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Componets of Total Compensation Package

Based on the company Glenview Plastic Systems
1,750-2,450-word paper in which you identify the components of the total compensation package. Also, assess the implications of internal equity and external competition in pay structure. Explain the relationship between an organization's compensation system and its ability to compete externally. Answer the following questions :
a. What types of monetary and non-monetary compensation does the organization use?
b. How does the organization assess internal equity and external competitiveness?
c. What internal and external factors have influenced the pay structure and external competitiveness?
d. How do employees perceive the pay structure?
e. What are some recommendations for the company to improve internal equity within its pay structure?
f. How does the organization's ability and willingness to pay affect the competitiveness of the organization?
g. What are some recommendations to improve its pay structure relative to its competitors?

Solution Preview

In accordance to the BrainMass policy, this is not a completion of assignment but only background help.
STEPS
a. What types of monetary and non-monetary compensation does the organization use?

The only compensation that Glenview uses is monetary compensation.

b. How does the organization assess internal equity and external competitiveness?
Internal equity is assessed by keeping the employees at one level in the same pay scale for example the sales and business directors are in the same range of $90,000-$120,000 and the sales persons and online supervisors are in the salary range of $50,000-$72,000. However, there is a difference in the compensation paid to the two types of personnel. The Sales director gets an additional 0.5% commission on the entire sales and each of the sales persons get 1.5% commission on sales. Internal equity assessment is minimal. Feedback is not allowed to reach Sinclair and the supervisor settles compensation related issues. Sinclair is very clear as most of the sales persons in Minnesota get incentives he gives them commission and production personnel do not get commission and so he does not pay them. In other words, he only uses external equity to make his decisions. On the other hand the business directors and online supervisors get lower compensation than their sales counterparts. This does create some murmurs of dissatisfaction but every one sticks to their jobs because Sinclair pays them better than what they would get elsewhere and there are few other ...

Solution Summary

This posting discusses the issues of Internal Equity and External Competitiveness.. These issues are discussed in the context of Glenview Plastic System..

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