Discuss the compensation philosophies and approaches
Discuss the compensation philosophies and approaches that have been used at any one organization where you have worked (no need to name the organization, though you should discuss the nature of the product or service provided). Answer the following questions related to that system:
• Were they market based, or internal equity based?
• Were they competency-based to help you grow and develop? Based on the use of some formal job evaluation system?
• Was there a team performance component included?
• How were base salaries typically set?
• Was it a performance based system? Based on seniority? Based on across the board increases for everyone? Based on cost-of-living increases only? Based on lump-sum approaches or a bonus?
• Did it include a variable pay component (incentive system)? A piece rate system? A profit sharing a stock ownership component?
• Were supervisor ratings used or peer and/or self-appraisals? Were 360-degree approaches used? Or was the system based on a combination of some of these factors?
• How were executives paid? Were their total packages based on salaries, bonuses, long-term performance-based incentives, or other benefits and perks such as a “Golden Parachute”)?
• Finally, what were the consequences of these philosophies and approaches? Do you think they helped the organization complete its strategic objectives or not? Are they consistent with the following core values: Excellence, Community, Respect and Personal Development? Remember to use APA format for in-text reference citations and bibliographical references.
