Competitive Edge in the Market
Essay Preview: Competitive Edge in the Market
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What policy regarding external competitiveness would you advise? List the options and the pros and cons of each policy option offer the rational for your recommendation.
The policies I would advise to the company would be labor market factors which are nature of demand and supply. Another policy product market factor which is degree of competition and level of product demand. Another policy that affects external competition is organization factors which is industry, strategy, size, and individual manager. One option that I would consider would be a lag pay-level policy. The policy offers lower base pay with high stock options and variable pay. The reason for this option is because the company is started. Lag pay-level policy offer higher future returns (benefits); increased employee commitment and foster teamwork; increase productivity; and work and life balance. On the downside the policy lower pay often below the market and high risk of being fired when the market is bad.
What forms of pay and in what percentages would you recommend? Again, offer your relations.
Pay forms are are the various types of payments, or pay mix, that make up the total compensation. I will use a performance driven policy. It will be based on pay which would be 50 %. I will use 10% on bonuses. Also 25% will go on stock options and 9% on health insurance and 6 % on retirement plan.
Consider the theories and research presented in this chapter. Which ones did you use to support your recommendation? I used efficiency and compliance theories to guide my approach.
List three pieces of additional information you would like to have to refine your recommendation. Explain how this information would help you.
I would want to know the companies staff and their compensation. This will help me understand the companies overall structure.
I would want to know the companies payroll budget. This will help me understand how the company plans to use revenue. I will know the budget for new hires.
Also, what is the current market compensation plan for companies in the area. This will help me leverage deals for new employees.
Finally, would you physically locate all the actual software development in Laramie? What, if any, other options would you consider?
I would not physically locate all of the actual software development to Laramie. I would try to the marker of South Dakota because of it tax breaks. This will help save the company money in the long run and drive competitive edge in the market.