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Evaluation, Compensation, And Firm Objectives

Evaluation, Compensation, And Firm Objectives

Linking Compensation with New Objectives and Strategy

Employees’ performance is directly proportional to their performance. An enterprise that wants creativity from its people must compensate them accordingly. Companies that preach innovation and value creation but do little to improve employees’ benefits achieve little innovation. Profit-making organizations, especially those that deal with technical and specialized tasks, literally buy services from skilled employees.

First, managers use predetermined performance indicators to align employee performance with organizational strategy. Performance indicators are a list of a firm’s objectives in a given period (Mytty, Pedak & Sun, 2016). These objectives, in most cases, are determined during annual meetings. Braintrust Toys can apply this strategy to achieve its first-step goals outlined. The company will determine employee behavioral guidelines that can help them boost product qualities, develop new products, and venture into new markets.

Additionally, Braintrust Toys can apply the 360-degree performance appraisal to evaluate its employees. The tool appraises employees based on predetermined performance measures (Mytty, Pedak & Sun, 2016). HR practitioners review feedback from 7-12 employees about another employee.  The employees also provide feedback about themselves by filling a self-assessment form. The 360 assessment criterion helps an organization ascertain the employee’s ability besides helping them correct their weak areas to align with organizational goals.

Another strategy is to adopt a benefits plan based on performance. Some of the employees’ motivational strategies include inventory plans, bonuses, profit sharing, and vacations (Mytty, Pedak & Sun, 2016). Informing employees of such benefits will motivate them to work hard toward the achievement of organizational goals. Braintrust Toys can consult external experts if they are unsure of the strategies that can motivate their employees.

Methods of Evaluation

One of the employee evaluation mechanisms that Braintrust Toys can use is the performance checklist. The performance checklist will enable the company to evaluate the employees based on their daily productivity emanating from the listed metrics (Daoanis, 2012). The strategy also helps the company monitor employee availability to ensure that they report to the workplace. The strategy should be linked with an internal benefits plan. The evaluation results will be based on the accumulative attainment of the metrics on the performance list (Daoanis, 2012). A performance checklist also allows employees to meet with their managers and formulate a shared strategy for accomplishing their goals.

Another evaluation strategy is management by objective (MO). The strategy allows the enterprise to define what amounts to failure and success. Hence, it is easy to measure the capabilities of almost every employee. Managers meet with employees and organize the appraisal objectives that they will focus on in a given appraisal period. It allows managers and employees to monitor the progress of organizational goals to ensure that they are pursuing a feasible goal (Daoanis, 2012). Management by objective is also a good way to link organizational and employee goals. MO will be useful for Braintrust Toys as the company is shifting to an innovative strategy in a highly technical industry. Besides, it is a SMART tool that will ensure that the organization pursues realistic, specific, and time-sensitive objectives.

Employees are evaluated quarterly to ensure they are sticking with the enterprise’s strategy. Those who portray success in their focus areas are rewarded with bonuses, and vacations, among other employee benefits. Those who fail to achieve these goals are dealt with through transfers to other business areas.

In summary, companies that expect to gain competitive advantage must pay their employees competitively. Good pay spurs employees’ creativity which drives innovative effort. An enterprise could use a myriad of strategies to align compensation with a company’s objectives and strategies. These include performance indicators, 360 evaluation mechanisms, and a comprehensive employee benefits plan.


Daoanis, L. E. (2012). Performance Appraisal System: It’s Implication to Employee             Performance. International Journal of Economics and Management Sciences2(3), 55-     62.

Mytty, N., Pedak, K., & Sun, C. (2016). Aligning Compensation Strategy with Business Strategy case study of a company within the service industry.


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assignment: Evaluations, Compensation, and Firm Objectives

The following Course Outcomes are assessed in this assignment:

MT203-3: Explain how companies link compensation and evaluation to organizational objectives.

GEL-1.02: Demonstrate college-level communication through the composition of original materials in Standard English.

Evaluation, Compensation, And Firm Objectives

Evaluation, Compensation, And Firm Objectives

Introduction: A company’s mission, vision, and values must be aligned with the company strategy. Then each of the functional areas of the company has its own strategies that align with the overall company strategy. In this assignment, you will explain how a company can link its compensation and performance evaluations to the organization’s innovation objectives and strategy.

Read the case study below, and respond to all the checklist items.

Case Study: Evaluations, Compensation, and Firm Objectives

Braintrust Toys is a toy maker that has as its mission, “Our purpose is to expand the minds of children 1 month–100 years old.” Currently, they use a product development strategy but believe that maybe they need to orient their company towards an innovative strategy.

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