Your organization has two business units: one is a mature or established unit wh

Question

Your organization has two business units: one is a mature or established unit which manufactures products which are competitive on price. The product and manufacturing processes have few technological changes. The other business unit is a brand new start-up which uses high levels of technology in its products which are heavily regulated by the federal government. You are the senior HR professional of the organization and you are making recommendations to other members of the senior team on pay, benefits and forms of recognition.

Which pay structure would you use for each business unit? Explain the decision process(es) used.

What benefits would you recommend to the leadership of the organization for use in each business unit?

What forms of recognition would you recommend for each unit?

What additional considerations should be made for each business unit (for example, recruitment and retention considerations, generational differences between workforces?)

Explain your rationale using supportive documentation.

In this 5-8 page paper, reply to each of the questions using references to the course material and other professional publications and cite your sources. (Do not sacrifice thoroughness for mere brevity.)

Explanation / Answer

Part-1-

Pay structure is determined considering the following factor-

1) Financial Results/Earnings in the financial year
2) Prevalent local rates in the market
3) Benchmarking with competitors and companies which are best in the same line of business
4)Data shared by consultancies which provide data of compensation basis Roles/Qualification/ Skill etc through surveys etc
5) Internal parity : Salary paid to existing employees is determined considering the following factor

Explaination of the decision process(es) used.

-External Factor Analysis -At first,HR sees what the market is paying for similar roles, and makes a PESTLE analysis (Political, Economic, Social, Technological, Legal, Environmental) on factors that affect the salary. Most good HR managers know how to deal with this stuff and do a rough calculus of the factors in their head.

-Then, they’d consider internal factors - what are others in the company paid for similar duties / experience? Most larger companies have levels that should be met, to keep employees organised, and to make performance reviews and salary increases manageable.

-Accounts Department-Then, they’d consult with the accounting department, for budget considerations - how much can we afford to pay this person?

Then, the HR person nominates a range to be offered for this role.

Then, the HR person gets approvals from the relevant departments, for this salary.

Part-2

Leaders are invaluable when it comes to formulating and communicating new strategic directions, as well as motivating employees and increase their dedication to organizational goals/objective. Leadership acts as the catalyst that makes all other elements work together; without leadership, all other business resources lie dormant

Part-3

There are several forms of Recognition we can use in an organiztion

Part-4

There are some general considerations that can be made for each business unit-

Recruitment and retention considerations

-Proper Screening of Candidates before Interview

-Proper Induction Program so that each and every candidate would know about the buisness and the products of the company.

-We can also use different platforms such as- Twitter ,facebook , Youtube for our Hiring process.

Research and Development Unit

-Having a proper Vision and mission.

-Focous on increasing the satisfiction level of the customers

-Taking proper Feedback to make changes in the product

-Proper usage of Media for Advertisement and Promotions

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