Discuss how changing a compensation program was consistent with the strategic shifts occurring in the organization. What difficulties can you identify with shifting to the new compensation program from the traditional ones used in many production settings?
1. Discuss how changing the compensation program was consistent with the strategic shifts occurring in the organization.
This manufacturing company had 5,000 employees working at one site. None of them were represented by unions, which gave the management latitude to make changes without being limited by the terms of a contract. The lack of a union also left the employees at the company's mercy, but it was also reflective of the good relationship the company had with its employees that they did not feel the need to be unionized.
The company chose to convert to a knowledge-based program to compensate its employees. A task force examined work processes in three production departments and recommended changes.
The company adopted a teamwork approach to individual jobs and job descriptions. The ...
This 535-word solution includes sample responses to two case study questions about strategic shifts and compensation programs within an organization and difficulties associated with those shifts and program choices. The solution is written in discussion board format.