MT-203Evaluations, Compensation, and Firm ObjectivesPurdue U, Lecture notes of Accounting

Download MT-203Evaluations, Compensation, and Firm ObjectivesPurdue U and more Lecture notes Accounting in PDF only on Docsity! MT-203 Evaluations, Compensation, and Firm Objectives Purdue University Global MT203: Human Resource Management–01 Braintrust Toys mission statement is to “expand the minds of children 1 month-100 years old”. They have decided to change their strategy from a product development to an innovative strategy and have let go of many of their employees due to the new ways of making toys. Their current compensation plan has been based on time spent with the company, with the recent changes to strategy, objectives and downsizing of employees due to new ways of working, the compensation and evaluation process must be updated. The best way for the company to link their compensation and evaluation process to the new objectives and innovation strategy is to create an incentive plan that rewards the behaviors needed to reach the new company objectives. One way to do this is to create an incentive plan. Incentive plans are designed to energize, direct, or maintain an employees’ behavior. (Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. 2020) Profit-sharing is an incentive pay in which payments are a percentage of the company’s profit and are not part of the employees’ base pay. (Noe, et.al, 2020) This incentive plan will help motivate the employees to reach the company’s objective of launching 15 new products to appeal to new customers and markets, helping the company grow their profits. Profit-sharing encourages employees to think of what the company needs to do to reach the goals. (Noe, et.al, 2020) Braintrust will need to survey the employees to determine if profit sharing is the best motivating incentive for their employees. The company will also need to ensure the pay for performance that is chosen will help to raise productivity. The company will need to use a mixture of measuring results to get to the desired objective. Management by Objectives will produce positive results on organizational performance. An MBO system has 3 components, goals are specific, difficult, and objective, managers and employees work together to set the goals and the manager gives objective feedback during the rating period to monitor progress toward the goals. (Noe, et.al, 2020) This process not only encourages performance and productivity, but it involves the employees as well. The company will also benefit from utilizing the critical-incident method of performance management, which is based on managers’ records of specific examples of the employee acting in ways that are effective or ineffective. (Noe, et.al., 2020) This will allow the managers to provide feedback in the moment to help the employees’ work to reach the company’s objectives. Based on the adoption of the innovation strategy and new objectives for the company, Braintrust will need to adopt a mixed method of performance evaluation. They will also need to update their incentive plan to reward their employees for their work. The best incentive plan to help the company to obtain its new objectives and implement the new innovative strategy is profit-sharing. This will motivate the employees to ensure the company is profitable. This method will also help prevent any further layoffs if the company does not produce profits. (Noe, et.al., 2020) References Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2020). Fundamentals of human resource management (8th ed.). New York, NY: McGraw-Hill.