. Steve Jobs and Ronald Wayne commenced the company in the year 1957. It was originally started to make and trade PCs built around a microprocessor for consumption by one person successively. The company was incorporated as Apple Computer, Inc in the year 1977. Nonetheless, in 2007 it was given a fresh title as Apple Inc. The word computer was removed from its earlier name to depict proof of its transformed concentration toward customer electronics.
The company creates and retails electronics meant for everyday consumption, such as iPhone smartphone, iPad tablet computer, and Apple TV. (O'Regan, 2015). It also develops and sells computer software such as MacOS operating system, Safari web browser, and the iTunes media player. The company is considered the leading information technology organization with total revenues in the universe. As of 2013, the corporation was projected to be worth 414 billion USD. It has approximately 72800 permanent workers and approximately 3300 impermanent workers worldwide.
The compensation strategies utilized by Apple Corporation has improved the competitive edge of the corporation. Apple is one of the companies that has been able to maintain competitive compensation strategies. The strategies have made it feasible for the company to retain its proficient and entrepreneurial employees. The performance-based cash incentive is one of the compensation strategies used by Apple (Theodore, 2018). The strategy has been instrumental in helping the company to attain its business objectives. The other strategy is the long-term equity rewards, which are offered in the form of limited stock entities. The strategy has helped in the retention and attraction of talented employees and it has also enhanced the productivity of employees. The other strategy entails the base salaries. The established compensation committee of the company determines the salaries to be rendered to be employees.
Additionally, the company uses the seniority-based pay system. The strategy has been effective in creating a steady workforce of dedicated wo...
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