Description of Business
The business will be an information technology based company focusing on the provision of IT solutions such as the development of applications to its customers. The company will have about twelve employees where some will be application developers and others will be administrators. The workers in this company will be classified as exempt employees. The company will be located in Las Vegas City in the State of Nevada.
List of Essential Guideposts
In developing an effective compensation policy, the organization will adhere to fairness and equitability.
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The plan and structure of compensation will enhance the relationship between performance, remuneration, and promotions among other entitlements as well as organizational success in a competitive environment (Bhattacharyya, 2011).
In environments characterized by both strong and down economies, the company will ensure that outstanding performances are recognized and rewarded accordingly. As such, the company will be committed to the adaptation of its vision in the event of various economic conditions (Kumar, 2011).
The company will be keen on providing an enabling environment and the relevant infrastructure that will attract and nurture skills and talents through the compensation policy.
Strategies and Analysis
In this business, the most appropriate business strategy in tailoring the compensation system to the strategy will be cost cutter with a focus on efficiency. The belief behind this choice is that this strategy will aid the emphasis on productivity and allow operational excellence to form the basis of compensation for workers. Moreover, this strategy will play a vital role in enabling the business to demonstrate an appropriate business response by coming up with cost-effective solutions to financial challenges (Bhattacharyya, 2011).
The compensations system’s alignment with the human resource program is expected to empower the workforce to achieve more outcomes with fewer resources. This will be made possible through effective work specifications and systems controls. The existing business in the community will influence the vision and strategy of compensation for this new company by offering guiding principles such as the basic success measures, the driving force in the market place as well as a functional infrastructure among others (Kumar, 2011).
References
Bhattacharyya, D. K. (2011). Performance management systems and strategies . Dehli:
Pearson.
Kumar, R. (2011). Human resource management: Strategic analysis text and cases . New
Dehli: I.K. International.
