Question

Unit 10 Compensatiion - Topic 1

Embedded Controls, Open versus Closed Pay Systems, and Outsourcing

How do embedded controls affect managerial pay decisions? Select one type of embedded control, indicating how it can help control costs.

Research has shown that employees in open pay systems misperceive the actual pay system as much as employees in closed pay systems. There is also research that employees in companies with open pay policies have higher satisfaction with their pay than in organizations with closed polices. What conclusions can you draw from these observations?

Topic 2

All compensation managers are concerned about managing labor and salary costs. For these managers and their employees, the option of outsourcing will continue to demand attention in the continuing movement towards a global economy. Use your favorite search engine to search for articles on outsourcing. Did any of the articles influence your position on outsourcing and the advantages or disadvantages it provides for a compensation strategy? How does the structure of the compensation function relate to the objectives of the organization? Please relate anything useful from the Web field trip as it relates to this issue.

Answer 1

Embedded pay decision making systems definitely help an organisation and a manager to be more productive in their decision making process. Electronic records are are fine example of helping decision making system for a manager as they provide extensive understanding of performance of an employee which help to manager to determine the best available pay. This type of approach also enables manager to assess the organisations condition as well as to determine the best employee working with the highest performance by analysing their overall data available over the electronic record systems in the decision making for managerial decisions. Not only this type of approach saves times but also reduces the overall cost involved in Operation as it does not require any other external element for audit which directly reduces the overall cost involved in Operation.

Open pay system provides psychological effect of being equal and fairly treated by the company as each and every information regarding payment is public. Where enclosed structures dissatisfaction level is relatively low as the payment structure is kept confidential which directly limits employees ability to tell or assess the situation according to their payment. This type of situation in both of the scenarios create a different effect on employees there open Salary culture usually provides a more intuitive working environment and less care about the salary, closed salary structure creates confidentiality and puts the psychological effect accordingly.

Outsourcing example - Starbucks and Flextronics

Starbucks join hand with flextronics for an improved production as well as Organisation in general. Bile production of the in house production to improve the overall core competencies in the market and model the specific service provision process which would increase the overall productivity of the organisation was the main reason to join hands with Flextronics. Supply chain management with better ERP implementation was also one of the biggest reasons of Starbucks to maintain a relationship with Flextronics. Utilising the overall available economic scale advantage and implementing the professional is used by Flextronics in to the organisation while serving The Other brands is also one of the major reasons for joinings of these two companies. By reducing the overall production cost and providing quality service to the customers while maintaining the electronic records was also done by these companies. As Flextronics is one of the biggest brand in the world in have the best experience available in the specific region of working, starbucks Flextronics as their partner for the services.

After joining hands with Flextronics starbucks have specifically learnt that Outsourcing helps a company to grow its market steadily and could be beneficial for an organisation. As Starbucks does not have any kind of outsourcing for their specific Store or organisation, that Outsourcing the project with a company like Flextronics is very beneficial as they have extreme experience in such fields. While they also learnt that before going with such collaborations we have to do specific market research as well as research the complications of the specific terms. Standardization of the technology being implemented into the organisation was also one of the major learning for Starbucks while they have collaborated with electronics. Being unique and standardizing their overall work was also a great learning for Starbucks to maintain the balance and global market.

Starbucks is consistently working towards quality provision of services and creating Better restores by investing in the resources rather than investing in the business. Starbucks have been evolved from a small store to a big company which is known as a premium brand carrying the coffee around the globe. Does a specific image of Starbucks has improved in money years by hard work and dedication. Starbucks has its future strategy for continuously growing in developing countries. Their main focus is to introduce new policies as well as store in the developing countries to create an ethical as well as business environment for Starbucks.
Starbucks is a multinational brand which carries out its services across the globe. By having an ability to deal with in different Markets and also dealing in emerging markets like India is one of the*main opportunities of Starbucks . Starbucks has been a Pioneer in the coffee industry and it is operating multiple stores across the globe in different countries. Starbucks has successfully implemented itself into the system as a premium coffee brand and also in to the society as a status symbol. As we can see that Starbucks is growing its business towards the market specifically in the development and Markets. By having an ability to interpret the market and analyse the market according to the needs has always been a strength for Starbucks. This specific strength is always created strong shares for Starbucks Corporation.
Maintaining a relationship like Starbucks take a lot of efforts as well as understanding between two organisations as this is specific market is facing use competition and competitive providing the specific services are also different. Starbucks has to maintain an intensive relations as well a*s communication between the two companies for improving the overall efficiency and productivity of the specific companies.

Starbucks has maintain the complexity of it supply chain by improving different aspects of the supply chain network. Implemented electronic record system as well as different technological advancement in to the supply chain for maintaining the specific efficiency as well as productivity of the supply chain. Starbucks has specifically increase the overall coordination between the factors of the supply chain. From the suppliers to the distributors and to the stores everything inside the organisation is maintained and captain flow by an electronic system which is properly implemented into the organisational structure of Starbucks. Quality maintenance and less delay between different task of the supply chain system.