Human Resource Challenges and Compensation Strategies Assignment Help
1. Identify the contextual variables impacting this firm.
2. Identify the structural variables.
3. Based on the above, describe what managerial strategy the organization is using.
4. Identify the types of problems they are currently experiencing in regards to their employees and the kind of employee behaviors they need to achieve their goals.
5. Describe the various components of your client's existing compensation and benefit systems.
6. Does their current compensation system support the employee behavior they are looking for? Is it in alignment with their managerial style?
7. Are there any other constraints that might impact your compensation strategy?
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The current report is focuses on designing a structure which will help in attracting and retaining potential human resources. In order to do that the report analyses the contextual variables as well as structural variables which are impacting Total Compensation program of Duplox Copiers Canada Limited (DCCL). It identifies the current managerial practices as well as challenges in the context of human resources compensation.
Answer 1: The contextual variables impacting this firm
The contextual variable is defined as the characteristics of personal and interpersonal. In the opinion of Held, (2019), the personal characteristics are the capabilities of an individual, which can be considered as their strengths. On the other hand, interpersonal characteristics are referred to the capabilities needed by an individual to communicate efficiently (Costa, Passos & Bakker, 2015). DCCL is facing severe performance problem. The employee's turnover rate of the company is very high. Moreover, the rate of customer satisfaction is very low as well as the rate of customer complain about the company is very high. The management of the organization has ended up in degrading their compensation structure that has adversely affected the employee behavior. As the rewards and compensation process is followed by the company is very strict the motivation of the employees is becoming low. On the other hand, the employee morale is also low. There is conflict between management and technical service specialists about the poor management and poor production quality of the company. The motivation levels of the TSSs are becoming low. On the other hand, TSSs are habitually criticized by sales staff.
Answer 2: The structural variables
In the opinion of Hafkenscheid et al. (2017), structural variable consists of communication, leadership, decision-making process, reward system, staff control, coordination, job design etc. DCCL has followed some structural variable such as communication, which is restricted. The branch sales Manager reports to the Regional sales manager who reports to the Director of the marketing. Secondly, another structural variable that is followed by the company is decision-making process. The decision-making process of the company is autocratic. Thirdly, among structural variable the company DCCL is following is reward system. DCCL followed extrinsic financial reward system that is associated to productivity or working time of employees. The reward system of DCCL is very strict and is based on the productivity are met successfully or not. On the other hand, compensation depends on the level of the price revival obtained from the technical service department. Next structural variable is departmentation and coordination. DCCL is following strict dignified pyramidal hierarchy. Moreover, DCCL is following very strict compensation strategy. The compensation procedure is based on quantity of new installation and quantity of service contract sold.
Answer 3: Current managerial strategy the organization is using
There are mainly three types of managerial strategy such as the classical managerial strategy, high involvement managerial strategy and human relation managerial strategy (Liu et al., 2019). Among these strategies, DCCL is following the classical managerial strategy. In the opinion of Nguyen et al. (2017), the managerial system of a firm can determine the successful reward system for the firm. In the viewpoint of Nguyen et al. (2017), the managerial system also follows dissimilar assumptions about workers and how must they be trained. The company is tightly controlling their employees as the company wants to get back their position in the market. The company DCCL is focusing on centralized leadership, profit maximization and autocratic decision-making. The company does not concentrate on job satisfaction of employees and social needs. According to the rule of the company, Technical Service Specialists cannot order necessary part or tools for maintenance. The TSS is bound to be performed rigorously according to the schedule of the company. The company is also processing cost cutting technology as they company is facing severe turnover problem. The company also reduces some benefit to their employees. The company is paying 15% of total compensation which was 25% at earlier. In the opinion of Mohammadi et al. (2015), extreme cost cutting of a company can lead to severe employee turnover.
Answer 4: Problems in regards to their employees and the kind of employee behaviors they need to achieve their goals.
Duplox Copiers Canada Ltd (DCCL) has been operating at a large scale and in order to survive the stiff competition in the market, the management of the organization has ended up in degrading their compensation structure that has adversely affected the employee behaviour. There are very serious employee performance problems that the organization is now facing. The most alarming problem is the issue of high employee turnover. Employee loyalty for the company is very low. This should not be the case. The employees must be willing to hold on to their jobs knowing that organizations would not be able to provide them with the same level of job satisfaction. This means that the managers need to ensure that the employees are subjected to effective reward systems (Long & Singh, 2013). There is a noticeable increase in the rate of defection out of the total production process as a result if poor performance that has led to a drop-in customer satisfaction level that can be identified through the higher level of performance. The employees are also unfair practices when it comes to letting the consumers know that they need to spend more in order to avail the qualities they are looking for. This they are doing in order to meet the sales targets, which would not be possible if the customers would buy from other companies.
Answer 5: Various components of existing compensation and benefit systems.
DCCL provides a major benefit to its employees when it comes to their working hours, starting from 8:30 am and ending at 5pm. The employees do not need work overtime as the company would not pay for it. The daily, weekly and monthly productivity levels are specified for the technical service specialists (TSS). This is beneficial as the workers would be clear about the amount of effort they need to provide and not beyond that. The organization also makes provision for any support the specialists need from the experts belonging to higher authority. This is a great benefit as the employees are aware that they would get the required support from the field service managers (FSM) in deadlock situations. The employees are rewarded with bonuses, overtimes that are dependent on certain criteria.
Answer 6: Current compensation system and the alignment with their managerial style
The most noticeable challenge associated with the improvement in employee behavior is the lack of communication embedded in the organization. Although the company does provide for support system for the TSS, the FSMs are reluctant in provided such support as it incorporates repair cost they themselves are accounted for. Hence, the managers are not receiving the right incentive to enhancing the work performance of the organization, which is a serious problem. The company is in need of a more compatible management styles. There is a need for greater degree of communication and a democratic management style should ideally be adopted. The reward system provided by the company is very restrictive. These incentives based on conditions where the performance has to exceed previous performance.
The reward system should be simpler and more transparent. The employees are in need of more encouragement on a regular basis that can be achieved through coaching and transformational managerial and leadership strategies. The employees are also in need of receiving the right training in order to enhance the performance standards and to clearly know what they are expected to do (Stewart & Brown, 2019).
Answer 7: Other influential constraints regarding compensation strategy?
The external factors like strategic moves of the competitors or adverse economic or political situations can affect the performance of the organization. It might affect the compensation strategy, as the company's ability to compensate the workers for their hard work is reduced. This is why a mix of formal and informal communication should be more compatible than adopting a climate for open communication. Given the current state of revenue of the organization, it is challenging to afford loyalty rewards. Also given that the organizational hierarchy is not subjected to change, system of accountability and coordination becomes a part of the challenge that can be overcome through effective communication (Cascio, 2015). Relaxing the controls might bring a sudden urge to put less effort that however, could be controlled through the implementation of rewards and incentives.
The report has identified that employee performance, turnover rate, staff morale, customer satisfaction as well as base line profit are the major contextual variables of DCCL. At the same time, communication, leadership, decision-making process, reward system, staff control, coordination, job design has been considered as the major structural variables of the company. It has also been identified that DCCL is following the classical managerial strategy; focusing on focusing on centralized leadership, profit maximization and autocratic decision-making. The report has also identified several crucial problems in the managerial practices and recommends effective strategy to resolve them.
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