Workforce Solutions Services Compensation Strategy

Workforce Solutions Services Compensation Strategy

Of the three generic business strategies that most organizations follow (cost- cutter, customer-centric, prospector, innovator, or something else), which strategy does your case study seem to fit and why? Review the following to help you; the article in Unit 1 titled The linkages between business strategies, culture, and compensation using Miles & Snow’s and Hofstede culture framework in conglomerate firms, Three Compensation Strategies (Exhibit 2.1), and Tailor the Compensation System to the Strategy (Exhibit 2.3).

Workforce Solutions Services (WSS) utilizes product/service differentiation and growth business strategies. The differentiation strategy allows every business to stand out from others in the market and gives clients a reason to choose a specific player. Players in a specific industry struggle with a sameness of products and services. When offering similar products and services, some players fail to use communication or branding to differentiate their offerings or style of delivery. Players need to differentiate because of market saturation and the creation of inimitable value creation (Laja, 2020). WSS, a service provider, offers new solutions to clients by seizing new opportunities. To sustain differentiation as a business strategy, WSS uses an innovative culture that supports new ideas, risk-taking, creativity, collective decision-making, flexibility, and freedom to take action. The company’s dominant aspects include the entrepreneurial spirit, dynamism, as well as the willingness to exit the comfort zone and venture into murky waters.

The company’s leadership also supports the differentiation strategy, which results in growth. Leaders exemplify entrepreneurship, innovation, as well as risk-taking. Employees are encouraged to take individual risks to come up with innovative and unique solutions. To enhance employees’ abilities to be innovative, WSS facilitates the specialization of labor, which ensures that all employees master their craft. The diversity of the workforce also contributes positively to the differentiation strategy. Employees are able to collaborate and come up with new ideas, which originate from varying perspectives. The values that guide the employee’s actions include innovation, diversity, high performance, learning, flexibility, and risk-taking. Based on Hofstede’s culture framework, innovators tend to gain long-term benefits and better group incentive schemes. These benefits are only accessed if an organization’s culture, values, and management are all aligned to support innovation. Failure to align these aspects paralyzes the differentiation strategy (Verma & Sharma, 2019). Thus, WSS is set to gain such benefits due to the alignment of critical aspects that shape and support the chosen business strategy, and product/service differentiation.

What compensation objectives can you conclude from your case study (review Exhibits 1.5, 1.6, 2.1, and 2.3 to help you gather some ideas for your case study)? List several unique compensation objectives for your case study and explain why you have inferred your unique objectives.

WSS seeks to differentiate its services in the sector by identifying unique opportunities and creating new solutions. Its main objective is to offer bundled services and products as a package to its clients. The staff members are employed on varying terms. Some are permanent, temporary, or outsourced. The 5,000 employees enjoy an innovative culture that is supported through the appropriate leadership, management, and strategies. To ensure that employees are innovative, specialization is highlighted as an important aspect and continuous learning. Thus, one of the main objectives that seep through the highlighted aspects is the retention of employees. The company’s competitors are numerous. WSS must attract the best talent and train them. Compensation strategies that WSS adopts must be intended to maintain the staff to ensure that resources and time, which have been committed to the learning process, are not wasted.

In addition, the company needs to motivate its staff members to improve their performance steadily. Motivation as a compensation objective perfectly aligns with the company’s service differentiation and growth strategies. To motivate employees, WSS may adopt a pay-for-performance plan, which pushes all employees to constantly make changes that influence the company positively. Such a compensation system is also likely to encourage continuous learning, which is critical for innovation and creativity (U.S. Merit Systems Protection Board, 2006).

Review Formulating a Total Compensation Strategy (Exhibit 2.6) and Contrasting Maps of Microsoft and SAS (Exhibit 2.8). Map a total compensation strategy for Competitiveness and Employee Contributions. Discuss your company’s profile in these two areas and explain why you have answered in this way.

Competitiveness from players in the market determines the company’s compensation strategy. First, the company intends to offer pay that is slightly above the market rates concerning cash or non-cash compensation. This should attract better talent and retain employees for longer than competitors do. The main forms of pay that WWS can implement include base wages, financial benefits, non-financial benefits, and bonuses. Each of these is intended to achieve a different purpose. The base wages offer employees a living wage. The benefits, both financial and non-financial, are intended to motivate employees and introduce a sort of work-life balance. The bonuses should motivate employees to innovate consistently because the company is willing to reward creative solutions.

In terms of employee contributions, the individuals will be expected to set goals alongside their supervisors and work towards the same. The goals should be used to monitor their progress periodically. The employees’ contributions can also be assessed in teams. This allows for better innovation because each individual has different perspectives. The continuous provision of feedback is necessary for ensuring that the team or individuals improve their performance. Outcomes should be clear to ensure that employees are aware of the common goal. To facilitate the entire process, WSS should offer development opportunities where employees gain new skills and acquire new knowledge (Singh, 2012). To motivate employees further, WSS can institute a profit-sharing plan that allows staff members to gain additional financial benefits according to their contributions.

In the case study you have selected, how might the company’s values be reflected in your compensation system design and why?

Workforce Solutions Services’ values include honesty, diversity, innovation, high performance, learning, risk-taking, balance, and flexibility. These values can be reflected in the pay system. First, the evaluation system should be fair and transparent to reward each team or individual according to their contribution or goal achievement. Secondly, individuals should receive rewards that motivate them. According to Abraham Maslow’s theory of motivation, individuals are at different levels of the pyramid (Mawere, 2016). Therefore, using similar rewards does not achieve the maximum benefits of motivation.

Thirdly, the goals and strategies should incorporate learning and personal development. Fourthly, the risk-taking process should be monitored to ensure a balance of resources. Finally, the flexibility of individuals is vital in ensuring that high performance is achieved. These aspects are essential in the adjustment of strategies after receiving feedback. Incorporation of these values ensures that all employees receive fair pay for their contributions.

Review Hierarchical versus Egalitarian Structures (Exhibit 3.6) and Layered versus Delayered Structures (Exhibit 3.7). What types of internal structures do you believe would fit best for your case study and why

WSS should adopt a hierarchy and delayered internal structure. Hierarchy is a familiar form of internal management that human beings have interacted with even in the social setting. Hierarchy is essential in providing direction and oversight to employees. The staff members are aware of individuals to seek insight and direction. The leaders and managers in various positions play a critical role in guiding the workforce on strategies, and goals, and finding solutions (Meyer, 2017). Thus, this internal aspect would eliminate confusion that is likely to occur while using an egalitarian structure.

Delayering is the reduction of management levels in an organization. An entity such as WSS, which seeks to pursue differentiation and growth, requires enabling internal structures. Delayering enables faster decision-making and encourages creativity and innovation. It reduces bureaucratic policies that may hinder the organization’s growth or pose challenges that interfere with the employees’ achievement of goals (McDowell & Miller, 2019). Therefore, the presence of a hierarchy does not mean that management levels should be numerous. The hierarchy should be clear enough and brief to further the company’s goals.

References

Laja, P. (2020). Differentiation Strategy: What It Is, Why It’s Critical, and How To Get It Right.

Mawere, M. (2016). Maslow’s Theory of Human Motivation and its Deep Roots in Individualism: Interrogating Maslow’s Applicability in Africa. In Theory, Knowledge, Development and Politics: What Role for the Academy in the Sustainability of Africa? Langaa RPCIG.

McDowell, T., & Miller, D. (2019). Spans and Layers for the Modern Organization.

Meyer, E. (2017). Being the Boss in Brussels, Boston, and Beijing. Harvard Business Review. Retrieved from https://hbr.org/2017/07/being-the-boss-in-brussels-boston-and-beijing

Singh, B. D. (2012). Compensation and Reward Management. Excel Books India.

U.S. Merit Systems Protection Board. (2006). Designing an Effective Pay for Performance Compensation System. Retrieved from https://www.mspb.gov/mspbsearch/viewdocs.aspx?docnumber=224104&version=224323&application=ACROBAT

Verma, P., & Sharma, R. R. (2019). The linkages between business strategies, culture, and compensation using Miles & Snow’s and Hofstede culture framework in conglomerate firms. Benchmarking: An International Journal, 26(4), 1132-1160. doi:https://doi.org/10.1108/BIJ-06-2017-0153

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Case Study 1

Due Date: 11:59 pm EST, Sunday of Unit 3

Points: 100

Overview:

To understand how to design a comprehensive compensation strategy, you will apply your learning to the selected case study.

Instructions:

Select one company to use throughout the course (the company information document is attached to the assignment). You will use this company case study to apply your learnings from the class.

• Record your name, the date, and the company name you have chosen for your case study on the title page of your

Take time to read and review Chapters 1-4 to answer these questions.

Answer the following questions for the case study you have chosen. Read all aspects of your case study carefully. Please make sure you address each question thoroughly and clearly. Each question should be at least 2-3 paragraphs to illustrate your understanding. Review the grading rubric before writing your paper.

• Of the three generic business strategies that most organizations follow (cost- cutter, customer-centric, prospector, innovator, or something else), which strategy does your case study seem to fit and why? Review the following to help you; the article in Unit 1 titled The linkages between business strategies, culture, and compensation using Miles & Snow’s and Hofstede culture framework in conglomerate firms, Three Compensation Strategies (Exhibit 2.1), and Tailor the Compensation System to the Strategy (Exhibit 3).
• What compensation objectives can you conclude from your case study (review Exhibits 1.5, 1.6, 2.1, and 2.3 to help you gather some ideas for your case study)? List several unique compensation objectives for your case study and explain why you have inferred your unique
• Review Formulating a Total Compensation Strategy (Exhibit 2.6) and Contrasting Maps of Microsoft and SAS (Exhibit 2.8). Map a total compensation strategy for

Competitiveness and Employee Contributions. Discuss your company’s profile in these two areas and explain why you have answered in this way.

• In the case study you have selected, how might the company’s values be reflected in your compensation system design and why?
• Review Hierarchical versus Egalitarian Structures (Exhibit 3.6) and Layered versus Delayered Structures (Exhibit 3.7). What types of internal structures do you believe would fit best for your case study and why?

Requirements:

• Submit a Word document in APA format (double spaced with references and APA in text citations).
• Maximum 6 pages in length, excluding the Title and Reference
• At least two

Be sure to read the criteria below by which your work will be evaluated before you write and again after you write.

Evaluation Rubric for Case Study 1

CRITERIA	Deficient	Needs Improvement	Proficient	Exemplary
	0 – 17 points	18 – 23 points	24 – 29 points	30 points
Relevance	Does not understand each question nor its relevance to the learning material	Generally, understands each question and its relevance to the learning material	Mostly understands each question and its relevance to the learning material	Completely understands each question and its relevance to the learning material
Complete and Concise	Fails to answer each question thoroughly and concisely	Somewhat answers each question thoroughly and concisely	Mostly answers each question thoroughly and concisely	Thoroughly answers each question completely and concisely
Support	Fails to provide relevant examples and/or sources supporting each answer	Generally, it provides relevant examples and/or sources supporting each answer	Mostly provides relevant examples and/or sources supporting each answer	Completely provides relevant examples and/or sources supporting each answer
	0 – 5 points	6 – 7 points	8 – 9 points	10 points
Clear and Professional Writing and APA Format	Errors impede professional presentation; guidelines not followed.	Significant errors that do not impede professional presentation.	Few errors that do not impede professional presentation.	Writing and format are clear, professional, APA compliant, and error-free.

Case Studies

Select a hypothetical company (Workforce Solutions Services, Inc., Global Braking Components Corp., or Worldglobe Biotech Corp.) from one of the columns below which interests you. You will use this case study to apply your learning in Unit 3, 5, and 7.

 

Company Name Vision	Workforce Solutions Services Inc. (WSS) Making HR Easier	Global Braking Components Corp. (GBC) Designing and Producing a World Class Product	Worldglobe Biotech Corp. (WBC) Developing the Next Generation of Biotech Solutions
Industry – Product	Service – Staffing and Workforce Solutions	Manufacturing – Automotive components	Research – Biotech and Pharmaceuticals
# Employees	5,000 employees – US and Canada   Temporary and permanent staffing, outsourcing, and innovative workforce solutions (payroll, on site workforce management, recruiting, temporary solutions, outplacement).	200 employees – Global manufacturing – 5 locations   Braking component supplier to US automotive manufacturers.	10,000 employees – Global Biotechnology and pharmaceuticals.
Financial Overview	Modestly Profitable 20% profit margins	Low Profitability 8% profit margins	Very Profitable 40% profit margins
Strategic Emphasis	Acquiring new customers. Experimentation and searching for opportunities are valued.   Acquire new resources. Obtain new opportunities. Differentiation. Continuous Development. Transformational changes to the market. Focus on growth – expand service offerings. Long term approach. Increase market share.	Permanence and stability. Efficiency, control and smooth operations are important.   Improve Quality. Increase sales/reduce cost. Reduce safety incidents. Increase operational efficiency. Maintain key customers and markets and increase sales in current market space. Short term approach – investor owned. Sell the business.	Competitive actions and achievement. Hitting stretch targets and winning in the marketplace are dominant.   Increase market share. Develop new customers. Deliver new products to the market. Increase profitability. Obtain goals
Market	Service differentiation	Low product cost	Product differentiation

 

Position	Provide new solutions to the customer	Product centered Manage the customer	Customer centered
Objectives	An organization that focuses on selling product bundles/systems. They deliver products and services as a package	An organization that is focused on producing and selling excellent products (basic philosophy is customers will buy product because it is the best in the marketplace)	An organization that is aware of their customers and knows to whom they are selling and segments their customers and tailors marketing campaigns by segment. Looks for cross selling opportunities.
Competitors	Many competitors	Steady competition	Few competitors
Criteria for Success	The organization defines success on the basis of having the most unique or newest services. It is a service leader and innovator. Goal is to outpace and outperform the competition with new opportunities, provide unique cutting- edge workforce solutions	The organization defines success on the basis of efficiency. Dependable delivery, smooth scheduling and low-cost production are critical.	The organization defines success on the basis of winning in the marketplace and outpacing the competition. Competitive market leadership is key.
Organization Culture	Commitment to innovation and development. There is an emphasis on being on the cutting edge.   Risk Taking, Performance, Long Term Thinking, Unstructured Environment, Flexible, Creative, Shared Decision Making, Freedom to Act.	Formal rules and policies. Maintaining a smooth-running organization is important.   Stability, Management Control, Structure, Hierarchy, Centralized Decision Making, Process Focused, Formal Planning and Approvals, Internal Consistency/Uniformity, Timeliness, Organization	Emphasis on achievement and goal accomplishment. Aggressiveness and winning are common themes.   Customer Focus, Results Oriented, Diversity, Innovation, Learning/Development, Personal Growth, High Performance, Collaboration.
Dominant Characteristics	The organization is a very dynamic entrepreneurial place. People are willing to stick their necks out and take risks.	The organization is a very controlled and structured place. Formal procedures generally govern what people do.	The organization is very results oriented. A major concern is with getting the job done. People are very competitive and achievement oriented.
Leadership	The leadership in the organization is generally considered to exemplify entrepreneurship, innovating, or risk taking.	The leadership in the organization is generally considered to exemplify coordinating, organizing, or smooth- running efficiency.	The leadership in the organization is generally considered to exemplify a no- nonsense, aggressive, results-oriented focus.
Management of employees	The management style in the organization is characterized by individual risk-taking, innovation, freedom, and uniqueness.	The management style in the organization is characterized by security of employment, conformity, predictability, and stability in relationships.	The management style in the organization is characterized by hard-driving competitiveness, high demands, and achievement.
Values	Honesty, Diversity, High Performance, Innovation, Risk Taking, Learning, Balance, Flexibility	Integrity, Results, Continuous Improvement, Problem Solving, Accountability	Trust, Respect, High Performance, Expertise, Creativity, Problem Solving, Results
Workforce Description	Employee specialization – Temporary labor which includes clerical, administrative, assemblers, machine	Employee specialization – Manufacturing Engineers, Material Planners, Operations Specialists, Machine Maintenance	Employee specialization – Biochemists, Bio-pharmacologists, Research Scientists, Engineers, Program Managers, Supply

	operators, inspectors   Other key positions include Information Technology Business Analysts, Information Technology Specialists, Cost Accountants, Safety Specialists, Sales Managers, On site Client Managers, Media, Communications and Media Specialists.   Diverse workforce with broad range in age.   Customer Facing – Temporary Labor assigned to client sites, such as Assemblers, Administrative Assistants, and Clerks, as well as Sales Managers, Solution Managers, and On-site client Managers	Technicians, Machine Operators, Manufacturing Technicians, Assemblers, Materials Handlers.   Other key positions include Information Technology Manager, HR Manager, Plant Manager, Finance Manager, Safety Manager   Older diverse workforce with long service.   Customer Facing – Sales Manager, Quality Manager, Engineering Manager, Plant Manager	Chain Managers, Information Technology, Clinical Affairs, Medical Officers, Regulatory Specialists.   Diverse and global workforce. Collaborative. Team focused. Recent graduates with PhD, MS degrees. Younger workforce.   Customer Facing – Sales Managers, Marketing Managers, Research Managers, Clinical Managers, Quality Managers, Medical Officers, Regulatory Managers
External labor market availability	The labor market is not readily available. Competition with other companies is fierce.	Machine Operators and Assemblers are recruited locally but difficult to find. Specialized engineering skills are difficult to find locally and recruiting comes from out of state or up to 35 miles outside the facility.	High demand for high tech talent. Most of the company facilities are located in urban areas near universities. Supply of talent is available but the company competes with several large biopharma industries throughout the US.