demonstrate critical thinking abilities, writing homework help
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Please demonstrate critical thinking abilities. No fewer than 100 words for post.
For this response, should outside sources be used to support the content within the postings, proper in-text citations and correctly formatted references should be prepared consistent with the APA (6th edition). The list of references should be physically positioned at the end of the postings.
1.Distinguish policies on external competitiveness from policies on internal alignment. Is it possible to incorporate both in a strategy? What factors shape an organization’s external competitiveness?
Well-developed compensation packages and benefits help attract and retain quality employees; thus employers who can afford to offer these usually have a wider selection of candidates from which to choose. Since these policies have the ability to influence organizational goals directly, it’s of utmost importance for the business to conduct a thorough research on how to best implement them. The company’s external competitiveness and internal alignments both consist of qualities, which can be used, simplify this process.
The text describes external competitiveness as the pay relationships among organizations (Milkovich, Newman, & Gerhart, 2014). External competitiveness typically sets the pay level above, below, or equal to that of competitors. I find external competitiveness is best explained as a company’s aggressive approach towards acquiring talent while one-upping the competition through more attractive compensation packages (including salary, allowances, bonus, commission) and indirect benefits (such as insurance, pension plans, vacations) that an employee receives from an employer (What is compensation package? definition and meaning, n.d.). However, this may result in a double edge sword since higher labor costs are also likely to impact the company’s bottom line negatively.
Whereas, internal alignment policies are those that enable a firm to pay based on internal relative worth. The premise underlining internal alignment is that internal pay structures need to be aligned with the organization’s business strategy and objectives, the design of the workflow, a concern for the fair treatment of employees, and the intent of motivating employees (Milkovich, Newman, & Gerhart, 2014). Additionally, internal alignment policies can determine pay equity between like positions and if all roles in the organization are governed by the same compensation guidelines (Milkovich, Newman, & Gerhart, 2014). These policies can be used to help the employers determine the value of the work performed in efforts to assign internal rankings within the organization accurately. Based on the information provided, I firmly believe a well-developed compensation strategy should consist of a balance between external competitiveness and internal alignment. The organization’s external competitive attributes can be used to lure in new talent, while its internal alignment works to create a cohesive work environment.
References:
Compensation & Benefits. (n.d.). Retrieved from http://hrcouncil.ca/hr-toolkit/compensation-system…
Milkovich, G., Newman, J., & Gerhart, B. (2014). Compensation (11th ed.) New York: McGraw-Hill/Irwin.
What is compensation package? definition and meaning. (n.d.). Retrieved from
http://www.businessdictionary.com/definition/compe…