Remuneration is a critical factor that determines the performance and success of any organization or company irrespective of the level and position of the employee. The compensation for top-level managers has a direct and positive relationship with the size of the enterprise. The salary offered to the managers motivates them to focus on achieving the goals and targets of the organization. When the organization is small, it will compensate its managers to the level that it can afford, as compared to well-developed and large businesses ( Roh, Krause, & Swink, 2016 ). The remuneration offered for small businesses is lower as compared to the large corporations. Additionally, the payment such companies will be determined as per the level of education, performance posted by the managers, and the size of the company is considered. The efforts of the managers will influence their standard of remuneration, as they will determine the level of income and profits earned. A larger company has higher capital, which will translate to higher revenue and profits and the managers will have adequate remunerations.
The relationship between the size of the company and the remuneration offered to the managers favors the directors, as compared with the stakeholders. The stakeholders of the companies need to consider various factors, which will influence the relationship between the sizes of the company remuneration offered to the managers to serve them. Training is a critical factor, which should be considered in any business irrespective of its size. Well-trained managers in areas like information technology, management, and other relevant fields in the company will help in improving their performance. Managers should be offered a chance to participate in the decision-making process, as they are experts in different fields of study. Additionally, the company should avail all the necessary equipment for the managers to accomplish their duties and responsibilities ( Roh, Krause, & Swink, 2016 ). All these factors will enable the company to earn higher income and profits. The revenues and profits made will gather for the reasonable remuneration of the managers and the interests of the stakeholders. Such recommendations will benefit both the managers and the stakeholders, which will motivate both groups to deliver their mandates in the company.
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Reference
Roh, J., Krause, R., & Swink, M. (2016). The appointment of chief supply chain officers to top management teams: A contingency model of firm-level antecedents and consequences. Journal of Operations Management , 44 , 48-61.
