Quiz 2: Strategy: the Totality of Decisions
Compensation is a total amount of payments which are either cash or non cash which is given to the employees for the services they render to the organisation. Compensation strategy of my college C is shown below: Objectives : The objectives include identifying the services they render to the organisation. Customer satisfaction is the main goal. Participation and initiative taken by the employees and their attention towards the work they do. The objectives also include the output which is given maximum by the employees. Alignment done internally : This includes the job responsibilities, collaboration, team culture and also the fair pay system for all the employees. Employee Considerations: This includes the performance and bonus process, incentives which are linked to achievements and identifying the considerations of the employees. Competition: This includes how the benefits vary from the competitors, motivation and satisfaction levels of the employees and selection of the advantages. Management: This includes the process of communication to the employees about the new joiners and understanding the employees well. The objectives of the Microsoft are mainly to be with business goals, recruitment, Motivation and retention of the employees. The objectives of Merrill Lynch's are to concentrate on motivating, and attracting customers, retention of the employees and making sure that business is following policies and practises. Microsoft main concentrates on retaining its employees as it is very hard to hire new ones and train them for the required skill set. In contrast at Merrill Lynch Company's main business is to offer financial services to its customers and this will have a great effect on how employees perform on the services provided. The business strategies that include in the compensation: Innovator Strategy mainly concentrates on inventing new ideas and aspects and waiting in short for the response from the market. Cost cutter strategy concentrates on output maximisation and minimising the cost how much ever possible. Customer focused strategy highlights on how customers are satisfies by the services rendered and have the expectation of the customers met. Therefore, compensation strategy of company C fall into Cost cutter strategy as their main focus is to improve the organisations efficiency.
X company sells fashion jewellery which is of high quality and affordable by most of the income classes. They sell jewellery through catalogue, home shows and conducting special events. They use fine quality materials like Austrian crystals and etc which are affordable and attractive. They deliver goods thorough consultants to customers when the order is received via home shops and catalogue. The key strategies are shown below: • Competitiveness: Compensation structure in X Company is decided on the commitment level. It has given an equal opportunity to men and women to establish their business by balancing their work life and earning income. It has very easy process to start followed by a quality training provided. The jewellery is purchased at whole sale price which gives a gross benefit of 50 percent. • Employee Contribution: X Company offers good opportunities as professionals to create a career and be successful. It is free to anyone to join as full time or part time employees. • Management: There are many levels of management to make sure each department is working well like vice president and directors of all departments like diamonds, emeralds, crystals and etc. Therefore, X Company mainly follows strategies like competitiveness, employment contribution and management.
Bidding war will have the impact on the top brokers as shown below: • The top brokers will be paid more and more by the competing firms in order to bring them on-board. • The top brokers will have high pressures to bring in more and more business to the company. In order to grab, any lucrative offering being made by any financial firm. In this scenario, more and more amount is being spent by the financial firms to get the top brokers from all over the industry. Yes, it can be said that most of the firms will benefit from the current change, but these most of the firms will majorly be the big firms. This is because only big firms will be able to pay higher and bring in top brokers. In this scenario, the winners will be: • Top brokers - they are being hired with unexpected rate of the raise in their pay packages. • Bigger firms - they will be able to spend the maximum and hence get the best talent. In this scenario, the losers will be: • Smaller firms - The smaller firms will be on the losing side as they will not have enough compensation to offer to the top brokers as their high level competitors. This will lead to them losing their talented workforce. The brokers will be in both, a winning as well as losing position. The top brokers will be in a winning position with getting the maximum out of the lucrative offers. On the other hand, the average performing brokers will lose such opportunities to the top ones. So winning or losing will depend on the broker's individual talent.