Tomx Corporation Case Study: Tomax's Business Strategy

1. Tomax Corporation has 400 employees and wishes to develop a compensation policy to correspond to its dynamic business strategy. The company wishes to employ a high-quality workforce capable of responding to a competitive business environment. Suggest different compensation objectives to match Tomax’s business goals.
The pay for performance standard is the first place a company should start. This would be a reflection of if you perform, then you are rewarded. This type of standard raises productivity and lowers labor costs due to only paying top dollar for the people driving and contributing to the organization. Included within this compensation strategy, the company should institute a market-competitive compensation program as well. Most

The job ranking system is the easiest system and focuses on a jobs value to the business. It can be valuable to a small organization of no more than 14 job assessments. This process is accomplished by one person who is well-informed on all of the positions in the corporation or can be completed by a committee. The downside to this type of system is it is not a very accurate job rating system and does not truly reveal the differences in the degree of importance between the jobs. The next job evaluation system is the Job Classification System and this is done through categorizing and grouping jobs according to prearranged salary levels. The positives would be the straightforwardness and ease of the system, but the downfalls would be inaccurate ratings of the jobs being

Once the system has been put into place, it is rather easy to use. The main advantage of the point system is that it is a more precise way to evaluate a job. It is a more comprehensive job evaluation system in that it includes the talents, energies, duties and working environments from one job to the next. Financial responsibility, leadership, collaboration and other key indicators are included as well. The fourth type of system is the Work Evaluation system and this system measures a job’s value through its importance to the business and the goals set forth. By using this type of system, an energetic business can truly see how a job contributes and relevance in attaining the company goals or objectives. The disadvantage to this type of evaluation is that certain jobs that are important and needed are overlooked due to the main focus on its worth to helping the company achieve its