Human Resources Pay Decisions at Case Study

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Often employees also receive an end-of-year lump sum bonus that is not included in their base pay (Employee Compensation, 2010).

Perkins and Balkin can choose to do any types of compensation plans that they want to. They can have plans for different areas within the organization. For example, everyone in the company could be on an hourly compensation plan while say the sales department could be on a pay for performance plan. The key is to make sure that everyone that is within a department is on the say type of plan so that everything is kept fair and ethical.

A high performance work system has many benefits for both employees and organizations. If employees feel that they are part of a high performance system then they will be happier employees and thus more productive. There are seven steps that a company must go through in order to establish a high performance work system.

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The first step is to have a good leader at the top of the organization. The second step is to measure the current culture so that it is known how the employees currently feel. The third step is to get buy in from the top level management if changes are to be made. The fourth step is to clearly identify the organizations purpose and values. The fifth step is to communication to the entire organization what changes are being made and why. The sixth step is to teach managers what is necessary to ensure that the new changes will be maintained. The last step is to make sure that everyone takes personal responsibility for the changes that are being made (Lear, 2004)......

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