Improving Employee Performance Using Appropriate Compensation Mechanisms Essay

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J.C. PENNEY COMPANY CHALLENGES: COMPENSATION AND BENEFIT SYSTEM

J.C. Penney Company Challenges with Its Compensation and Benefit System

C Penney Company is a company that mostly deals in the normal house merchandise and runs in some stores in the country. It is one of the biggest retail stores in the United States. The major concern is that people often subscribe to the services offered by this company with the view of getting the best of what can come out. The following the compensation and benefits system for the company in light of the strengths and weaknesses witnessed. The analysis identifies other companies that are experiencing problems in their benefits systems. The study also looks into the benefits of engaging in the said benefits of the compensation system. An analysis of the challenges offers an opportunity for the management to identify he possible solution in improving its system. The analysis is structured to bring the better part of the company to light amidst the challenges being experienced in matters of compensation. Despite the many challenges arising from the benefits system, the employees have been loyal in anticipation of improvement of the employment terms.

Literature review

Compensation Benefits System

This refers to a model used by the management to pay employees for their efforts in a company. This covers salaries, wages, allowances, housing and other incentives given to employees both as payment for work done and as motivation to spur better services. There ought to be an elaborate compensation system for all people who work for the company, where people have to be made to feel happy and loyal to the company. In other instances, there ought to be a better chance for the management to secure a sustainable payment system that will not predispose the company to failure (Sayles, 2011). It is also noted that more people are getting involved in the studies and formulations of policies that are aimed at making the topic of compensation and rewards a working one.

In this regard, it pays to get involved in a lengthy but comprehensive coverage and research into the topic that has the benefit of improving the mannerisms of pay where need be. This has been witnessed in the recent studies done on the importance of giving sufficient payments for work done. It is part of the entire human resource program to award sufficient pay to all employees as it motivates positive actions (Sibson, 2011). In the recent times, there have been studies done to this effect that have led to meaningful discoveries and innovations made. The most notable of the findings is in the fact that employers now value their employees and now see to it that they have sufficient pay.

The other important fact that has been boosted by the studies shows that people now have a better view of the undertakings concerning the work relationships that are expected. In the modern days, people often regard the relationship that is between the employer and the employees to be highly determined by the kind of pay they are given (Waltz, 2010). The relationship is purely on matters of whether the pay meets the said objective. It is often realized that the more employees stay in the company, the more they demand a higher pay.

Types of Compensation Used

Compensation that is offered by employers to their employees is in two types. One is the monetary rewards while the other is in the form of fringe benefits that are attached to the kind of job that people do. They include the availability of services such as transport as well as an accommodation for the employees. These are offered to make employees feel comfortable and find it convenient to work. Some of the benefits of participating in such kind of pay are that it helps in winning the loyalty of the employees as well as bringing home the fact that employees are valued (Reilly, 2009). This also tends to improve their productivity concerning the execution of the company tasks. This has been the major motive behind the execution of more robust activities and the appreciation of value through manipulation of content and fulfillment of the main mandate of the management. In all these cases, it has been seen that with more of these of personalized services at play, the welfare of the company tends to improve.

Compensation challenges at J.C Penney Company

The major challenges that are faced by the management of this company in rewarding their employees relate to capacity issues as well as the changing demands of these employees.

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There are also challenges relating to the negative externalities brought about by these modes of payment to the employees. These challenges, notwithstanding, the company has been able to secure a sustainable compensation scheme in the face of challenges.

The first challenge is on the capacity of the management to avail the funds ready for rewarding all the interested parties. The company has a large pool of employees and faces the obvious issue of capacity concerning paying the amounts expected. It is also expected that people are going to allow themselves some time to understand the management when the funds are lacking. However, since the amounts were determined during employment, it is quite difficult to handle all the demands for pay. This chance to pay all the employees makes it hard for the company to sustain its operations (Sibson, 2011). This challenge has been holding the company down on matters to do with the execution of better mandates. It is also noted that people often find fault at the company when they fail to remit the payments successfully. In the recent past, it has been seen that most people fall out of favor with the management and opt to look for jobs elsewhere whenever they are not fully compensated. While seeking to attain the appropriate capacity to handle these financial obligations, the management has been seeking to downsize its employee numbers. This has however been difficult since the tasks being handled require the current employee size.

The other challenge is the changing demand from employees for payments. Complacency is a phenomenon that occurs during the life of the employee in the company. In this case, it affects the way employees seek fulfillment while at work (Waltz, 2010). Some of the appealing moments in the life of an employee are when they are appraised with a better remuneration. However, the problem is that all employees will be overreactive and will demand to be given a better pay as is the norm in any workplace. This negates the whole idea of employee motivation and worsens of situations in the employer-employee relationship (Samuels & Pianko, 2007). In the recent past, labor movements have become new frontiers of trouble for managers as they develop more resistance to the work regarding the compensation of employees. In this case, it has made it difficult to sustainable reward the employees and makes them happy always. Some of the demands that employees are now presenting include the fact that life is much more important with the advent of new people. There has been a case where the people often regard themselves as the center of focus in the employment regime (Worrall, 2013).

The labor unions often want to secure better pay for the employees without the consideration of the fact that this could be costly to the employers. The negotiations of pay normally done by the labor unions hardly involve the employers, and this has made them vulnerable to the anger of the employees. The net result has been the emergence of many cases of pay rise demands being witnessed. Conditions become unfavorable when employees show up to work for the sake of money alone. The major problems are that the more the demand for the salary increment is done, the harder it gets for the employers when it comes to securing the amount need to pay them (Sibson, 2011). It has been in the minds of the employees to have the employer commit to the biggest pay that they present.

At J.C Penney Company, employees have encountered this challenge resulting in serious losses. Even when the demand for extra pay is not granted, there shall still be a loss to the society. This happens through the fact that when not given their desired pay., the employees end up losing motivation to work. Eventually, they end up not giving their best towards the employee benefits regime. Besides, whenever people consider having a constructive bargaining regarding the advent of work relations, the use of economic sabotage has been the norm (Mecklenburger, 2014). The more the company management considers solving the human resource problems that touch on the pay schedule, the idea of service delivery to the necessary people comes to fore. In the recent past, the company management has been grappling with the idea of saving the employees from the very issues that touch on their welfare. Ideally, the latest tendencies for growth in the management of work relations have been….....

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