The case study is about the Duplox Canada Limited Company which is a large multinational firm located in USA.The company has a way managing its compensation scheme and this is as discussed below.
Contextual variables are those factors which contain various features of the environment and thus they relate to collaboration effectiveness. There are various contextual variables which have greatly impacted the firm. Such variables include the cost of living such that it is one of the most significant factors on compensation management. Studies in the past have indicated that the cost living in a particular country has resulted in an increase in the compensation. The other contextual factor is that on the healthcare (Jia, Shaw, Tsui & Park, 2014). Healthcare has been considered in the firm as the most important contextual variable and hence the various employees are provided with healthcare benefits as part of the compensation benefits. The spouses of the workers are also provided with healthcare benefits compensation scheme by the organization. The other contextual variable is the accommodation allowance where the employees of the organization are provided with housing allowances based on their areas of residence as indicated in the compensation scheme of the particular organization.
There are various structural variables in the organization. Such structural variables include the job design and reward system, coordination and departmentation, decision making and leadership, control system and communication and information (Shamir & Howell, 2018). The above mentioned structural variables enable the particular firm to run and manage most of its core activities effectively and this, therefore, leads to successful operations within the company.
The firm uses the growth strategy as the most relevant management strategy. The growth strategy entails the diversification and expansion of various operations of the company. Such a strategy has been adopted by the management of the company because of several reasons such as not being satisfied with the current status of the company. The other reasons include the changes in the environment and also due to certain favorable opportunities which are available which would allow for diversification and expansion. The growth strategy has often been enforced through a number of techniques by the management such as market development, product development, merger and diversification among others.
There are various problems which are experienced by the employees in the organization. Such problems include for example being overworked by the management such that the high performance and efforts placed upon the workers have made them become afraid. Such a fear created among the workers has been attributed to the fact that the management asks them to carry out more tasks for the same compensation (Tommy & Oetzel, 2018). The other problem is favoritism where a section of the workers are favored more than the others and this entails being offered much compensation bonus compared to the others who work for the same piece of work. Another problem is based on the conflicts existing among the different employees.
The conflicts mainly relate to various aspects such as differences in leadership styles. The leaders of the company have diverse techniques of leading their team members and thus such members have to deal with such many leadership styles making them become confused at times. Certain leaders use the directive technique of leadership while others are more inclusive and open. The other essential aspect in conflicts is the differences in style of carrying out a particular task. The firm uses various approaches of getting a particular job done, for example, there is the use of task-oriented technique where work is done faster and the other method is the people-oriented where every particular employee is involved in carrying out the various tasks assigned in the organization. Lastly, there is the problem of not being appreciated for the work the employees have done and this has generally demotivated them to perform effectively as required of them within the particular firm.
There is a wide variety of good employee behavior which can be adopted by the employees to overcome some of the challenges. Such behaviors include, a positive can do attitude which entails being willing, available and ready to perform various tasks assigned to the workers (Ford, Agosta, Huang & Shannon, 2018). The other employee behavior is taking responsibility for every particular mistake and error made by the employee in the process of carrying out particular tasks or even project.
According to Ali, Noor, Wilson & Ismeth (2015), the taking of a personal responsibility by the workers will help in the identification of certain key issues involved in the particular problem and tackle it appropriately. Another behavior could be based on the ability of the employees to meet the deadlines assigned for every particular task in the firm. The employees should aim at meeting deadlines for the various tasks assigned to them and this will, therefore, help in achieving the key objectives set in the organization according to the timelines provided for the goals.
The compensation system of the company is based on the fact that it is aimed at reducing the cost of inventory in the inventory management department. The compensation and benefits scheme of the client is made up of various elements such as equity-based compensation scheme where the shares of the employer are used as the compensation of the employees (Forenza & Perlman, 2016). Such a scheme contains the stock options, employee stock purchase plan and the restricted stock. The other component is the guaranteed pay which is a fixed cash reward. Under this system, the employees are paid on an hourly basis depending on how much time they have taken to complete a particular task. The variable pay is another component of the compensation and benefits system of the client.
According to Kilgour, Kosny, McKenzie & Collie (2015), such a component is considered as a non-monetary reward given to the employees based on a number of factors such as the performance, attainment of specific results and contingent on discretion. Some of the variable plans include the overtime pay, sales incentives, and bonus schemes. Lastly, there is the benefit aspect of the compensation and benefits system of the client. The above mentioned component contains a variety of benefits which are often offered to the employees of the firm such as retirement plans, insurance covers and paid off time. However such benefits are provided to the employees on pay package form and this includes the bonus and basic salary (Cooper & Turner, 2017). The benefits are however considered to be compulsory for every particular employee of the client’s firm and hence the human resource has to comply with the provision for such benefits.
The current compensation scheme typically offers support to the employee behavior the company is looking for and this is has been attributed to the fact that, the compensation system contains the essential components which makes it appropriate for the specific employee behavior the firm is seeking for. Such components include, the benefits component, variable pay, guaranteed pay and equity-based compensation scheme. Further, it can be concluded that the compensation system has been aligned with the managerial style and this is because such a system supports growth within the company. It supports growth in the sense that it offers a wide variety of benefits which are a motivating factor for the existing employees of the organization. For example, the benefits component especially the insurance aspect enables the workers to take certain risks with the aim of achieving certain goals related to diversification and expansion of the company.
There are also certain constraints which might impact the compensation strategy. Such constraints may include, the resource constraint such that the firm lacks adequate resources to achieve the goals set for the compensation strategy. The resource constraint mainly revolves around the financial resources (Belleflamme & Peitz, 2015). The other constraint relates to the budget constraints and this is considered to be the key constraint which will provide the most impact on the compensation system strategy of the firm. Another constraint is due to the unique service model offered by the firm and this will also cause a key impact on the compensation strategy.
References
Ali, K., Noor, N., Wilson, P., & Ismeth, Y. (2015). Symptoms Versus Problems (SVP) Analysis On Job Dissatisfaction And Managing Employee Turnover: A Case Study In Malaysia.International Journal of Economics, Commerce and Management United Kingdom, 3(4), 1-29.
Belleflamme, P., & Peitz, M. (2015). Industrial organization: markets and strategies. Cambridge University Press.
Cooper, T. A., & Turner, C. J. (2017). U.S. Patent No. 9,727,845. Washington, DC: U.S. Patent and Trademark Office.
Fleischman, G. M., Johnson, E. N., Walker, K. B., & Valentine, S. R. (2017). Ethics Versus Outcomes: Managerial Responses to Incentive-Driven and Goal-Induced Employee Behavior. Journal of Business Ethics, 1-17.
Ford, M. T., Agosta, J. P., Huang, J., & Shannon, C. (2018). Moral emotions toward others at work and implications for employee behavior: A qualitative analysis using critical incidents. Journal of Business and Psychology, 33(1), 155-180.
Forenza, A., & Perlman, S. G. (2016). U.S. Patent No. 9,312,929. Washington, DC: U.S. Patent and Trademark Office.
Jia, L., Shaw, J. D., Tsui, A. S., & Park, T. Y. (2014). A social–structural perspective on employee–organization relationships and team creativity. Academy of Management Journal, 57(3), 869-891.
Kilgour, E., Kosny, A., McKenzie, D., & Collie, A. (2015). Healing or harming? Healthcare provider interactions with injured workers and insurers in workers’ compensation systems. Journal of occupational rehabilitation, 25(1), 220-239.
Shamir, B., & Howell, J. M. (2018). Organizational and contextual influences on the emergence and effectiveness of charismatic leadership. In Leadership Now: Reflections on the Legacy of Boas Shamir (pp. 255-281). Emerald Publishing Limited.
Tommy, P. F., & Oetzel, J. G. (2018). Managerial and Employee Conflict Communication in Papua New Guinea: Application of the Culture?Based Social Ecological Conflict Model. Negotiation and Conflict Management Research.
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