Employees desire compensation systems that they perceive as being fair and commensurate with their skills and expecta¬tions. Pay, therefore, is a major consideration in HRM because it provides employees with a tangible reward for their services. A significant interaction occurs between compensation management and the other functions of the HR program. For instance, in the recruitment of new em¬ployees, the rate of pay for jobs can increase or limit the supply of applicants. Compensation objectives should facilitate the effective utilization and manage¬ment of an organization’s human resources, while also contributing to the overall objectives of the organization (www.indiana.edu/~busx420/Book.../chap09.doc). Providing a first-rate benefits package for employees can be an important part of the recruitment and retention puzzle (studymode.com). The organization that is chosen for the case study is Walmart. Walmart is one of the largest retailers in US. It has more than 200,000 employees. Therefore the volume of employees’ issues related to accidents on job and compensations ...
Analyzing Wal-Mart's annual report provides a positive outlook on Wal-Mart's financial health. Given the specific ratios and its comparison to other companies in the same industry, Wal-Mart is leading and more than likely continue its dominance. Though Wal-Mart did not lead in all numbers, its leadership and strong presence of the market cements the ongoing success. The review of the current ratio, quick ratio, inventory turnover ratio, debt ratio, net profit margin ratio, ROI, ROE, and P/E ratio all indicate an upbeat future for the company. The current ratio, which is defined as current assets divided by current liabilities, is a measure of how much liabilities a company has compared to its assets. Wal-Mart in the year of 2007 had a current ratio of .90, and as of January 2008 it had a current ratio of .81. The quick ratio, which is defined as current assets minus inventory divided by current liabilities, is a measure of a company's ability pay short term obligations. Wal-Mart in the year of 2007 had a quick ratio of .25, and as of January 2008 it had a ratio of .21. Both the current ratio and quick ratio are a measure of liquidity. Wal-Mart is not as liquid as its competitors such as Costco or Family Dollar Stores Inc. I believe the reason why Wal-Mart is not too liquid is because they are heavily investing their profits for expansion and growth. Management claims in their financial report that holding their liquid reserves in other currencies have helped Wal-Mart hedge against inflationary pressures of the US dollar. The next ratio to look at is the inventory ratio which is defined as the cost of sales divided by average inventory. In the year of 2007, Wal-Mart’s inventory ratio was 7.68, and as of January 2008 it was 7.96. Wal-Mart has a lot of sales therefore it doesn’t have too much a problem of holding too much inventory. Its competitors have similar ratios though they don’t have as much sales as Wal-Mart. Wal-Mart’s ability to sell at lower prices for same quality, gives them the edge against its competition. As of the year 2007, Wal-Mart had a debt ratio of .58, and as of January 2008, it had a debt ratio of .59. The debt ratio is calculated by dividing the total debt by its total assets. Wal-Mart has a lot more assets than it does debt so Wal-Mart is not overleveraged.
Reasons being their job in an organization or a corporation is very crucial and not easy to replace. Due to this, companies often go to great lengths spending hundreds of thousands of dollars searching and recruiting for someone who is able to help their company grow in value and continue to be successful. In order to attract the best and highly skilled employees, companies cannot just focus on their salary offers anymore. Competitive hiring practices are now focusing on various compensation and benefit packages that will make potential employees favor them to other competitive companies (“Executive Benefits and Compensation”, 2016). Companies must offer benefits that will have a positive effect on the organization without being counterproductive, meaning offering benefits that employees will use appropriately and will consequently have a positive impact on their effectiveness at work. Some concerns about executive compensation include making business decisions in order to meet business goals under the premise of personal gain in order to receive their incentive (“Executive Benefits and Compensation”, 2016). In order to combat this concern companies should tie the employee’s incentives to the value of their firm
In April 2010, KK BB, the CEO of Marshall & Gordon, a leading public relations firm met with the firm’s leadership committee off-site in Miami. This off-site brought together Marshall & Gordon’s executive committee, practice and regional heads, and senior HR officers to discuss on redesigning the firm’s compensation system. A global advisory taskforce, under the direction of an external consulting firm, had spent three months collecting and analyzing data. Marshall & Gordon hired external specialists to design the new performance management program. The specialists proposed that the senior managers and human resource form a global advisory unit together with Marshall & Gordon partner to represent the firm’s five regions of the firm and lead the design process. The advisory unit surveyed all consultants in February in order to understand their way of thinking about the fairness, worth, and effect of the current performance management system. Majority of the interviewees responded to the corporate surveys implying that the subject was topic was especially exciting to them. Interviews gave insights on present and prospective business plans and direction. The survey also showed that specific focus across certain employee populations should be given. Six current hires from key competitors were also interviewed to comprehend competitor pay practices and compensation program structures. Further focus groups discussions and key information interviews enabled the taskforce’s to understand the needs of certain groups within Marshall & Gordon’s worker population. The survey culminated with the taskforce conducting interviews of 20 partners and principals togeth...
The company Steel Co, which has been established for around 30 years, has been in a steady decline during the current recession and although a Divisional Director has been employed by the owner the fortunes of the company have not improved. The staff is unhappy, unproductive and unimpressed by the Human Resource system that currently exists in the company. The pay structure that currently exists within the organisation has been much debated among employees who feel it is unsatisfactory. The Business Adviser will research Performance and Reward management tools in order to help the company develop a more suitable Performance and Reward system to use. A variety of sources will be used in order to evaluate the system and tools against other organisational frameworks. The pay structure within the company will also be looked at in order to identify any possible changes that could be made.
In 2008 Wal-Mart had a major decrease in sales and lacked desired workers because no one wanted to work for them. Wal-Mart knew they had to fix their problem, so they thought of a strategy that could regain customers and attract people to want to work for them. This article was chosen because it conveys results and achievements when Wal-Mart realized what changes have to be made in Human Resources for their company to be successful. Many of the subjects discussed in class are demonstrated in this article, developing a strategic plan by accommodating change, recruiting and training, flexible work hours, staffing by promoting from within, performance appraisal by using the appraisal data as a tool to help employees improve their performance, and many more.
There is an array of key components and factors involved in making an organization a successful business. One of those elements consists on evaluating employee’s performance; this sole component is critical in determining how effective is the organization’s productivity and which are the necessary steps to ensure proper functioning. “The performance appraisal may be one of the few times during the year where an employee and the reviewer, typically the employee's supervisor, can sit down and have a lengthy face-to-face discussion about all aspects of the job” (Joseph, 2016). Employees’ performance assessment serves as an instrument to gather important information as to which areas of the job description are being performed according to standards
...ir conflicts resolutions and motivations. Some measures which can help a human resource management department to impart equity would include but not limited to competitive salary, fringe benefits, career progression, gender, personal development, promotion etc are few variables which HRM require to look after to keep employees motivated. Through such measures, the companies can reduce the probability of employee dissatisfaction, non compliance with the standards and regulations and hence reduced chances of legal actions.
Finances have been a necessary element of the world ever since man has first come into existence. The role of commerce in the life of an average human is baffling. It appears that money in and of itself, could possibly make the earth continue on its steady journey around the sun, such is its importance. The vast amount of wealth that is currently occupying the homes of billions though, may not come so easily to some as it does to others. There are those who must learn to go without certain provisions due to a lack of funding.
...construction sites are extremely high and the probability for an accident occurring is always high as well (Davies & Tomasin, 1996). These surroundings will always have such cases all the time, and the best can be done to reduce them even if not put them out completely. The prevention of falling accidents will benefit the employers and employees alike-the company will be saved compensation finances and the employers will not be inflicted with a disability. The falls that result from accidents at construction sites call for the victims to fall up for their compensation from their employing companies. The bureaucracy to compensation is really traumatizing for a grieving person, besides they serve to injure the image of the company by polishing its reputation black besides costing the company enormous funds that would have been used otherwise (Davies & Tomasin, 1996).
Wal-Mart Supercenter is a very large chain of stores that is located in several countries. As Wal-Mart expanded its business locations, various distribution centers for the sales were placed in several locations in the world.
Benefits are a key component in the total compensation plan for any company. Critically thinking and analytically processing must dominant the discussion when selecting which benefits to offer as part of a benefit plan. This is necessary to ensure that the right benefits will not only connect to the employees preferences but also protect the company’s financial health. These goals can be accomplished by, 1). Determining what benefits are important to the various employees groups by conducting surveys, analyze and interpret the data logically and implement changes accordingly. 2). Research the current business market and industry standards to ensure the organization benefits are competitive and positioned to attract top performers. 3) Determine the current financial health and impact on the organization to ensure the benefits program is both financially cost effective and targeting the desired results. These items will allow the company to foster an effective compensation program while establish a long-term collaborative working relationship between management, employees and the organization.
This research involves distribution of questionnaire and collecting samples randomly by distributing questionnaire to 100 employees working in different departments. This research identifies the most common complaints such as wage & salary, working condition of the company, promotion to the employees, unfair management
Employee compensation and reward systems have undergone a couple of paradigm shifts since inception. Reward systems were traditionally compensation based and focused on the individual or the position (Beam 1995). After a recession in the early 1980's, employers turned to performance based models in an attempt to save money while still rewarding top performers (Applebaum & Shapiro, 1992). Today, the most successful organizations are using a total reward model, a hybrid of the performance based model combined with strategic human resource management planning to create reward systems that both benefit the employee and help organizations realize their operational goals (Chen & Hsieh, 2006).
Although workplace accidents are very common, the majority of them can be prevented. As a company, you are obliged by the law to protect your employees, so it is important to take the necessary actions that will minimize the risk of accidents (Intelligent HQ, 2015).
Organizations are working hard in today’s world of business, not only to remain competitive, but also to focus on stability and structure. Employees are the backbone of an organization. It is becoming more important to offer quality HRM programs to staff, in order to support the retention of trained and experienced staff. Employees have always been concerned with salary however, there is a new focus emerging that looks at compensation as a whole entity. Monetary wages are now just as important as other benefits such as paid time off, medical and dental offerings and retirement. This paper will discuss the importance of the total compensation program which includes many aspects, not just salary. Attention must be paid to equal pay, pay