HRM and Organizational Effectiveness
Daktronics is a leading manufacturer of dynamic visual communication display systems, most notably LED displays. It's recent entrance into the rapidly growing Chinese marketplace requires an incentive pay program that facilitates the achievement of organizational strategies and improves organizational effectiveness, there in this hyper-competitive market. As such, two sets of steps in program design will be utilized. The first set of steps is that laid out by Holmes (2005). Holmes outlines a five-step program for creating a diversity program, which can be applied to this incentive pay program. These include: clarification of the benefits of the diversity program, identification of SMART goals, development of action plans, definition of performance expectations,and evaluation of impact on performance. The second is the steps outlined by Becker and Huselid (2003). These three steps include: clearly defining the business strategy, drawing a map of the casual flow of strategy execution, and linking of HR architecture to the strategy map. Incentive pay programs have been implemented for generations. In these programs, employees are rewarded depending on "measured changes in
As Pfeffer (1998) notes, labor costs and labor rates are not directly associated. The business strategy to be utilized is decreased costs and increased quality product as a means of competitive advantage. It is anticipated that productivity will be increased by as much as 50 percent, when compared to non-incentive pay facilities. First, it can lower base salary costs for employees, while financially rewarding those who perform according to specifications. In Daktronics' case, this will mean an increase in productivity and quality. This program is relevant to both the company as increased production and higher quality will improve competitiveness. This strategy will be executed with the increased motivation and the typically associated increased meeting of goals that have been set forth. Implementation will include ensuring all employees understand the program and progress reported to aid in motivation. Benefits of the Incentive Program to the Organization: There are several benefits to implementing an incentive program for the Daktronics' employees in their newly created China location. The organization will be able to reduce costs due to increased effectiveness, in addition, incentives tied directly to quality production will further give the company a competitive advantage. Specifically, the program will reward manufacturing employees who meet specified production goals, as well as specified quality assurance goals. This can then be utilized to increase competitiveness in the Chinese marketplace. performance according to predetermined rules" (cited in "Incentive pay plans", 2007). Becker & Huselid (2003) Steps Implementation of Incentive Pay Program: As mentioned, it is anticipated that the impact on performance will be positive. This program will then be presented to Daktronics management for final approval.
Common topics in this essay:
Pay Program,
Introduction Daktronics,
Program Organization,
Overview Incentive,
Action Plan,
Goals SMART,
Expectations Performance,
Becker Huselid,
incentive pay,
goals set,
pay program,
incentive pay program,
employee satisfaction,
quality assurance,
quality product,
incentive program,
smart goals,
Incentive Pay,
increase productivity quality,
pay programs,
becker huselid 2003,
diversity program,
satisfaction organization position,
employee satisfaction organization,
|
Acceptance Essays
