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 highly competitive workforce capable of responding to a competitive business environment. Suggest different compensation objectives to match Tomax’s business goals. 7 points
a. Aim to reduce unnecessary employee turnover – In order to maintain this big number of employees motivated to perform their duties and help the organization achieve its goals and objectives, it needs a modest compensation scheme for the employees.
b. To attract new employees – By offering a nice pay package for their staff,Tomax Corporation will aim to attract new more hardworking and qualified workers thus helping to achieve goals and objectives.
c. To comply with government regulations – The policy to be adopted needs to comply with all government regulations to avoid unnecessary court battles which are a strain on the shareholders money.
d. Open and understandable pay practice – The policy to be adopted should aim to be open and easy to understand to all employees to avoid any problems which may lead to demotivation in the work place.
e. Promote pay-for-perfomance standards – Thpolicy framework should aim to reward hardworking staff who go out of their way to give everything for the organization to prosper.It gives them a sense of belonging to the organisatin and to adds on their morale.
f. Achieve internal as well as external pay balance – The pay policy need to be in harmony with other organizations who are in the same sector. This wil motivate them tosteer their organization to great heights and achiene their goals.
g. To entrench fair employee treatment - W hen the employees are well compensated it instills a feeling of being valued in the organization and thus the policy need to treat them well by offering benefits and perquisites.
2. Since employees may differ in terms of their job performance, would it not be...