Compensation Management Question

The major AND minor problems in the case study and their relevance.

Major Problem with their relevance

1. Poor management and tracking of company performance and top executives. - This is one of the main goals in the case because once there is proper management and efficient company and executive performance, it will aid in the success of the business.

2. Taking financial risks by aggressively increasing market share. - Taking financial risks can easily put the organisation at a major decline over time which is why these risks should be limited.

Minor problem with their relevance.

1. Linkage of pay incentives to financial goals without considering performance objectives. - When the company linked pay incentives to financial goals, it essentially put the organisation at risk because they werent measuring employee success rates. However, if they measure their success rates based on performance objectives, it can benefit the company in the long run.

Question 1

State effective alternative strategies which the company could implement in order to address each of the problems outlined above.