MT 203 UNIT 7 ASSIGNMENT

Mt 203 Unit 7 Assignment

Managing Talent Wal-Mart Case

University Affiliation

Compare the impact of incentive pay on the total compensation of Wal-Mart’s CEO and the company’s average workers. Does the difference in the way pay is structured at these two levels make business sense? Why or why not?

Wal-Mart’s CEO has got higher incentive when compared to those of the average workers. Again, the total compensation offered to the CEO exceeds that of the average workers. The difference in the way the total compensation is structured for both the CEO of the company and the average workers make a great business sense. In any given organization, the CEO is termed as the head of the whole organization. For one to secure such position, is expected to qualify academically, skills and have adequate knowledge on all areas of operations within the company. Considering the job position and the responsibilities, CEOs deserve the highest pay. Even if they are not directly involved in the normal execution of the company’s operations, they are responsible for establishing the strategic goals that guide the average workers. Again, payment differences lea to respect in organizations. CEO been the head of the organization must be respected. In the event he is paid the same as the average workers, such respect will not be there as they will see themselves at the same level as the CEO. The higher the CEO’s incentives, the more the respect (Greckhamer, 2016).

Without the role the role of the CEO, no way average workers will be able to guarantee organizational success, as they don’t have goals to guide them. CEO of Wal-Mart receiving high total compensation than the average workers is quite reasonable as it will motivate him to make better strategic goals that will lead to success of organization.

The average workers even although receiving lower earnings than that of the CEO, they are not badly paid. They have got good pay that increases their morale to deliver more to the company.

Explain how Wal-Mart’s store workers might judge the equity of the difference between their total compensation and Mike Duke’s total compensation?

Store workers of the company can justify the low compensation compared to the high pay of their CEO Mike Duke, by considering his education level, skills, responsibilities, job position amongst other qualities. There is a motivation behind why the difference occurring in the in the two levels. This is on account of at the CEO level he is been for the long time he has been working for the organization. Again, it is through the direction of the CEO that the organization has the capacity achieve its strategic goals. Every one of the representatives do is actualizing the methodologies that they have concocted. This is the reason the distinction in the way pay is organized at these two levels bodes well.

Store workers in Wal-Mart would not feel that the choice of the value of the contrast between their total compensation and that of their CEO, Mike Duke’s pay is reasonable. To them they would feel that they are accomplishing more to the success of the organization as opposed to the CEO. The distinction in motivators paid by the organization would stir the lesser specialists to buckle down. The store workers will realize that the consequence of being careful in their work they would achieve management levels. This is the reason they will be completely spurred to guarantee that they strive to guarantee that they are advanced. Therefore, the store workers will guarantee that they will do their best at work. They are guaranteed that their desires to earn more compensation will be met through job advancement (Mishel & Davis, 2015).

Describe and compare effective performance management techniques for the CEO and for average workers.

For effective organizational performance, CEO must ensure that he or she practices effective management techniques. CEO must arrange for performance review meetings, in order to evaluate the extent by which they have been able to achieve the set goals. Again, there is need to establish performance objectives, that will act as performance guideline. There is no way CEO performance can be measured without having goals or benchmark. The set objectives should be reviewed from time to time to ensure alignment with the performance. Again, the CEO can establish personal development plans (PDPs) to measure their individual performance, in line with the organizational strategic goals (Wong et al. 2015).

Average workers need to know what they are supposed to do and when. Again, they have to establish objectives that they have to achieve and that must be in line with organizational goals and objectives. Their performance should be evaluated from time to time, to determine the extent at which they have been able to achieve the goals.

Effective performance management techniques for CEO and average workers do not have big differences. One has to know what to do, have goals and objectives that are in line with those of the organization, establish personal development plans (PDPs) as well as ensuring that the performance is evaluated from time to time.

References

Gartenberg, C., & Wulf, J. (2017). Pay harmony? Social comparison and performance compensation in multibusiness firms. Organization Science, 28(1), 39-55.

Greckhamer, T. (2016). CEO compensation in relation to worker compensation across countries: The configurational impact of country‐level institutions. Strategic Management Journal, 37(4), 793-815.

Mishel, L., & Davis, A. (2015). Top CEOs make 300 times more than typical workers. op. cit.

Wong, K. Y., Tan, L. P., Lee, C. S., & Wong, W. P. (2015). Knowledge Management performance measurement: measures, approaches, trends and future directions. Information Development, 31(3), 239-257.